Mar 31, 2016
To the Members of
M/s. Sujana Metal Products Limited.
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of Sujana Metal Products Limited (âthe Companyâ), which comprise the Balance Sheet as at March 31, 2016, the Statement of Profit and Loss and the Cash Flow Statement for the year then ended, and a summary of the significant accounting policies and other explanatory information.
Managementâs Responsibility for the Standalone Financial Statements
The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, as applicable. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of these standalone financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditorsâ Responsibility
Our responsibility is to express an opinion on these standalone financial statements based on our audit. We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under and the Order under Section 143(11) of the Act. We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the standalone financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the standalone financial statements. The procedures selected depend on the auditorsâ judgment, including the assessment of the risks of material misstatement of the standalone financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Companyâs preparation of the standalone financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Companyâs Directors, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2016, and its profit and its cash flows for the year ended on that date.
Emphasis of Matters
We draw attention to the following matters in the Notes to the financial statements:
a) Note 18 and 20 forming part of the financial statements regarding the Trade Receivables which are long overdue to the extent of Rs. 20,756.12 of which Rs.663.04 lakhs was provided as doubtful debts by the management. And Rs. 404.23 lakhs of advances are long overdue of which Rs. 351.92 lakhs was provided as doubtful advances by the management.
b) Refer note No. 31 regarding the winding up petition filed by Standard Bank (Mauritius) Ltd., in the High Court of Andhra Pradesh against the company for giving corporate guarantee for loan extended by the said bank to the step down subsidiary Optimix Enterprises Limited for Rs. 4,087.50. lakhs. We are unable to form an opinion on the uncertainty regarding the outcome of Andhra Pradesh High Court decision
Our opinion is not modified in respect of these matters.
Report on Other Legal and Regulatory Requirements
1. As required by Section 143(3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
(b) In our opinion, proper books of account as required by law relating to preparation of the standalone financial statements have been kept by the Company so far as it appears from our examination of those books.
(c) The Balance Sheet, the Statement of Profit and Loss and the Cash Flow Statement dealt with by this Report are in agreement with the books of account maintained for the purpose of preparation of these standalone financial statements.
(d) In our opinion, the aforesaid standalone financial statements comply with the Accounting Standards specified under Section 133 of the Act, as applicable.
(e) On the basis of the written representations received from the Directors as on March 31, 2016, taken on record by the Board of Directors, none of the Directors is disqualified as on March 31, 2016 from being appointed as a Director in terms of Section 164 (2) of the Act.
(f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in âAnnexure Aâ. Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the Companyâs internal financial controls over financial reporting.
(g) With respect to the other matters to be included in the Independent Auditorsâ Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
i) The Company has not disclosed the impact of pending litigations on its financial position in its standalone financial statements.
ii) The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.
iii) There have been no amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
2. As required by the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ) issued by the Central Government in terms of Section 143(11) of the Act, we give in âAnnexure Bâ a statement on the matters specified in paragraphs 3 and 4 of the Order.
ANNEXURE âAâ TO THE INDEPENDENT AUDITORSâ REPORT
(Referred to in paragraph 1(f) under âReport on Other Legal and Regulatory Requirementsâ section of our report of even date)
Report on the Internal Financial Controls Over Financial Reporting under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
We have audited the internal financial controls over financial reporting of Sujana Metal Products Limited (âthe Companyâ) as of March 31, 2016 in conjunction with our audit of the standalone financial statements of the Company for the year ended and as on that date.
Managementâs Responsibility for Internal Financial Controls
The Companyâs management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India (the âGuidance Noteâ). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to Companyâs policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Act.
Auditorsâ Responsibility
Our responsibility is to express an opinion on the Companyâs internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Standards on Auditing prescribed under Section 143(10) of the Act and the Guidance Note, to the extent applicable to an audit of internal financial controls. Those Standards and the Guidance Note require that we comply with the ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditorsâ judgment, including the assessment of the risks of material misstatement of the standalone financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Companyâs internal financial controls system over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A companyâs internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A companyâs internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the companyâs assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial controls over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, to the best of our information and according to the explanations given to us, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2016, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note.
(Referred to in paragraph 2 under âReport on Other Legal and Regulatory Requirementsâ section of our report of even date)
Report on Companies (Auditorâs Report) Order, 2016 (âthe Orderâ) issued by the Central Government in terms of Section 143(11) of the Companies Act, 2013 (âthe Actâ) of Sujana Metal Products Limited (âthe Companyâ)
1. In respect of the Companyâs fixed assets:
(a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
(b) The fixed assets were physically verified during the year by the Management in accordance with a regular programme of verification which, in our opinion, provides for physical verification of all the fixed assets at reasonable intervals. According to the information and explanations given to us, no material discrepancies were noticed on such verification.
(c) According to the information and explanations given to us and the records examined by us and based on the examination of the conveyance deed provided to us, we report that, the title deeds, comprising all the immovable properties of land and buildings which are freehold, are held in the name of the Company as at the balance sheet date.
2. As explained to us, the inventories were physically verified during the year by the Management at reasonable intervals and no material discrepancies were noticed on physical verification.
3. The Company has not granted any loans, secured or unsecured, to companies, firms, limited liability partnerships or other parties covered in the register maintained under Section 189 of the Act.
4. In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of Sections 185 and 186 of the Act in respect of grant of loans, making investments and providing guarantees and securities, as applicable.
5. The Company has not accepted deposits during the year and does not have any unclaimed deposits as at March 31, 2016 and therefore, the provisions of the clause 3 (v) of the Order are not applicable to the Company.
6. The Maintenance of Cost Records has been specified by the Central Government under section 148(1) of the Companies Act, 2013. We have relied on the Cost audit report submitted by the Cost Auditors of the Company and according to the said report the Company has complied with the Companies (Cost Records and Audit) Rules, 2014.
7. According to the information and explanations given to us, in respect of statutory dues:
(a) The Company has generally been regular in depositing undisputed statutory dues, including Provident Fund, Employeesâ State Insurance, Income Tax, Sales Tax, Service Tax, Value Added Tax, duty of Customs, duty of Excise, Cess and other material statutory dues applicable to it with the appropriate authorities.
(b) There are no undisputed amounts payable in respect of Provident Fund, Employeesâ State Insurance, Income Tax, Sales Tax, Service Tax, Value Added Tax, duty of Customs, duty of Excise, Cess and other material statutory dues in arrears as at March 31, 2016 for a period of more than six months from the date they became payable as detailed below:
Particulars |
Outstanding -6 months (Rs. in Lakhs) |
Income Tax (Corporate Dividend Tax) |
2.64 |
Total |
2.65 |
(c) Details of dues of Income Tax, Sales Tax, Customs and Excise duty and Value Added Tax which have not been deposited as at March 31, 2016 on account of dispute are given below:
Disputed Statutory dues as on 31.03.2016 |
|||
Name of the Statute |
Amount Rs. in Lakhs |
Period to which the amount relates (FY) |
Forum where dispute is pending |
Income Tax Act , 1961 |
1479.26 |
2008-2011 |
Income Tax Appellate Tribunal |
Central Excise Act, 1944 |
2333.00 |
1995-2013 |
Central Excise & Service Tax Appellate Tribunal |
Customs Act, 1962 |
548.33 215.08 21.97 54.11 |
1998-2008 2009-2010 2012-2013 2013-2014 |
Commissioner (Customs) Sea Port, Chennai, CESTAT, Bangalore |
Foreign Exchange Management Act, 1999 |
300.00 |
1995-1996 |
Honâble High Court of Delhi |
APGST ACT, 1957 |
438.13 786.88 |
2002-2003 2003-2004 |
Sales Tax Appellate Tribunal, Commercial Tax Officer |
Central Sales Tax Act, 1956 |
241.34 42.68 |
2006-2007 2007-2008 |
Appellate Dpty. Commissioner, Honâble High Court of Andhra Pradesh. |
Tamilnadu Value Added Tax Act, 2006 |
394.92 |
2006-2007 |
Honâble High Court of Tamilnadu |
There were no dues of duty of Customs, duty of Excise and Cess which have not been deposited as at March 31, 2016 on account of dispute.
