Mar 31, 2023
TECHNOCRAFT INDUSTRIES (INDIA) LIMITED
Report on the Standalone Financial Statements
Opinion
We have audited the accompanying Standalone Ind AS financial statements of TECHNOCRAFT INDUSTRIES (INDIA) LIMITED, (âthe Companyâ), which comprise the Balance Sheet as at 31st March 2023, the Statement of Profit and Loss (Including Other Comprehensive Income), the Cash Flow Statement and the Statement of changes in Equity for the year then ended and notes to the financial statements including a summary of significant accounting policies and other explanatory information.
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone Ind AS financial statements give the information required by the Companies Act, 2013, as amended (âthe Actâ) 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 2023, its profit including other comprehensive income its cash flows and the changes in equity for the year ended on that date.
Basis of Opinion
We conducted our audit of the standalone Ind AS financial statements in accordance with the Standards on Auditing (SAs), as specified under section 143(10) of the Act. Our responsibilities under those Standards are further described in the âAuditorâs Responsibilities for the Audit of the Standalone Ind AS Financial Statementsâ section of our report. We are independent of the Company in accordance with the âCode of Ethicsâ issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the financial statements under the provisions of the Act and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Standalone Ind AS financial statements.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the standalone Ind AS financial statements for the financial year ended 31st March 2023. These matters were addressed in the context of our audit of the standalone Ind AS financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. For each matter below, our description of how our audit addressed the matter is provided in that context.
We have determined the matters described below to be the key audit matters to be communicated in our report. We have fulfilled the responsibilities described in the Auditorâs responsibilities for the audit of the standalone Ind AS financial statements section of our report, including in relation to these matters. Accordingly, our audit included the performance of procedures designed to respond to our assessment of the risks of material misstatement of the standalone Ind AS financial statements. The results of our audit procedures, including the procedures performed to address the matters below, provide the basis for our audit opinion on the accompanying standalone Ind AS financial statements.
Key Audit Matters |
How our audit addressed the key audit matter |
1. Assessment of impairment of investment in subsidiaries, (Refer Note 6(a) of the Standalone Ind AS Balance Sheet) |
|
As at 31st March 2023 the Company balance sheet includes investment in subsidiaries & associates of Rs. 3,851.86 lakhs, In accordance with Indian Accounting Standards (Ind-AS), the management has allocated these balances to their respective cash generating units (CGU) and tested these for impairment using a discounted cash flow model. The management compares the carrying value of these assets with their respective recoverable amount. A deficit between the recoverable amount and CGUâs net assets would result in impairment. The inputs to the impairment testing model which have most significant impact on the model includes: a) Sales growth rate; b) Operating margin; c) Working capital requirements; d) Capital expenditure; and e) Discount rate applied to the projected cash flows. The impairment test model includes sensitivity testing of key assumptions. The annual impairment testing is considered a significant accounting judgment and estimate and a key audit matter because the assumptions on which the tests are based are highly judgmental and are affected by future market and economic conditions which are inherently uncertain, and because of the materiality of the balances to the financial statements as a whole. |
As a part of our audit we have, carried out the following procedures: a) We assessed the Companyâs methodology applied in determining the CGUs to which these assets are allocated. b) We assessed the assumptions around the key drivers of the cash flow forecasts including discount rates, expected growth rates and terminal growth rates used; c) We also assessed the recoverable value by performing sensitivity testing of key assumptions used. d) We tested the arithmetical accuracy of the models e) Performed analysis of the disclosures related to the impairment tests and their compliance with Indian Accounting Standard (Ind-AS). |
3. Revenue Recognition (Refer to the accounting policies in Note 3 to the financial statements) |
|
Revenue from the sale of goods is recognised upon the transfer of control of the goods to the customer. The Company uses a variety of shipment terms across its operating markets and this has an impact on the timing of revenue recognition. There is a risk that revenue could be recognised in the incorrect period for sales transactions occurring on and around the year-end, therefore revenue recognition has been identified as a key audit matter. |
a) Our audit procedures included reading the Companyâs revenue recognition accounting policies to assess compliance with Ind AS 115 âRevenue from contracts with customersâ. b) We performed test of controls of managementâs process of recognizing the revenue from sales of goods with regard to the timing of the revenue recognition as per the sales terms with the customers. c) We performed test of details of the sales transactions testing based on a representative sampling of the sales orders to test that the related revenues and trade receivables are recorded taking into consideration the terms and conditions of the sale orders, including the shipping terms. d) We also performed audit procedures relating to revenue recognition by agreeing deliveries occurring around the year end to supporting documentation to establish that sales and corresponding trade receivables are properly recorded in the correct period. e) Assessing and testing the adequacy of presentation and disclosures. |
The Companyâs Board of Directors is responsible for the other information. The other information comprises the information included in the Annual report but does not include the Standalone Ind AS financial statements and our auditorâs report thereon.
Our opinion on the Standalone Ind AS financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the standalone Ind AS financial statements, our responsibility is to read the other information and, in doing so, consider whether such other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Managementâs Responsibility for the Standalone Ind AS Financial Statements
The Companyâs Board of Directors is responsible for the matters stated in section 134(5) of the Act with respect to the preparation of these Standalone Ind AS financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income, cash flows and changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) specified under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended. 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 the design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the Standalone Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the Standalone Ind AS financial statements, management is responsible for assessing the Companyâs ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
The Board of Directors are also responsible for overseeing the Companyâs financial reporting process.
Auditorâs Responsibilities for the Audit of the Standalone Ind AS Financial Statements
Our objectives are to obtain reasonable assurance about whether the standalone Ind AS financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditorâs report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these standalone Ind AS financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
> Identify and assess the risks of material misstatement of the standalone Ind AS financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
> Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the Company has adequate internal financial controls system in place and the operating effectiveness of such controls.
> Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
> Conclude on the appropriateness of managementâs use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Companyâs ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditorâs report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditorâs report. However, future events or conditions may cause the Company to cease to continue as a going concern.
> Evaluate the overall presentation, structure and content of the standalone Ind AS financial statements, including the disclosures, and whether the standalone Ind AS financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the Standalone Ind AS financial statements for the financial year ended 31st March 2023 and are therefore the key audit matters. We describe these matters in our auditorâs report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
The standalone financial statement includes comparative financial information for previous year ended 31st March 2022 which were subjected to audit by another firm of Chartered Accountants under the Act who, vide their report dated 27th May, 2022, expressed an unmodified opinion on those financial statements.
Our opinion on the Statement is not modified in respect of the above matters.
Report on Other Legal and Regulatory Requirements
As required by the Companies (Auditorâs Report) Order, 2020 (âthe Orderâ); issued by the Central Government of India in terms of sub-section (11) of section 143 of the Companies Act, 2013, we give in the Annexure - A, a statement on the matters specified in paragraphs 3 and 4 of the Order to the extent applicable.
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 purpose of our audit;
(b) In our opinion, proper books of account as required by law have been kept by the Company so far as appears from our examination of those books;
(c) The Balance Sheet, Statement of Profit and Loss including the statement of Other Comprehensive Income, Cash Flow Statement and Statement of Changes in Equity dealt with by this Report are in agreement with the books of account;
(d) In our opinion, the aforesaid Standalone 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 the written representations received from the directors as on 31st March 2023 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March 2023 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.
(g) In our opinion, the managerial remuneration for the year ended 31st March 2023 has been paid / provided by the Company to its directors in accordance with the provisions of section 197 read with Schedule V to the Companyâs Act, 2013;
(h) With respect to the other matters to be included in the Auditorâs Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014 in our opinion and to the best of our information and according to the explanations given to us:
i. The company has disclosed the impact of pending litigations on its financial position in its financial statement - Refer Note no. 30.
ii. The Company has made provision, as required under the applicable law or Ind AS, for material foreseeable losses, if any, on long-term contracts including derivative contracts.
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
iv. (i) The Management has represented that, to the best of its knowledge and belief, no funds (which are material
either individually or in the aggregate) have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person or entity, including foreign entity (âIntermediariesâ), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (âUltimate Beneficiariesâ) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;
(ii) The Management has represented, that, to the best of its knowledge and belief, no funds (which are material either individually or in the aggregate) have been received by the Company from any person or entity, including foreign entity (âFunding Partiesâ), with the understanding, whether recorded in writing or otherwise, that the Company shall, whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (âUltimate Beneficiariesâ) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;
(iii) Based on the audit procedures that have been considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the representations under sub-clause (i) and (ii) of Rule 11(e), as provided under (a) and (b) above, contain any material misstatement.
v. The Company has not declared and paid any Dividend during the Year ended on 31st March 2023 as per section 123 of the Companyâs Act, 2013. Hence, we have nothing to report in this regard.
For M. L. Sharma & Co., Firm Reg. No. 109963W Chartered Accountants
Place of Signature: Mumbai Partner
Date: 29th May, 2023 Membership No. 104982
UDIN - 23104982BGQPWT4985
Mar 31, 2018
INDEPENDENT AUDITOR''S REPORT
TO THE MEMBERS OF
TECHNOCRAFT INDUSTRIES (INDIA) LIMITED Report on the Standalone Financial Statements
We have audited the accompanying Standalone IND AS financial statements of TECHNOCRAFT INDUSTRIES (INDIA) LIMITED, ("the company"), which comprise the Balance Sheet as at March 31, 2018, the Statement of Profit and Loss (Including Other Comprehensive Income), the Cash Flow Statement and the Statement of changes in Equity 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 of these Standalone IND AS financial statements that give a true and fair view of the financial position, financial performance Including Other Comprehensive Income, cash flows and change in Equity of the company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (IND-AS) specified 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 Standalone IND AS financial statement 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 Standalone IND AS 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 Standalone iNd AS financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the Standalone IND AS financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the Standalone IND AS financial statements, whether due to fraud or error. In making, those risk assessments, the auditor considers internal financial control relevant to the Company''s preparation of the Standalone 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 the accounting policies used and reasonableness of the accounting estimates made by the Company''s Directors, as well as evaluating the overall presentation of the Standalone IND AS 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 IND AS financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid Standalone 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 the IND AS, of the financial position of the Company as at 31st March, 2018, and its Profits (financial performance Including Other Comprehensive Income ), its cash flows and changes in Equity for the year ended on that date.
