Mar 31, 2018
Report on the Ind AS Financial Statements
We have audited the accompanying Ind AS financial statements of âTAINWALA CHEMICALS AND PLASTICS (INDIA) LIMITEDâ ("the Company"), which comprise the Balance Sheet as at March 31, 2018,the Statement of Profit and Loss (including Other Comprehensive Income),the Statement of Cash Flows and the Statement of Changes in Equity for the year then ended and a summary of significant accounting policies and other explanatory information (herein referred to as âthe financial statementsâ).
Management''s Responsibility for the Ind AS Financial Statements
1. The Company''s Board of Directors is responsible for the preparation of these Ind AS financial statements in terms of the requirements of Section 134(5) of the Companies Act, 2013 (hereinafter referred to as âthe Actâ) that give a true and fair view of the financial position, financial performance including other comprehensive income, changes in equity and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards prescribed under Section 133 of the Act read with relevant rules issued thereunder.
This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of 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 financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditor''s Responsibility
2. Our responsibility is to express an opinion on these financial statements based on our audit.
3. 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 thereunder.
4. We have conducted our audit of the Ind AS financial statements 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 financial statements are free from material misstatement.
5. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the Ind AS financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the Ind AS financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers the internal financial control relevant to the Company''s preparation of the Ind AS 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 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 Ind AS financial statements.
6. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Ind AS financial statements.
Opinion
7. In our opinion and to the best of our information and according to the explanations given to us, the aforesaid Ind AS 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 including Ind AS , of the state of affairs of the Company as at March 31, 2018, and its financial performance including other comprehensive income, the changes in equity and its cash flows for the year then ended.
Report on Other Legal and Regulatory Requirements
8. As required by the Companies (Auditor''s Report) Order, 2016 ("the Order") issued by the Central Government of India in terms of sub-section (11) of Section 143 of the Act, we give in the Annexure âA'', a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.
9. As required by section143(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 purpose of our audit of the aforesaid Ind AS financial statements;
b) In our opinion, proper books of account as required by law relating to preparation of the aforesaid Ind AS financial statements have been kept so far as it appears from our examination of those books;
c) The Balance Sheet, the Statement of Profit and Loss including Other Comprehensive Income, the Statement of Changes in Equity and the Statement of Cash Flows dealt with by this Report are in agreement with the books of account maintained for the purpose of preparation of financial statements;
d) In our opinion, the aforesaid Ind AS financial statements comply with the Indian accounting standards specified under section 133 of the Act, read with relevant rules issued thereunder;
e) On the basis of written representations received from the directors as on March 31, 2018, taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2018, 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 B''; and
g) In our opinion and to the best of our information and according to the explanations given to us, we report as under with respect to other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014:
i) The Company does not have any pending litigations which would impact its financial position.
ii) The Company did not have any long-term contracts including derivative contracts; as such the question of commenting on any material foreseeable losses thereon does not arise.
iii) There has been no delay in transferring amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.
Annexure âA'' to the Independent Auditors'' Report
(Referred to in paragraph 8 under âReport on Other Legal and Regulatory Requirements'' section of our report of even date)
i (a) The company has maintained proper records showing full particulars including quantitative details and situation of Property, Plant and Equipment.
(b) The Company has a regular programme of physical verification of its Property, Plant and Equipment by which Property, Plant and Equipment are verified in a phased manner over a period of three years. In accordance with this programme, certain Property, Plant and Equipment were verified during the year and no material discrepancies were noticed on such verification.
(c) According to the information and explanations given to us, the title deeds of all immovable properties are held in the name of the Company.
ii According to the information and explanations given to us, physical verification of inventory has been conducted at reasonable intervals by the management and no material discrepancies were noticed on such physical verification during the year.
iii The company had granted unsecured loans to two companies in earlier years covered in the register maintained under section 189 of the Companies Act, 2013.
(a) In our opinion, the rate of interest and other terms and conditions of the grant of such loans were not, prima facie, prejudicial to the interest of the Company.
(b) The Principal amount and interest are payable on demand and therefore, the question of overdue amount as such does not arise. However, receipt of interest is regular except for a interest free loan of Rs. 3,91,15,941 which is fully provided for as doubtful.
(c) The Company is taking necessary steps for recovery of the above interest free loan, however, in our opinion, more concerted efforts are needed to recover the same.
iv In our opinion and according to the information and explanations given to us, during the year, the Company has not granted any loans or provided any guarantees or security in respect of any loans to any party covered under section 185 of the Companies Act, 2013. In respect of loans granted and investments made during the year, the provision of Section 186 of the Companies Act, 2013 have been complied with.
v The company has not accepted any deposits from the public within the meaning of sections 73 to 76 or any other relevant provisions of the Companies Act, 2013 and the Rules framed there under to the extent notified.
vi The Central Government has not prescribed the maintenance of cost records under section 148(1) of the Companies Act, 2013 for any of the services rendered by the Company. Therefore, the provisions of clause 3(vi) of the Order are not applicable to the Company.
vii (a) The company has been generally regular in depositing undisputed statutory dues including provident fund, employees'' state insurance, income-tax, sales-tax, service tax, duty of customs, duty of excise, value added tax, cess and any other statutory dues to the appropriate authorities. There are no outstanding dues as on the last day of the financial year 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 have been no disputed dues which have not been deposited in respect of income tax, sales tax, service tax, duty of customs, duty of excise and value added tax as at 31st March, 2017.
viii In our opinion and according to the information and explanations given to us, the Company has not defaulted in repayment of dues to banks and financial institution during the year under audit. There are no dues to Government and the Company has not issued any debentures.
ix 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.
X According to the information and explanations given to us, no material fraud by the Company or on the Company by its officers or employees has been noticed or reported during the course of our audit.
xi The Company has paid / provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V of the Companies Act, 2013.
xii In our opinion and according to the information and explanations given to us, the Company is not a nidhi company. Accordingly, paragraph 3(xii) of the Order is not applicable.
xiii According to the information and explanations given to us and based on our examinations of the records of the Company, all transactions with the related parties are in compliance with sections 177 and 188 of the Companies Act, 2013 where applicable. The details of such related party transactions have been disclosed in the financial statements as required under Indian Accounting Standard (Ind AS) 24, Related Party Disclosures, Disclosures specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
xiv The Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review. Accordingly, the provisions of clause 3(xiv) of the order are not applicable to the Company.
xv 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 Companies Act, 2013 are not applicable.
xvi The Company is not required to be registered under Section 45 IA of the Reserve Bank of India Act, 1934 at the end of the year. Accordingly, the provisions of Clause 3(xvi) of the Order are not applicable to the Company.