8. In our opinion and according to the information and explanations given to us, the Company has defaulted in the repayment of loans or borrowings to banks. The details of the default is given below:
Details of over dues to Banks / Financial Institutions as on 31.03.2016 |
|||
Name of the Bank |
Nature of default |
Amount of Default in Rs. |
Period of Default in days |
Term Loans |
|||
IDBI Bank Ltd 1779 |
Principle & Interest on Term Loans |
2,255,208 |
363 |
Bank of India |
Principle & Interest on Term Loans |
6,261,458 |
284 |
Andhra Bank |
Principle & Interest on Term Loans |
6,323,958 |
180 |
Punjab National Bank - 4272 |
Principle & Interest on Term Loans |
9,463,542 |
183 |
SASFCENNAI Principal Interest |
Principle & Interest on Term Loans |
391,207,682 188,612,572 |
1399 1430 |
SASF HANDUM Principal Interest |
Principle & Interest on Term Loans |
216,214,806 26,445,731 |
1307 1430 |
SASF VIZAG Principal Interest |
Principle & Interest on Term Loans |
206,100,000 125,331,277 |
1307 1430 |
IDBI (Addl TL) Principal Interest |
Principle & Interest on Term Loans |
266,667 203,041 |
364 364 |
Bank of India (Addl TL) Principal Interest |
Principle & Interest on Term Loans |
280,208 315,154 |
274 80 |
Indian Overseas Bank Principal Interest |
Principle & Interest on Term Loans |
160,417 176,728 |
366 366 |
Andhra Bank (Addl TL) Principal Interest |
Principle & Interest on Term Loans |
282,292 308,352 |
183 195 |
PNB (Addl TL) Principal Interest |
Principle & Interest on Term Loans |
422,917 451,297 |
195 195 |
IDBI (FITL 1) Principal Interest |
Principle & Interest on Term Loans |
374,358 571,208 |
361 361 |
Bank of India (FITL 1) Principal Interest |
Principle & Interest on Term Loans |
3,549,274 3,001,358 |
318 318 |
Bank of Baroda (FITL 1) Principal Interest |
Principle & Interest on Term Loans |
241,238 340,349 |
242 242 |
Indian Bank (FITL 1) Principal |
Principle & Interest on Term Loans |
333,757 |
361 |
Indian Overseas Bank (FITL 1) Principal Interest |
Principle & Interest on Term Loans |
497,263 1,785,093 |
361 177 |
Karnataka Bank Ltd (FITL 1) Principal Interest |
Principle & Interest on Term Loans |
42,200 222,361 |
169 106 |
Andhra Bank Ltd (FITL 1) Principal Interest |
Principle & Interest on Term Loans |
521,584 961,286 |
180 180 |
Punjab National Bank (FITL 1) Principal Interest |
Principle & Interest on Term Loans |
917,472 1,671,884 |
88 119 |
State bank of Patiala (FITL 1) Principal Interest |
Principle & Interest on Term Loans |
548,148 1,419,464 |
152 152 |
Bank of India (FITL 11) Principal Interest |
Principle & Interest on Term Loans |
761,111 206432 |
280 260 |
Bank of Baroda (FITL 11) Principal Interest |
Principle & Interest on Term Loans |
362000 308584 |
240 240 |
Indian Bank (FITL 1) Principal |
Principle & Interest on Term Loans |
255,556 |
366 |
Indian Overseas Bank (FITL11) Principal Interest |
Principle & Interest on Term Loans |
520,000 207,142 |
366 366 |
Karnataka Bank (FITL 11) Principal Interest |
Principle & Interest on Term Loans |
200,000 86,174 |
119 119 |
Punjab Natioanl Bank (FITL 11) Principal Interest |
Principle & Interest on Term Loans |
437,902 468,988 |
181 183 |
State Bank of Patiala (FITL 11) Principal Interest |
Principle & Interest on Term Loans |
923,333 308,137 |
122 122 |
B) Letter of Credits |
|||
Bank of Baroda |
LC devolvement |
1977.76 |
Apr. 2015 to March 2016 |
Karnataka Bank |
LC devolvement |
1877.18 |
Oct. 2015 to March 2016 |
Punjab National Bank |
LC devolvement |
16,839.33 |
Oct 2015 to March 2016 |
9. The Company has not raised moneys by way of initial public offer or further public offer (including debt instruments) or term loans and hence reporting under clause 3 (ix) of the Order is not applicable.
10. To the best of our knowledge and according to the information and explanations given to us, no fraud by the Company and no fraud on the Company by its officers or employees has been noticed or reported during the year.
11. In our opinion and according to the information and explanations given to us, the Company has paid / provided managerial remuneration in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V to the Act.
12. The Company is not a Nidhi Company and hence reporting under clause 3(xii) of the Order is not applicable.
13. In our opinion and according to the information and explanations given to us the Company is in compliance with Section 177 and 188 of the Act, where applicable, for all transactions with the related parties and the details of related party transactions have been disclosed in the standalone financial statements as required by the applicable accounting standards.
14. During the year, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures and hence reporting under clause 3(xiv) of the Order is not applicable to the Company.
15. In our opinion and according to the information and explanations given to us, during the year the Company has not entered into any non-cash transactions with its Directors or persons connected to its Directors and hence provisions of Section 192 of the Act are not applicable.
16. The Company is not required to be registered under Section 45-I of the Reserve Bank of India Act, 1934.
For T. Raghavendra & Associates
Chartered Accountants
(Firm Regn No:003329S)
T. Raghavendra
Date: 30th May 2016 Proprietor
Place: Hyderabad Mem. No 023806
Mar 31, 2015
We have audited the accompanying Standalone financial statements of
M/s.SUJANA METAL PRODUCTS LIMITED ( "the Company "), which comprise the
Balance Sheet as at March 31,2015, the Statement of Profit and Loss,
the Cash Flow Statement for the year then ended and a summary of the
significant accounting policies and other explanatory information.
Management 's Responsibility for the Standalone Financial Statements
The Company 's Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 ( "the Act ") with respect
to the preparation of these standalone financial statements that give a
true and fair view of the financial position, financial performance and
cash flows of the Company in accordance with the accounting principles
generally accepted in India, including the Accounting Standards
specified under Section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014. This responsibility also includes
maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding the assets of the Company and
for preventing and detecting frauds and other irregularities; selection
and application of appropriate accounting policies; making judgments
and estimates that are reasonable and prudent; and design,
implementation and maintenance of adequate internal financial controls,
that were operating effectively for ensuring the accuracy and
completeness of the accounting records, relevant to the preparation and
presentation of the standalone financial statements that give a true
and fair view and are free from material misstatement, whether due to
fraud or error.
Auditors ' Responsibility
Our responsibility is to express an opinion on these standalone
financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting
and auditing standards and matters which are required to be included in
the audit report under the provisions of the Act and the Rules made
there under.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the standalone financial
statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the standalone financial statements.
The procedures selected depend on the auditor 's judgment, including
the assessment of the risks of material misstatement of the standalone
financial statements, whether due to fraud or error. In making those
risk assessments, the auditor considers internal financial control
relevant to the Company 's preparation of the standalone financial
statements that give a true and fair view in order to design audit
procedures that are appropriate in the circumstances, but not for the
purpose of expressing an opinion on whether the Company has in place an
adequate internal financial controls system over financial reporting
and the operating effectiveness of such controls. An audit also
includes evaluating the appropriateness of the accounting policies used
and the reasonableness of the accounting estimates made by the Company
's Directors, as well as evaluating the overall presentation of the
standalone financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the standalone
financial statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid standalone financial statements
give the information required by the Act in the manner so required and
give a true and fair view in conformity with the accounting principles
generally accepted in India, of the state of affairs of the Company as
at March 31,2015, and its profit and its cash flows for the year ended
on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor 's Report) Order, 2015 ( "the
Order ") issued by the Central Government in terms of Section 143(11)
of the Act, we give in the Annexure a statement on the matters
specified in paragraphs 3 and 4 of the Order.
2. As required by Section 143 (3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purposes of our audit.
(b) In our opinion, proper books of account as required by law have
been kept by the Company so far as it appears from our examination of
those books.
(c) The Balance Sheet, the Statement of Profit and Loss, and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account.
(d) In our opinion, the aforesaid standalone financial statements
comply with the Accounting Standards specified under Section 133 of the
Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
(e) On the basis of the written representations received from the
directors as on March 31, 2015 taken on record by the Board of
Directors, none of the directors is disqualified as on March 31,2015
from being appointed as a director in terms of Section 164 (2) of the
Act.