Report on Other Legal and Regulatory Requirements
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 Companies Act, 2013, we give in the Annexure - A, a statement on the matters specified in paragraphs 3 and 4 of the Order to the extent applicable.
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 purpose of our audit.
(b) In our opinion, proper books of account as required by law have been kept by the Company so far as appears from our examination of those books.
(c) The Balance Sheet, Statement of Profit and Loss, Cash Flow Statement and Statement of changes in Equity dealt with by this Report are in agreement with the books of account.
(d) I n our opinion, the aforesaid Standalone IND AS financial statements comply with the Indian Accounting Standards specified under section 133 of the Act read with relevant Rule issued thereunder.
(e) On the basis of the written representations received from the directors as on 31st March, 2018 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 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 Annexure - B.
(g) 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:
a. The company has disclosed the impact of pending litigations on its financial position in its financial statement -Refer Note no. 28 to the financial statement.
b. The Company has made provision, as required under the applicable law or Ind AS, for material foreseeable losses, if any, on long-term contracts including derivative contracts.
c. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
d. The reporting on disclosure relating to specified Bank Notes is not applicable for the year ended 31st March, 2018.
The Annexure referred to in our Report of even date to the Members of TECHNOCRAFT INDUSTRIES (INDIA)
LIMITED on the Standalone Financial Statements for the year ended 31st March, 2018, We report that:
1 a According to information and explanations given to us, The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
b As explained to us, the fixed assets of the company have been physically verified by the Management in a phased manner as per regular program of verification, which in our opinion is reasonable having regard to the size of the Company and nature of its assets. Pursuant to this program, some of the fixed assets have been physically verified by the management during the year, and no material discrepancies have been noticed on such verification.
c The title deeds of the property as disclosed in Property, Plant and Equipment and Investment Property vide Note No. 3 & 4 respectively to the financial statements are held in the name of the company.
2. The stock of Finished Goods, Goods-in-Process, Raw Materials and Stores & Spares parts have been physically verified during the year by the Management. In our opinion, the procedures of physical verification of the above Inventories followed by the Management are reasonable and adequate in relation to the size of the Company and nature of its business. In respect of inventories lying with the third parties, these have substantially been confirmed by.
3 a In our opinion and according to the information and explanations given to us, the company has granted unsecured loans to 2 parties covered in the Register maintained under section 189 of the Companies Act, 2013.
b Payment of Principal amount and interest are regular wherever demanded & stipulated.
c As the Loan is repayable on demand therefore comment in respect of overdue amount of loans granted to Companies, Firms or other parties listed in the register maintained under section 189 of the Companies Act, 2013 is not applicable to the company.
4. In our opinion and according to the information and explanations given to us, the company has complied with the provisions of section 185 and 186 of the Act, loans, guarantees and security provided in respect of loans & other facilities to parties covered under section 185 of the Act and Investments made.
5. The Company has not accepted any deposits from the public to which the directives issued by the Reserve Bank of India and the provisions of section 73 to 76 and any other relevant provision of the Companies Act, 2013 and the rules framed there under apply.
6. We have broadly reviewed the books of account and records maintained by the company in respect of the products where, pursuant to the Rules made by the Central Government of India, the maintenance of cost records has been specified under section 148 (1) of the Companies Act, 2013 is applicable to the company and are of opinion that prima facie the prescribed accounts and records have been made and maintained. We have however not made detailed Examination of the records with view to determining whether they are accurate or complete.
7 a According to the information and explanation given to us and the records of the Company examined by us, the Company is generally regular in depositing provident fund dues, employees state insurance, income tax, sales tax, service tax, custom duty, excise duty, cess and any other statutory dues with the appropriate authorities and there are no undisputed amounts payable for the same were outstanding as at 31st March, 2018 for a period exceeding six months from the date they became payable;
b According to the information and explanation given to us and the records of the Company examined by us, the Particulars of disputed statutory dues under various act as at 31st March, 2018 which have not been deposited with the appropriate authorities are as under: -
Name of the Statute |
Nature of dues |
Amount ('' in Lakhs) |
Forum where dispute is pending |
The Central Excise Act 1944 |
Excise Duty & Penalty |
||
For F.Y 2005-06 |
38.73 |
Case pending with CESTAT (Mumbai) |
|
For F.Y 1999-02 to Sept 2008 |
1,115.67 |
Case pending with CESTAT (Mumbai) |
|
For Period before 29-9-2008 |
195.61 |
Cases pending with CESTAT (Mumbai) |
|
For Period before 29-1-2009 |
266.77 |
Cases pending with CESTAT (Mumbai) |
|
For FY 2007-08 |
15.65 |
Case pending With High Court, Mumbai |
|
For period Oct 11 - Jan 12. |
9.94 |
Case pending with CESTAT (Tribunal) |
|
For the period Apr-15 to Sept-15 |
4.85 |
Additional Commissioner (ST) |
For the period Apr-15 to Dec-15 |
2.55 |
Additional Commissioner (ST) |
|
Service Tax & Penalty |
|||
For F.Y. 2006-07 & F.Y. 2008-09 |
10.94 |
Case pending with Commissioner (Appeals) |
|
For period Oct 09 - Mar 13 |
24.60 |
Case pending with Commissioner (Appeals) |
|
For period Apr 13 - Dec 13 |
3.68 |
Case pending with Commissioner (Appeals) |
|
For the Period April 2011 to May 2015 |
6.49 |
Case pending with Commissioner (Appeals) |
|
The Maharashtra Land Revenue Act, 1966 |
For Payment of Royalty on extraction & transportation of mud, stones & sand issued by Tahasildar, Tal. Murbad, Dist. Thane |
82.48 |
Additional Commissioner (Appeals) Konkan Division |
Electricity Act, 2003 |
For Payment of Additional Differential Electricity duty |
1,458.01 |
High Court, Mumbai |
The MRTU & PULP Act, 1971 |
For payment of Variable Dearness Allowances |
165.50 |
The Industrial Court, Maharashtra at Thane. |
Income Tax Act, 1961 |
For A. Y. 2012-13 |
0.10 |
CIT (Appeals) |
8. According to information and explanations given to us the company has not defaulted in repayment of loans or borrowings to a financial institution or bank and company does not have any outstanding loans or borrowing from Government or dues to debenture holders during the year.
9. The Company has not raised money by way of initial public offer or further public offer (including debt instruments) however the term loans have availed by the company and were applied for the purposes for which those were raised.
10. According to the information and explanations given to us by the management, which has been relied upon by us, no fraud by the company or any fraud on the Company by its officers or employees has been noticed or reported during the year.
11. I n our opinion, and according to the information and explanations given to us, 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.
12. In our opinion, the Company is not a Nidhi Company. Therefore, the provisions of clause 3 (xii) of the order are not applicable to the Company.
13. In our opinion, and according to the information and explanations given to us, all transactions with the related parties are in compliance with section 177 and 188 of the companies Act, 2013 where applicable. The details of related party transactions have been disclosed in the financial statements as required under Ind AS "24", Related Party Disclosures specified under section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2015.
14. In our opinion, and according to the information and explanations given to us, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the and accordingly the provisions of clause 3 (xiv) of the order is not applicable to the Company.
15. In our opinion and according to the information and explanations given to us, the Company has not entered into any Non-Cash transaction with directors or persons connected with the directors. Accordingly, the provisions of clause 3 (xv) of the order is not applicable to the Company.
16. In our opinion and according to the information and explanations given to us, the company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934. Accordingly, the provisions of clause 3 (xvi) of the order is not applicable to the Company.
The Annexure referred to in our Report of even date to the Members of TECHNOCRAFT INDUSTRIES (INDIA) LIMITED for the year ended 31st March, 2018. We report that:
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 ("the Act")
We have audited the internal financial controls over financial reporting of TECHNOCRAFT INDUSTRIES (INDIA) LIMITED, ("the Company") as of March 31, 2018 in conjunction with our audit of the Standalone 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 (''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 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 "Guidance Note") 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 authorisations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised 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 Khandelwal Prakash Murari Bhandari & Co.
Firm Reg. No. 102454W
Chartered Accountants
Place of Signature: Mumbai (Piyush Patni)
Partner
Date: 30th May, 2018 Membership No. 143869
Mar 31, 2017
INDEPENDENT AUDITOR''S REPORT
TO THE MEMBERS OF
TECHNOCRAFT INDUSTRIES (INDIA) LIMITED Report on the Standalone Financial Statements
We have audited the accompanying Standalone Ind AS financial statements of TECHNOCRAFT INDUSTRIES (INDIA) LIMITED, ("the company"), which comprise the Balance Sheet as at March 31, 2017, the Statement of Profit and Loss (Including Other Comprehensive Income), the Cash Flow Statement and the Statement of changes in Equity 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 of these Standalone Ind AS financial statements that give a true and fair view of the financial position, financial performance Including Other Comprehensive Income, cash flows and change in Equity of the company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (IND-AS) specified under section 133 of the Act read with relevant rules issued there under. 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 Standalone Ind AS financial statement(s) 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 Standalone Ind AS financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting and auditing standards and matters, which are required to be included in the audit report under the provisions of the Act, and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing specified under section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the Standalone Ind AS financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the Standalone Ind AS financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the Standalone Ind AS financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company''s preparation of the Standalone 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 the accounting policies used and reasonableness of the accounting estimates made by the Company''s Directors, as well as evaluating the overall presentation of the Standalone Ind AS 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 Ind AS financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid Standalone 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 the Ind AS, of the financial position of the Company as at March 31, 2017, and its Profits (financial performance including Other Comprehensive Income ), its cash flows and changes in Equity for the year ended on that date.
Report on Other Legal and Regulatory Requirements
As required by the Companies (Auditor''s Report) Order, 2017 (the order); issued by the Central Government of India in terms of sub-section (11) of section 143 of the Companies Act, 2013, we give in the Annexure - A, a statement on the matters specified in paragraphs 3 and 4 of the Order to the extent applicable.