Annexure - âB'' to the Auditors'' Report
(Report on the Internal Financial Controls under Clause (f) 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 âTainwalaChemicals And Plastics (India) Limitedâ ("the Company") as of March 31, 2018 in conjunction with our audit of the Ind AS financial statements of the Company for the year ended on that date.
Management''s Responsibility for Internal Financial Controls
The Company''s 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 (âICAI''). 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 company''s 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 Companies Act, 2013.
Auditors'' Responsibility
Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the âGuidance Noteâ) and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with 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 auditor''s judgment, including the assessment of the risks of material misstatement of the 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 Company''s internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A company''s 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 company''s 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 company''s 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 control 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, 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 31,2018, 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.
For GMJ & Co.
Chartered Accountants
Firm Registration No: 103429W
CA Haridas Bhat
Partner
Membership No.: 39070
Place: Mumbai
Date : May 22, 2018
Mar 31, 2016
INDEPENDENT AUDITORS'' REPORT
TO THE MEMBERS OF
M/S. TAINWALA CHEMICALS AND PLASTICS (INDIA) LIMITED
Report On The Standalone Financial Statements
We have audited the accompanying standalone financial statements of M/s. TAINWALA CHEMICALS AND PLASTICS (INDIA) LIMITED (''the Company''), which comprise the Balance Sheet as at 31st March, 2016, the Statement of Profit and Loss and the Statement of Cash Flow for the year then ended, and notes to the Financial Statements including a summary of significant accounting policies and other explanatory information.
MANAGEMENT''S RESPONSIBILITY FOR THE 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 and presentation 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 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 and other applicable authoritative pronouncements issued by the Institute of Chartered Accountants of India.
Those Standards and pronouncements 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 the 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 financial control relevant to the Company''s preparation of the 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 Company''s 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 31st March, 2016, 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, 2016 (''the Order'') issued by the Central Government of India in terms of sub-section (11) of Section 143 of the Act, on the basis of such checks of the books and records of the Company as we considered appropriate and according to the information and explanations given to us, we give in the ''Annexure A'', a statement on the matters specified in the 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 31st March, 2016 and taken on record by the Board of Directors, none of the Directors is disqualified as on 31st March, 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 ''Annexure B''; and
g. With respect to the other matters to be included in the Auditors'' 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 information and explanations given to us :
i. The Company does not have any pending litigations which would impact its financial position.
ii. The Company does not have any Long-term contracts including derivative contracts for which there were any material foreseeable losses.
iii. No amounts were required to be transferred, to the Investor Education and Protection Fund by the Company.
M/s. TAINWALA CHEMICALS AND PLASTICS (INDIA) LIMITED ANNEXURE ''A'' TO INDEPENDENT AUDITORS'' REPORT (Referred to in Paragraph (1) of our report of even date)
The Annexure referred to in Independent Auditors'' Report to the members of the Company on the standalone financial statements for the year ended 31st March, 2016 and on the basis of such checks of the books and records of the Company, as we considered appropriate and according to the information and explanations given to us, we report that:
(i) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
(b) As informed to us, all fixed assets have been physically verified by the management at reasonable intervals. No material discrepancies were noticed on such physical verification.
(c) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the title deeds of immovable properties, in all material respect are held in the name of the Company.
(ii) The inventory has been physically verified by the management. In our opinion, the frequency of verification is reasonable. Discrepancies noticed on verification have been properly dealt with in the books of account.
(iii) The Company had granted unsecured loans to two companies in earlier years covered in the register maintained under Section 189 of the Act:
(a) In our opinion, the rate of interest and other terms and conditions on which the loans had been granted to the bodies corporate listed in the register maintained under Section 189 of the Act were not, prima facie, prejudicial to the interest of the Company.
(b) The principal amount and interest are payable on demand and therefore, the question of overdue amount as such does not arise. However, receipt of interest is regular except for a interest free loan of Rs. 3,91,15,941 which is fully provided for as doubtful.
(c) The Company is taking necessary steps for recovery of the above interest free loan, however, in our opinion, more concerted efforts are needed to recover the same.
(iv) In our Opinion and according to the information and explanations given to us, during the year, the Company has not granted any loans or provided any guarantees or security in respect of any loans to any party covered under Section 185 of the Act. In respect of loans granted and Investments made during the year, the provisions of Section 186 of the Act have been complied with.
(v) The Company has not accepted any deposits from the public.
(vi) As informed to us, the maintenance of cost records has not been prescribed by the Central Government under Section 148(1) of the Act in respect of the activities carried on by the Company. Therefore, the provisions of Clause 3(vi) of the Order are not applicable to the Company.
(vii) (a) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the Company is regular in depositing the undisputed statutory dues, including provident fund, employees'' state insurance, income-tax, sales tax, service tax, duty of customs, duty of excise, value added tax, cess and any other statutory dues with the appropriate authorities.
According to the information and explanations given to us, no undisputed amounts in respect of the aforesaid statutory dues were outstanding as at the last day of the financial year 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 no dues of income tax, sales tax, service tax, duty of customs, duty of excise, and value added tax which have not been deposited by the Company on account of disputes.
(viii)In our opinion and according to the information and explanations given to us, the Company is regular in repayment of loans to Banks. As the Company has not borrowed any money from Financial Institutions, Governments or issued any Debentures, the question of dues payable to them does not arise.
(ix) As the Company has neither raised any moneys by way of Initial Public Offer or Further Public Offer (including debt instruments) nor obtained any term loan from banks and financial institutions, the provisions of clause 3 (ix) of the Order are not applicable to the Company.
(x) Based upon the audit procedures performed and information and explanations given by the management, we report that neither fraud on the Company by its officers or employees nor any fraud by the Company has been noticed or reported during the course of our audit.
(xi) The Company has paid/ provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V of the Act.
(xii) As the Company is not a nidhi company, the provisions of Clause 3(xii) of the Order are not applicable to the Company.
(xiii)According to the information and explanations given to us and based on our examination of the records of the Company, transactions with related parties are in compliance with Section 177 and 188 of the Act, wherever applicable and details have been disclosed in the Financial Statements (refer Note 31) as required by the applicable accounting standards.
(xiv)As the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year, the provisions of clause (xiv) of the Order are not applicable to the Company.
(xv) As the Company has not entered into any non-cash transactions covered under Section 192 of the Act with the directors or persons connected with him, the provisions of paragraph 3(xv) of the Order are not applicable to the Company.
(xvi)As the Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934, the provisions of Clause 3(xvi) of the Order are not applicable to the Company.
