Mar 31, 2018
Report on the Standalone Ind AS Financial Statements
We have audited the accompanying standalone Ind AS financial statements of Texmo Pipes and Products Limited (âthe Companyâ), which comprise the Balance Sheet as at March 31, 2018 the Statement of Profit and Loss (including other comprehensive income), the Statement of Changes in Equity and Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information. (herein after referred to as âstandalone Ind AS financial statementsâ)
Managementâs Responsibility for the Standalone Ind AS Financial Statements
The Company''s Board ofDirectors is responsible for the matters stated in section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these standalone Ind AS financial statements that gives 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 Indian Accounting Standards referred to in section 133 of the Act, read with Companies (Indian Accounting Standards) Rules, 2015 (as amended) , including accounting principles generally accepted in India.
This responsibility also includes the maintenance of adequate accounting records in accordance with the provision of the Act for safeguarding of the assets of the Company and for preventing and detecting the 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 control, 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 financial statements, management is responsible for assessing the Company''s 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.
Auditorâs 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 & auditing standards and matters which are required to be included in the audit report under the provision of the Act and the Rules made there under and the Order under section 143 (11) of the Act.
We conducted our audit of the standalone Ind AS financial statements in accordance with the Standards on Auditing specified under section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the 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 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 accounting policies used and the reasonableness of the accounting estimates made by Company''s Directors, as well as evaluating the overall presentation of the standalone Ind AS financial statements.
We are also responsible to conclude on the appropriateness of management''s 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 entity''s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in the auditor''s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify the opinion. Our conclusions are based on the audit evidence obtained up to the date of the auditor''s report. However, future events or conditions may cause an entity to cease to continue as a going concern.
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, of the state of affairs of the Company as at March 31, 2018, and its profit, total comprehensive income, the changes in equity and its cash flows for the year ended on that date.
Emphasis of Matter
We draw attention to the following matters in the Notes forming part to the standalone Ind AS financial statements:
Note 48 to the Standalone Ind AS Financial Statements which describe the uncertainty related to the outcome of the lawsuit filed against the Insurance Company.
Our opinion is not modified in respect of these matters.
Report on Other Legal and Regulatory Requirements
1. As required by Section 143(3) of the Act, we report, to the extent applicable, that:
a. we have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit;
b. In our opinion, proper books of account as required by law have been kept by the Company so far as appears from our examination of those books;
c. The Balance Sheet, Statement of Profit and Loss including other comprehensive income, Statement of Changes in Equity and the Statement of Cash Flow Statement 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 prescribed under Section 133 of the Act..
e. On the basis of written representations received from the directors as on March 31, 2018, and taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2018 from being appointed as a director in terms of Section 164 (2) of the Act;
f. With respect to the adequacy of the internal financial control over financial reporting of the company and operating effectiveness of such controls, refer to our separate report in ''Annexure A''. Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the Company''s internal financial controls over financial reporting.
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 Auditor''s) 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 36 to the standalone Ind AS financial statement.
ii. The Company has made provision as at March 31, 2018, as required under the applicable law or accounting standards, 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.
2. As required by the Companies (Auditor''s Report) Order, 2016 (âthe Orderâ), issued by the Central Government of India in terms of subsection (11) of Section 143 of the Act, 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 B'' a statement on the matters specified in paragraph 3 and 4 of the Order.
(Referred to paragraph 1(f) under âReport on Other Legal and Regulatory Requirementsâ section of our report of even date)
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
We have audited the internal financial controls over financial reporting of Texmo Pipes and Products Limited (âthe Companyâ) as of March 31, 2018 in conjunction with our audit of the standalone Ind AS financial statements of the Company as at and for the year ended on that date. Managementâs 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. 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.
Auditorsâ Responsibility
Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the âGuidance Noteâ) and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls. 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 standalone Ind AS 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.
ANNEXURE B TO THE INDEPENDENT AUDITORSâ REPORT
(Referred to paragraph 2 under âReport on Other Legal and Regulatory Requirementsâ section of our report of even date)
(I) In respect of its fixed assets:
(a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets;
(b) The Company has a regular programme of physical verification of its fixed assets. In accordance with this programme, the fixed assets has been physically verified by the management during the year and no material discrepancies have been noticed on such verification. In our opinion, this periodicity of physical verification is reasonable having regard to the size of the Company and the nature of its assets.
(c) According to the information & explanations given to us on the basis of our examination of the records of the company, the title deeds of immovable properties are held in the name of the company.
(ii) The physical verification of inventory excluding stocks with third parties has been conducted at reasonable intervals by the Management during the year. The discrepancies noticed on physical verification of inventory as compared to book records were not material and have been appropriately dealt with in the books of accounts.
(iii) The company has granted unsecured loans to four parties covered in the register maintained under Section 189 of the Companies Act, 2013 (âthe Actâ) with the year end balances of f 319.75 Lakhs (Previous Year Nil).
a) The terms and conditions of the grant of such loans are not prejudicial to the company''s interest.
b) The terms of arrangements do not stipulate any repayment schedule and the loans are repayable on demand.
c) Accordingly, paragraph 3(iii)(c) of the Order is not applicable to the Company in respect of repayment of the principal amount.
(iv) The Company has not granted any loans or provided any guarantees or security to the parties covered under Section 185 of the Act. The Company has complied with the provisions of Section 186 of the Act in respect of investments made or loans or guarantee or security provided to the parties covered under Section 186.
(v) According to the information and explanations given to us, the Company has not accepted any deposits from the public within the meaning of section 73 to 76 or any other relevant provisions of the Companies Act, 2013 and the rules framed there under.
(vi) We have broadly reviewed the books of accounts maintained by the Company in respect of products where pursuant to the rules made by Central Government of India, the maintenance of cost records has been prescribed under sub section (1) of section 148 of the Companies Act, 2013, and we are of opinion that prima facie the prescribed accounts & records have been made & maintained. However, we have not made the detailed examination of the records.
(vii) According to information explanation given to us and on the basis of our examination of records:
(a) The Company has generally been regular in depositing undisputed statutory dues including provident fund, employees'' state insurance, income tax, sales tax, service tax, custom duty, excise duty, value added tax, cess, Goods & Service Tax, Professional tax and other material statutory dues applicable to it with the appropriate authorities.
(b) There were no undisputed amounts payable in respect of provident fund, employees'' state insurance, sales tax, service tax, custom duty, excise duty, value added tax, cess, Goods & Service Tax, Professional tax and other material statutory dues as at 31st March 2018, for a period of more than six months from the date they became payable.
(c) According to the information and explanations given to us, there are no material dues of duty of customs, excise duty and cess which has not been deposited with the appropriate authorities on account of any dispute. However, according to the information and explanations given to us, the following dues of income tax, sales tax and value added tax have not been deposited by the Company on account of disputes:
Name of the Statute |
Nature of dues |
Amount Demanded (Rs. in Lakhs) |
Amount Deposited |
Period to which the amount relates |
Forum where the dispute is pending |
Central Sales Tax Act |
Central Sales Tax |
47.32 |
2.37 |
2007-08 |
MP High Court, Jabalpur |
Entry Tax Act, 1976 |
Entry Tax |
38.23 |
1.91 |
2007-08 |
MP High Court, Jabalpur |
39.01 |
15.62 |
2008-09, 2014-15 |
M.P Commercial Tax Appellate Board |
||
Madhya Pradesh Value Added Tax,2002 |
Value Added Tax |
119.78 |
5.99 |
2007-08 |
MP High Court, Jabalpur |
24.57 |
7.11 |
2011-12, 2014-15 |
M.P Commercial Tax Appellate Board |
||
31.67 |
3.29 |
2010-11, 2015-16 |
Additional Commissioner of Commercial Tax, Indore |
||
Income Tax Act,1961 |
Income Tax |
74.85 |
67.81 |
2009-10, 2010-11 |
Income Tax Appellate Tribunal, Indore |
Income Tax Act,1961 |
Income Tax |
1,183.10 |
162.50 |
2010-11 to 2016-17 |
Commissioner of Income Tax Appeals, Indore |
Central Excise Act,1944 |
Excise duty |
251.26 |
87.70 |
2016-17 |
Custom, Excise & Service Tax Appellate Tribunal |
(viii) In our opinion and according to the information and explanations given to us, the Company has not defaulted in repayment of loans & borrowing of financial institutions, bank and government. The Company has not issued any debentures.