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 purpose of our audit.
(b) In our opinion, proper books of account as required by law have been kept by the Company so far as appears from our examination of those books.
(c) The Balance Sheet, Statement of Profit and Loss, Cash Flow Statement and Statement of changes in Equity dealt with by this Report are in agreement with the books of account.
(d) In our opinion, the aforesaid Standalone Ind AS financial statements comply with the Indian Accounting Standards specified under section 133 of the Act read with relevant Rule issued there under.
(e) On the basis of the Written representations received from the directors as on 31st March, 2017 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2017 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.
(g) 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:
a. The company has disclosed the impact of pending litigations on its financial position in its financial statement -Refer Note no. 30 to the financial statement.
b. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.
c. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
d. The Company has provided requisite disclosures in the standalone Ind AS financial Statements as to holding as well as dealing in Specified Bank Notes during the period from November 08, 2016 to December 30, 2016. Based on the audit procedures and relying on the management representation we report that the disclosures are in accordance with the Books of accounts maintained by the Company and as produced to us by the Management
- Refer Note 29 to the financial statement.
The Annexure referred to in our Report of even date to the Members of TECHNOCRAFT INDUSTRIES (INDIA) LIMITED on the Standalone Financial Statements for the year ended March 31, 2017, We report that:
1a According to information and explanations given to us, The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
1b As explained to us, the fixed assets of the company have been physically verified by the Management in a phased manner as per regular program of verification, which in our opinion is reasonable having regard to the size of the Company and nature of its assets. Pursuant to this program, some of the fixed assets have been physically verified by the management during the year, and no material discrepancies have been noticed on such verification.
1c The title deeds of the property as disclosed in Property, Plant and Equipment and Investment Property vide Note No. 3 & 4 respectively to the financial statements are held in the name of the company.
2. The stock of Finished Goods, Goods-in-Process, Raw Materials and Stores & Spares parts have been physically verified during the year by the Management. In our opinion, the procedures of physical verification of the above Inventories followed by the Management are reasonable and adequate in relation to the size of the Company and nature of its business. In respect of inventories lying with the third parties, these have substantially been confirmed by.
3a In our opinion and according to the information and explanations given to us, the company has granted unsecured loans to
1 party covered in the Register maintained under section 189 of the Companies Act, 2013.
3b Payment of Principal amount and interest are regular whenever demanded & stipulated.
3c As the Loan is repayable on demand therefore comment in respect of overdue amount of loans granted to Companies, Firms or other parties listed in the register maintained under section 189 of the Companies Act, 2013 is not applicable to the company.
4. In our opinion and according to the information and explanations given to us, the company has complied with the provisions of section 185 and 186 of the Act, loans, guarantees and security provided in respect of loans & other facilities to parties covered under section 185 of the Act and Investments made.
5. The Company has not accepted any deposits from the public to which the directives issued by the Reserve Bank of India and the provisions of section 73 to 76 and any other relevant provision of the Companies Act, 2013 and the rules framed there under apply.
6. We have broadly reviewed the books of account and records maintained by the company in respect of the products where, pursuant to the Rules made by the Central Government of India, the maintenance of cost records has been specified under section 148 (1) of the Companies Act, 2013 is applicable to the company and are of opinion that prima facie the prescribed accounts and records have been made and maintained. We have however not made detailed Examination of the records with view to determining whether they are accurate or complete.
7 a According to the information and explanation given to us and the records of the Company examined by us, the Company is generally regular in depositing provident fund dues, employees state insurance, income tax, sales tax, service tax, custom duty, excise duty, cess and any other statutory dues with the appropriate authorities and there are no undisputed amounts payable for the same which were outstanding as at 31st March, 2017 for a period exceeding six months from the date they became payable;
7 b According to the information and explanation given to us and the records of the Company examined by us, the Particulars of disputed statutory dues under various act as at 31st March, 2017 which have not been deposited with the appropriate authorities are as under: -
Name of the Statute |
Nature of dues |
Amount (in Lakhs) |
Forum where dispute is pending |
The Central Excise Act, 1944 |
Excise Duty & Penalty |
||
For F.Y 2005-06 |
38.73 |
Case pending with CESTAT (Mumbai) |
|
For F.Y 1999-02 to Sept 2008 |
1115.67 |
Case pending with CESTAT (Mumbai) |
|
For Period before 29-9-2008 |
195.61 |
Cases pending with CESTAT (Mumbai) |
|
For Period before 29-1-2009 |
266.77 |
Cases pending with CESTAT (Mumbai) |
|
For FY 2007-08 |
15.65 |
Case pending With High Court, Mumbai |
|
For period Oct 11 - Jan 12. |
9.94 |
Case pending with CESTAT (Tribunal) |
|
For the period Apr-15 to Sept-15 |
4.85 |
Additional Commissioner (ST) |
|
For the period Apr-15 to Dec-15 |
2.55 |
Additional Commissioner (ST) |
Name of the Statute |
Nature of dues |
Amount (in Lakhs) |
Forum where dispute is pending |
The Central Excise Act, 1944 |
Service Tax & Penalty |
||
For F.Y. 2006-07 & F.Y. 2008-09 |
10.94 |
Case pending with Commissioner (Appeals) |
|
For period Apr 09 - Mar 13 |
43.31 |
Case pending with Additional Commissioner (ST) |
|
For F.Y. 2013-14 |
24.55 |
Case pending with Additional Commissioner (ST) |
|
For period Oct 08 - Oct 12 |
68.09 |
Case pending with Commissioner (Appeals) |
|
For period Oct 09 - Mar 13 |
24.60 |
Case pending with Commissioner (Appeals) |
|
For period Apr 13 - Dec 13 |
3.68 |
Case pending with Commissioner (Appeals) |
|
For Period Jan 2014 to June 2014 |
1.44 |
Case pending with Commissioner (Appeals) |
|
For Period July 2014- March 2015 |
1.05 |
Case pending with Commissioner (Appeals) |
|
For the Period 2014-15 |
27.74 |
Case pending with Additional Commissioner (ST) |
|
For the Period April 2011 to May 2015 |
6.49 |
Case pending with Commissioner (Appeals) |
|
For the Period May 2011 to March 2015 |
8.77 |
Case pending with Commissioner (Appeals) |
|
The Maharashtra Land Revenue Act, 1966 |
For Payment of Royalty on extraction & transportation of mud, stones & sand issued by Tahasildar, Tal. Murbad, Dist. Thane |
82.48 |
Additional Commissioner (Appeals) Konkan Division |
Electricity Act, 2003 |
For Payment of Additional Differential Electricity duty |
873.86 |
High Court, Mumbai |
The MRTU & PULP Act, 1971 |
For payment of Variable Dearness Allowances |
123.82 |
The Industrial Court, Maharashtra at Thane. |
Income Tax Act, 1961 |
For A. Y. 2012-13 |
0.10 |
CIT (Appeals) |
8. According to information and explanations given to us, the company has not defaulted in repayment of loans or borrowings to a financial institution or bank and company does not have any outstanding loans or borrowing from Government or dues to debenture holders during the year.
9. The Company has not raised money by way of initial public offer or further public offer (including debt instruments). However the term loans have been availed by the company and were applied for the purposes for which those were raised.
10. According to the information and explanations given to us by the management, which has been relied upon by us, no fraud by the company or any fraud on the Company by its officers or employees has been noticed or reported during the year.
11. In our opinion, and according to the information and explanations given to us, the Company has paid/provided 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.
12. In our opinion, the Company is not a Nidhi Company. Therefore, the provisions of clause 3 (xii) of the order are not applicable to the Company.
13. In our opinion, and according to the information and explanations given to us, all transactions with the related parties are in compliance with section 177 and 188 of the companies Act, 2013 where applicable. The details of related party transactions have been disclosed in the financial statements as required under Ind AS "24", Related Party Disclosures specified under section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2015.
14. In our opinion, and according to the information and explanations given to us, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year and accordingly the provisions of clause 3 (xiv) of the order is not applicable to the Company.
15. In our opinion and according to the information and explanations given to us, the Company has not entered into any Non Cash transaction with directors or persons connected with the directors. Accordingly, the provisions of clause 3 (xv) of the order is not applicable to the Company.
16. In our opinion and according to the information and explanations given to us, the company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934. Accordingly, the provisions of clause 3 (xvi) of the order is not applicable to the Company.
The Annexure referred to in our Report of even date to the Members of TECHNOCRAFT INDUSTRIES (INDIA) LIMITED for the year ended March 31, 2017. We report that:
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 ("the Act")
We have audited the internal financial controls over financial reporting of TECHNOCRAFT INDUSTRIES (INDIA) LIMITED, ("the Company") as of March 31, 2017 in conjunction with our audit of the Standalone 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 (''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 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 "Guidance Note") 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, 2017, 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 M. L. Sharma & Co.
Firm Reg. No. 109963W
Chartered Accountants
Place of Signature: Mumbai (C. H. Bandi)
Partner
Date: May 30, 2017 Membership No.5385
Mar 31, 2015
1. We have audited the accompanying Standalone financial statements of
TECHNOCRAFT INDUSTRIES (INDIA) LIMITED, ("the company"), which comprise
the Balance Sheet as at March 31, 2015, 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's Responsibility for the Standalone Financial Statements
2. The Company's Board of Directors is responsible for the matters
stated in Section 134(5) of the Companies Act, 2013 ("the Act") with
respect to the preparation of these Standalone financial statements
that give a true and fair view of the financial position, financial
performance and cash flows of the company in accordance with the
accounting principles generally accepted in India, including the
Accounting Standards specified under section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility
also includes maintenance of adequate accounting records in accordance
with the provisions of the Act for safeguarding of the assets of the
company and for preventing and detecting frauds and other
irregularities; selection and application of appropriate accounting 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 statement that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
Auditor's Responsibility
3. Our responsibility is to express an opinion on these Standalone
financial statements based on our audit.
4. 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.
5. 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.
6. 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 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 reasonableness of
the accounting estimates made by the Company's Directors, as well as
evaluating the overall presentation of the financial statements.