M/s. TAINWALA CHEMICALS AND PLASTICS (INDIA) LIMITED ANNEXURE ''B'' TO INDEPENDENT AUDITORS'' REPORT
Referred to in paragraph 2 (f) of the Independent Auditors'' Report of even date to the members of Tainwala Chemicals and Plastics (India) Limited on the standalone financial statements for the year ended 31st March, 2016.
Report on the Internal Financial Controls under Clause (i) of sub-section 3 of Section 143 of the Act
We have audited the internal financial controls over financial reporting of M/s. TAINWALA CHEMICALS AND PLASTICS (INDIA) LIMITED (''the Company'') as of 31st March, 2016 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.
Management''s Responsibility for Internal Financial Controls
The Company''s management is responsible for establishing down 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 (''ICAI''). 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 the Company''s 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.
Auditors'' Responsibility
Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the ''Guidance Note'') and the Standards on Auditing, issued by ICAI and deemed to be prescribed under Section 143(10) of the Act , to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and both issued by the ICAI. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting were 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 auditors'' judgment, including the assessment of the risks of material misstatement of the 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 Company''s internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A company''s 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 company''s 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 the management and directors of the Company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company''s 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 control 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, 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 31st March, 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 on Audit of Internal Financial Controls Over Financial Reporting issued by ICAI.
For RUNGTA & ASSOCIATES
CHARTERED ACCOUNTANTS
Registration No. 108888W
PAWAN KUMAR RUNGTA
Place: Mumbai (PROPRIETOR)
Date: 20th May, 2016 Membership No. 42902
Mar 31, 2015
We have audited the accompanying financial statements of M/s. TAINWALA
CHEMICALS AND PLASTICS (INDIA) LIMITED ("the Company"), which comprise
the Balance Sheet as at 31st March, 2015, the Statement of Profit and
Loss and the Cash Flow Statement for the year then ended, and a summary
of significant accounting policies and other explanatory information.
MANAGEMENT'S RESPONSIBILITY FOR THE 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 and presentation 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 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 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 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 thereunder. 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 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 of 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 control
system over financial reporting and the operating effectiveness of the
such controls. An audit also includes evaluating the appropriateness of
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 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 Financial
Statements.
OPINION:
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid 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 31st March, 2015; 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 of India in terms of
sub-section (11) of Section 143 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 3 and 4 of the said
Order.
2. As required by Section 143 (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 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 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 written representations received from the Directors
of the Company as on 31st March, 2015 and taken on record by the Board
of Directors, none of the Directors is disqualified as on 31st March,
2015, from being appointed as a Director in terms of sub - Section (2)
of Section 164 of the Act; and
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 does not have any pending litigations which would
impact its financial position.
(ii) The Company does not have any Long-term contracts including
derivative contracts for which there were any material foreseeable
losses.
(iii) There were no amounts which were required to be transferred, to
the Investor Education and Protection Fund by the Company.
ANNEXURE TO INDEPENDENT AUDITORS' REPORT (Referred to in Paragraph (1)
of our report of even date)
(i) a. The Company is maintaining proper records showing full
particulars including quantitative details and situation of the fixed
assets.
b. As informed to us, all fixed assets have been physically verified by
the management. No material discrepan- cies were noticed on such
physical verification.
(ii) a. The inventory has been physically verified by the management.
In our opinion, the frequency of verification is reasonable.
b. The procedures for physical verification of inventory followed by
the management are reasonable and ad- equate in relation to the size of
the Company and nature of its business.
c. The Company is maintaining proper records of inventory.
Discrepancies noticed on verification have been properly dealt with in
the books of account.
(iii) The Company had granted unsecured loans to two companies in
earlier years covered in the register maintained under Section 189 of
the Act:
a. Receipt of principal amount and interest are also regular except
for a interest free loan of Rs. 39,115,941 which is fully provided for
as doubtful.
b. The principal amount and interest, are payable on demand and
therefore, the question of overdue amount does not arise, however, the
Company is taking necessary steps for recovery. In our opinion, more
concerted efforts are needed to recover these amounts.
(iv) In our opinion and according to information and explanations given
to us, having regard to the explanations that certain items purchased
are of special nature for which suitable alternative sources do not
exist for obtaining comparative quotations, there is adequate internal
control system commensurate with the size of the Company and nature of
its business, for the purchase of inventories and fixed assets and for
the sale of goods and services. During the course of our audit, we
have not observed any continuing failure to correct major weaknesses in
the internal control system.
(v) The Company has not accepted any deposits from the public
(vi) We have broadly reviewed the books of account maintained by the
Company pursuant to the Rules made by the Central Government for
maintenance of cost records under sub-section (1) of Section 148 of the
Act and 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 cost records with a view to determine
whether they are accurate or complete.
(vii) a. According to the records of the Company, the Company is
generally regular in depositing the undisputed statutory dues including
Provident Fund, Employees' State Insurance, Income Tax, Sales Tax,
Wealth Tax, Service Tax, Duty of Customs, Duty of Excise, Value Added
Tax, Cess and other material statutory dues applicable to it with
appropriate authorities.
According to the information and explanations given to us, no
undisputed amounts payable in respect of the aforesaid statutory dues
were outstanding as at the last day of the financial year for a period
of more than six months from the date they became payable.
b. According to the records of the Company, there are no dues in
respect of Income Tax, Sales Tax, Wealth Tax, Service Tax, Duty of
Customs, Duty of Excise, Value Added Tax and Cess, which have not been
deposited on account of any dispute.
c. There were no amounts which were required to be transferred, to the
Investor Education and Protection Fund by the Company in accordance
with the relevant provisions of the Companies Act,1956 (1 of 1956) and
rules made thereunder.
(viii) The Company does not have any accumulated losses at the end of
the financial year and has not incurred any cash losses in the current
as well as in the immediately preceding financial year.
(ix) According to information and explanations given to us, the Company
has not defaulted in repayment of dues to the banks. The Company does
not have any borrowing from financial institution and by way of
debentures.
(x) According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks and financial institutions.
(xi) As the Company has not obtained any term loan, the provision of
clause (xi) of paragraph 3 of the Order is not applicable to the
Company.
(xii) Based upon the audit procedures performed and information and
explanations given by the management, we report that no fraud on or by
the Company has been noticed or reported during the course of our
audit.