(ix) In our opinion and according to the information and explanations given to us, the Company did not raised moneys by way of initial public offer or further public offer (including debt instruments). The term loans were applied, on an overall basis, for the purposes for which they were raised.
(x) To the best of our knowledge and according to the information and explanations given to us, no fraud by the company or on the Company by its officers or employees has been noticed or reported during the year.
(xi) According to the information and explanations given to us and based on our examination of the records, the Company has paid or provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V to the Act.
(xii ) The Company is not a Nidhi Company. Accordingly paragraph 3(xii) of the order is not applicable to the company.
(xiii) According to the information and explanations given to us, and based on our examination of records of the Company, the Company is in compliance with sections 177 and 188 of Companies Act, 2013, where applicable, for all transactions with related parties and the details of related parties have been disclosed in the Standalone Ind AS Financial Statements etc., as required by the applicable Indian Accounting Standards specified under section 133 of the Act, read with Companies (Indian Accounting Standards) Rules 2015.
(xiv) According to the information and explanations given to us, the Company has made preferential allotment of shares during the year under review. In respect of the above issue, we further report that:
a. the requirement of Section 42 of the Companies Act, 2013, as applicable, have been complied with; and
b. the amounts raised have been applied by the Company during the year for the purposes for which the funds were raised.
(xv ) The company has not entered into non-cash transaction with directors or person connected with him. Accordingly, paragraph 3(XV) of the Order is not applicable to the Company.
(xvi) 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.
Place : Burhanpur (MP)
Date : 29th May, 2018
For Pankaj Somaiya & Associates LLP
Chartered Accountants
Firm Registration No. 010081C/C400001
CA Pankaj Somaiya
Partner
Membership No.079918
Mar 31, 2016
To,
The Members,
Texmo Pipes and Products Limited Burhanpur(M.P)
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of Texmo Pipes and Products Limited (âthe Companyâ) which comprise the Balance Sheet as at March 31,2016, 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.
Managementâs Responsibility for the Standalone Financial Statements
The Companyâs Board of Directors is responsible for the matters stated in section 134(5) of the Companies Act, 2013 (The Actâ) with respect to preparation of these standalone financial statements that gives 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 referred to in section 133 of The Act.
This responsibility also includes the maintenance of adequate accounting records in accordance with the provision of the Act for safeguarding of the assets of the Company and for preventing and detecting the 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 control, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditors'' Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting & auditing standards and matters which are required to be included in the audit report under the provision of the Act and the Rules made there under and the Order under section 143(11)of the Act.
We conducted our audit in accordance with the Standards on Auditing specified under section 143(10) of the Act-Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the 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 auditorâs 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 Companyâs 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 on the Standalone Financial Statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2016, and its profit and its cash flows for the year ended on that date.
Emphasis of Matter
We draw attention to the following matters in the Notes forming part to the standalone financial statements:
(i) Note 27 to the Standalone Financial Statements which describe the uncertainty related to the outcome of the lawsuit filed against the Insurance Company.
(ii) Note 28 to the Standalone Financial Statements which states search u/s 132(1) of the Income Tax Act, 1961, was carried out during the year-Since it is under investigation no provision has been made.
Our opinion is not modified in respect of these matters.
Report on Other Legal and Regulatory Requirements
1-As required by Section 143(3) of the Act, we report, to the extent applicable, that:
a-we have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit;
b- In our opinion, proper books of account as required by law have been kept by the Company so far as 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.
e- On the basis of written representations received from the directors as on March 31,2016, and taken on record by the Board of Directors, none of the directors is disqualified as on March 31,2016 from being appointed as a director in terms of Section 164 (2) of the Act;
f- With respect to the adequacy of the internal financial control over financial reporting of the company and operating effectiveness of such controls, refer to our separate report in âAnnexure Aâ-Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the Companyâs internal financial controls over financial reporting.
g- With respect to the other matters to be included in the Auditorâs Report in accordance with Rule 11 of the Companies (Audit and Auditorâs) 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 30 to the standalone financial statement.
ii- The Company has made provision as at March 31, 2016, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long-term contracts including derivative contracts.
iii- There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.
2-As required by the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ), issued by the Central Government of India in terms of sub-section (11) of Section 143 of the Act, we give in the âAnnexure Bâ a statement on the matters specified in paragraph 3 and 4 of the Order.
''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 Texmo Pipes and Products Limited (âthe Companyâ) as of March 31,2016 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
The Companyâs management is responsible for establishing and maintaining internal financial controls based on the internal control overfinancial 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-These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to companyâs policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditorsâ 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 Noteâ) and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India-Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness-Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk-The procedures selected depend on the auditorâs 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 Companyâs internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A companyâs internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles-A 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 31,2016, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
ANNEXURE B TO THE INDEPENDENT AUDITORS'' REPORT
(Referred to paragraph 2 under âReport on Legal and Regulatory Requirements" section of our report of even date)
(I In respect of its fixed assets:
(a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets;
(b) The fixed assets have been physically verified during the year by the management in accordance with the regular programme of verification, which in our opinion, provides for physical verification of all the fixed assets at reasonable intervals-According to the information given to us, no material discrepancies were noticed on such verification.
(c) According to the information & explanation given to us on the basis of our examination of the records of the company, the title deeds of immovable properties are in the name of the company.
(ii) The physical verification of inventory excluding stocks with third parties has been conducted at reasonable intervals by the Management during the year-The discrepancies noticed on physical verification of inventory as compared to book records were not material and have been appropriately dealt with in the books of accounts.
(iii) The Company has not granted any loans, secured or unsecured, to companies, firms, limited liability partnership or other parties covered in register maintained under section 189 of Act.
(iv) In our opinion and according to the information and explanations given to us, the company has complied with the provisions of section 185 & 186 of the Act, with respect to loans, making investment and providing guarantee & security available.
(v) According to the information and explanations given to us, the Company has not accepted any deposits from the public within the meaning of section 73 to 76 or any other relevant provisions of the Companies Act, 2013 and the rules framed there under.
(vi) We have broadly reviewed the books of accounts maintained by the Company in respect of products where pursuant to the rules made by Central Government of India, the maintenance of cost records has been prescribed under sub section (1) of section 148 of the Companies Act, 2013, and we are of opinion that prima facie the prescribed accounts & records have been made & maintained-However, we have not made the detailed examination of the records.
(vii) (a) According to information explanation given to us and on the basis of our examination of records of the Company, amount deducted/accrued in the books of accounts in respect of undisputed statutory dues including provident fund, employeesâ state insurance, income tax, sales tax, service tax, custom duty, excise duty, value added tax, cess, Professional tax and other material statutory dues have been regularly deposited during the year by the company with the appropriate authorities.
According to the information and explanations given to us, no undisputed amounts payable in respect of provident fund, employeesâ state insurance, sales tax, service tax, custom duty, excise duty, value added tax, cess, Professional tax and other material statutory dues except Income tax of Rs-58.25 lakhs related to Financial year 2014-15 were in arrears as at 31 st March 2016, for a period of more than six months from the date they became payable.