7. 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
8. 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, 2015, and its Profit and its
cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
9. 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 Companies Act, 2013, we give in
the Annexure a statement on the matters specified in paragraphs 3 and 4
of the Order to the extent applicable.
10 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
purpose of our audit.
(b) In our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books.
(c) The Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
(d) In our opinion, the 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, 2015 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 section 164 (2) of the
Act.
(f) With respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014 in our opinion and to the best of our information and
according to the explanations given to us:
i. The company has disclosed the impact of pending litigations on its
financial position in its financial statements. Refer note no. 2 (A)
of note no. 28 of the notes to the Financial Statements in respect of
contingent liability.
ii. The Company did not have any long term contracts including
derivative contracts for which there were any material foreseeable
losses.
iii. There has been no delay in transferring amounts required to be
transferred, to the investor Education and Protection Fund by the
Company.
ANNEXURE TO THE INDEPENDENT AUDITORS REPORT
The Annexure referred to in our Report of even date to the Members of
TECHNOCRAFT INDUSTRIES (INDIA) LIMITED for the year ended March 31,
2015. We report that:
1 a The Company is maintaining proper records showing full particulars,
including quantitative details and situation, of fixed assets.
1 b As explained to us, the fixed assets of the company have been
physically verified by the Management in a phased
manner as per regular program of verification, which in our opinion is
reasonable having regard to the size of the Company and nature of its
assets. Pursuant to this program, some of the fixed assets have been
physically verified by the management during the year, and no material
discrepancies have been noticed on such verification.
2 a The stock of Finished Goods, Goods-in-Process, Raw Materials and
Stores & Spares parts have been physically verified during the year by the Management. In our opinion the frequency of verification is reasonable. In respect of inventories lying with the third parties, these have
substantially been confirmed by them.
2 b In our opinion, the procedure of physical verification of the above
Inventories followed by the Management are reasonable and adequate in
relation to the size of the Company and nature of its business.
2 c On the basis of our examination of the Inventory records, in our
opinion, the Company is maintaining proper records of the inventories.
The discrepancies noticed between the physical stock and book stocks
were not material and the same have been properly dealt with in the
Books of Account.
3 a In our opinion and according to the information and explanations
given to us, the company has granted unsecured loans to covered in the
Register maintained under Section 189 of the Companies Act, 2013. The
year ended balance of Loan granted to such parties was Rs. 757.01 Lakhs.
3 b Payment of Principal amount and interest are regular wherever
stipulated.
3 c there is no overdue amount of loans granted to Companies, Firms or
other parties listed in the register maintained under section 189 of
the Companies Act, 2013.
4. In our opinion, and according to the information and explanations
given to us, there is an adequate Internal Control system commensurate
with the size of the Company and the nature of its business, for the
purchase of Inventory and Fixed Assets and for the sale of goods and
services. Further on the basis of our examination of the Books and
records of the Company and according to the information and explanation
given to us, we have neither come across, nor have been informed of,
any continuing failure to correct major weaknesses in the aforesaid
Internal control System.
5. The Company has not accepted any deposits from the public to which
the directives issued by the Reserve Bank of India and the provisions
of section 73 to 76 and any other relevant provision of the Companies
Act, 2013 and the rules framed there under apply.
6. We have broadly reviewed the books of account and records
maintained by the company in respect of the products where, pursuant to
the Rules made by the Central Government of India, the maintenance of
cost records has been specified under section 148 (1) of the Companies
Act, 2013 is applicable to the company and are of opinion that prima
facie the prescribed accounts and records have been made and
maintained. We have however not made detailed examination of the
records with view to determining whether they are accurate or complete.
7 a According to the information and explanation given to us and the
records of the Company examined by us, the Company is generally regular
in depositing provident fund dues, employees state insurance, income
tax, sales tax, wealth tax, service tax, custom duty, excise duty, cess
and any other statutory dues with the appropriate authorities and there
are no undisputed amounts payable for the same were outstanding as at
31st March, 2015 for a period exceeding six months from the date they
became payable;
7 b According to the information and explanation given to us and the
records of the Company examined by us, the Particulars of disputed
statutory dues under various Act, as at 31st March, 2015 which have not
been deposited with the appropriate authorities are as under:-
Name of the
Statute Nature of dues Amount Forum where dispute is
pending
(in
Lakhs)
The Central
Excise Act
1944 Excise Duty &
Penalty
For F.Y 2005-06 38.73 Case pending with CESTAT
(Mumbai)
For period Aug 06
- Feb 07. 3.67 Case pending with CESTAT
(Tribunal)
For F.Y 1999-02
to Sept 2008 1115.67 Case pending with CESTAT
(Mumbai)
For Period before
29-9-2008 195.61 Cases pending with CESTAT
(Mumbai)
For Period before
29-1-2009 266.77 Cases pending with CESTAT
(Mumbai)
For FY 2007-08 15.65 Case pending With High Court,
Mumbai
For period Oct 11
- Jan 12. 9.94 Case pending with CESTAT
(Tribunal)
For period Oct 09
- Dec 10 6.08 Case pending with Additional
Commissioner
For period Jan to
Sept 12 1.04 Case pending with Asst.
Commissioner (Central Excise)
Service Tax & Penalty
For period Apr 05
- Jun 09. 59.48 Case pending with CESTAT
(Mumbai)
For F.Y. 2006-07
& F.Y. 2008- 10.94 Case pending with Additional
09 Commissioner (ST)
For F.Y. 2006-07
& 2007-08 3.03 Case pending with Commissioner
Appeal (ST)
For period Apr 09
- Mar 13 43.31 Case pending with Additional
Commissioner (ST)
For F.Y. 2013-14 24.55 Case pending with Additional
Commissioner (ST)
For period Oct 08
- Oct 12 68.09 Case pending with Commissioner
(Central Excise)
For period Oct 09
- Mar 13 38.06 Case pending with Commissioner
(Central Excise)
For period Apr 13
- Dec 13 7.12 Case pending with Commissioner
(Central Excise)
For Period Jan 2014
to June 4.61 Case pending with Commissioner
2014 (Central Excise)
The
Maharashtra
Land For Payment of
Royalty on 82.48 Tahasildar, Tal.
Murbad, Dist. Thane
Revenue Act,
1966 extraction &
transportation
of mud, stones
& sand issued
by Tahasildar,
Tal. Murbad,
Dist. Thane
The MRTU &
PULP Act, For payment of
Variable 35.65 The Industrial
Court, Maharashtra at
1971 Dearness
Allowances Thane.
7 c According to the information and explanation given to us and the
records of the Company examined by us, The amount, which were required
to be transferred, to the investor Education and Protection Fund by the
Company has been transferred on time as per the provision of section
125 of the companies Act, 2013 and rules made thereunder.
8. The Company has not incurred any cash losses during the current
Financial Year as well as in the immediately preceding Financial Year
and its accumulated losses are Nil at the end of the Current Financial
Year.
9. According to information & explanations given to us and the books
and records examined by us, the Company has not defaulted in repayment
of dues to Banks as at the Balance sheet date. The company does not
have any outstanding debentures.
10. In our opinion and according to the information and explanations
given to us, the terms and conditions on which the company has given
guarantee for cash credit & loan taken by its Subsidiaries (including
step down Subsidiaries) from banks are not prima facial prejudicial to
the interest of the company.
11. In our opinion and according to the information and explanations
given to us, the term loans taken by the company have been applied for
the purpose for which the term loans were obtained.
12. According to the information and explanations given to us by the
management which has been relied upon by us, there were no frauds on or
by the company were noticed or reported during the year.
For M. L. SHARMA & CO.
FIRM REG. NO. 109963W
CHARTERED ACCOUNTANTS
Place: Mumbai (C. H. BANDI) PARTNER
Date : May 27, 2015 Membership No.5385
Mar 31, 2014
1. We have audited the accompanying financial statements of TECHNCRAFT
INDUSTRIES (INDIA) LIMITED, which comprise the Balance Sheet as at
March 31, 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''s Responsibility for the Financial Statements
2. Management is responsible for the preparation of these financial
statements that give 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 (Âthe ActÂ) read with the General Circular
15/2013 dated 13th September, 2013 of the Ministry of Corporate Affairs
in respect of section 133 of the Companies Act, 2013. This
responsibility includes the design, implementation and maintenance of
internal control relevant to the preparation and presentation of the
financial statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
Auditor''s Responsibility
3. 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.
4. 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, but not for the purpose of expressing an opinion on the
effectiveness of the entity''s internal control. An audit also includes
evaluating the appropriateness of accounting policies used and the
reasonableness of the accounting estimates made by management, as well
as evaluating the overall presentation of the financial statements.
5. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our audit opinion.
Opinion
6. 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 31st March, 2014;
b) In the case of the Statement of Profit & Loss of the PROFIT for the
year ended on that date; and
c) In the case of Cash Flow statement, of the Cash Flows for the year
ended on that date.
Report on Other Legal and Regulatory Requirements
7. As required by the Companies (Auditor''s Report) Order, 2003; as
amended by the Companies (Auditor''s Report) (Amendment) Order, 2004
issued by the Central Government of India in terms of sub-section (4A)
of section 227 of the Act (hereinafter referred to as the ÂOrderÂ), 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 give in the Annexure a statement on the
matters specified in paragraphs 4 and 5 of the Order.
8. As required by section 227(3) of the Act, we report that:
a. We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b. In our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books;
c. The Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
d. In our opinion, the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement comply with the Accounting Standards referred to in
subsection (3C) of section 211 of the Companies Act, 1956;
e. On the basis of written representations received from the directors
as on March 31, 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2014, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
ANNEXURE TO THE INDEPENDENT AUDITORS REPORT
Annexure referred to in Paragraph 7 of the Auditors'' Report of even
date to the Members of TECHNOCRAFT INDUSTRIES (INDIA) LIMITED on the
Financial Statements as of and for the year ended 31st March, 2014.
1 a The Company has generally maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
1 b As explained to us, the fixed assets of the company have been
physically verified by the Management during the year and no material
discrepancies have been noticed on such verification. In our opinion,
the frequency of verification is reasonable.
1 c In our opinion, and according to the information and explanation
given to us, no substantial parts of Fixed Assets have been disposed
of during the year.