(f) With respect to the other matters to be included in the Auditor 's
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us:
(i) The company has disclosed the impact of pending litigations on its
financial position in its financial statements as referred to in Note
31 to the financial statements.
ii) The company had made provision, as required under the applicable
law or accounting standards, for material forseeable losses, if any,
and as required on long term contracts including derivative contracts.
(iii) There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection fund by the
company
Annexure to the Independent Auditor 's Report
The Annexure referred to in paragraph 1 under 'Report on Other Legal and
Regulatory Requirements' section of Our Report of even date to the
members of M/s.Sujana Metal Products Limited on the accounts of the
company for the year ended 31st March, 2015.
On the basis of such checks as we considered appropriate and according
to the information and explanation given to us during the course of our
audit, we report that:
(i) In respect of its fixed assets:
(a) The company is in the process of updating proper records showing
full particulars including quantitative details and situation of its
fixed assets.
(b) According to the information and explanations given to us, Fixed
Assets had not physically verified by the management during the period
under Audit.
(ii) In respect of its inventories:
(a) According to the information and explanations given to us,
inventories have been physically verified by the management at
reasonable intervals.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management were reasonable and adequate in relation to
the size of the Company and the nature of its business.
(c) In our opinion and on the basis of our examination of the records,
the company is generally maintaining proper records of its inventories.
No material discrepancy was noticed on physical verification of stocks
by the management as compared to book records.
(iii) According to the information and explanations given to us, the
Company has not granted any loans, secured or unsecured, to companies,
firms or other parties covered in the Register maintained under Section
189 of the Companies Act, 2013.
(iv) In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business for the
purchase of inventory and fixed assets and for the sale of goods and
services and during the course of our audit we have not observed any
major weaknesses in such internal control system.
(v) As per the information and explanation given by the company, the
Company has not accepted any deposits covered under section 73 to 76 of
the Companies Act, 2013.
(vi) As per the information & explanations given by the management,
maintenance of cost records has been prescribed and they were
maintained by the Company pursuant to the Companies (Cost Records and
Audit) Rules, 2014, as amended and prescribed by the Central Government
under subsection (1) of Section 148 of the Companies Act, 2013, and are
of the opinion that, prima facie, the prescribed cost records have been
made and maintained. However, we have not made a detailed examination
of the cost records with a view to determine whether they are accurate
or complete.
(vii) According to the information and explanations given to us, in
respect of statutory dues.
(a) According to the records of the company, the Company has been
generally regular in depositing undisputed statutory dues, including
Provident Fund, Employees' State Insurance, Income-tax, Sales Tax,
Wealth Tax, Service Tax, Customs Duty, Excise Duty, Value Added Tax,
Cess and other material statutory dues applicable to it with the
appropriate authorities. According to the information and explanations
given to us, there were no outstanding statutory dues as on 31st March,
2015 for a period of more than six months from the date they became
payable.
(b) According to the information and explanations given to us, there
are amounts payable in respect of income tax, sales tax, customs duty
and excise duty which have not been deposited on account of disputes.
The details are as follows :
F.Y. to which Amount
Name of the Statute matters pertain (Rs. in Lakhs)
Income Tax Act,1961 2008-11 1479.26
Central Excise Act,1944 1995-2013 1943.54
1998-2008 548.33
215 08
Customs Act,1962 2009 10 215.08
2012- 13 21.97
2013- 14 54.11
Foreign Exchange
Management Act, 1999 1995-1996 300
(Previously FERA, 1973)
2002-03 438.13
APGST Act,1957 2003-04 786.88
2005- 06 593
2006- 07 241 34
Central Sales Tax Act, 1956 2007
2007- 08 42.68
2009-10 9.90
Tamilnadu Value Added Tax 2006-07 394.92
Act, 2006
Name of the Statute Forum where matter is
pending
Income Tax Appellate Tribunal,
Income Tax Act,1961 Commissioner of Income Tax
(Appeal)
Central Excise &Service
Central Excise Act,1944 Tax Appellate Tribunal,
Commissioner of Central Excise
Commissioner (Customs),
Customs Act,1962 Sea Port, Chennai, CESTAT
Bangalore
Foreign Exchange
Management Act, 1999
(Previously FERA, 1973) Hon 'ble High Court of Delhi
Sales Tax Appellate Tribunal,
APGST Act,1957 Commercial Tax Officer
Appellate Deputy Commissioner,
Central Sales Tax Act, 1956 Hon 'ble High Court of Andhra
Pradesh
Tamilnadu Value Added Tax
Act, 2006 Hon 'ble High Court of Tamilnadu
(c) The Company has been regular in transferring amounts to the
Investor Education and Protection Fund in accordance with the relevant
provisions of the Companies Act, 2013 and Rules made there under within
time.
viii. The Company does not have any accumulated loss at the end of the
financial year not more than fifty percent of its net worth and has not
incurred cash loss during the financial year covered by our Audit and
in the immediately preceeding financial year.
ix. Based on our audit procedures and on the information and
explanations given by the management, we are of the opinion that, there
have been delays in repayment of dues to Banks and financial
institutions. Such delays have been summarized below indicating the
maximum amount of delay and the maximum period reflected against each.
Maximum Amount Maximum period of
Banks/Financial Institutions Default (Rs.) Default
Andhra Bank (Term Loan)
Principal 63,23,958 89
Andhra Bank (Add. Term Loan)
Principal 2,82,292 43
Interest 3,08,352 43
Andhra Bank (FITL I)
Principal 5,21,584 91
Interest 10,25,697 120
Bank Of India (Term Loan)
Principal 62,61,458 101
Bank Of India (Add. Term Loan)
Principal 2,80,208 111
Interest 3,15,154 80
Bank Of India (FITL I)
Principal 17,74,637 131
Interest 30,82,033 114
Bank Of India (FITL II)
Principal 7,61,111 237
Interest 2,60,570 273
Bank Of Baroda (FITL I)
Principal 2,41,238 53
Interest 3,40,349 58
Bank Of Baroda (FITL II)
Principal 3,62000 58
Interest 1,23,950 89
IDBI Bank (Term Loan)
Principal 22,55,208 120
IDBI Bank (Add. Term Loan)
Principal 2,66,667 120
Interest 2,03,041 181
IOB (Add. Term Loan)
Principal 1,60,417 183
Interest 1,76,728 183
IDBI (FITL I)
Principal 3,74,358 120
Interest 4,54,355 150
Indian Bank (FITL I)
Principal 3,33,757 150
Indian Bank (FITL II)
Principal 2,55,556 335
IOB (FITL I)
Principal 4,35,663 150
Interest 17,07,364 59
IOB (FITL II)
Principal 5,20,000 92
Interest 2,04,174 61
Karnataka Bank Ltd (FITL II)
Principal 2,00,000 28
Interest 84,752 28
Karnataka Bank Ltd (FITL I)
Principal 42,200 76
Interest 2,22,361 76
Punjab National Bank (Term Loan)
Principal 94,63,542 149
PNB (Add. Term Loan)
Principal 4,22,917 43
Interest 4,51,297 43
PNB (FITL I)
Principal 9,17,472 149
Interest 16,74,533 180
PNB (FITL II)
Principal 4,37,902 18
Interest 5,36,137 18
State Bank of Patiala (FITL I)
Principal 5,48,148 91
Interest 14,18,745 122
State Bank of Patiala (FITL II)
Principal 9,23,333 89
Interest 3,08,137 119
x. According to the information and explanations given to us, the
Company has given the guarantees for loans taken by others from a Bank
or financial institution where of the terms and conditions are not
prejudicial to the interest of the company.
xi. In our opinion and according to the information and explanations
given to us, the term loans have been applied by the Company for the
purposes for which they were obtained.
xii. To the best of our knowledge and according to the information and
explanations given to us, we report that no fraud on or by the Company
has been noticed or reported during the year, nor have we been informed
of such case by the management.