(b) According to the information and explanations given to us, there are no material dues of duty of customs, excise duty and cess which has not been deposited with the appropriate authorities on account of any dispute-However, according to the information and explanations given to us, the following dues of income tax, sales tax and value added tax have not been deposited by the Company on account of disputes:
Name of the Statute |
Nature of dues |
Amount in Rs-Lac |
Period to which the amount relates |
Forum where the dispute is pending |
Central Sales Tax Act, 1956 |
Central Sales Tax |
44.95 |
2007-08 |
M.P-High Court, Jabalpur |
0.72 |
2008-09 |
M.P-Commercial Tax Appellate Tribunal |
||
19.07 |
2013-14 |
Appellate Deputy Commissioner of Commercial Tax, Khandwa |
||
Entry Tax Act, 1976 |
Entry Tax |
36.32 |
2007-08 |
M.P-High Court, Jabalpur |
12.93 |
2008-09 |
M.P-Commercial Tax Appellate Board |
||
0.60 |
2013-14 |
Appellate Deputy Commissioner of Commercial Tax, Khandwa |
Madhya Pradesh Value Added Tax,2002 |
Value Added Tax |
113.79 |
2007-08 |
MP High Court, Jabalpur |
5.93 |
2009-10 |
Appellate Deputy Commissioner of Commercial Tax, Khandwa |
||
49.08 |
2009-10,2010-11 and 2011-12 |
M.P-Commercial Appellate Tribunal |
||
18.53 |
2010-11 |
Additional Commissioner of commercial Tax Indore |
||
Income Tax Act, 1956 |
Income Tax |
7.04 |
2010-11 |
Income Tax Appellate Tribunal, Indore |
(viii) In our opinion and according to the information and explanations given to us, the Company has not defaulted in repayment of loans & borrowing of financial institutions, bank and government-The Company has not issued any debentures.
(ix) In our opinion and according to the information and explanations given to us, the Company did not raised moneys by way of initial public offer or further public offer (including debt instruments)-The term loans were applied, on an overall basis, for the purposes for which they were raised.
(x) To the best of our knowledge and according to the information and explanations given to us, no fraud by the company or on the Company by its officers or employees has been noticed or reported during the year.
(xi) The Company has paid/provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Companies Act.
(xii) The Company is not a Nidhi Company-Accordingly paragraph 3(xii) of the order is not applicable to the company.
(xiii) According to the information and explanations given to us, and based on our examination of records of the Company, all transactions with the related parties are in compliance with sections 177 and 188 of Companies Act, 2013, where applicable and the details have been disclosed in the Financial Statements etc., as required by the Accounting Standard (AS) 18, Related Party Disclosure specified under section 133 of the Act, read with Rule 7 of the Companies Rules (Accounts) 2014
(xiv) The company has not made any preferential allotment or private placement of shares or fully or partly convertible debenture during the year-Accordingly, paragraph 3(xiv) of the Order is not applicable to the company.
(xv) The company has not entered into non-cash transaction with directors or person connected with him-Accordingly, paragraph3 (xv) of the order is not applicable to the company.
(xvi) The company is not required to be registered under Section 45-I A of the Reserve Bank of India Act, 1934.
For Pankaj Somaiya & Associates LLP
Chartered Accountants
Firm Regn-No-010081C/C400001
CA Pankaj Somaiya
Place: Burhanpur(M.P.) Partner
Date: 27th May, 2016 Membership No-79918
Mar 31, 2015
We have audited the accompanying standalone financial statements of
Texmo Pipes and Products Limited ("the Company"), which comprise the
Balance Sheet as at March 31, 2015, 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 forthe Standalone Financial Statements
The Company's Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 ) ("the Act") with respect
to the preparation of these standalone financial statements that gives
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 referred to in section 133 of the Companies Act, 2013 read
with rule 7 of the Companies (accounts) Rules, 2014. This
responsibility also includes the maintenance of adequate accounting
records in accordance with the provision of the Act for safeguarding of
the assets of the Company and for preventing and detecting the 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 internal
financial control, that were operating effectively for ensuring the
accuracy and completeness of the accounting records, relevant to the
preparation and presentation of the financial statements that give a
true and fair view and are free from material misstatement, whether due
to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit.
We have taken into account the provisions of the Act, the accounting &
auditing standards and matters which are required to be included in the
audit report under the provision 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 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 financial 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 whether the company
has in place an adequate internal financial control over financial
reporting and the operating effectiveness of such controls. 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 on the Standalone
Financial Statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid standalone financial statements
give the information required by the Act in the manner so required and
give a true and fair view in conformity with the accounting principles
generally accepted in India, of the state of affairs of the Company as
at March 31, 2015, and its profit and its cash flows forthe year ended
on that date.
Emphasis of Matter
We draw attention to Note 27 to the standalone financial statements
which, describes the uncertainty related to the outcome of the lawsuit
filed against the Insurance Company.
Our opinion is not modified in respect of this matter.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2015 ("the
Order"), issued by the Central Government of India in terms Section
143(11) of the Act, we give in the Annexure a statement on the matters
specified in paragraphs 3 and 4 of the Order.
2. As required by Section 143(3) of the Act, we report that:
a. We have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purposes of our audit;
b. In our opinion, proper books of account as required by law have
been kept by the Company so far as it appears from our examination of
those books.
c. The Balance Sheet, the Statement of Profit and Loss, and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account.
d. In our opinion, the aforesaid standalone financial statements
comply with the Accounting Standards specified under Section 133 of the
Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
e. On the basis of written representations received from the directors
as on March 31, 2015, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31,2015 from being
appointed as a director in terms of Section 164 (2)of the Act.
f. With respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and
Auditor's) 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 29 to the
standalone financial statement.
ii. The Company did not have any long term contracts including
derivative contracts for which there were any material foreseeable
losses.
iii. There were no amounts which were required to be transferred to the
Investor Education and Protection Fund by the Company.
ANNEXURE TO THE INDEPENDENT AUDITOR'S REPORT
(Referred to in paragraph 1 under "Report on Legal and Regulatory
Requirements' section of our report on even date)
(i) Having regard to the operations/activities/business of the Company
during the year clause (vi) of the order is not applicable.
(ii) In respect of its fixed assets:
(a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of its fixed assets;
(b) The fixed assets were physically verified during the year by the
Management in accordance with a regular programme of verification
which, in our opinion, provides for physical verification of all the
fixed assets at reasonable intervals. According to the information and
explanation given to us, no material discrepancies were noticed on such
verification.
(iii) In respect of its inventories:
(a) As explained to us, the inventory has been physically verified at
reasonable intervals during the year by the Management;
(b) In our opinion and according to the information and explanations
given to us, the procedures for physical verification of inventory
followed by the Management is reasonable and adequate in relation to
the size of the Company and the nature of its business;
(c) In our opinion and according to the information and explanations
given to us, the Company has maintained proper records of its
inventories and no material discrepancies were noticed on physical
verification.
(iv) According to the information and explanations given to us, the
Company has granted loans, secured or unsecured, to companies, firms or
other parties covered in the Register maintained under Section 189 of
the Companies Act, 2013. In respect of such loans:
(a) The receipts of principal amounts have been as per stipulations.
(b) In respect of overdue amounts of over Rs. 1 lakh remaining
outstanding as at the year-end, as explained to us, Management has
taken reasonable steps for recovery of the principal amounts and
interest.
(v) In our opinion and according to the information and explanation
given to us there is adequate internal control system commensurate with
the size of the Company and the nature of its business with regard to
purchase of inventory, fixed assets and for the sale of goods &
services. We have not observed any major weakness in the internal
control system during the course of our audit.