2 a The stock of Finished Goods, Goods-in-Process, Raw Materials and
Stores & Spares parts have been physically verified during the year by
the Management. In our opinion the frequency of verification is
reasonable. In respect of inventories lying with the third parties,
these have substantially been confirmed by them.
2 b In our opinion, the procedure of physical verification of the above
Inventories followed by the Management are reasonable and adequate in
relation to the size of the Company and nature of its business.
2 c On the basis of our examination of the Inventory records, in our
opinion, the Company is maintaining proper records of the inventories.
The discrepancies noticed between the physical stock and book stocks
were not significant and the same have been properly dealt with in the
Books of Account.
3 a In our opinion and according to the information and explanations
given to us, the company has granted unsecured loans to 4 parties
covered in the Register maintained under section 301 of the Companies
Act, 1956. The maximum amount of Loan granted during the year was
3,736.46 Lakhs and the year ended balance of Loan granted to such
parties was ` 3,125.41 Lakhs.
b In our opinion, the rate of interest and other terms and conditions
on which Loans have been granted to parties listed in the register
maintained under section 301 of the Companies Act, 1956 are not prima
facie, prejudicial to the interest of the company.
c Payment of Principal amount and interest are regular wherever
stipulated.
d There is no overdue amount of loans granted to Companies, Firms or
other parties listed in the register maintained under section 301 of
the Companies Act, 1956.
e The Company has not taken any loan, Secured or Unsecured from
Companies, firms or other parties covered in the register maintained
under section 301 of Companies Act, 1956 and accordingly, provisions
of clause 4 (iii) (f) & 4 (iii) (g) of the said order are not
applicable to the Company.
4 In our opinion, and according to the information and explanations
given to us, there is an adequate Internal Control system commensurate
with the size of the Company and the nature of its business in respect
of purchase of goods and fixed assets and sale of goods. Further, on
the basis of our examination of the Books and records of the Company,
and according to the information and explanation given to us, we have
neither come across, nor have been informed of, any continuing failure
to correct major weaknesses in the aforesaid Internal control System.
5 a In our opinion, and according to the information and explanations
given to us, we are of the opinion that the particulars of contract or
arrangements referred to in u/s 301 of the Companies Act, 1956, have
been properly entered in the register required to be maintained under
that section.
5 b In our opinion, and according to the information and explanations
given to us, the transaction made in pursuance of such contract or
arrangements have been made at prices which are reasonable having
regard to prevailing market prices for such goods, materials or services
or the prices at which transactions for similar goods, materials or
services have been made with other parties.
6 In our opinion, and according to the information and explanations
given to us, the Company has not accepted any deposits from the public
to which the provisions of section 58A of the Companies Act, 1956 and
the rules framed there under apply.
7 In our opinion, the Company has an Internal Audit System commensurate
with the size and nature of its Business.
8 We have broadly reviewed the books of account and records maintained
by the company in respect of the products where, pursuant to the Rules
made by the Central Government of India for the maintenance of cost
records under section 209 (1) (d) of the Companies Act 1956 and are of
opinion that prima facie the prescribed accounts and records have been
made and maintained. We have however not made detailed Examination of
the records with view to determining whether they are accurate or
complete.
9 a According to the information and explanation given to us and the
records of the Company examined by us, the Company have generally been
regular in depositing provident fund dues, state insurance, income tax,
sales tax, wealth tax, service tax, custom duty, excise duty, cess and
any other statutory dues with the appropriate authorities and there are
no undisputed amounts payable for the same were outstanding as at 31st
March, 2014, for a year exceeding six months from the date they became
payable.
b According to the information and explanation given to us and the
records of the Company examined by us, the Particulars of disputed
statutory dues under various act as at 31st March, 2014 which have not
been deposited with the appropriate authorities are as under:-
Name of the Nature of dues Amount
Statute (in lacs)
Income Tax Act, Income Tax,
1961 Penalty & Interest
For A.Y. 2003-2004 79.23
For A.Y. 2008-2009 2.91
(Penalty)
The Central Excise Excise Duty & 1,115.66
Act 1944 Penalty
For F.Y 1999-2002 to
Sep 2008.
For Period before 195.60
29-9-2008
For period before 266.77
29-1-2009
For Period before 3.04
29-01-2009
Service Tax & Penalty
For F.Y 2006-07 &
2007-08 3.03
The Maharashtra For Payment of 82.48
Land Revenue Act, Royalty on extraction
1966 & transportation of
mud, stones & sand
issued by Tahasildar,
Tal. Murbad, Dist.
Thane
Name of the Statute Forum where dispute is pending
Income Tax Act, 1961
Appeal filed with CIT (A)
Appeal filed with CIT (A)
The Central Excise CESTAT, West Zonal Branch, Mumbai (Stay Granted
Act 1944 by CESTAT from Pre  Deposit of the dues
adjudged during the pendency of these appeals)
CESTAT, West Zonal Branch, Mumbai (Stay Granted
by CESTAT from Pre  Deposit of the dues
adjudged during the pendency of these appeals)
CESTAT, West Zonal Branch, Mumbai (Stay Granted
by CESTAT from Pre  Deposit of the dues
adjudged during the pendency of these appeals)
CESTAT, West Zonal Branch, Mumbai (Stay Granted
by Commissioner (Appeals) from the Pre-Deposit
of the dues adjudged during the pendency
of these Appeals)
CESTAT, West Zonal Branch, Mumbai
The Maharashtra Land Tahasildar, Murbad, Dist. Thane
Revenue Act, 1966
10. The company has no accumulated losses and has not incurred any cash
losses during the financial Year covered by our audit or in the
immediately preceding financial year.
11 According to information & explanations given to us and the books
and records examined by us, the Company has not defaulted in repayment
of dues to Banks as at the Balance sheet date.
12 The Company has not granted any Loans and Advances to any party on
the basis of Security by way of pledge of shares, debentures and other
securities and accordingly the provisions of clause 4 (xii) of the
order are not applicable to the company.
13 The company is not a chit fund or a Nidhi/Mutual benefit
fund/society and accordingly the provisions of clause 4 (xiii) of the
order are not applicable to the Company.
14 a In respect of investment dealt or traded by the company, proper
records are maintained in respect of transaction and contracts and
timely entries have been made therein.
b According to the information and explanations given to us, the shares
and units of mutual fund have been held by the company in its own name.
15 In our opinion and according to the information and explanations
given to us, the terms and conditions on which the company has given
guarantee for cash credit & Loan taken by its Subsidiaries (including
step down Subsidiaries) from banks are not prima facial prejudicial to
the interest of the company.
16 In our opinion and according to the information and explanations
given to us, the term loans taken by the company have been applied for
the purpose for which the term loans were obtained.
17 According to the information and explanations given to us and on an
overall examination of the Balance Sheet of the Company, we report that
the funds raised on short term basis have prima facie not been used for
Long-term.
18 The company has not made any preferential allotment of shares to
parties or companies covered in the register maintained under section
301 of companies act, 1956 during the year and accordingly the
provisions of clause 4 (xviii) of the order are not applicable to the
Company.
19 The company has not issued any debentures during the year and does
not have any debentures outstanding as at the beginning of the year and
at the year end and accordingly the provisions of clause 4 (xix) of the
order are not applicable to the Company.
20 The company has not raised any money by way of public issue during
the year and accordingly the provisions of clause 4 (xx) of the order
are not applicable to the Company.
21 The Company has filed an FIR & WRIT Petitions through the NSEL
Investors Forum of which the Company is a member for recovery of
outstanding of ` 1,937.04 Lakhs (Net of recoveries) alleging fraud on
the company by the promoters of the National Spot Exchange Limited
(NSEL). The Company has made a provision against the above outstanding
and considered it as Bad-debts. Except for this, no other fraud on or
by the company were noticed or reported during the course of our audit
for the year that causes the financial statements to be materially.
For M. L. SHARMA & CO.
FIRM REG. NO. 109963W
CHARTERED ACCOUNTANTS
(C. H. BANDI)
PARTNER
Membership No.5385
Place of Signature: Mumbai
Dated: 21st May, 2014
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of TECHNCRAFT
INDUSTRIES (INDIA) LIMITED, which comprise the Balance Sheet as at
March 31, 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''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give 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 responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making, those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by management, as
well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements, give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India:
a) In the case of the Balance Sheet of the state of affairs of the
Company as at 31st March, 2013;
b) In the case of the Statement of Profit & Loss of the PROFIT for the
year ended on that date; and
c) In the case of 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 ("the
Order") issued by the Central
Government of India in terms of sub-section (4A) of section 227 of the
Act, we give in the Annexure a statement on the matters specified in
paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
a. We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b. In our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books;
c. The Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
d. In our opinion, the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement comply with the Accounting Standards referred to in
subsection (3C) of section 211 of the Companies Act, 1956;
e. On the basis of written representations received from the directors
as on March 31, 2013, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2013, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
Annexure referred to in Paragraph of our Auditors'' Report on even date
on the Financial Statements for the year ended 31st March, 2013 of
TECHNOCRAFT INDUSTRIES (INDIA) LIMITED) on the basis of such checks as
we considered appropriate and in terms of the information and
explanations given to us, we state that:-
1 a The Company has generally maintained proper records showing
particulars including quantitative details and situation of fixed
assets.
b As explained to us, the said fixed assets have been physically
verified by the Management during the year which is reasonable and no
material discrepancies have been noticed on such verification.
c In our opinion, and according to the information and explanation
given to us, no substantial parts of Fixed Assets have been disposed of
during the year.
2 a The stock of Finished Goods, Goods-in-Process, Raw Materials and
Stores & Spares parts have been physically verified during the year by
the Management and is reasonable in view of the nature of products of
the Company.
b As explained to us, the procedure of physical verification of the
above stocks followed by the Management is, in our opinion reasonable
and adequate in relation to the size of the Company and nature of its
business.
c The Company has maintained proper records of the inventories and the
discrepancies noticed between the physical stock and book stock were
not significant and the same have been properly dealt with in the Books
of Account.