For RUNGTA & ASSOCIATES
CHARTERED ACCOUNTANTS
FIRM REGISTRATION NO.: 108888W
PAWAN KUMAR RUNGTA
PIACE:MUMBAI Proprietor
DATED: 26th May, 2015 MEMBERSHIP NO.: 42902
Mar 31, 2014
We have audited the accompanying financial statements of M/s TAINWALA
CHEMICALS AND PLASTICS (INDIA) LIMITED ("the Company") as at March
31st , 2014, and the Statement of Profit and Loss and Cash Flow
Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information. MANAGEMENT
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") (which continued to be
applicable in respect of Section 133 of Companies Act, 2013 in terms of
general circular 15/2013 of the Ministry of Corporate Affairs). 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. AUDITOR''S
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.
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 31st, 2014;
b) In the case of the Statement of Profit and Loss, of the profit 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 (as
amended) issued by the Central Government of India in terms of sub
section (4A) of Section 227 of the Act, we enclose in the Annexure a
statement on the matters specified in paragraphs 4 & 5 of the said
Order.
2. Further to our comments in the Annexure referred to 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 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
Sub-Section (3C) of Section 211 of the Act;
e) On the basis of written representations received from the Directors
as on March 31st , 2014, and taken on record by the Board of Directors,
none of the Directors is disqualified as on March 31st, 2014, from
being appointed as a Director in terms of clause (g) of sub- section
(1) of Section 274 of the Act.
ANNEXURE TO THE INDEPENDENT AUDITORS'' REPORT REFERRED TO IN PARAGRAPH 1
OF OUR REPORT OF EVEN DATE FOR THE YEAR ENDED 31ST MARCH, 2014
1. In respect of its fixed assets:
a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets.
b) In our opinion and according to information and explanations given
to us, physical verification of fixed assets has been conducted by the
management at reasonable intervals and no material discrepancies were
noticed on such verification.
c) During the year, no substantial part of its fixed assets has been
disposed off by the Company
2. In respect of its inventories:
a) The inventory has been physically verified during the year by the
management. In our opinion, the frequency of verification is
reasonable.
b) In our opinion and according to information and explanations given
to us, the procedures of physical verification of inventory followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
c) The Company is maintaining proper records of inventory. According to
the information and explanations given to us, the discrepancies noticed
on physical verification of inventory as compared to book records were
not material and the same have been properly dealt with by the Company
in the books of account.
3. In respect of loans, secured or unsecured, granted or taken by the
Company to / from companies, firms or other parties covered in the
register maintained under Section 301 of the Act:
a) The Company had granted unsecured loans to two companies in earlier
years and maximum amount involved during the year was Rs.79,304,545 and
year-end balance of loans given to such parties was Rs.79,304,545.
b) The rate of interest and other terms and conditions of the loans
given by the Company are prima facie, not prejudicial to the interest
of the Company except for a loan of Rs. 39,115,941 which is fully
provided for as doubtful.
c) The above loans are repayable on demand and the Company is taking
necessary steps for recovery. However, in our opinion, more concerted
efforts are needed to recover these amounts.
d) The Company has not taken any loans, secured or unsecured, from
companies, firms and other parties during the year covered in the
register maintained under Section 301 of the Act. Accordingly, the
provisions of clause 4(iii)(f) and 4(iii)(g) of the Order are not
applicable to the Company.
4. In our opinion and according to information and explanations given
to us, having regard to the explanations that certain items purchased
are of special nature for which suitable alternative sources do not
exist for obtaining comparative quotations, there is adequate internal
control system commensurate with the size of the Company and nature of
its business, for the purchase of inventories and fixed assets and for
the sale of goods and services. During the course of our audit, we
have not observed any continuing failure to correct major weaknesses in
the internal control system.
5. a) According to the information and explanations given to us, we are
of the opinion that the particulars of contracts
or arrangements referred to in Section 301 of the Act, have been
entered in the register required to be maintained under that Section.
b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements, exceeding the value of Rs. 5,00,000 in respect of each
party, have been made at price which are reasonable having regard to
prevailing market prices at the relevant time.
6. The Company has not accepted any deposits from the public during the
year.
7. The Company has an in-house internal audit system during the year,
which needs to be strengthened to be commensurate with its size and
nature of its business.
8. We have broadly reviewed the cost records maintained by the Company
pursuant to the Companies (Cost Accounting Records) Rules, 2011
prescribed by the Central Government under Section 209(1) (d) of the
Act and are of the opinion that prima facie the prescribed cost records
have been made and maintained. We have, however, not made a detailed
examination of the cost records with a view to determine whether they
are accurate or complete.
9. a) The Company is generally regular in depositing 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 and other material statutory dues
applicable to the Company with appropriate authorities. According to
information and explanations given to us, there are no amounts of
statutory dues outstanding as at March 31st, 2014 for a period of more
than six months from the date they became payable.
b) According to information and explanations given to us, there are no
dues in respect of Income Tax, Sales Tax, Wealth Tax, Service Tax,
Custom Duty, and Cess which have not been deposited on account of any
dispute.
10. The Company does not have any accumulated losses at the end of the
financial year and it has not incurred any cash losses in the current
as well as in the immediately preceding financial year.
11. According to information and explanations given to us, the Company
has not defaulted in repayment of dues to the banks. The Company does
not have any borrowing from financial institution and by way of
debentures.
12. According to the information and explanations given to us, the
Company has not granted any loans or advances on the basis of security
by way of pledge of shares, debentures, and other securities.
13. According to the information and explanations given to us, the
Company is not a chit fund or a nidhi / mutual benefit fund / society.
14. The Company has kept adequate records of its transactions and
contracts in respect of dealing in shares, securities and other
investments and timely entries have been made therein. The shares,
securities and other investments have been held in the name of the
Company.
15. According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks and financial institutions.
16. According to information and explanations given to us, the Company
has not raised any term loans during the year.
17. According to information and explanations given to us and on an
overall examination of the balance sheet of the Company, we report that
funds raised on short-term basis have not been used for long term
investments.
18. The Company has not made any preferential allotment of shares
during the year.
19. The Company has not issued any debentures during the year.
20. The Company has not raised any money through public issue during
the year.
21. 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 Rungta & Associates
Chartered Accountants
(Registration No. 108888W)
Pawan Kumar Rungta
Proprietor
(Membership no. 42902)
Place: Mumbai
Dated: 29th May, 2014
Mar 31, 2013
We have audited the accompanying financial statements of M/S TAINWALA
CHEMICALS AND PLASTICS (INDIA) LIMITED ("the Company") as at March
31st, 2013, and the Statement of Profit and Loss and Cash Flow
Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management 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.
Auditor''s Responsibility:
Our responsibily 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 31st, 2013;
b) In the case of the Statement of Profit and Loss, of the profit 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 (Audit''s Report) order, 2003 (as
amended) issued by the Central Government of India in terms of sub
section (4A) of Section 227 of the Companies Act, 1956 (hereinafter
referred to as the Act''), we enclose in the Annexure a statement on the
matters specified in paragraphs 4 & 5 of the said Order, to the extent
applicable.