For CRK&ASSOCIATES
Chartered Accountants
Firm Reg. No: 010004S
C. Rajendra Kumar, FCA
Place: Hyderabad Partner
Date: 27th May, 2015 M No: 23103
Mar 31, 2014
We have audited the accompanying financial statements of M/s. SUJANA
METAL PRODUCTS LIMITED ("the Company"), which comprise the Balance
Sheet as at March 31st, 2014, the Statement of Profit and Loss, Cash
Flow Statement for the year ended, a summary of significant accounting
policies and other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956 ("the Act") read with the General Circular
15/2013 dated 13th September 2013 of the Ministry of Corporate Affairs
in respect of Section 133 of Companies Act, 2013. This responsibility
includes the design, implementation and maintenance of internal control
relevant to the preparation and presentation of the financial
statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
Auditors'' Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditors'' judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the effectiveness of the entity''s
internal control. An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of the accounting
estimates made by management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
a. in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2014;
b. in the case of the Profit and Loss Account, of loss for the year
ended on that date; and
c. in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors'' Report) Order, 2003
("theOrder") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
a. we have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b. in our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books.
c. the Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
d. in our opinion, the Balance Sheet, Statement of Profit and Loss,
and Cash Flow Statement comply with the Accounting Standards referred
to in subsection (3C) of section 211 of the Companies Act, 1956 ("the
Act") read with the General Circular 15/2013 dated 13th September 2013
of the Ministry of Corporate Affairs in respect of Section 133 of
Companies Act, 2013; and
e. on the basis of written representations received from the directors
as on March 31, 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2014, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
The Annexure referred to in paragraph 1 of Our Report of even date to
the members of M/s.Sujana Metal Products Limited on the accounts of the
company for the year ended 31st March, 2014. Having regard to the
nature of company''s business / Activities the clauses of 4(v), (vi),
(xii), (xiii), (xiv), (xviii), (xix) and (xx) of CARO are not
applicable to the company.
On the basis of such checks as we considered appropriate and according
to the information and explanation given to us during the course of our
audit, we report that:
i. (a) The company is in the process of updating proper records
showing full particulars including quantitative details and situation
of its fixed assets.
(b) According to the information and explanations given to us, Fixed
Assets had not physically verified by the management during the period
under Audit.
(c) In our opinion and according to the information and explanations
given to us, no substantial part of fixed asset has been disposed
during the year and therefore does not affect the going concern
assumption.
ii. (a) As explained to us, inventories have been physically verified
during the year by the management at reasonable intervals.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the company and the nature of its business.
(c) In our opinion and on the basis of our examination of the records,
the Company is generally maintaining proper records of its inventories.
No material discrepancy was noticed on physical verification of stocks
by the management as compared to book records.
iii. (a) According to the information and explanations given to us and
on the basis of our examination of the books of account, the Company
has not granted any loans, secured or unsecured, to companies, firms or
other parties listed in the register maintained under Section 301 of
the Companies Act, 1956. Consequently, the provisions of clauses iii
(b), iii(c) and iii (d) of the order are not applicable to the Company.
(e) According to the information and explanations given to us and on
the basis of our examination of the books of account, the Company has
not taken loans from companies, firms or other parties listed in the
register maintained under Section 301 of the Companies Act, 1956. Thus
sub clauses (f) & (g) are not applicable to the company.
iv. In our opinion and according to the information and explanations
given to us, there is generally an internal control procedure
commensurate with the size of the company and the nature of its
business. There should be strong internal control procedures for the
purchase of inventories & fixed assets, payment for expenses and sale
of goods. During the course of our audit, no other major instance of
continuing failure to correct any weaknesses in the internal controls
has been noticed.
v. As per the information & explanations given by the management, the
Company has an internal audit system commensurate with its size and the
nature of its business.
vi. As per information & explanations given by the management,
maintenance of cost records has been prescribed by the Central
Government under clause (d) of sub-section (1) of section 209 of the
Act and we are of the opinion that prima facie the prescribed accounts
and records have been made and maintained. However, we have not made a
detailed examination of the records to determine whether they are
accurate or complete.
vii. (a) According to the records of the company, undisputed statutory
dues including Provident Fund, Investor Education and Protection Fund,
Employees'' State Insurance, Income-tax, Sales-tax, Wealth Tax, Service
Tax, Custom Duty, Excise Duty, cess to the extent applicable and any
other statutory dues have generally been regularly deposited with the
appropriate authorities. According to the information and explanations
given to us there were no outstanding statutory dues as on 31st of
March, 2014 for a period of more than six months from the date they
became payable.
(b) According to the information and explanations given to us, there
are amounts payable in respect of income tax, sales tax, customs duty
and excise duty which have not been deposited on account of disputes.
They are detailed as follows,
Name of the Statute F.Y.to which Amount
matters pertain (Rs. in Lakhs)
Income Tax Act,1961 2008-11 1479.25
Central Excise Act,1944 1995-2011 1688.15
2012-13 248.12
Customs Act,1962 1998-2008 548.33
2009-10 215.08
2012-13 21.97
2013-14 54.11
Foreign Exchange 1995-1996 300.00
Management Act,1999
(Previously FERA, 1973)
APGST Act,1957 2002-03 438.13
2003-04 786.88
Central Sales Tax Act,1956 2005-08 289.95
2009-10 9.90
Tamilnadu Value Added Tax 2006-07 194.92
Act 2006 2012-13 200.00
Name of the Statute Forum where
matter is
pending
Income Tax Act,1961 Income Tax Appellate Tribunal,
Commissioner of Income Tax
(Appeal)
Central Excise Act,1944 Central Excise &Service
Tax Appellate Tribunal,
Commissioner of Central Excise
Customs Act,1962 Commissioner (Customs),
Sea Port, Chennai, CESTAT
Bangalore
Foreign Exchange Hon''ble High Court of Delhi
Management Act,1999
(Previously FERA, 1973)
APGST Act,1957 Sales Tax Appellate Tribunal,
Commercial Tax Officer
Central Sales Tax Act,1956 Appellate Deputy
Commissioner, Hon''ble High
Court of Andhra Pradesh
Tamilnadu Value Added Tax Hon''ble High Court of
Act 2006 Tamilnadu
viii. The Company does not have any accumulated loss at the end of the
financial year not more than fifty percent of its net worth and has not
incurred cash loss during the financial year covered by our audit and
in the immediately preceding financial year.
ix. Based on our audit procedures and on the information and
explanations given by the management, we are of the opinion that, there
have been delays in repayment of dues to Banks and financial
institutions. Such delays have been summarized below indicating the
maximum amount of delay and the maximum period reflected against each.
Maximum Amount Maximum
Banks/Financial Institutions Default (Rs.in Lakhs) period of Default
Bank Of India
Principal 7.61 255
Interest 4.04 63
Bank Of Baroda
Principal 3.62 30
Interest 1.53 58
Indian Bank
Principa l 2.56 334
Indian Overseas Bank
Principal 5.20 46
Interest 2.49 3
Karnataka Bank Ltd
Principal 2.00 34
Interest 0.80 12
Punjab National Bank - 4315
Principal 10.98 35
Interest 3.99 30
State Bank Of Patiala
Principal 9.23 90
Interest 3.61 56
SASF Chennai (IDBI)
Principal 1472.00 669
Interest 637.02 700
SASF Vizag (IDBI)
Principal 1202.25 577
Interest 494.92 700
x. According to the information and explanations given to us, the
company has given the guarantees for loan taken by others from a bank
or financial institution where of the terms and conditions are not
prejudicial to the interest of the company.
xi. In our opinion and according to the information and explanations
given to us by the management, the term loans have been applied for the
purposes for which they were obtained.
xii. Based on the information and explanations given to us and on an
overall examination of the Balance Sheet of the Company as at 31st
March, 2014, we report that no funds raised on short-term basis have
been used for long-term investment by the Company.
xiii. Based on the audit procedures performed and the information and
explanations given to us, we report that no fraud on or by the Company
has been noticed or reported during the year, nor have we been informed
of such case by the management.
For CRK&ASSOCIATES
Chartered Accountants
Firm Reg. No: 010004S
C.Rajendra Kumar, FCA
Place: Hyderabad Partner
Date: 30th May, 2014 M No: 23103
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of M/s. SUJANA
METAL PRODUCTS LIMITED ("the Company"), which comprise the Balance
Sheet as at March 31st, 2013, the Statement of Profit and Loss, Cash
Flow Statement for the year ended, a summary of significant accounting
policies and other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956 ("the Act"). This responsibility includes
the design, implementation and maintenance of internal control relevant
to the preparation and presentation of the financial statements that
give a true and fair view and are free from material misstatement,
whether due to fraud or error.