3 a In our opinion and according to the information and explanations
given to us, the company has granted unsecured loans to 4 parties
covered in the Register maintained under section 301 of the Companies
Act, 1956. The maximum amount of Loan granted during the year was Rs
10676.23 Lakhs and the year ended balance of Loan granted to such
parties was Rs 1226.92 lakhs.
b In our opinion, the rate of interest and other terms and conditions
on which Loans have been granted to parties listed in the register
maintained under section 301 of the Companies Act, 1956 are not prima
facies, prejudicial to the interest of the company.
c Payment of Principal amount and interest are regular wherever
stipulated.
d There is no overdue amount of loans granted to Companies, Firms or
other parties listed in the register maintained under section 301 of
the Companies Act, 1956.
e The Company has not taken any loan, Secured or Unsecured from
Companies, firms or other parties covered in the register maintained
under section 301 of Companies Act, 1956 and accordingly, provisions of
Paragraph 4 (iii) (e) to 4 (iii) (g) are not applicable to the Company.
4 On the basis of such checks carried out during the course of Audit
and according to the information and explanations given to us, we are
of the opinion that there is an adequate internal control system
commensurate with the size of the company and nature of its business
with regard to purchase of stores, raw materials including components,
plant & machinery, equipments and other assets and for sale of goods
and services.
5 a In our opinion, and according to the information and explanations
given to us, the particulars of contract or arrangements referred to in
u/s 301 of the Companies Act, 1956, have been properly 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 transaction made in pursuance of such contract or
arrangements have been made at prices which are reasonable having
regard to prevailing market prices for such goods, materials or
services or the prices at which transactions for similar goods,
materials or services have been made with other parties.
6 In our opinion, and according to the information and explanations
given to us, the Company has not accepted any deposits from the public
to which the provisions of section 58A of the Companies Act, 1956 and
the rules framed there under apply.
7 In our opinion, the Company has an Internal Audit System commensurate
with the size and nature of its Business.
8 We have broadly reviewed the books of account and records maintained
by the company pursuant to the Rules made by the Central Government for
the maintenance of cost records under section 209 (1) (d) of the
Companies Act 1956 and are of opinion that prima facie the prescribed
accounts and records have been made and maintained. We have however not
made detailed Examination of the records with view to determining
whether they are accurate or complete.
9 a According to the information and explanation given to us and the
records of the Company examined by us, the Company have generally been
regular in depositing provident fund dues, state insurance, income tax,
sales tax, wealth tax, service tax, custom duty, excise duty, cess and
any other statutory dues with the appropriate authorities and there are
no undisputed amounts payable for the same were outstanding as at 31st
March, 2013, for a year exceeding six months from the date they became
payable.
b According to the information and explanation given to us and the
records of the Company examined by us, the Particulars of disputed
statutory dues under various act which have not been deposited with the
appropriate authorities are as under:-
Name of the Nature of dues Amount Forum where
Statute (in lacs) dispute is pending
Income Tax Act, Income Tax,
1961 Penalty & Interest
For A.Y. 2002-2003 585.24 Appeal filed with CIT
(A)
For A.Y. 2007-2008 40.82 Appeal filed with CIT
(A) u/s 271(1)
(Penalty) (c)
For A.Y 2007-2008 40.13 Appeal filed with ITAT
For A.Y. 2008-2009 15.50 Appeal filed with CIT
(A)
For A.Y. 2005-2006 14.72 Appeal filed with CIT
(A)
For A.Y. 2009-2010 65.06 Appeal filed with CIT
(A)
The Central Excise Excise Duty &
Act 1944 pENALTY
For F.Y 1999-2002 to 1115.66 CESTAT,West Zonal
Branch, Mumbai
Sep 2008. (Stay Granted by CESTAT
from Pre - Deposit of
the dues adjudged
during the pendency of
these appeals)
For Period before 195.60 CESTAT,West Zonal
Branch, Mumbai
29-9-2008 (Stay
Granted by CESTAT from
Pre - Deposit of the
dues adjudged during
the pendency of these
appeals)
For period before 266.77 CESTAT,West Zonal
Branch, Mumbai
29-1-2009 (Stay Granted by CESTAT
from Pre - Deposit of
the dues adjudged
during the pendency of
these appeals)
For period before 3.04 CESTAT,West Zonal
Branch, Mumbai
29-1-2009 (Stay Granted by
Commissioner
(Appeals) from the
pre-Deposit of the
dues adjudged during
the pendency of these
Appeals)
Service Tax &
Penalty
For F.Y 2006-07 & 3.03 CESTAT,West Zonal
Branch, Mumbai
2007-08
10. The company has no accumulated losses and has not incurred any cash
losses during the financial Year covered by our audit or in the
immediately preceding financial year.
11 According to information & explanations given to us and the books
and records examined by us, the Company has not defaulted in repayment
of dues to Banks.
12 The company has not granted any loans and advances to any parties on
the basis of security by way of pledge of shares, debentures and other
securities.
13 The Provision of any special statute applicable to Chit
fund/Nidhi/Mutual benefit fund/Societies is not applicable to the
Company.
14 a In respect of investment dealt or traded by the company, proper
records are maintained in respect of transaction and contracts and
timely entries have been made therein.
b According to the information and explanations given to us, the shares
and units of mutual fund have been held by the company in its own name.
15 In our opinion and according to the information and explanations
given to us, the terms and conditions on which the company has given
guarantee for cash credit taken by others from banks are not prima
facial prejudicial to the interest of the company.
16 In our opinion and according to the information and explanations
given to us, the term loans taken by the company have been applied for
the purpose for which the term loans were obtained.
17 According to information & explanations given to us, the company has
used its funds properly according to the nature and purposes of the
funds.
18 The company has not made any preferential allotment of shares to
parties and Companies covered in the register maintained u/s. 301 of
the Companies Act, 1956.
19 The Company has not issued any Debentures during the year and does
not have any debenture outstanding as at the year end.
20 According to information and explanations given to us, the company
has not raised any money by way of Public issue during the year.
21 According to information and explanation given to us, no fraud on or
by the Company has been noticed or reported during the period.
For M.L.SHARMA & CO.
Chartered Accountants
Firm Reg. No. 109963W
(C.H. Bandi)
Partner
Place: Mumbai Membership No.5385
Dated: 22 May, 2013
Mar 31, 2012
We have audited the attached Balance Sheet of TECHNCRAFT INDUSTRIES
(INDIA) LIMITED as at 31st March, 2012 and also the Statement of Profit
& Loss and the Cash Flow Statement for the year ended on that date.
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.
We conducted our audit in accordance with 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 management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion. Further we report that:
As required by the Companies (Auditor's Report) Order, 2003 issued by
the Central Government of India in terms of Section 227(4A) of the
Companies Act, 1956, we annex hereto, a statement on the matters
specified in Paragraphs 4 and 5 of the said Order.
Further to our comments in the Annexure referred to above, we report
that:
1. 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.
2. In our opinion, proper books of account as required by the
Companies Act, 1956(as amended) have been kept by the Company so far as
appears from our examination of those Books.
3. The Balance Sheet, the Statement of Profit & Loss and Cash Flow
Statement dealt with by the report are in agreement with the Books of
Account of the Company.
4. In our opinion, the Balance Sheet, the Statement of Profit & Loss
and Cash Flow Statement complies with the Mandatory Accounting
standards referred in section 211(3c) of the Companies Act, 1956 except
as otherwise stated in this report.
5. On the basis of the written representation received from the
Directors, 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.
6. In our opinion and to the best of our information, and according to
the explanations given to us, the said accounts Subject to Note
no.27(2)(B) Regarding finished goods, and Note no.27(2)(E) Regarding
Leave encashment Benefits, read together 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 : -
a) In the case of the Balance Sheet of the state of affairs of the
Company as at 31st March, 2012;
b) In the case of the Statement of Profit & Loss of the PROFIT for the
year ended on that date; and
c) In the case of Cash Flow statement, of the Cash Flows for the year
ended on that date.
Annexure referred to in Paragraph of our Auditors' Report on even date
on the Financial Statements for the year ended 31s' March, 2012 of
TECHNOCRAFT INDUSTRIES (INDIA) LIMITED) on the basis of such checks as
we considered appropriate and in terms of the information and
explanations given to us, we state that:-
1 a The Company has generally maintained proper records showing
particulars including quantitative details and situation of fixed
assets.
1 b As explained to us, the said fixed assets have been physically
verified by the Management during the year which is reasonable and no
material discrepancies have been noticed on such verification.
2 a The stock of Finished Goods, Goods-in-Process, Raw Materials and
Stores & Spares parts have been physically verified during the year by
the Management and is reasonable in view of the nature of products of
the Company.
2 b As explained to us, the procedure of physical verification of the
above stocks followed by the Management is, in our opinion reasonable
and adequate in relation to the size of the Company and nature of its
business.
2 c The Company has maintained proper records of the inventories and
the discrepancies noticed between the physical stock and book stock
were not significant and the same have been properly dealt with in the
Books of Account.
3 a In our opinion and according to the information and explanations
given to us, the company has granted unsecured loans to 4 parties
covered in the Register maintained under section 301 of the Companies
Act, 1956. The maximum amount of Loan granted during the year was Rs.
8601.41 Lakhs and the year ended balance of Loan granted to such
parties was Rs. 8480.12 lakhs.
b In our opinion, the rate of interest and other terms and conditions
on which Loans have been granted to parties listed in the register
maintained under section 301 of the Companies Act, 1956 are not prima
facies, prejudicial to the interest of the company.
c Payment of Principal amount and interest are regular wherever
stipulated.
d There is no overdue amount of loans granted to Companies, Firms or
other parties listed in the register maintained under section 301 of
the Companies Act, 1956.
e The Company has not taken any loan, Secured or Unsecured from
Companies, firms or other parties covered in the register maintained
under section 301 of Companies Act, 1956 and as such provision of sub
clause 3(f) & 3 (g) are not applicable.
4 On the basis of such checks carried out during the course of Audit
and according to the information and explanations given to us, we are
of the opinion that there is an adequate internal control system
commensurate with the size of the company and nature of its business
with regard to purchase of stores, raw materials including components,
plant & machinery, equipments and other assets and for sale of goods
and services.