2. Further to our comments in the Annexure referred to 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 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 oftheAct;
e) On the basis of written representations received from the Directors
as on March 31 st, 2013, and taken on record by the Board of Directors,
none of the Directors is disqualified as on
March 31 st, 2013, from being appointed as a Director in terms of
clause (g) of sub-section (1) of Section 274 oftheAct;
f) Since the Central Government has not issued any notification as to
the rate at which the cess is to be paid under Section441Aof the Act,
nor has i t 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.
ANNEXURE TO THE INDEPENDENT AUDITORS" REPORT
REFERRED TO IN PARAGRAPH 1 OF OUR REPORT OF EVEN DATE
FOR THE YEAR ENDED 31 ST MARCH, 2013
1. In respect of its fixed assets:
a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets.
b) In our opinion and according to information and explanations given
to us, physical verification of fixed assets '' has been conducted by
the management at reasonable intervals and no material discrepancies
were noticed on such verification.
c) During the year, no substantial part of its fixed assets has been
disposed off by the Company
2. In respect of its inventories:
a) The inventory has been physically verified during the year by the
management. In our opinion, the frequency of verification is
reasonable.
b) In our opinion and according to information and explanations given
to us, the procedures of physical verification of inventory followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
c) The Company is maintaining proper records of inventory. According to
the information and explanations given to us, the discrepancies noticed
on physical verification of inventory as compared to book records were
not material and the same have been properly dealt with by the Company
in the books of account.
3. In respect of loans, secured or unsecured, granted or taken by the
Company to / from companies, firms or other parties covered in the
register maintained under section 301 of the Companies Act. 1956:
a) The Company had granted unsecured loans to two companies in earlier
years and maximum amount involved during the year was Rs. 79,304,546 and
year-end balance of loans given to such parties was Rs. 79,304,546.
b) The rate of interest and other terms and conditions of the loans
given by the Company are prima facie, not prejudicial to the interest
of the Company except for a loan of Rs. 39,115,942 which is fully
provided for as doubtful.
c) The above loans are repayable on demand except for a loan ofRs.
39,115,942 which is already provided for in earlier years and in
respect of overdue amounts, the Company is taking necessary steps for
recovery.
d) The Company has not taken any loans, secured or unsecured, from
companies, firms and other parties during the year covered in the
register maintained under section 301 of the Companies Act, 1956.
Accordingly, the provisions of clause 4(iii)f and 4(iii)g of the order
are not applicable to the Company.
4. In our opinion and according to information and explanations given
to us, having regard to the explanation thai certain items purchased
are of special nature for which suitable alternative sources do not
exist for obtaining comparative quotations, there is adequate internal
control system commensurate with the size of the Company and nature of
its business, for the purchase of inventories and fixed assets and for
the sale of goods and services. During the course of our audit, we
have not observed any continuing failure to correct major weaknesses in
the internal control system.
5. a) According to the information and explanations given to us, we
are of the opinion that the particulars of contracts or arrangements
referred to in Section 301 of the Companies Act, 1956 have been entered
in the register required to be maintained under that Section.
b) There are no transactions during the year made in pursuance of such
contracts or arrangements exceeding 500,000 in respect of each party.
6. The Company has not accepted any deposits from the public during
the year.
7. The Company has an in-house internal audit system during the year,
which needs to be strengthened to be commensurate with its size and
nature of its business.
8. We have broadly reviewed the cost records maintained by the Company
pursuant to the Companies (Cost Accounting Records) Rules, 2011
prescribed by the Central Government under Section 209(1) (d) of the
Companies Act, 1956 and are of the opinion that prima facie the
prescribed cost records have been made and maintained. We have,
however, not made a detailed examination of the cost records with a
view to determine whether they are accurate or complete.
9. a) The Company is generally regular in depositing 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 and other material statutory dues
applicable to the Company with appropriate authorities. According to
information and explanations given to us, there are no amounts of
statutory dues outstanding as at 31st March, 2013 for a period of more
than six months from the date they became payable. b) According to
information and explanations given to us, there are no dues in respect
of Sales Tax, Wealth Tax, Service Tax, Custom Duty, and Cess which have
not been deposited on account of any dispute.
10. The Company has no accumulated losses at the end of the financial
year and t has not incurred any cash losses in the current as well as
in the immediately preceding financial year.
11. According to information and explanations given to us, the Company
has not defaulted in repayment of dues to the banks. The Company does
not have any borrowing from financial institution and by way of
debentures.
12. According to the information and explanations given to us, the
Company has not granted any loans or advances on the basis of securty
by way of pledge of shares, debentures, and other securities.
13. According to the information and explanations given to us, the
Company is not a chit fund or a nidhi / mutual benefit fund / society.
14. The Company has kept adequate records of its transactions and
contracts in respect of dealing in shares, securities and other
investments and timely entries have been made therein. The shares,
securities and other investments have been held in the name of the
Company.
15. According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks and financial institutions.
16. According to information and explanations given to us, the Company
has not raised any term loans during the year.
17. According to information and explanations given to us and on an
overall examination of the balance sheet of the Company, we report that
funds raised on short-term basis have not been used for long term
investments.
18. The Company has not made any preferential allotment of shares
during the year.
19. The Company has not issued any debentures during the year.
20. The Company has not raised any money through public issue during
the year.
21. 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 Rungta & Associates
Chartered Accountants
(Registration No. 108888W)
PAWAN KUMAR RUNGTA
Place: Mumbai Proprietor
Dated: 27th May, 2013 (Membership no. 42902)
Mar 31, 2012
1. We have audited the attached Balance Sheet of TAINWALA CHEMICALS
AND PLASTICS (INDIA) LIMITED as at 31st March, 2012, and also the
Statement of Profit and Loss and the Cash Flow Statement of the Company
for the year ended on that date 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 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 Companies (Auditor's Report) Order, 2003 as amended
by the Companies (Auditor's Report) (Amendment) Order, 2004 ('the
Order') issued by Central Government of India in terms of Section
227(4A) of the Companies Act, 1956, on the basis of such checks ofthe
books and records of the Company, as we considered appropriate and
according to information and explanations given to us, we annex hereto
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, 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 the Profit and
Loss and the Cash Flow Statement dealt with by this report have been
prepared in compliance with the Accounting Standards referred to in
Section 211 (3C) of the Companies Act, 1956, to the extent applicable;
e) On the basis of written representations received from the Directors
of the Company as on 31st March, 2012 and taken on record by the Board
of Directors, we report that none of the Directors is disqualified as on
31st March, 2012 from being appointed as a Director in terms of clause
(g) of sub-section (1) of Section 274 of the Companies Act, 1956;
f) In our opinion and to the best of our information and according to
the explanations given to us, they said Financial Statements read with
significant accounting policies and other notes thereon, 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 31st March, 2012;
ii. in the case of the Statement of Profit and Loss, 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.