(vi) According to the information and explanations given to us, the
Company has not accepted any deposits from the public within the
meaning of section 73 to 76 or any other relevant provisions of the
Companies Act, 2013 & the rules framed there under; (vii) (a)According
to information explanation given to us and on the basis of our
examination of records of the Company, amount deducted/accrued in the
books of accounts in respect of undisputed statutory dues including
provident fund, employees' state insurance, income tax, sales tax,
service tax, wealth tax, custom duty, excise duty, value added tax,
cess, Professional tax and other material statutory dues have been
regularly deposited during the year by the company with the appropriate
authorities.
According to the information and explanations given to us, no
undisputed amounts payable in respect of provident fund, employees'
state insurance, income tax, sales tax, service tax, wealth tax, custom
duty, excise duty, value added tax, cess, Professional tax and other
material statutory dues were in arrears as at 31sl March 2015, for a
period of more than six months from the date they became payable. (b)
According to the information and explanations given to us, there are no
material dues of wealth tax, duty of customs, excise duty and cess
which has not been deposited with the appropriate authorities on
account of any dispute. However, according to the information and
explanations given to us, the following dues of income tax, sales tax
and value added tax have not been deposited by the Company on account
of disputes:
Name of the Nature of dues Amount Period to which
Statute (in lacs) the amount relates
Central Sales Central Sales Tax 44.95 2007-08
Tax Act,1956 0.72 2008-09
1.22 2011-12
Entry Tax Act,
1976 Entry Tax 36.32 2007-08
12.93 2008-09
Madhya Pradesh Value Added Tax 113.79 2007-08
Value Added 37.83 2009-10 and
Tax,2002 2010-11
67.46 2011-12 and
2012-13
1.37 2012-13
Income Tax Act,
1961 Income Tax 16.05 2010-11
21.07 2011-12
Name of the
Statute Forum where the dispute is pending
central sales
Tax Act,1956 M.P. High Court, Jabalpur
M.P. Commercial Tax Appellate Tribunal
Deputy Commissioner of Commercial
Tax, Indore
Entry Tax Act,
1976 M.P. High Court, Jabalpur
M.P. Commercial Tax Appellate Board
Madhya Pradesh
Value Added
Tax,2002 M.P. High Court, Jabalpur
M.P. Commercial Tax Appellate Board
Additional Commissioner of Commercial
Tax, Indore
Appellate Deputy Commissioner of
Commercial Tax, Khandwa
Income Tax
Act,1961 Income Tax Appellate Tribunal, Indore
Commissioner of Income Tax
(Appeals) II, Indore
(c) There were no amounts which were required to be transferred to the
Investor Education and Protection Fund by the Company.
(viii) The company does not have any accumulated losses as at the end
of the financial year and the Company has not incurred cash losses
during the financial year covered by our audit and in the immediately
preceding financial year.
(ix) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to bank
and financial institutions. The Company has not issued any debentures.
(x) In our opinion and according to the information and explanations
given to us, the Company has not given any guarantee for loans taken by
others from banks or financial institutions;
(xi) In our opinion and according to the information and explanations
given to us, the term loans applied, on an overall basis, forthe
purpose for which they were obtained.
(xii) To the best of our knowledge and according to the information and
explanations given to us, no fraud by the Company and no material fraud
on the Company has been noticed or reported during the year.
For Pankaj Somaiya & Associates LLP
Firm Registration No. 010081C/C4000001
Chartered Accountants
Place: Burhanpur (MP) CAPankaj Somaiya
Date : 26th May, 2015 Partner
Membership No.079918
Mar 31, 2014
We have audited the accompanying financial statements of Texmo Pipes
and Products 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
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956 ("the Forming an Opinion and Reporting on
Financial Statements 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 March 31,2014;
(b) in the case of the Statement of Profit and Loss, of the profit for
the year ended on that date; and
(c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Emphasis of Matter
We draw attention to Note 27 to the financial statements regarding fire
insurance claim settlement less to the extent of Rs. 769.50 Lacs for
which the Company has filed lawsuit against the Insurance Company, in
view of the uncertainty related to the outcome of the lawsuit filed by
the Company; no adjustments have been made in this regard to the
financial Statements for the year ended 31st March 2014. Our opinion is
not qualified in respect of this matter.
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. Asrequiredby section227(3) oftheAct, 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 and proper returns adequate for the purposes of our audit have
been received from branches not visited by us;
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 and with the returns received from branches not visited by us;
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 CompaniesAct, 1956.
ANNEXURE TO THE AUDITORS'' REPORT (Referred to in paragraph 1 under
''Report on Other Legal and Regulatory Requirements'' section of our
report of even date)
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of its
fixed assets;
(b) As explained to us all the fixed assets have been physically
verified by the management during the year, which in our opinion is
reasonable having regard to the size of the Company and nature of its
assets. No material discrepancies were noticed on such verification as
compared with the book records.
(c) During the year, the Company has not disposed off substantial part
of fixed assets and the going concern status of the Company is not
affected;
(ii) (a) The inventory has been physically verified at reasonable
intervals during the year by the Management;
(b) In our opinion and according to the information and explanations
given to us, the procedures for physical verification of inventory
followed by the Management is reasonable and adequate in relation to
the size of the Company and the nature of its business;
(c) On the basis of our examination of the inventory records, in our
opinion, the Company is maintaining proper records of inventory. The
discrepancies noticed on physical verification of inventory as compared
to book records were not material.
(iii) (a) As informed to us, the company has granted unsecured loans
during the year to one such firm covered in the register maintained
under section 301 of the Act. The Maximum involved during the period
and the balances of said loans were aggregating to Rs.11.45 Lacs and
Rs 43.85 Lacs respectively. As informed the company has not given
any loans, secured or unsecured to companies or other parties listed
in the register maintained under section 301 of the Act.
(b) As per the information & records made available, the rate of
interest and other terms and condition of Loans granted by the Company
are prima facie not prejudicial to the interest of the company except
to the extent that there are no covenants with regards to repayment of
loan or interest thereon and security.
(c) In respect of aforesaid loans granted, whether the amount
(principal and interest) has been repaid/paid regularly or not cannot
be commented upon, as there is no stipulation as payment/repayment of
the principal amount including interest.
(d) As per information given to us and on the basis of records made
available to us and subject to (a) & (b) above, the Company has taken
reasonable steps for recovery of overdue amount.
(e) As Informed, the Company has not taken any loans, secured and
unsecured from the companies, firms or other parties covered in
register maintained under section 301of Companies Act 1956. Accordingly
the provisions Stated in Paragraph 4(iii) (e) to 4(iii) (g) of the
order are not applicable.
(iv) In our opinion, there is adequate internal control system
commensurate with the size of the Company and the nature of its
business with regard to purchase of inventory, fixed assets and for
the sale of goods. During the course of our audit, we have neither
come across nor have been informed of any continuing failure to
correct major weaknesses in the aforesaid internal control system;
(v) (a) Based on the audit procedures applied by us and according to
the information and explanations given to us, we are of the opinion
that the transactions that need to be entered into the register
maintained under section 301 oftheCompaniesAct, 1956 have been so
entered.;
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under Section 301 of
the Companies Act, 1956 and exceeding the value of rupees five lacs in
respect of any party during the year have been made at prices which are
reasonable having regard to prevailing market prices at the relevant
time.
(vi) The Company has not accepted any deposits from the public within
the meaning of Section 58A, 58AA or any other relevant provisions of
the Companies Act, 1956 and the rules framed there under;
(vii) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
(viii) We have broadly reviewed the books of accounts maintained by the
Company in respect of products where pursuant to the rules made by
Central Government of India, the maintenance of cost records has been
prescribed under clause (d) of sub section (1) of section 209 of the
CompaniesAct, 1956, and we are of opinion that prima facie the
prescribed accounts & records have been made & maintained.