5 a According to the information and explanation given to us,
particulars of contracts or arrangement referred to in Under section
301 of the Companies Act, 1956 have been properly entered in the
register required to be maintained under that section;
b The transaction made in pursuance of such contract or arrangements
have been made at prices which are reasonable having regard to
prevailing market prices for such goods, materials or services or the
prices at which transaction for similar goods, materials or services
have been made with other parties.
6 The company has not accepted any deposits from the public to which
the provisions of section 58A, 58AA and any other relevant provisions
of the Companies Act, 1956 and the rules framed there under apply.
7 In our opinion, the Company has an Internal Audit System commensurate
with the size and nature of its Business.
8 We have broadly reviewed the books of account and records maintained
by the company pursuant to the Rules made by the Central Government for
the maintenance of cost records under section 209 (1) (d) of the
Companies Act 1956 and are of opinion that prima facie the prescribed
accounts and records have been made and maintained. We have however not
made detailed Examination of the records with view to determining
whether they are accurate or complete.
9 a As per the records of the company & as explained to us, the Company
have generally been regular in depositing provident fund dues, state
insurance, income tax, sales tax, wealth tax, service tax, custom duty,
excise duty, cess and any other statutory dues with the appropriate
authorities and there are no undisputed amounts payable for the same
were outstanding as at 31st March, 2012, for a year exceeding six
months from the date they became payable.
b On the basis of our Examination of the documents and records. the
amounts of disputed statutory dues which have not been deposited with
the appropriate authorities are as under:-
Name of the Nature of dues Amount Forum where
Statute (in lacs) dispute is pending
Income Tax Act, Income Tax &
1961 Interest
For A.Y. 2002-2003 75.44 Effect of ITAT & High
Court order to be given
by the Assessing officer
For A.Y. 2007-2008 63.80 ITAT
For A.Y. 2008-2009 15.50 CIT (Appeals)
The Central Excise Duty &
Excise Act 1944 Penalty
For F.Y 1999-2002 1115.66 CESTAT, West Zonal
to Sep 2008. Branch, Mumbai. (Stay
Granted by CESTAT from
Pre-Deposit of the dues
adjudged during the
pendency of these
appeals)
For Period before 195.60 CESTAT, West Zonal
29-9-2008 Branch, Mumbai
(Stay Granted by CESTAT
from Pre-Deposit of the
dues adjudged during the
pendency of these
appeals)
For period before 266.77 CESTAT, West Zonal
29-1-2009 Branch, Mumbai
(Stay Granted by CESTAT
from Pre-Deposit of the
dues adjudged during
the pendency of these
appeals)
For Period before 3.04 CESTAT, West Zonal
29-01-2009 Branch, Mumbai
(Stay Granted by
Commissioner (Appeals)
from the pre-Deposit
of the dues adjudged
during the pendency
of these Appeals)
Service Tax &
Penalty
For F.Y 2006-07 3.03 CESTAT, West Zonal
& 2007-08 Branch, Mumbai
10. The company has no accumulated losses and has not incurred any
cash losses during the financial Year covered by our audit or in the
immediately preceding financial year.
11 According to information & explanations given to us and the books
and records examined by us, the Company has not defaulted in repayment
of dues to Banks.
12 The company has not granted any loans and advances to any parties on
the basis of security by way of pledge of shares, debentures and other
securities.
13 a In respect of investment dealt or traded by the company, proper
records are maintained in respect of transaction and contracts and
timely entries have been made therein.
b According to the information and explanations given to us, the shares
and units of mutual fund have been held by the company in its own name.
14 In our opinion and according to the information and explanations
given to us, the terms and conditions on which the company has given
guarantee for cash credit taken by others from banks are not prima
facial prejudicial to the interest of the company.
15 In our opinion and according to the information and explanations
given to us, the term loans taken by the company have been applied for
the purpose for which the term loans were obtained.
16 According to information & explanations given to us, the company has
used its funds properly according to the nature and purposes of the
funds.
17 The company has not made any preferential allotment of shares to
parties and Companies covered in the register maintained u/s. 301 of
the Companies Act, 1956.
18 The Company has not issued any Debentures during the year.
19 According to information and explanations given to us, the company
has not raised any money by public issue during the year.
20 According to information and explanation given to us, no fraud on or
by the Company has been noticed or reported during the period.
21 Other provisions of the said order are either Nil or Not Applicable
to the Company.
For M.L.SHARMA & CO.
Chartered Accountants
F.R.No.109963W
(C.H. Bandi)
Place: Mumbai Partner
Dated: 28th May, 2012 Membership No.5385
Mar 31, 2011
We have audited the attached Balance Sheet of TECHNCORAFT INDUSTRIES
(INDIA) LIMITED as at 31st March, 2011 and also the Profit & Loss
Account and the Cash Flow Statement for the year ended on that date.
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.
We conducted our audit in accordance with 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 management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion. Further we report that:
As required by the Companies (Auditor's Report) Order, 2003 issued by
the Central Government of India in terms of Section 227(4A) of the
Companies Act, 1956, we annex hereto, a statement on the matters
specified in Paragraphs 4 and 5 of the said Order.
Further to our comments in the Annexure referred to above, we report
that:
1. 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.
2. In our opinion, proper books of account as required by the
Companies Act, 1956(as amended) have been kept by the Company so far as
appears from our examination of those Books.
3. The Balance Sheet, the Profit & Loss Account and Cash Flow
Statement dealt with by the report are in agreement with the Books of
Account of the Company.
4. In our opinion, the Balance Sheet, Profit & Loss Account and Cash
Flow Statement complies with the Mandatory Accounting standards
referred in section 211(3c) of the Companies Act, 1956 except as
otherwise stated in this report.
5. On the basis of the written representation received from the
Directors, 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.
6. In our opinion and to the best of our information, and according to
the explanations given to us, the said accounts Subject to Note No.
2(B) Regarding Valuation of finished goods, Note no.2 (E) Regarding
Leave encashment Benefits, read together with other Notes as per
Schedule 20 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 :- a) In the
case of the Balance Sheet of the state of affairs of the Company as at
31st March, 2011;
b) In the case of the Profit & Loss Account of the PROFIT for the year
ended on that date; and
c) In the case of Cash Flow statement, of the Cash Flows for the year
ended on that date.
Annexure referred to in Paragraph of our Auditors' Report on even date
on the Financial Statements for the year ended 31ST March, 2011 of
TECHNOCRAFT INDUSTRIES (INDIA) LIMITED on the basis of such checks as
we considered appropriate and in terms of the information and
explanations given to us, we state that:-
1 a The Company has generally maintained proper records showing
particulars including quantitative details and situation of fixed
assets.
1 b As explained to us, the said fixed assets have been physically
verified by the Management during the year which is reasonable and no
material discrepancies have been noticed on such verification.
1 c During the year The Company has sold fixed assets amounting to
Rs.225.13 Lacs in Yarn division however it does not affect the going
concern of company.
2 a The stock of Finished Goods, Goods-in-Process, Raw Materials and
Stores & Spares parts have been physically verified during the year by
the Management and is reasonable in view of the nature of products of
the Company.
2 b As explained to us, the procedure of physical verification of the
above stocks followed by the Management is, in our opinion reasonable
and adequate in relation to the size of the Company and nature of its
business.
2 c The Company has maintained proper records of the inventories and
the discrepancies noticed between the physical stock and book stock
were not significant and the same have been properly dealt with in the
Books of Account.
3 a In our opinion and according to the information and explanations
given to us, the company has granted unsecured loans to 5 parties
covered in the register maintained under section 301 of the Companies
Act, 1956. The maximum amount of Loan granted during the year was
Rs.2771.37 Lakhs and the year ended balance of Loan given to such
parties was Rs.849.03 lakhs.
b In our opinion, the rate of interest and other terms and conditions
on which Loans have been granted to parties listed in the register
maintained under section 301 of the Companies Act, 1956 are not prima
facies, prejudicial to the interest of the company.
c Payment of Principal amount and interest are regular wherever
stipulated.
d There is no overdue amount of loans granted to Companies, Firms or
other parties listed in the register maintained under section 301 o the
Companies Act, 1956.
e The Company has not taken any loan, Secured or Unsecured from
Companies, firms or other parties covered in the register maintained
under section 301 of Companies Act, 1956 and as such provision of sub
clause 3(f) & 3 (g) are not applicable.
4 On the basis of such checks carried out during the course of Audit
and according to the information and explanations given to us, we are
of the opinion that there is an adequate internal control system
commensurate with the size of the company and nature of its business
with regard to purchase of stores, raw materials including components,
plant & machinery, equipments and other assets and for sale of goods
and services.
5 a According to the information and explanation given to us,
particulars of contracts or arrangement referred to in Under section
301 of the Companies Act, 1956 have been properly entered in the
register required to be maintained under that section;
b The transaction made in pursuance of such contract or arrangements
have been made at prices which are reasonable having regard to
prevailing market prices for such goods, materials or services or the
prices at which transaction for similar goods, materials or services
have been made with other parties.
6 The company has not accepted any deposits from the public to which
the provisions of section 58A, 58AA and any other relevant provisions
of the Companies Act, 1956 and the rules framed there under apply.
7 We have been informed that the Company has its own Internal Audit
department which conducts the internal audit of the company and in our
opinion the same is commensurate with the size and nature of its
business.
8 We have broadly reviewed the books of account and records maintained
by the company relating to manufacturing of cotton yarn pursuant to the
Rules made by the Central Government for the maintenance of cost
records under section 209 (1) (d) of the Companies Act 1956 and are of
opinion that prima facie the prescribed accounts and records have been
made and maintained. We have however not made detailed Examination of
the records with view to determining whether they are accurate or
complete. To the best of knowledge and according to the information
given to us, the central government has not prescribed the maintenance
of cost records for any other products of the company.