1. In respect of its fixed assets:
a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets.
b) In our opinion and according to information and explanations given
to us, physical verification of fixed assets has been conducted by the
management at reasonable intervals and no material discrepancies were
noticed on such verification.
c) During the year, none of fixed assets have been disposed off by the
Company.
2. In respect of its inventories:
a) The inventory has been physically verified during the year by the
management. In our opinion, the frequency of verification is
reasonable.
b) In our opinion and according to information and explanations given
to us, the procedures of physical verification of inventory followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
c) The Company is maintaining proper records of inventory. According to
the information and explanations given to us, the discrepancies noticed
on physical verification of inventory as compared to book records were
not material and the same have been properly dealt with by the Company
in the books of account.
3. In respect of loans, secured or unsecured, granted or taken by the
Company to / from companies, firms or other parties covered in the
register maintained under section 301 of the Companies Act, 1 956:
a) The Company had granted unsecured loans to two companies in earlier
years and maximum amount involved during the year was Rs. 79,304,546
and year-end balance of loans given to such parties was Rs.
79,3,04,546.
b) The rate of interest and other terms and conditions of the loans
given by the Company are primafacie, not prejudicial to the interests
of the Company except for a loan which is fully provided for as
doubtful.
c) The above loans are repayable on demand and the Company is taking
necessary steps for recovery. However, in our opinion more concerted
efforts are needed to recover these amounts.
d) The Company has not taken any loans, secured or unsecured, from
companies, firms and other parties during the year covered in the
register maintained under section 301 of the Companies Act, 1956.
Accordingly, the provisions of clause 4(iii)f and 4(iii)g ofthe order
are not applicable to the Company.
4. In our opinion and according to information and explanations given
to us, having regard to the explanation that certain items purchased
are of special nature for which suitable alternative sources do not
exist for obtaining comparative: quotations, there is adequate internal
control system commensurate with the size of the Company and nature of
its business, for the purchase of inventories and fixed assets and
for the sale of goods and services. During the course of our audit, we
have not observed any continuing failure to correct major weaknesses')
in the internal control system.
5. a) According to the information and explanations given to us, we
are of the opinion that the particulars of contracts; or arrangements
referred to in Section 301 of the Companies Act, 1956 have been entered
in the register required to be maintained under that Section.
b) There are no transactions during the year made in pursuance of such
contracts or arrangements exceeding Rs. 500,000 in respect of each
party.
6. The Company has not accepted any deposits from the public during
the year.
7. The Company has an in-house internal audit system during the year,
which needs to be strengthened to be commensurate with its size and
nature of its business.
8. We have broadly reviewed the cost records maintained by the Company
pursuant to the Companies (Cost Accounting Records) Rules, 2011
prescribed by the Central Government under Section 209(1 )(d) of the
Companies Act, 1956 and are of the opinion that prima facie the
prescribed cost records have been maintained. We have, however, not
made a detailed examination of the cost records with a view to
determine whether they are accurate or complete.
9. a) The Company is generally regular in depositing 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 and other material statutory dues applicable to the Company
with appropriate authorities. According to information and explanations
given to us, there are no amounts of statutory dues outstanding as at
31 st March, 2012fora period of more than six months from the date they
became payable except for Rs. 60,000 in respect of wealth Tax.
b) According to information and explanations given to us, there are no
dues in respect of Sales Tax, Wealth Tax, Service Tax, Custom Duty, and
Cess which have not been deposited on account of any dispute. Dues in
respect of Income Tax and Excise Duty not deposited on account of
dispute are as follows:
Name of statute Nature of Amount Period to which Forum where
dispute
dues Rs.
amount pertains is pending
Income tax
Act, 1961 Income tax 18,92,018 2006-07 The Commis
sioner of
Income tax
(Appeals)
Central
Excise
Act, 1944 Penalty 92,368 1999-00 The High
Court
10. The Company has no accumulated losses at the end of the financial
year and it has not incurred any cash _ losses in the current as well
as in the immediately preceding financial year.
11. According to information and explanations given to us, the Company
has not defaulted in repayment of dues to the banks. Thp Company does
not have any borrowing from financial institution and by
way of debentures.
12. According to the information and explanations given to us, the
Company has not granted any loans or advances on the basis of security
by way of pledge of shares, debentures, and other securities.
13. According to the information and explanations given to us, the
Company is not a chit fund or a nidhi / mutual benefit fund / society,
provisions of clause (xiii) of paragraph 4 of the Order is not
applicable to the Company.
14. The Company has kept adequate records of its transactions and
contracts in respect of dealing in shares, securities and other
investments and timely entries have been made therein. The shares,
securities and other investments have been held in the name of the
Company.
15. According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks and financial institutions.
116. According to information and explanations given to us and on an
overall examination of the Balance Sheet of the Company, we report that
term loans were applied for the purpose for which the loans were
obtained.
17. According to information and explanations given to us and on an
overall examination of the balance sheet of the Company, we report that
funds raised on short-term basis have not been used for long term
investments.
18. The Company has not made any preferential allotment of shares
during the year.
19. The Company has not issued any debentures during the year.
20. The Company has not raised any money through public issue during
the year.
21. 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 Rungta & Associates
Chartered Accountants
(Registration No. 108888W)
Pawan Kumar Rungta
Place : Mumbai Proprietor
Dated : 30th May, 2012 (Membership No. 42902)
Mar 31, 2011
1. We have audited the attached balance sheet of TAINWALA CHEMICALS
AND PLASTICS (INDIA) LIMITED as at 31st March, 2011 and also the profit
and loss account and cash flow statement of the Company for the year
ended on that date 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 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 Companies (Auditor's Report) Order 2003 as amended
by the Companies (Auditor's Report) (Amendment) Order, 2004 ('the
Order') issued by Central Government of India in terms of Section
227(4A) of the Companies Act, 1956, on the basis of such checks of the
books and records of the Company, as we considered appropriate and
according to information and explanations given to us, we annex hereto
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, 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, profit and loss account and cash
flow statement dealt with by this report have been prepared in
compliance with the Accounting Standards referred to in Section 211(3C)
of the Companies Act, 1956, to the extent applicable;
e) On the basis of written representations received from the Directors
of the Company as on 31st March, 2011 and taken on record by the Board
of Directors, we report that none of the Directors is disqualified as
on 31st March, 2011 from being appointed as a Director in terms of
clause (g) of sub-section (1) of Section 274 of the Companies Act,
1956;
f) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read with significant
accounting policies and notes thereon in Schedule 'O' and other notes
appearing elsewhere in the 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 31st March, 2011;
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 cash flow statement,of the cash flows for the year ended
on that date.