(ix) (a) The Company is regular in depositing with appropriate
authorities undisputed statutory dues including
provident fund, employee''s state insurance, income tax, sales tax,
custom duty, excise duty, cess and other statutory dues to the extent
applicable to it.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of provident fund, investor
education and protection fund, employee''s state insurance, income tax,
wealth tax, service tax, sales tax, custom duty, excise duty and other
undisputed statutory dues were outstanding, at the year end, for a
period of more than six months from the date they became payable.
(c) According to records of the Company, the dues outstanding of income
tax, sales tax, wealth tax, service tax, custom duty, excise duty, on
account of any dispute, are as follows:
Name of the Statue Nature of Forum where
dues dispute pending
M P VAT Act VAT Additional Deputy Commission
of Commercial tax, Indore
M P VAT Act VAT Appellate Deputy Commissioner
of Commercial Tax, Indore
M P VAT Act VAT Appellate Deputy Commissioner
of Commercial Tax, Khandwa
Entry TaxAct Entry Tax MPCommercialTaxAppellate
Tribunal, Bhopal
Central Sales CST M P Commercial Tax
TaxAct Appellate Board
Entry TaxAct Entry Tax MP High Court, Jabalpur
MPVATAct VAT MPHighCourt,Jabalpur
Central Sales CST MP High Court, Jabalpur
TaxAct
Income TaxAct Income Tax Commissioner of
Income Tax (Appeals) II
Income TaxAct Income Tax Commissioner of
Income Tax (Appeals) II
Name of the Director Per iod to which Amount
relates (inRslakhs)
M P VAT Act 2010-11 1.77
M P VAT Act 2010- 11 37.74
M P VAT Act 2009- 10 4.08
Entry TaxAct 2008-09 12.93
Central Sales 2008-09 1.42
Tax ACT
Entry TaxAct 2007-08 36.32
M P VAT Act 2007-08 113.79
Central Sales 2007-08 44.95
Tax ACT
Income TaxAct 2011- 12 42.75
Income TaxAct 2010- 11 16.04
(x) The company has no accumulated losses at the end of the financial
year and it has not incurred cash loss in the current and immediately
preceding financial year.
(xi) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to
bank. The Company had no transactions with financial institutions and
had no debentures outstanding during the year;
(xii) The Company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities;
(xiii) The nature of activities of the Company does not attract any
special statute applicable to chit fund and nidhi / mutual benefit
fund/ societies;
(xiv) The Company does not deal or trade in shares, securities,
debentures and other investments;
(xv) On the basis of the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks or financial institutions;
(xvi) On the basis of the records examined by us, and relying on the
information compiled by the Company for co- relating the funds raised
to the end use of term loans, we have to state that, the Company has,
prima-facie, applied the term loans for the purposes for which they
were obtained;
(xvii) According to information and explanations given to us and on an
overall examination of the financial statements of the Company and
after placing reliance on the reasonable assumptions made by the
Company for classification of usage of funds, we are of the opinion
that, prima-facie, as at the close of the year, short term funds have
not been utilized for long term investment;
(xviii) The Company has not made any preferential allotment of shares
to the parties covered in the register maintained under section 301 of
theAct;
(xix) During the year, the Company has not issued any debentures;
(xx) The company has not raised any money by public issue during the
year.
(xxi) Based upon the audit procedures performed in accordance with the
generally accepted auditing practices in India and according to the
information and explanations given to us, we report that we have
neither come across any instances of fraud on or by the Company,
noticed or reported during the year, nor we have been informed of such
cases by the Management.
For Pankaj Somaiya & Associates LLP.
Firm Registration No. 010081C
Chartered Accountants
CA Pankaj Somaiya
Place :Burhapur (M.P)
Partner
Date: 29th May,2014 Membership No.079918
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of Texmo Pipes
and Products 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 a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956 ("the Act"). This responsibility includes
the design, implementation and maintenance of internal control relevant
to the preparation and presentation of the financial statements that
give a true and fair view and are free from material misstatement,
whether due to fraud or error.
Auditor''s Responsibility
Our 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, give a true and fair
view in conformity with the accounting principles generally accepted in
India:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2013;
(b) in the case of the Statement of Profit and Loss, of the profit for
the year ended on that date; and © in the case of the Cash Flow
Statement, of the cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("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 and proper returns adequate for the purposes of our audit have
been received from branches not visited by us;
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 and with the returns received from branches not visited by us;
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 TO THE AUDITORS'' REPORT
(As referred to in paragraph 03 of our Report to the members of Texmo
Pipes and Products Limited on the accounts as at and for the year ended
31st March 2013)
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of its fixed
assets;
(b) As explained to us all the fixed assets have been physically
verified by the management during the year, which in our opinion is
reasonable having regard to the size of the Company and nature of its
assets. No material discrepancies were noticed on such verification as
compared with the book records.
(c) During the year, the Company has not disposed off substantial part
of fixed assets and the going concern status of the Company is not
affected;
(ii) (a) The inventory has been physically verified at reasonable
intervals during the year by the Management;
(b) In our opinion and according to the information and explanations
given to us, the procedures for physical verification of inventory
followed by the Management is reasonable and adequate in relation to
the size of the Company and the nature of its business;
(c) On the basis of our examination of the inventory records, in our
opinion, the Company is maintaining proper records of inventory. The
discrepancies noticed on physical verification of inventory as compared
to book records were not material.
(iii) (a) As per the information and records made available, the
Company has granted unsecured loan to two companies covered in the
register maintained under Section 301 of the Companies Act,1956.
The maximum amount involved during the period and the balances of said
loans were aggregating to Rs. 32.40 lacs and Rs. 32.40 lacs respectively.
As informed, the company has not given any loans, secured and unsecured
to firms or other parties listed in the register maintained under
section 301 of the Act;
(b) As per the information and records made available, the rate of
interest and other terms and conditions of loans granted by the company
are prima facie not prejudicial to the interest of the company except
to the extent that there are no covenants with regard to the repayment/
payment of loan and interest thereon and security.
(c) In respect of aforesaid loans granted, whether the amount(
principal as well as interest) has been repaid/paid regularly or not
cannot be commented upon, as there is no stipulation as regard to the
repayment/payment of the amount;
(d) As per the information given to us and on the basis of records made
available to us, and subject to (a) and (b) above, the unsecured loan
granted to companies of Rs.32.40 Lacs is considered doubtful and no
interest is provided on such loans, the company has taken reasonable
steps for the recovery of the outstanding amount.
(e) As informed, the company has not taken any loans, secured or
unsecured from companies, firms or other parties covered in the
register maintained under section 301 of the Companies Act, 1956.
Accordingly, the provisions stated in paragraph 4 (iii) (f) and (g) of
the order are not applicable.
(iv) In our opinion, there is adequate internal control system
commensurate with the size of the Company and the nature of its
business with regard to purchase of inventory, fixed assets and for the
sale of goods. During the course of our audit, we have neither come
across nor have been informed of any continuing failure to correct
major weaknesses in the aforesaid internal control system;
(v) (a) Based on the audit procedures applied by us and according to
the information and explanations given to us, we are of the opinion
that the transactions that need to be entered into the register
maintained under section 301 of the Companies Act, 1956 have been so
entered.;
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under Section 301 of
the Companies Act, 1956 and exceeding the value of rupees five Lacs in
respect of any party during the year have been made at prices which are
reasonable having regard to prevailing market prices at the relevant
time.