9 a As per the records of the company & as explained to us, the Company
have generally been regular in depositing provident fund dues, state
insurance, income tax, sales tax, wealth tax, service tax, custom duty,
excise duty, cess and any other statutory dues with the appropriate
authorities and there are no undisputed amounts payable for the same
were outstanding as at 31st March, 2011, for a year exceeding six
months from the date they became payable.
b On the basis of our Examination of the documents and records. The
amounts of disputed statutory dues which have not been deposited with
the appropriate authorities are as under:-
Name of the
Statute Nature of dues Amount Forum where
(in lacs) dispute is pending
Income Tax
Act, 1961 Income Tax & Out of total demand of
Rs.155.19 Lacs
Interest for A.Y.2002-03, Rs.79.75
Lacs Refund of A.Y.2006-2007
is adjusted against
A.Y. 2002-2003 75.44 lakh
demand of A.Y.2002-03 &
Balance outstanding is
Rs.75.44 Lacs. Appeal
pending with I.T.A.T.for
disposal
For A.Y.
2007-2008 63.80 Lakh CIT (Appeals)
10. The company has no accumulated losses and has not incurred any cash
losses during the financial Year covered by our audit or in the
immediately preceding financial year.
11 According to information & explanations given to us and the books
and records examined by us, the Company has not defaulted in repayment
of dues to Banks.
12 The company has not granted any loans and advances to any parties on
the basis of security by way of pledge of shares, debentures and other
securities.
13 a In respect of investment dealt or traded by the company, proper
records are maintained in respect of transaction and contracts and
timely entries have been made therein.
b According to the information and explanations given to us, the shares
and units of mutual fund have been held by the company in its own name.
14 In our opinion and according to the information and explanations
given to us, the terms and conditions on which the company has given
guarantee for cash credit taken by others from banks are not prima
facial prejudicial to the interest of the company.
15 In our opinion and according to the information and explanations
given to us, the term loans taken by the company have been applied for
the purpose for which the term loans were obtained.
16 According to information & explanations given to us, the company has
used its funds properly according to the nature and purposes of the
funds.
17 The company has not made any preferential allotment of shares to
parties and Companies covered in the register maintained u/s. 301 of
the Companies Act, 1956.
18 The Company has not issued any Debentures during the year.
19 According to information and explanations given to us, the company
has not raised any money by public issue during the year.
20 According to information and explanation given to us, no fraud on or
by the Company has been noticed or reported during the period.
21 Other provision of the said order are either Nil or Not Applicable
to the Company.
For M.L. SHARMA & CO.
Chartered Accountants F.R.No.109963W
(C.H. Bandi)
Place: Mumbai Partner
Dated: 03.08.2011 Membership No.5385
Mar 31, 2010
We have audited the attached Balance Sheet of TECHNCRAFT INDUSTRIES
(INDIA) LIMITED as at 31st March, 2010 and also the Profit & Loss
Account and the Cash Flow Statement for the year ended on that date.
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.
We conducted our audit in accordance with 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 management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
ouropinion. Further we report that:
As required by the Companies (Auditors Report) Order, 2003 issued by
the Central Government of India in terms of Section 227(4A) of the
Companies Act, 1956, we annex hereto, a statement on the matters
specified in Paragraphs 4 and 5 of the said Order.
Further to our comments in the Annexure referred to above, we report
that:
1. 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.
2. In our opinion, proper books of account as required by the
Companies Act, 1956(as amended) have been kept by the Company so far as
appears from our examination of those Books.
3. The Balance Sheet, the Profit & Loss Account and Cash Flow
Statement dealt with by the report are in agreement with the Books of
Account of the Company.
4. In our opinion, the Balance Sheet, Profit & Loss Account and Cash
Flow Statement complies with the Mandatory Accounting standards
referred in section 211(3c) of the Companies Act, 1956 except as
otherwise stated in this report.
5. On the basis of the written representation received from the
Directors, as on 31st 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.
6. In our opinion and to the best of our information, and according to
the explanations given to us, the said accounts Subject to Note no. 2
(C) regarding finished goods, Note no.2 (F) Regarding Leave encashment
Benefits, Note no.2 (Q) Regarding non-provision of interest income, and
Note no. 2 (R) Regarding non provision of diminution in value of
Investment, read together with other Notes as per Schedule 21 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 :-
a) In the case of the Balance Sheet of the state of affairs of the
Company as at 31st March, 2010;
b) In the case of the Profit & Loss Account of the PROFIT for the year
ended on that date; and
c) In the case of Cash Flow statement, of the Cash Flows for the year
ended on that date.
Annexure referred to in Paragraph of our Auditors Report on even date
on the Financial Statements for the year ended 31st March, 2010 of
TECHNOCRAFT INDUSTRIES (INDIA) LIMITED) on the basis of such checks as
we considered appropriate and in terms of the information and
explanations given to us, we state that:-
1 a The Company has generally maintained proper records showing
particulars including
quantitative details and situation of fixed assets.
b As explained to us, the said fixed assets have been physically
verified by the Management during the year which is reasonable and no
material discrepancies have been noticed on such verification.
c In our opinion, no substantial parts of Fixed Assets have been
disposed of during the year.
2 a The stock of Finished Goods, Goods-in-Process, Raw Materials and
Stores & Spares parts have
been physically verified during the year by the Management and is
reasonable in view of the nature of products of the Company.
b As explained to us, the procedure of physical verification of the
above stocks followed by the Management is, in our opinion reasonable
and adequate in relation to the size of the Company and nature of its
business.
c The Company has maintained proper records of the inventories and the
discrepancies noticed between the physical stock and book stock were
not significant and the same havebeen properly dealt with in the Books
of Account.
3 a In our opinion and according to the information and explanations
given to us, the company has
granted unsecured loans to 7 parties covered in the register
maintained under section 301 of the Companies Act, 1956. The maximum
amount of Loan granted during the year was Rs.4645.50 Lakhs and the
year ended balance of Loan given to such parties was Rs.3088.56 lakhs.
b In our opinion, the rate of interest and other terms and conditions
on which Loans have been granted to parties listed in the register
maintained under section 301 of the Companies Act, 1956 are not
primafacies, prejudicial to the interest of the company.
c Payment of Principal amount and interest are regular wherever
stipulated.
d There is no overdue amount of loans granted to Companies, Firms or
other parties listed in the register maintained under section 3010the
Companies Act, 1956.
e The Company has not taken any loan, Secured or Unsecured from
Companies, firms or other parties covered in the register maintained
under section 301 of Companies Act, 1956 and as such provision of sub
clause 3(f) & 3 (g) are not applicable.
4 On the basis of such checks carried out during the course of Audit
and according to the information and explanations given to us, we are
of the opinion that there is an adequate internal control system
commensurate with the size of the company and nature of its business
with regard to purchase of stores, raw materials including components,
plant & machinery, equipments and other assets and for sale of goods
and services.
5 a According to the information and explanation given to us,
particulars of contracts or arrangement referred to in Under section
301 of the Companies Act, 1956 have been properly entered in the
register required to be maintained under that section;
b The transaction made in pursuance of such contract or arrangements
have been made at prices which are reasonable having regard to
prevailing market prices for such goods, materials or services or the
prices at which transaction for similar goods, materials or services
have been made with other parties.
6 The company has not accepted any deposits from the public to which
the provisions of section 58A, 58AA and any other relevant provisions
of the Companies Act, 1956 and the rules framed there under apply.
7 In our opinion Company has Internal Audit system commensurate with
the size and nature of its business.
8 We have broadly reviewed the books of account and records maintained
by the company relating to manufacturing of cotton yarn pursuant to the
Rules made by the Central Government for the
maintenance of cost records under section 209 (1) (d) of the Companies
Act 1956 and are of opinion that prima facie the prescribed accounts
and records have been made and maintained. We have however not made
detailed Examination of the records with view to determining whether
they are accurate or complete. To the best of knowledge and according
to the information given to us, the central government has not
prescribed the maintenance of cost records for any other products of
the company.
9 a As per the records of the company & as explained to us, the Company
have generally been regular in depositing provident fund dues, state
insurance, income tax, sales tax, wealth tax, service tax, custom duty,
excise duty, cess and any other statutory dues with the appropriate
authorities and there are no undisputed amounts payable for the same
were outstanding as at 31st March, 2010, for a year exceeding six
months from the date they became payable.
b On the basis of our Examination of the documents and records. The
amounts of disputed statutory dues which have not been deposited with
the appropriate authorities are as under: -
Name of
the Statute Nature of dues Amount Forum where
(in lacs) dispute is
pending
Income Act, 1961 Income Tax & Interest
For A.Y. 2002-2003 155.19 I.T.A.T
10. The company has no accumulated losses and has not incurred any cash
losses during the financial Year covered by our audit or in the
immediately preceding financial year.
11 According to information & explanations given to us and the books
and records examined by us, the Company has not defaulted in repayment
of dues to Banks.
12 The company has not granted any loans and advances to any parties on
the basis of security by way of pledge of shares, debentures and other
securities.
13 In our opinion, the Company is not a Chit-fund or a Nidhi/Mutual
benefits fund/Society, therefore the provision of the Clause 4(xiii) of
Para 4 of the Order are not applicable to the Company.
14 a In respect of investment dealt or traded by the company, proper
records are maintained in
respect of transaction and contracts and timely entries have been made
therein.
b According to the information and explanations given to us, the shares
and units of mutual fund have been held by the company in its own name.
15 In our opinion and according to the information and explanations
given to us, the terms and conditions on which the company has given
guarantee for cash credit taken by others from banks are not prima
facial prejudicial to the interest of the company.
16 In our opinion and according to the information and explanations
given to us, the term loans taken by the company have been applied for
the purpose for which the term loans were obtained.
17 According to information & explanations given to us, the company has
used its funds properly according to the nature and purposes of the
funds.
18 The company has not made any preferential allotment of shares to
parties and Companies covered in the register maintained u/s. 301 of
the Companies Act, 1956.
19 The Company has not issued any Debentures during the year.
20 According to information and explanations given to us, the company
has not raised any money by public issue during the year.
21 According to information and explanation given to us, no fraud on or
by the Company has been noticed or reported during the period.
For M. L. SHARMA & CO.
Firm Reg No. 109963W
Chartered Accountants
(C. H. Bandi)
Place :Mumbai Partner
Dated: 04th August,2010 Membership No. 5385