ANNEXURE TO THE AUDITORS' REPORT REFERRED TO IN PARAGRAPH 3 OF OUR
REPORT OF EVEN DATE
1. In respect of its fixed assets:
a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets.
b) In our opinion and according to information and explanations given
to us, physical verification of fixed assets has been conducted by the
management at reasonable intervals and no material discrepancies were
noticed on such verification.
c) During the year, no substantial part of its fixed assets has been
disposed off by the Company.
2. In respect of its inventories:
a) The inventory has been physically verified during the year by the
management. In our opinion, the frequency of verification is
reasonable.
b) In our opinion and according to information and explanations given
to us, the procedures of physical verification of inventory followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
c) The Company is maintaining proper records of inventory. According to
the information and explanations given to us, the discrepancies noticed
on physical verification of inventory as compared to book records were
not material and the same have been properly dealt with by the Company
in the books of account.
3. In respect of loans, secured or unsecured, granted or taken by the
Company to / from companies, firms or other parties covered in the
register maintained under section 301 of the Companies Act, 1956:
a) The Company had granted unsecured loans to two companies in earlier
years and maximum amount involved during the year was 79,304,546 and
year-end balance of loans given to such parties was 79,304,546.
b) The rate of interest and other terms and conditions of the loans
given by the Company are prima facie, not prejudicial to the interests
of the Company except for a loan which is fully provided as doubtful.
c) The above loans are repayable on demand and company is taking
necessary step for recovery. However in our opinion, more concertrd
efforts are needed to recover these amount.
d) The Company has not taken any loans, secured or unsecured, from
companies, firms and other parties during the year covered in the
register maintained under section 301 of the Companies Act, 1956.
Accordingly, the provisions of clause 4(iii) f and 4(iii)g of the order
are not applicable to the Company.
4. In our opinion and according to information and explanations given
to us, having regard to the explanation that certain items purchased
are of special nature for which suitable alternative sources do not
exist for obtaining comparative quotations, there is adequate internal
control system commensurate with the size of the Company and nature of
its business, for the purchase of inventories and fixed assets and for
the sale of goods and services. During the course of our audit, we have
not observed any continuing failure to correct major weaknesses in
internal control system.
5. a) According to the information and explanations given to us, we
are of the opinion that the particulars of contracts or arrangements
referred to in Section 301 ofthe Companies Act, 1956 have been entered
in the register required to be maintained under that Section.
b) There are no transactions during the year made in pursuance of such
contracts or arrangements exceeding 500,000 in respect of each party.
6. The Company has not accepted any deposits from public during the
year.
7. The Company has an in-house internal audit system during the year,
which needs to be strengthened to be commensurate with its size and
nature of its business.
8. The Central Government has not prescribed for the maintenance of
cost records under Section 209(1)(d) of the Companies Act, 1956 for the
products manufactured by the Company.
9. a) The Company is generally regular in depositing 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 and other
material statutory dues applicable to the Company with appropriate
authorities. According to information and explanations given to us,
there are no amounts of statutory dues outstanding as at 31st March,
2011 for a period of more than six months from the date they became
payable.
b) According to information and explanations given to us, there are no
dues in respect of Sales Tax, Wealth Tax, Service Tax, Custom Duty, and
Cess which have not been deposited on account of any dispute. Dues in
respect of Income Ta x and Excise Duty not deposited on account of
dispute are as follows:
Name of Nature of Amount Period to Forum where
statute dues Rs. which dispute is
amount pending
pertains
Income tax Income tax 1,605,058 1995-96 The Commissioner
Act, 1961 of Income tax
(Appeals)
Income tax Income tax 1,091,941* 2004-05 The Income Tax
Act, 1961 Appellate
Tribunal
Income tax Income tax 14,047,741* 2004-05 The Commissioner
Act, 1961 (Penalty) of Income tax
(Appeals)
Income tax Income tax 33,17,036* 2006-07 The Commissioner
Act, 1961 of Income tax
(Appeals)
Central Penalty 92,368 1999-00 The High Court
Excise
Act, 1944
*Certain matters decided in favour of the Company, impact whereof could
not be considered in absence of receipt of appeal effect orders.
10. The Company has no accumulated losses at the end of the financial
year and it has not incurred any cash losses in the current as well as
immediately preceding financial year.
11. According to information and explanations given to us, the Company
has not defaulted in repayment of dues to the banks. The Company does
not have any borrowing from financial institution and by way of
debentures.
12. According to the information and explanations given to us, the
Company has not granted any loans or advances on the basis of security
by way of pledge of shares, debentures, and other securities.
13. According to the information and explanations given to us, the
Company is not a chit fund or a nidhi / mutual benefit fund / society,
provisions of clause (xiii) of paragraph 4 of the Order is not
applicable to the Company.
14. The Company has kept adequate records of its transactions and
contracts in respect of dealing in shares, securities and other
investments and timely entries have been made therein. The shares,
securities and other investments have been held in the name of the
Company.
15. According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks and financial institutions.
16. According to information and explanations given to us and on an
overall examination of the balance sheet of the Company, we report that
term loans were applied for the purpose for which the loans were
obtained.
17. According to information and explanations given to us and on an
overall examination of the balance sheet of the Company, we report that
funds raised on short-term basis have not been used for long term
investments.
18. The Company has not made any preferential allotment of shares
during the year.
19. The Company has not issued any debentures during the year.
20. The Company has not raised any money through public issue during
the year.