Auditors'' Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by management, as
well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2013;
b) in the case of the Profit and Loss Account, of loss for the year
ended on that date; and
c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003
("theOrder") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
a. we have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b. in our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books.
c. the Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
d. in our opinion, the Balance Sheet, Statement of Profit and Loss,
and Cash Flow Statement comply with the Accounting Standards referred
to in subsection (3C) of section 211 of the Companies Act, 1956;
e. on the basis of written representations received from the directors
as on March 31, 2013, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2013, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
f. Since the Central Government has not issued any notification as to
the rate at which the cess is to be paid under section 441A of the
Companies Act, 1956 nor has it issued any Rules under the said section,
prescribing the manner in which such cess is to be paid, no cess is due
and payable by the Company.
The Annexure referred to in paragraph 1 of the Our Report of even date
to the members of M/s. Sujana Metal Products Limited on the accounts of
the company for the year ended 31st March, 2013. Having regard to the
nature of company''s business / Activities the clauses of 4(v), (vi),
(xii),(xiii), (xiv), (xviii), (xix) and (xx) of CARO are not applicable
to the company.
1. On the basis of such checks as we considered appropriate and
according to the information and explanation given to us during the
course of our audit, we report that:
i. (a) The company is in the process of updating proper records showing
full particulars including quantitative details and situation of its
fixed assets.
(b) As explained to us, fixed assets have been physically verified by
the management at reasonable intervals in accordance with a programme
of verification. Management has informed that no material discrepancies
were noticed on such verification.
(c) In our opinion and according to the information and explanations
given to us, no fixed asset has been disposed during the year and
therefore does not affect the going concern assumption.
ii. (a) As explained to us, inventories have been physically verified
during the year by the management at reasonable intervals.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the company and the nature of its business.
(c) In our opinion and on the basis of our examination of the records,
the Company is generally maintaining proper records of its inventories.
No material discrepancy was noticed on physical verification of stocks
by the management as compared to book records.
iii. (a) According to the information and explanations given to us and
on the basis of our examination of the books of account, the Company
has not granted any loans, secured or unsecured, to companies, firms or
other parties listed in the register maintained under Section 301 of
the Companies Act, 1956. Consequently, the provisions of clauses iii
(b), iii(c) and iii (d) of the order are not applicable to the Company.
(e) According to the information and explanations given to us and on
the basis of our examination of the books of account, the Company has
not taken loans from companies, firms or other parties listed in the
register maintained under Section 301 of the Companies Act, 1956. Thus
sub clauses (f) & (g) are not applicable to the company.
iv. In our opinion and according to the information and explanations
given to us, there is generally an adequate internal control procedure
commensurate with the size of the company and the nature of its
business. There should be strong internal control procedures for the
purchase of inventories & fixed assets and payment for expenses & for
sale of goods. During the course of our audit, no other major instance
of continuing failure to correct any weaknesses in the internal
controls has been noticed.
v. As per information & explanations given by the management, the
Company has an internal audit system commensurate with its size and the
nature of its business.
vi. As per information & explanation given by the management,
maintenance of cost records has been prescribed by the Central
Government under clause (d) of sub-section (1) of section 209 of the
Act and we are of the opinion that prima facie the prescribed accounts
and records have been made and maintained. However We have not made a
detailed examination of the records to determine whether they are
accurate or complete.
vii. (a) According to the records of the company, undisputed statutory
dues including Provident Fund, Investor Education and Protection Fund,
Employees'' State Insurance, Income- tax, Sales-tax, Wealth Tax, Service
Tax, Custom Duty, Excise Duty, cess to the extent applicable and any
other statutory dues have generally been regularly deposited with the
appropriate authorities. According to the information and explanations
given to us there were no outstanding statutory dues except Income Tax
as on 31st of March, 2013 for a period of more than six months from the
date they became payable.
(b) According to the information and explanations given to us, there
are amounts payable in respect of income tax, sales tax, customs duty
and excise duty which have not been deposited on account of disputes.
They are detailed as follows.
Name of the Statute F.Y to which Amount in
matters pertain Rs. (Lakhs)
2005-06 1517.25
Income Tax Act,1961 2009-10
1995-2010 1771.26
Central Excise 2012-13 246.46
Act ,1944
1998-99 308.28
Customs Act,1962 2008-09 215.08
2012-13 15.27
Foreign Exchange 1995-1996 630
Regulation Act,1973
2002-03 438.18
APGST Act,1957 2003-04 786.88
Central Sales Tax 2005-08 51.91
Act, 1956 2006-07 241.34
Name of the Statute Forum where matter is pending
Income Tax Act,1961 Income Tax Appellate Tribunal,
Commissioner of Income Tax (Appeal)
Central Excise Act,1944 Central Excise &Service Tax Appellate
Tribunal, Commissioner of Central
Excise
Customs Act,1962 Commissioner (Customs ), Sea Port,
Chennai, CESTAT Bangalore
Foreign Exchange Hon''ble High Court of Delhi
Regulatio Act,1973
APGST Act,1957 Sales Tax Appellate Tribunal
Commercial Tax Officer
Central Sales Tax Act,1956 Appellate Deputy Commissioner,
Hon''ble High Court of Andhra Pradesh
Tamilnadu Vaue Added Hon''ble High Court of Tamilnadu
Tax ACt,2006
viii. The Company does not have any accumulated loss at the end of the
financial year not more than fifty percent of its net worth and has not
incurred cash loss during the financial year covered by our audit and
in the immediately preceding financial year.
ix. Based on our audit procedures and on the information and
explanations given by the management, we are of the opinion that, there
have been delays in re-payment of dues to Financial Institutions.
Maximum Amount Maximum period Remarks
Banks Default (Rs. of Default
in lakhs)
SASF Chennai (IDBI)
Principal 736.00 304 CDR scheme not
Interest 352.08 335 approved by SASF
SASF Vizag (IDBI)
Principal 515.25 212 CDR scheme not
Interest 325.24 335 approved by SASF.
Due to CDR approval, Repayment schedule is postponed .So the Company
does not fall under default in repayment for the banks namely IOB,BOI,
ANDHRA BANK & PNB (LONG TERM) as per CDR during the year 2012-2013.
x. According to the information and explanations given to us, the
company has given the guarantees for loan taken by others from a bank
or financial institution where of the terms and conditions are not
prejudicial to the interest of the company.
xi. Based on our audit procedures and on the information given by the
management, we report that the company has not raised any term loans
during the year.
xii. Based on the information and explanations given to us and on an
overall examination of the Balance Sheet of the Company as at 31st
March, 2013, we report that no funds raised on short- term basis have
been used for long-term investment by the Company.
xiii. Based on the audit procedures performed and the information and
explanations given to us, we report that no fraud on or by the Company
has been noticed or reported during the year, nor have we been informed
of such case by the management.
For CRK&ASSOCIATES
Chartered Accountants
Firm Reg. No: 010004S
C. Rajendra Kumar, FCA
Place: Hyderabad Partner
Date : 28th May 2013 M No: 23103
Mar 31, 2012
1. We have audited the attached Balance Sheet of Sujana Metal Products
Limited ("the Company") as at March 31, 2012, the Statement of
Profit and Loss and the Cash Flow Statement of the Company for the year
ended on that date, both annexed thereto. These financial statements
are the responsibility of the Company's management. Our
responsibility is to express an opinion on these financial statements
based on our audit.
2. We conducted our audit in accordance with the auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatements. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by the Management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
3. As required by the Companies (Auditor's Report) Order, 2003
(CARO) issued by the Central Government in terms of Section 227 (4A) of
the Companies Act, 1956, we enclose in the Annexure a statement on the
matters specified in paragraphs 4 and 5 of the said Order.
4. Further to our comments in the Annexure referred to in paragraph 3
above, we report as follows:
a) we have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
b) in our opinion, proper books of account as required by law have been
kept by the Company so far as it appears from our examination of those
books;
c) the Balance Sheet, the Statement of Profit and Loss and the Cash
Flow Statement dealt with by this report are in agreement with the
books of account;
d) in our opinion, the Balance Sheet the Statement of Profit and Loss
and the Cash Flow Statement dealt with by this report are in compliance
with the Accounting Standards referred to in Section 211(3C) of the
Companies Act, 1956;
e) in our opinion and to the best of our information and according to
the explanations given to us, the said accounts give the information
required by the Companies Act, 1956, in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India:
(i) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2012;
(ii) in the case of the Statement of Profit and Loss, of the profit of
the Company for the year ended on that date; and
(iii) in the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
5. On the basis of the written representations received from the
Directors of the Company as on March 31, 2012 taken on record by the
Board of Directors, we report that none of the Directors is
disqualified as on March 31, 2012 from being appointed as a director in
terms of Section 274(1) (g) of the Companies Act, 1956.