(vi) The Company has not accepted any deposits from the public within
the meaning of Section 58A, 58AA or any other relevant provisions of
the Companies Act, 1956 and the rules framed there under;
(vii) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
(viii) We have broadly reviewed the books of account maintained by the
company in respect of products where, pursuant to the Rules made by the
Central Government of India, the maintenance of cost records has been
prescribed under clause (d) of sub section (1) of Section 209 of the
Act and we are of the opinion that prima facie, the prescribed accounts
and records have been made and maintained.
(ix) (a) The Company is regular in depositing with appropriate
authorities undisputed statutory dues including provident fund,
employees'' state insurance, income tax, sales tax, wealth tax, service
tax, custom duty, excise duty, cess and other material statutory dues
applicable to it.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of provident fund, investor
education and protection fund, employees'' state insurance, income tax,
wealth tax, service tax, sales tax, customs duty, excise duty, cess and
other undisputed statutory dues were outstanding, at the year end, for
a period of more than six months from the date they became payable.
(c) According to the records of the company, the dues outstanding of
income tax, sales tax, wealth tax, Customs duty, excise duty and cess
on account of any dispute, are as follows:
S.
No. Name of the Statue Nature of Forum where
dues dispute pending
1. M P VAT Act VAT Additional Deputy Commission
of Commercial tax, Indore
2. Central Sales Tax
Act CST Additional Deputy Commission
of Commercial tax, Indore
3. M P VAT Act VAT Appellate Deputy Commissioner
of Commercial Tax, Khandwa
4. Entry Tax Act Entry Tax M P Commercial Tax Appellate
Tribunal, Bhopal
5. Central Sales Tax
Act CST M P Commercial Tax
Appellate Board
6. M P VAT Act VAT Appellate Deputy Commissioner
of Commercial Tax, Khandwa
7. Entry Tax Act Entry Tax MP High Court, Jabalpur
8. M P VAT Act VAT MP High Court, Jabalpur
9. Central Sales Tax
Act CST MP High Court, Jabalpur
10. Entry Tax Act Entry Tax Appellate Deputy Commissioner
of Commercial Tax, Khandwa
11. Income Tax Act Income Tax Commissioner of
Income Tax (Appeals) II
12. Income Tax Act Income Tax Commissioner of
Income Tax (Appeals) II
Name of the Statute Period to which Amount
relates (in Rs. lakhs)
MP VAT Act 2010-11 47.17
Central Sales Tax Act 2010-11 1.01
MP VAT Act 2009-10 5.10
Entry Tax Act 2008-09 12.93
Central Sales Tax Act 2008-09 1.42
MP VAT Act 2008-09 0.48
Entry Tax Act 2007-08 36.32
MP VAT Act 2007-08 113.79
Central Sales Tax Act 2007-08 44.95
Entry Tax Act 2006-07 38.21
Income Tax Act 2006-07 3.92
Income Tax Act 2010-11 32.09
(x) Clause (x) of paragraph 4 of the order is not applicable to the
Company;
(xi) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to
bank. The Company had no transactions with financial institutions and
had no debentures outstanding during the year;
(xii) The Company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities;
(xiii) The nature of activities of the Company does not attract any
special statute applicable to chit fund and nidhi / mutual benefit fund
societies;
(xiv) The Company does not deal or trade in shares, securities,
debentures and other investments;
(xv) On the basis of the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks or financial institutions;
(xvi) On the basis of the records examined by us, and relying on the
information compiled by the Company for co- relating the funds raised
to the end use of term loans, we have to state that, the Company has,
prima-facie, applied the term loans for the purposes for which they
were obtained;
(xvii) According to information and explanations given to us and on an
overall examination of the financial statements of the Company and
after placing reliance on the reasonable assumptions made by the
Company for classification of usage of funds, we are of the opinion
that, prima-facie, as at the close of the year, short term funds have
not been utilized for long term investment;
(xviii) The Company has not made any preferential allotment of shares;
(xix) During the year, the Company has not issued any debentures;
(xx) During the year, the Company has not raised any money by public
issue;
(xxi) Based upon the audit procedures performed in accordance with the
generally accepted auditing practices in India and according to the
information and explanations given to us, we report that we have
neither come across any instances of fraud on or by the Company,
noticed or reported during the year, nor we have been informed of such
cases by the Management.
For Pankaj Somaiya & Associates
Firm Registration No. 010081C
Chartered Accountants
Place : Burhanpur (MP)
Date : 28th May 2013 CA Pankaj Somaiya
Partner
Membership No.079918
Mar 31, 2012
1. We have audited the attached Balance Sheet of Texmo Pipes and
Products Limited ("the Company") for the year ending on 31st March,
2012 and the related Profit & Loss Account and Cash Flow Statement of
the Company for the year ended on that date annexed thereto, which we
have signed under reference to this report. These financial statements
are the responsibility of the Company's management. Our responsibility
is to express an opinion on these financial statements based on our
audit.
2. We conducted our audit in accordance with 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(s). 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.
3. As required by the Companies (Auditors' Report) Order, 2003, as
amended by the Companies (Auditors' Report) (Amendment) Order 2004,
issued by the Central Government of India in terms of Section 227 (4A)
of the Companies Act, 1956 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 during the course of
the audit, we enclose in the Annexure a statement on the matters
specified in paragraphs 4 and 5 of the said order.
4. Without qualifying our opinion we invite your attention to Note
29forming part ofthe statement regarding fire insurance claim settlement
less to the extent of Rs. 906.83 lakhs for which the company has
initiated legal action. Pending final outcome in the matter, no
adjustments have been made in this regard to the financial results for
the year ended 31st March 2012.
5. Further to our comments in the Annexure referred to in paragraph 3
above, we report that:
(a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the 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, Profit & Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account;
(d) In our opinion, the Balance Sheet, Profit and Loss Account and Cash
Flow Statement dealt with by this report comply with the Accounting
Standards referred to in sub-section (3C) of Section 211 of the
Companies Act, 1956 to the extent applicable;
(e) On the basis of the written confirmations received from the
Directors and taken on record by the Board of Directors, we report that
none of the Directors of the Company is disqualified as on 31.03.2012
from being appointed as a Director of the Company in terms of Clause
(g) of Sub-section (1) of Section 274 of the Companies Act, 1956;
(f) In our opinion and to the best of our information and according to
the explanations given to us, the said financial statement read together
with the notes thereon, give the information required by the Companies
Act, 1956, in the manner so required, except for the matter stated in
paragraph 4 above, give a true and fair view in conformity with the
accounting principles generally accepted in India
(i) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31 " March, 2012;
(ii) in the case of the Profit & Loss Account, of the Profit of the
Company for the year ended on that date; and
(iii) in the case of the cash flow statement, of the cash flows for the
year ended on that date.
ANNEXURE TO THE AUDITORS* REPORT (As referred to in paragraph 03 of our
Report to the members of Texmo Pipes and Products Limited on the
accounts as at and for the year ended 31st March 2012)
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative
details and situation of its fixed assets;
(b) As explained to us all the fixed assets have been physically
verified by the management during the year, which in our opinion is
reasonable having regard to the size of the Company and nature of its
assets. No material discrepancies were noticed on such verification as
compared with the book records.
(c) During the year, the Company has not disposed off substantial part
of fixed assets and the going concern status of the Company is not
affected;
(ii) (a) The inventory has been physically verified at reasonable
intervals during the year by the
Management;
(b) In our opinion and according to the information and explanations
given to us, the procedures for physical verification of inventory
followed by the Management is reasonable and adequate in relation to
the size of the Company and the nature of its business;
(c) On the basis of our examination of the inventory records, in our
opinion, the Company is maintaining proper records of inventory. The
discrepancies noticed on physical verification of inventory as compared
to book records were not material.