21. 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 RUNGTA & ASSOCIATES
Chartered Accountants
(REGISTRATION NO.:108888W)
(Pawan Kumar Rungta)
PROPRIETOR
Membership No. 42902
Place : Mumbai
Dated : 25th May, 2011
Mar 31, 2010
1. We have audited the attached balance sheet of TAINWALA CHEMICALS
AND PLASTICS (INDIA) LIMITED as at 31st March 2010 and also the profit
and loss account and cash flow statement of the Company for the year
ended on that date 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 Companies (Auditors Report) Order 2003 as amended
by the Companies (Auditors Report) (Amendment) Order, 2004 (the
Order) issued by Central Government of India in terms of Section
227(4A) of the Companies Act, 1956, on the basis of such checks of the
books and records of the Company, as we considered appropriate and
according to information and explanations given to us, we annex hereto
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, 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, profit and loss account and cash
flow statement dealt with by this report have been prepared in
compliance with the Accounting Standards referred to in Section 211(3C)
of the Companies Act, 1956, to the extent applicable;
e) On the basis of written representations received from the directors
of the Company as on 31 March 2010 and taken on record by the Board of
Directors, we report that none of the directors is disqualified as on
31st March 2010 from being appointed as a director in terms of clause
(g) of sub-section (1) of Section 274 of the Companies Act, 1956;
f) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read with significant
accounting policies and notes thereon in Schedule O and other notes
appearing elsewhere in the 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 31st March 2010;
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 cash flow statement, of the cash flows for the year
ended on that date.
ANNEXURE TO THE AUDITORS REPORT REFERRED TO IN PARAGRAPH 3 OF OUR
REPORT OF EVEN DATE
1. In respect of its fixed assets:
a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets.
b) In our opinion and according to information explanations given to
us, physical verification of fixed assets have been conducted by the
management at reasonable intervals and no material discrepancies were
noticed on such verification.
c) During the year, no substantial part of its fixed assets has been
disposed off by the Company.
2. In respect of its inventories:
a) The inventory has been physically verified during the year by the
management. In our opinion, the frequency of verification is
reasonable.
b) In our opinion and according to information and explanations given
to us, the procedures of physical verification of inventory followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
c) The Company is maintaining proper records of inventory. According to
the information and explanations given to us, the discrepancies noticed
on physical verification of inventory as compared to book records were
not material and the same have been properly dealt with by the Company
in the books of account.
3. In respect of loans, secured or unsecured, granted or taken by the
Company to / from companies, firms or other parties covered in the
register maintained under section 301 of the Companies Act, 1956:
a) The Company had granted unsecured loans to two companies in earlier
years and maximum amount involved during the year was Rs. 7,93,04,546
and year-end balance of loans given to such parties was Rs.
7,93,04,546.
b) The rate of interest and other terms and conditions of the loans
given by the Company are, prima facie, not prejudicial to the interests
of the Company except for a loan which are fully provided as doubtful.
c) The above loans are repayable on demand and in our opinion, in
respect of overdue amounts, the Company is taking necessary steps for
recovery.
d) The Company has not taken any loans, secured or unsecured, from
companies, firms and other parties during the year covered in the
register maintained under section 301 of the Companies Act 1956.
Accordingly, the provisions of clause 4(iii)f and 4(iii)g of the order
are not applicable to the company.
4. In our opinion and according to information and explanations given
to us. having regard to the explanations that certain items purchased
are of special nature for which suitable alternative sources do not
exist for obtaining comparative quotations, there is adequate internal
control systems commensurate with the size of the Company and nature of
its business, for the purchase of inventories and fixed assets and for
the sale of goods and services. During the course of our audit, we have
not observed any continuing4failure to correct major weaknesses in
internal control system.
5. a) According to the information and explanations given to us, we
are of the opinion that the particulars of contracts or arrangements
referred to in Section 301 of the Act have been entered in the register
required to be maintained under that Section.
b) There are no transactions during the year made in pursuance of such
contracts or arrangements exceedings Rs. 500,000 in respect of each
party.
6. The Company has not accepted any deposits from public during the
year.
7. The Company has in house internal audit system during the year,
which needs to be strengthened to commensurate with its size and nature
of its business.
8. The Central Government has not prescribed for the maintenance of
cost records under Section 209(1 )(d) of the Companies Act, 1956 for
the products manufactured by the Company.
9. a) The Company is generally regular in depositing 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 and other
material statutory dues applicable to the Company with appropriate
authorities. According to information and explanations given to us,
there are no amounts of statutory dues outstanding as at 31 March 2010
for a period of more than six months from the date they became payable,
except for Rs 30,653 in respect of wealth Tax.
b) According to information and explanations given to us, there are no
dues in respect of Sales æ Tax, Wealth Tax, Service Tax, Custom Duty,
Cess which have not been deposited on account of any dispute. Dues in
respect of Income Tax and Excise Duty not deposited on account of
dispute are as follows:
Name of Nature of Amount Period to
which Forum where dispute
statute dues Rs. amount
pertains is pending
Income
tax Income
tax 1,605,058 1995-96 The Commissioner of
Act, 1961 Income tax (Appeals)
Income
tax Income
tax 1,091,941 2004-05 The Income Tax
Appellate
Act,
1961 Tribunal
Income
tax Income
tax 16,605,622 2004-05 The Commissioner of
Act,
1961 (Penalty) Income tax (Appeals)
Income
tax Income
tax 33,17,036 2006-07 The Commissioner of
Act,
1961 Income tax (Appeals)
Central
Excise Penalty 92,368 1999-00 The High Court
Act,
1944
10. In our opinion, the accumulated losses of the Company at the end
of the financial year are less than fifty percent of its net worth. The
Company has not incurred cash losses during the current financial year
as well as in the immediately preceding financial year.
11. According to information and expianations given to us, the Company
has not defaulted in repayment of dues to the banks. The Company does
not have any borrowing from financial institution and by way of
debentures.
12. According to the information and explanations given to us, the
Company has not granted any loans or advances on the basis of security
by way of pledge of shares, debentures, and other securities.
13. According to the informations and explanations given to us, the
Company is not a chit fund or a nidhi / mutual benefit fund / society,
provisions of clause (xiii) of paragraph 4 of the Order is not
applicable to the Company.
14. The Company has kept adequate records of its transactions and
contracts in respect of dealing in shares, securities and other
investments and timely entries have been made therein. The shares,
securities and other investments have been held in the name of the
Company.
15. According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks and financial institutions.
16. According to information and explanations given to us and on an
overall examination of the balance sheet of the Company, we report that
term loans were applied for the purpose for which the loans were
obtained.
17. According to information and explanations given to us and on an
overall examination of the balance sheet of the Company, we report that
funds raised on short-term basis have not been used for long term
investments.
18. The Company has not made any preferential allotment of shares
during the year.
19. The Company has not issued any debentures during the year.
20. The Company has not raised any money through public issues during
the year.
21. According to the information and explanations given to us, no
fraud on or by the Company has beer noticed or reported during the
year.
FOR RUNGTA & ASSOCIATES
Chartered Accountant
(Pawan Kumar Rungta)
PROPRIETOR
Membership No. 42902
FIRM REGISTRATION NO.:108888W
Place : Mumbai
Dated : 18th May, 2010