Annexure to the Auditors' Report
(Referred to in paragraph 3 of our report of even date)
i) Having regard to the nature of the Company's
business/activities/result, clauses 4(v), (vi), (x), (xii),
(xiii), (xiv), (xviii), (xix) and (xx) of CARO are not applicable to
the Company.
ii) In respect of its fixed assets:
a) The Company is in the process of harmonising its fixed asset
register with a view towards reflecting full particulars including
description, quantitative details and location / situation of its fixed
assets.
b) The fixed assets have been physically verified during the year by
the Management in accordance with a programme of verification, which in
our opinion provides for physical verification of all the fixed assets
at reasonable intervals. In view of the fact that the fixed asset
register is in the process of harmonising, management has informed that
discrepancies, if any, arising between the assets verified and the
books and records would be dealt with in the year in which such
harmonisation of the register is completed.
c) The fixed assets disposed off during the year, in our opinion, do
not constitute a substantial part of the fixed assets of the Company
and such disposal has, in our opinion, not affected the going concern
status of the Company.
iii) In respect of its inventory:
a) As explained to us, the inventories were physically verified during
the year by the Management at reasonable intervals, except the system
of documentation for such verification needs to be strengthened.
b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management were reasonable and adequate in relation to
the size of the Company and the nature of its business.
c) In our opinion and according to the information and explanations
given to us, the Company has maintained proper records of its
inventories and no material discrepancies were noticed on physical
verification.
iv) According to the information and explanations given to us, the
Company has neither granted nor taken any loans, secured or unsecured,
to/from companies, firms or other parties listed in the Register
maintained under Section 301 of the Companies Act, 1956.
v) In our opinion and according to the information and explanations
given to us, having regard to the explanations that some of the items
purchased are of special nature and suitable alternative sources are
not readily available for obtaining comparable quotations, additional
strengthening of the internal control procedures with regard to
purchases of inventory and fixed assets and for the sale of goods is
recommended so as to be commensurate with the current size of the
Company and nature of its business. However, in our opinion management
is taking reasonable steps to correct the said weaknesses and we have
not observed any other continuing failure to correct major weaknesses
in internal controls.
vi) In our opinion, the internal audit functions carried out during the
year by firm of Chartered Accountants appointed by the Management have
been commensurate with the size of the Company and the nature of its
business.
vii) We have broadly reviewed the books of account maintained by the
Company pursuant to the rules made by the Central Government for the
maintenance of cost records under Section 209(1) (d) of the Companies
Act, 1956 in respect of manufacture of steel products and are of the
opinion that prima
facie the prescribed accounts and records have been made and
maintained. We have, however, not made a detailed examination of the
records with a view to determining whether they are accurate or
complete.
viii) According to the information and explanations given to us in
respect of statutory dues:
a) Except for delays in deposit of Provident Fund, Employee's State
Insurance, Income-tax, Wealth Tax, the company has been regular in
depositing undisputed statutory dues including Sales Tax, Service Tax,
Custom Duty, Excise Duty, Cess and other material statutory dues
applicable to it with the appropriate authorities.
b) There were no undisputed amounts payable in respect of Income-tax,
Wealth Tax, Custom Duty, Excise Duty, Cess and other material statutory
dues in arrears as at March 31, 2012 for a period of more than six
months from the date they became payable, except for the following:
Amount Year to
which
Name of Nature of Date of
(Rupees in the amount Due date
the
Statute the Dues Payment
lakhs) relates
Income Tax Income 192.87 2011-2012 June 15,
2011 and Not paid
Act, 1961. Tax September
15, 2011
c) Details of dues of Income Tax, Sales Tax, Wealth Tax, Service Tax,
Custom Duty, Excise Duty and Cess which have not been deposited as on
March 31, 2012 on account of disputes are given below:
Financial Year Amount
Name of the Statute to which matter (Rupees Forum where matter is
pending
pertains in lakhs)
Income Tax Act, 1961 2008-2009 837.08 Asst. commissioner of
Income Tax
Central Excise Act, 1995-2009 1209.90 Custom Excise &
Service Tax Appellate
1944 1995-1997 1.00 Tribunal
Commissioner of Customs
(Appeals)
Customs Act, 1962 1998-1999 306.28 Commissioner of Customs
(Sea Port)
2008-2009 214 90 Custom Excise & Service
Tax Appellate
Tribunal
Foreign Exchange 1995-1996 530.00 Hon'ble High Court
of Delhi
Regulation
Act, 1973
APGST Act, 1957 2002-2003 438.13 Sales Tax Appellate
Tribunal
2003-2004 786.88 Commercial Tax Officer.
Central Sales Tax 2005-2008 51.91 Appellate Deputy
Commissioner
Act, 1956 2006-2007 241 34 Hon'ble High Court of
Andhra Pradesh
and Appellate Deputy
Commissioner
Tamilnadu Value 2006-2007 194.92 Hon'ble High Court
of Tamilnadu
Added Tax Act, 2006
ix) In our opinion and according to the information and explanations
given to us, there have been delays in repayment of dues to banks and
financial institution. Such delays have been summarized below
indicating the maximum amount of delay and the maximum period reflected
against each.
Maximum Amount of Maximum
Banks default (Rupees in period of
lakhs) default
(Days)
IDBI
Principal 135.32 89
Interest 35.67 90
Punjab National Bank *
Principal 472.17 82
Interest 161.55 31
Andhra Bank *
Principal 278.83 82
Interest 98.82 94
Bank of India *
Principal 304.17 83
Interest 96.31 85
Indian Overseas Bank *
Principal 181.38 75
Interest 61.22 43
The above delays have been made good by the Company and there were no
overdue amounts at the year end._
* The Company has applied for condonation of delay in payments.
Financial Institution-SASF
During the year there were delays in payments to SASF however the same
could not be quantified as the Company is in re-schedulement of dues as
explained in Note 41 of the financial statements.
x) In our opinion and according to the information and explanations
given to us, the terms and conditions of the guarantees given by the
Company for loans taken by others from banks and financial institution
are not prima facie prejudicial to the interests of the Company.
xi) In our opinion and according to the information and explanations
given to us, the term loans have been applied for the purposes for
which they were obtained, other than temporary deployment pending
application.
xii) In our opinion and according to the information and explanations
given to us and on an overall examination of the balance sheet, we
report that, during the period prima facie, funds raised on short- term
basis have not been used for long-term investment.
xiii) To the best of our knowledge and according to the information and
explanations given to us, no fraud on or by the Company has been
noticed or reported during the year.
For Deloitte Haskins & Sells
Chartered Accountants
(Registration No. 008072S)
Hyderabad C R Rajagopal
May 28, 2012 Partner
(Membership No. 23418)
Mar 31, 2011
1 We have audited the attached Balance Sheet of Sujana Metal Products
Limited ("the Company") as at March 31, 2011, the Profit and Loss
Account and the Cash Flow Statement of the Company for the eighteen
months period ended on that date, both annexed thereto. These financial
statements are the responsibility of the Company's management. Our
responsibility is to express an opinion on these financial statements
based on our audit.
2. We conducted our audit in accordance with the auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatements. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by the Management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
3. As required by the Companies (Auditor's Report) Order, 2003 (CARO)
issued by the Central Government in terms of Section 227 (4A) of the
Companies Act, 1956, we enclose in the Annexure a statement on the
matters specified in paragraphs 4 and 5 of the said Order.
4. Further to our comments in the Annexure referred to in paragraph 3
above, we report as follows:
a) we have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
b) in our opinion, proper books of account as required by law have been
kept by the Company so far as it appears from our examination of those
books;
c) the Balance Sheet, the Profit and Loss Account and the Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
d) in our opinion, the Balance Sheet, the Profit and Loss Account and
the Cash Flow Statement dealt with by this report are in compliance
with the Accounting Standards referred to in Section 211(3C) of the
Companies Act, 1956;
e) in our opinion and to the best of our information and according to
the explanations given to us, the said accounts give the information
required by the Companies Act, 1956, in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India: (i) in the case of the Balance Sheet, of
the state of affairs of the Company as at March 31,
2011;
(ii) in the case of the Profit and Loss Account, of the profit of the
Company for the eighteen months period ended on that date; and (iii) in
the case of the Cash Flow Statement, of the cash flows of the Company
for the eighteen months period ended on that date. 5) On the basis of
written representations received from the directors as on March 31,
2011 taken on record by the Board of Directors, none of the Directors
is disqualified as on March 31, 2011 from being appointed as a director
in terms of Section 274(1) (g) of the Companies Act, 1956.