(iii) (a) As informed to us the Company has not granted any loan
secured or unsecured to companies,
firms or other parties covered in the register maintained under Section
301 of the Companies Act, 1956. The maximum amount involved was Rs. 200
Lacs. The year end balance is ofRs. 32.40 Lacs;
(b) According to information and explanations given to us the Company
has taken unsecured loan from a Company covered in the register
maintained under Section 301 of the Companies Act, 1956. The maximum
amount involved was of Rs. 72.68 Lakhs. The year end balance is of Rs.
36.00 lakhs.
(c) In our opinion, the rate of interest and other terms and conditions
on which loans have been given to and taken from such 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;
(d) There is no stipulation as to the repayment of loan and interest
thereon, hence reply to Clauses
(iii) (c) & (iii)(d) is nil;
(iv) In our opinion, there is adequate internal control system
commensurate with the size of the Company and the nature of its
business with regard to purchase of inventory, fixed assets and for the
sale of goods. During the course of our audit, we have neither come
across nor have been informed of any continuing failure to correct
major weaknesses in the aforesaid internal control system;
(v) (a) Based on the audit procedures applied by us and according to
the information and explanations
given to us, we are of the opinion that the transactions that need to
be entered into the register maintained under section 3 01 of the
Companies Act, 1956 have been so entered.;
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under Section 301 of
the Companies Act, 1956 and exceeding the value of rupees five lakhs in
respect of any party during the year have been made at prices which are
reasonable having regard to prevailing market prices at the relevant
time.
(vi) The Company has not accepted any deposits from the public within
the meaning of Section 5 8 A, 5 8 AA or any other relevant provisions
of the Companies Act, 1956 and the rules framed there under;
(vii) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
(viii) The requirement of maintenance of cost records as prescribed by
the Central Government u/s 209(1)
(d) of the Companies Act, 1956 is not applicable to the Company.
(ix) (a) According to information and explanations given to us and
records of the Company examined by
us, the Company is regular in depositing with appropriate authorities
undisputed statutory dues including provident fund, employees' state
insurance, income tax, sales tax, custom duty, excise duty, cess and
other statutory dues to the extent applicable to it. There are no
undisputed statutory dues as referred to above as at 31st March 2012
outstanding for a period of more than six months from the date they
become payable.
(b) According to the information and explanations given to us and the
records of the Company examined by us, there are no dues in respect of
income tax, sales tax, wealth tax, service tax, custom duty, excise
duty, cess which have not been deposited on account of any dispute
except for the following:
Sl.
No. Name of
the Statue Nature
of dues Forum
where Period
to which Amount
dispute
pending relates in Rs
lakhs
1. MPVAT Act VAT Appellate
Deputy
Commissioner 2009-10 5.10
of Commercial
Tax, Khandwa
2. Entry Tax Act Entry Tax MP Commercial
Tax 2008-09 12.93
Appellate
Tribunal,
Bhopal
3. Central Sales
Tax Act CST MP Commercial
Tax 2008-09 0.72
Appellate
Tribunal, Bhopal
4. Entry Tax Act Entry Tax MP High Court,
Jabalpur 2007-08 39.23
5. MP VAT Act VAT MP High Court,
Jabalpur 2007-08 125.88
6. Central Sales
Tax Act CST MP High Court,
Jabalpur 2007-08 91.22
7. Entry Tax Act Entry Tax Appellate Deputy 2006-07 48.41
Commissioner of
Commercial
Tax, Khandwa
(x) Clause (x) of paragraph 4 of the order is not applicable to the
Company;
(xi) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to
bank. The Company had no transactions with financial institutions and
had no debentures outstanding during the year;
(xii) The Company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities;
(xiii) The nature of activities of the Company does not attract any
special statute applicable to chit fund and nidhi / mutual benefit fund
/ societies;
(xiv) The Company does not deal or trade in shares, securities,
debentures and other investments;
(xv) On the basis of the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks or financial institutions;
(xvi) On the basis of the records examined by us, and relying on the
information compiled by the Company for co- relating the funds raised
to the end use of term loans, we have to state that, the Company has,
prima-facie, applied the term loans for the purposes for which they
were obtained;
(xvii) According to information and explanations given to us and on an
overall examination of the financial statements of the Company and
after placing reliance on the reasonable assumptions made by the
Company for classification of usage of funds, we are of the opinion
that, prima-facie, as at the close of the year, short term funds have
not been utilized for long term investment;
(xviii) The Company has not made any preferential allotment of shares;
(xix) During the year, the Company has not issued any debentures;
(xx) The Management has disclosed the endues of money raised by Public
Issue and the same has been verified byus.
(xxi) Based upon the audit procedures performed in accordance with the
generally accepted auditing practices in India and according to the
information and explanations given to us, we report that we have
neither come across any instances of fraud on or by the Company,
noticed or reported during the year, nor we have been informed of such
cases by the Management.
For Pankaj Somaiya & Associates
Firm Registration No. 010081C
Chartered Accountants
Place: Burhanpur (MP)
Date : 16th August 2012 CA Pankaj Somaiya
Partner
Membership No.079918
Mar 31, 2011
1. We have audited the attached Balance Sheet of Texmo Pipes and
Products Limited ("the Company") for the year ending on 31s, March,
2011 and the related Profit & Loss Account and Cash Flow Statement of
the Company for the year ended on that date annexed thereto, which we
have signed under reference to this report. These financial statements
are the responsibility of the Company's management. Our responsibility
is to express an opinion on these financial statements based on our
audit.
2. We conducted our audit in accordance with 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(s). 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 ouraudit provides a reasonable basis
forouropinion.
3. As required by the Companies (Auditors' Report) Order, 2003, as
amended by the Companies (Auditors' Report) (Amendment) Order 2004,
issued by the Central Government of India in terms of Section 227 (4A)
of the Companies Act, 1956 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 during the course of
the audit, we enclose in the Annexure a statement on the matters
specified in paragraphs 4 and 5 of the said order.
4. Further to our comments in the Annexure referred to in paragraph 3
above, we report that:
(a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessaryforthepurposeofourAudit;
(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, Profit & Loss Account and Cash Flow Statement
dealt with by this report are in agreementwiththebooksof account;
(d) In our opinion, the Balance Sheet, Profit and Loss Account and Cash
Flow Statement dealt with by this report comply with the Accounting
Standards referred to in sub-section (3C) of Section 211 of the
Companies Act, 1956 to the extent applicable;
(e) On the basis of the written confirmations received from the
Directors and taken on record by the Board of Directors, we report that
none of the Directors of the Company is disqualified as on 31.03.2011
from being appointed as a Director of the Company in terms of Clause
(g) of Subsection (1) of Section 274 of the Companies Act, 1956;
(f) In our opinion and to the best of our information and according to
the explanations given to us, the said financial statement read
together with the notes thereon, give the information required by the
Companies Act, 1956, in the manner so required, and give a true and
fair view in conformity with the accounting principles generally
accepted in India :-
(i) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March,2011;
(ii) in the case of the Profit & Loss Account, of the Profit of the
Company for the year ended on that date; and
(iii) in the case of the cash flow statement,of the cash flows for the
year ended on that date.
ANNEXURE TO THE AUDITORS" REPORT
(As referred to in paragraph 03 of our Report to the members of Texmo
Pipes and Products Limited on the accounts as at and for the year ended
31st March 2011)
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of its fixed
assets;
(b) As explained to us all the fixed assets have been physically
verified by the management during the year, which in our opinion is
reasonable having regard to the size of the Company and nature of its
assets. No material discrepancies were noticed on such verification as
compared with the book records.