Annexure to the Auditor's Report
(Referred to in paragraph 3 of our report of even date)
(i) Having regard to the nature of the Company's business/activities,
clauses (v), (vi), (x), (xii), (xiii), (xiv), (xix) and (xx) of CARO
are not applicable to the Company.
(ii) In respect of its fixed assets:
(a) The Company is in the process of re-compiling / updating its fixed
asset register with a view towards reflecting full particulars
including description, quantitative details and location / situation of
its fixed assets.
(b) Some of the fixed assets have been physically verified during the
period by the Management in accordance with a programme of
verification, which in our opinion provides for physical verification
of all the fixed assets at reasonable intervals. In view of the fact
that the fixed asset register is in the process of re-compilation /
updating, management has informed that discrepancies, if any, arising
between the assets verified and the books and records would be dealt
with in the year in which such re-compilation of the register is
completed
(c) The fixed assets disposed off during the period, in our opinion, do
not constitute a substantial part of the fixed assets of the Company
and such disposal has, in our opinion, not affected the going concern
status of the Company.
(iii) In respect of its inventory:
(a) As explained to us, the inventories were physically verified during
the period by the Management at reasonable intervals, except the system
of documentation for such verification needs to be strengthened.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management were reasonable and adequate in relation to
the size of the Company and the nature of its business.
(c) In our opinion and according to the information and explanations
given to us, the Company has maintained proper records of its
inventories and no material discrepancies were noticed on physical
verification.
(iv) According to the information and explanations given to us, the
Company has neither granted nor taken any loans, secured or unsecured,
to/from companies, firms or other parties listed in the Register
maintained under Section 301 of the Companies Act, 1956.
(v) In our opinion and according to the information and explanations
given to us, additional strengthening of the internal control
procedures with regard to purchases of inventory and fixed assets and
for the sale of goods is recommended so as to be commensurate with the
current size of the Company and nature of its business. However, in our
opinion management is taking reasonable steps to correct the said
weaknesses and we have not observed any other continuing failure to
correct major weaknesses in internal controls.
(vi) In our opinion, the internal audit functions carried out during
the period by firms of Chartered Accountants appointed by the
Management have been commensurate with the size of the Company and the
nature of its business.
(vii) We have broadly reviewed the books of account maintained by the
Company pursuant to the rules made by the Central Government for the
maintenance of cost records under Section 209(1) (d) of the Companies
Act, 1956 in respect of manufacture of steel products and are of the
opinion that prima facie the prescribed accounts and records have been
made and maintained. We have, however, not made a detailed examination
of the records with a view to determining whether they are accurate or
complete.
(viii) According to the information and explanations given to us in
respect of statutory dues:
(a) The Company has generally been regular in depositing undisputed
dues, including Provident Fund dues, Employee's State Insurance,
Income-Tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise
Duty, Cess and other material statutory dues applicable to it with the
appropriate authorities.
(b) According to the information and explanations given to us, details
of undisputed amounts payable in respect of Provident Fund, Income Tax,
Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess and
Other material statutory dues which were in arrears as at March 31,
2011 for a period of more than six months from the date they became
payable are given below:
Amount Year to which
Nature of Nature of Date of
(Rupees
in the amount Due date
Statute Dues Payment
Lakhs) relates
Income Tax Income Tax 462.32 2010-2011 June 15, 2010
and Not paid
Act, 1961 2.74 2001-2002 September 15,
2010
4.20 2002-2003 June, September,
December and
March of each
year / period
Income Tax Fringe 7.56 2006-2007 January 23,2010 Not Paid
Act, 1961 Benefit Tax 8.51 2007-2008 February 24,2010
Wealth Tax Wealth Tax 0.88 2008-2009 September 30,
2009 Not paid
Act,1957 1.08 2009-2010 September 30,
2010
(c) Details of dues of Income Tax, Sales Tax, Wealth Tax, Service Tax,
Custom Duty, Excise Duty and Cess which have not been deposited as on
March 31, 2011 on account of disputes are given below:
Financial
Year Amount
Name of the Statute to which
matter (Rupees in Forum where matter is
pending
pertains Lakhs)
Central Excise
Act, 1944 1995-2009 1,384.30 Custom Excise & Service
Tax
1995-1997 1.00 Appellate Tribunal
Commissioner
of Customs (Appeals)
Customs Act, 1962 1998-1999 302.69 Commissioner of Customs
(Sea
2008-2009 214.90 Port)
Custom Excise & Service Tax
Appellate Tribunal
Foreign Exchange
Regulation 1995-1996 530.00 Hon'ble High Court of Delhi
Act, 1973
APGST Act, 1957 2002-2003 488.13 Sales Tax Appellate
Tribunal
2003-2004 786.88 Appellate Deputy
Commissioner
Central Sales Tax
Act, 1956 2002-2003 2,213.11 Commercial Tax Officer
2004-2005 13.38 Sales Tax Appellate
Tribunal
2005-2008 58.58 Appellate Deputy
Commissioner
2006-2007 241.34 Hon'ble High Court of
Andhra Pradesh and
Appellate Deputy
Commissioner
Tamilnadu Value
Added Tax 2006-2007 194.92 Hon'ble High Court of
Tamilnadu
Act, 2006
(ix) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in the repayment of dues to
banks and financial institution.
(x) In our opinion and according to the information and explanations
given to us, the terms and conditions of the guarantees given by the
Company for loans taken by others from banks and financial institutions
are not prima facie prejudicial to the interests of the Company.
(xi) In our opinion and according to the information and explanations
given to us, the term loans have been applied for the purposes for
which they were obtained, other than temporary deployment pending
application.
(xii) In our opinion and according to the information and explanations
given to us and on an overall examination of the balance sheet, we
report that, during the period prima facie, funds raised on short- term
basis have not been used for long-term investment.
(xiii) According to the information and explanations given to us, the
Company has made preferential allotment of shares to parties and
companies covered in the Register maintained under section 301 of the
Companies Act, 1956 at a price which is prima facie not prejudicial to
the interests of the Company.
(xiv) To the best of our knowledge and according to the information and
explanations given to us, no fraud on or by the Company was noticed or
reported during the period.
For Deloitte Haskins & Sells
Chartered Accountants
Registration No. 008072S
Hyderabad C R Rajagopal
May 30, 2011 Partner
Membership No. 23418
Sep 30, 2009
1. We have audited the attached Balance Sheet of Sujana Metal Products
Limited as at September 30, 2009, the Profit and Loss Account for the
year ended on that date and the Cash Flow Statement for the year ended
on that date, both annexed thereto. These financial statements are the
responsibility of the Companys management. Our responsibility is to
express an opinion on these financial statements based on our audit.
2. We conducted our audit in accordance with the auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by the management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
3. As required by the Companies (Auditors Report) Order, 2003 (CARO)
issued by the Central Government of India in terms of sub-section (4A)
of section 227 of the Companies Act, 1956, we enclose in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the said
Order.
4. Further to our comments in the Annexure referred to in paragraph 3
above , we report that:
a) we have obtained all the information and explanations which, to the
best of our knowledge and belief, were necessary for the purposes of
our audit;
b) in our opinion, proper books of account as required by law have been
kept by the Company so far as it appears from our examination of those
books;
c) the Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account;
d) in our opinion, the Balance Sheet, Profit and Loss Account and Cash
Flow Statement dealt with by this report comply with the Accounting
Standards referred to in sub-section (3C) of section 211 of the
Companies Act, 1956;
e) in our opinion and to the best of our information and according to
the explanations given to us, the said accounts give the information
required by the Companies Act, 1956, in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India:
(i) in the case of the Balance Sheet, of the state of affairs of the
Company as at September 30, 2009;
(ii) in the case of the Profit and Loss Account, of the profit for the
year ended on that date; and
(iii) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
5) On the basis of written representations received from the directors
as on September 30, 2009 and taken on record by the Board of Directors,
none of the directors is disqualified as on September 30, 2009 from
being appointed as a director in terms of clause (g) of sub-section (1)
of section 274 of the Companies Act, 1956.
Annexure to the Auditors Report (Referred to in paragraph 3 of our
report of even date)
The nature of the Companys business/activities during the year was
such that paragraphs 4 (xii), (xiii), (xiv) and (xix) of CARO are not
applicable to the Company.
(i) In respect of its fixed assets:
(a) The Company is in the process of re-compiling its fixed asset
register with a view towards reflecting full particulars including
quantitative details and situation of its fixed assets.
(b) Some of the fixed assets have been physically verified during the
year by the Management in accordance with a programme of verification,
which in our opinion provides for physical verification of all the
fixed assets at reasonable intervals. In view of the fact that the
fixed asset register is in the process of re-compilation, management
has informed that discrepancies, if any, arising between the assets
verified and the books and records would be dealt with in the year in
which such re- compilation of the register is completed
(c) The fixed assets disposed off during the year, in our opinion, do
not constitute substantial part of the fixed assets of the Company and
such disposal has, in our opinion, not affected the going concern
status of the Company.
(ii) In respect of its inventories:
(a) According to the information and explanations given to us,
management has physically verified the inventory during the year. In
our opinion, having regard to the nature of business and location of
stocks, the frequency of verification is reasonable.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
(c) In our opinion and according to the information and explanations
given to us, the Company has maintained proper records of its
inventories. The discrepancies noticed on verification between the
physical stocks and the book records were not material and have been
properly dealt in the books of account.
(iii) According to the information and explanations given to us, the
Company has not granted or taken any loans, secured or unsecured, to or
from companies, firms or other parties covered in the Register
maintained under Section 301 of the Companies Act, 1956. Consequently,
paragraphs 4 (iii) (a) to (iii) (g) of CARO are not applicable.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control systems commensurate
with the size of the Company and the nature of its business for the
purchase of inventory and fixed assets and for the sale of goods and
services except that such systems need to be strengthened in respect of
certain locations of the company in order to make it commensurate with
the size and nature of its business. During the course of our audit, we
have not observed any continuing failure to correct major weaknesses in
such internal controls systems.
(v) In our opinion and according to the information and explanations
given to us, there are no contracts or arrangements that need to be
entered into the register maintained under section 301 of the Companies
Act, 1956. Accordingly paragraph (v) (a) and (b) of CARO are not
applicable
(vi) According to the information and explanations given to us, the
Company has not accepted any deposits to which the provisions of
section 58A and 58AA or any other relevant provisions of the Companies
Act, 1956 and the Companies (Acceptance of Deposits) Rules, 1975 apply.
(vii) In our opinion, the internal audit functions carried out during
the year by firms of Chartered Accountants appointed by the management
have been commensurate with the size of the Company and the nature of
its business.
(viii) We have broadly reviewed the books of account and records
maintained by the Company relating to the manufacture of steel
products, pursuant to the order made by the Central Government for the
maintenance of cost records under Section 209(1 )(d) of the Companies
Act, 1956 and are of the opinion that prima facie the prescribed
accounts and records have been made and maintained. We have, however,
not made a detailed examination of the records with a view to
determining whether they are accurate or complete. To the best of our
knowledge and according to the information given to us, the Central
Government has not prescribed the maintenance of cost records for any
other product of the Company.
(ix) In respect of statutory dues:
a. According to the information and explanations given to us, except
for delays in deposit of provident fund dues, employee state insurance
dues, taxes deducted at source, advance payment of income taxes and
wealth tax, the company has been regular in depositing undisputed
statutory dues including investor education and protection fund, custom
duty, excise duty, cess, sales tax, service tax and any other material
statutory dues applicable to it with the appropriate authorities during
the year.
b. According to the information and explanations given to us, details
of undisputed amounts payable in respect of provident fund investor
education and protection fund, income tax, sales tax, wealth tax,
service tax, custom duty, excise duty and any other material statutory
dues which were in arrears as at September 30, 2009 for a year of more
than six months from the date they became payable are given below:
Nature of Nature Amount Year to which
Statute of Dues (Rupees) the amount relates
Income Income Tax 777,234 1998-1999
Tax Act, 273,574 2001-2002
1961 610,610 2002-2003
1,847,720 2003-2004
10,318,210 2005-2006
27,346,629 2006-2007
46,024,273 2007-2008
17,588,766 2008-2009
Income Fringe 1,676,860 2006-2007
Tax Act, Benefit 2,025,107 2007-2008
1961 Tax 3,086,813 2008-2009
Wealth Wealth 169,967 2007-2008
Tax Act, Tax
1957
Income Dividend 6,004 2006-2007
Tax Act, Distribution 750,249 2007-2008
1961 Tax
Name of the Due Date of
Statue date Payment
Income
Tax Act,
1961 July, September, Not
December and Paid
March of each
year/period.
Income
Tax Act,
1961 July, September, Not
December and Paid
March of each
year/period.
Wealth
Tax Act,
1957 September 30, Not
2008 paid
Income
Tax Act,
1961 November 13, Not
2007 Paid
January 12,
2009
c. According to the information and explanations given to us, details
of dues of sales tax, income tax, custom duty, wealth tax, service tax,
excise duty and cess which have not been deposited as on September 30,
2009 on account of any dispute are given below:
Name of the Financial Year to which Amount Forum where matter
Statute matter pertains (Rupees) is pending
Central Excise
Act, 1944 1995-2009 37,045,115 Custom Excise & Service
Tax Appellate Tribunal
1993-2009 23,889,623 Commissioner of Customs
and
Central Excise
Customs
Act, 1962 1998-1999 28,928,336 Commissioner of Customs
(Sea Port)
Foreign
Exchange 1995-1996 37,500,000 Honble High Court
of Delhi
Regulation Act, 1973
APGST Act, 1957 2002-2005 164,087,562 Honble High Court of
Andhra Pradesh
2003-2004 78,688,077 Appellate Deputy
Commissioner
AP Value Added 2005-2008 686,274,557 Honble High Court of
Tax Act, 2005 Andhra Pradesh
Central Sales Tax 2002-2003 221,311,181 Commercial Tax Officer
Act, 1956 2002-2006 1,337,612 Appellate Deputy
Commissioner
Tamilnadu Value 2006-2007 19,491,531 Honble High Court of
Added Tax Tamilnadu
Act, 2006
Income Tax Act,
1961 1996-1998 26,701,045 Commissioner of Income
Tax (Appeals)
(x) The Company does not have accumulated losses and has not incurred
cash losses during the year covered by our audit and the immediately
preceding financial year.
(xi) In our opinion and according to the information and explanations
given to us, there have been delays in repayment of dues to a bank and
financial institution. Such delays have been summarized below
indicating the maximum amount of delay and the maximum period, with the
year end corresponding amount reflected against each.
Lender Maximum Maximum
amount of Period of Remarks
Default Default
(Rs.) (Days)
IDBI Bank Ltd.
Principal 13,532,074 86
Interest 14,584,532 32
Stressed Assets As per agreement,
Stabilization
Fund (SASF) 16,62,857 Equity
Principal 17,719,750 121 Shares of Rs.5 at
Interest 14,331,095 456 premium of Rs. 12.50
were allotted to SASF
on November 19, 2009
(xii) In our opinion and according to the information and explanations
given to us, the terms and conditions of guarantees given by the
Company for loans taken by others from banks and financial institutions
are not prima facie prejudicial to the interest of the Company.
(xiii) To the best of our knowledge and belief and according to the
information and explanations given to us, in our opinion, term loans
availed by the Company were, prima facie, applied by the Company during
the year for the purposes for which the loans were obtained, other than
temporary deployment pending application.
(xiv) According to the information and explanations given to us and on
an overall examination of the balance sheet of the Company, funds
raised on short-term basis have, prima facie, not been used for
long-term investment.
(xv) The Company has made a preferential allotment of shares on
exercise of warrants allotted in earlier years to parties covered in
the register maintained under section 301 of the Companies Act, 1956.
The prices at which shares are allotted are not prima facie prejudicial
to the interest of the Company.
(xvi) During the year covered by our audit report, the Company has not
raised any money by public issue.
(xvii) To the best of our knowledge and belief and according to the
information and explanations given to us, no fraud on or by the Company
was noticed or reported during the year.
For Deloitte Haskins & Sells
Chartered Accountants
Secunderabad C R Rajagopal
December 30, 2009 Partner
Membership No.23418
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