(c) During the year, the Company has not disposed off substantial part
of fixed assets and the going concern status of the Company is
notaffected;
(ii) (a) The inventory has been physically verified at reasonable
intervals during the year by the Management;
(b) In our opinion and according to the information and explanations
given to us, the procedures for physical verification of inventory
followed by the Management is reasonable and adequate in relation to
the size of the Company and the nature of its business;
(c) On the basis of our examination of the inventory records, in our
opinion, the Company is maintaining proper records of inventory. The
discrepancies noticed on physical verification of inventory as compared
to bookrecordswerenotmaterial.
(iii) (a) The Company had granted unsecured loans to two Companies
covered in the register maintained under Section 301 of the Companies
Act, 1956. The maximum amount involved was Rs.9,00,00,000/- to two such
Companies.The year end balance is of Rs.2,32,39,999/-;
(b) The Company had outstanding unsecured loan from a Company covered
in the register maintained under Section 301 of the Companies Act,
1956. The outstanding maximum amount was Rs. 1,71,94,530/-from one such
Company. The year end balance is of Rs. 1,68,745/-.
(c) In our opinion, the rate of interest and other terms and conditions
on which loans have been given to and taken from such parties listed in
the register maintained under section 301 of the Companies Act, 1956
are not, prima facie, prejudicial to the internal the company;
(d) There is no stipulation as to the repayment of loan and interest
thereon, hence reply to Clauses (iii)(c) & (iii)(d)isnil;
(iv) In our opinion, there is adequate internal control system
commensurate with the size of the Company and the nature of its
business with regard to purchase of inventory, fixed assets and for the
sale of goods. During the course of our audit, we have neither come
across nor have been informed of any continuing failure to correct
major weaknesses in the aforesaid internal control system;
(v) (a) Based on the audit procedures applied by us and according to
the information and explanations given to us, we are of the opinion
that the transactions that need to be entered into the register
maintained under section 301 ofthe Companies Act, 1956 have been so
entered.; (b) In our opinion and according to the information and
explanations given to us, the transactions made in pursuance of
contracts or arrangements entered in the register maintained under
Section 301 of the Companies Act, 1956 and exceeding the value of
rupees five lakhs in respect of any party during the year have been
made at prices which are reasonable having regard to prevailing market
prices at the relevant time.
(vi) The Company has not accepted any deposits from the public within
the meaning of Section 58A, 58AA or any other relevant provisions ofthe
Companies Act, 1956 and the rules framed there under;
(vii) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
(viii) The requirement of maintenance of cost records as prescribed by
the Central Government u/s 209(1) (d) of the Companies Act, 1956 is not
applicable to the Company.
(ix) (a) According to information and explanations given to us and
records of the Company examined by us, the Company is regular in
depositing with appropriate authorities undisputed statutory dues
including provident fund, employees' state insurance, income tax, sales
tax, custom duty, excise duty, cess and other statutory dues to the
extent applicable to it. There are no undisputed statutory dues as
referred to above as at 31 * March 2011 outstanding for a period of
more than six months from the date they become payable. (b) According
to the information and explanations given to us and the records of the
Company examined by us, there are no dues in respect of income tax,
sales tax, wealth tax, service tax, custom duty, excise duty, cess
which have not been deposited on account of any dispute except for the
following:
S Name of the Statue Nature of Forum where Period to Amount
No dues dispute pending which in
relates Rs.lakhs
1. Entry Tax Act Entry Tax MP High Court, 2007-08 39.23
Jabalpur
2. MP VAT Act VAT MP High Court, 2007-08 125.88
Jabalpur
3. Central Sales
Tax Act CST MP High Court, 2007-08 91.22
Jabalpur
(x) Clause (x) of paragraph 4 of the order is not applicable to the
Company;
(xi) In our opinion and according to the information and explanations
given to us, the Company has not defaulted inrepayment of dues to bank.
The Company had no transactions with financial institutions and had no
debentures outstanding during the year;
(xii) The Company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and othersecurities;
(xiii) The nature of activities of the Company does not attract any
special statute applicable to chit fund and nidhi / mutual
benefitfund/societies;
(xiv) The Company does not deal or trade in shares, securities,
debentures and other investments;
(xv) On the basis of the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks orfinancial institutions;
(xvi) On the basis of the records examined by us, and relying on the
information compiled by the Company for co- relating the funds raised
to the end use of term loans, we have to state that, the Company has,
prima facie, applied the term loans for the purposes for which they
were obtained;
(xvii) According to information and explanations given to us and on an
overall examination of the financial statements of the Company and
after placing reliance on the reasonable assumptions made by the
Company for classification of usage of funds, we are of the opinion
that, prima-facie, as at the close of the year, short term funds have
not been utilized for long term investment;
(xviii) The Company has not made any preferential allotment of shares;
(xix) During the year, the Company has not issued any debentures;
(xx) We have verified the end use of money raised by Public Issue as
disclosed in Note. 05 of Schedule 22. Pending Utilization of the funds
raised through Public Issue a sum of Rs. 288.52 Lakhs has been
temporarily invested in Bank Deposits.
(xxi) Based upon the audit procedures performed in accordance with the
generally accepted auditing practices in India and according to the
information and explanations given to us, we report that we have
neither come across any instances of fraud on or by the Company,
noticed or reported during the year, nor we have been informed of such
cases by the Management.
Place :Burhanpur (MP)
Date: 11th August2011
For Pankaj Somaiya& Associates
Firm Registration No. 010081C
Chartered Accountants
CA Pankaj Somaiya
Partner
Membership No.079918
Mar 31, 2010
1. We have audited the attached Balance Sheet of Texmo Pipes and
Products Limited ("the Company") for the year ending on 31st March,
2010 and the related Profit & Loss Account and Cash Flow Statement of
the Company for the year ended on that date annexed thereto, which we
have signed under reference to this report. These financial statements
are the responsibility of the Companys management. Our responsibility
is to express an opinion on these financial statements based on our
audit.
2. We conducted our audit in accordance with 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(s). 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.
3. As required by the Companies (Auditors Report) Order, 2003, as
amended by the Companies (Auditors Report) (Amendment) Order 2004,
issued by the Central Government of India in terms of Section 227 (4A)
of the Companies Act, 1956 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 during the course of
the audit, we enclose in the Annexure a statement on the matters
specified in paragraphs 4 and 5 of the said order.
4. Further to our comments in the Annexure referred to in paragraph 3
above, we report that:
(a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the 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, Profit & Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account;
(d) In our opinion, the Balance Sheet, Profit and Loss Account and Cash
Flow Statement dealt with by this report comply with the Accounting
Standards referred to in subsection (3C) of Section 211 of the
Companies Act, 1956 to the extent applicable;
(e) On the basis of the written confirmations received from the
Directors and taken on record by the Board of Directors, we report that
none of the Directors of the Company is disqualified as on 31.03.2010
from being appointed as a Director of the Company in terms of Clause
(g) of Sub-section (1) of Section 274 of the Companies Act, 1956;
(f) In our opinion and to the best of our information and according to
the explanations given to us, the said financial statement read
together with the notes thereon, give the information required by the
Companies Act, 1956, in the manner so required, and give a true and
fair view in conformity with the accounting principles generally
accepted in India :-
(i) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31 st March, 2010;
(ii) in the case of the Profit & Loss Account, of the Profit of the
Company for the year ended on that date; and
(iii) in the case of the cash flow statement, of the cash flows for the
year ended on that date.
Annexure To The Auditors Report
(As referred to in paragraph 03 of our Report to the members of Texmo
Pipes and Products Limited on the accounts as at and for the year
ended 31st March 2010)
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of its fixed
assets;
(b) As explained to us all the fixed assets have been physically
verified by the management during the year, which in our opinion is
reasonable having regard to the size of the Company and nature of its
assets. No material discrepancies were noticed on such verification as
compared with the book records.
(c) During the year, the Company has not disposed off substantial part
of fixed assets and the going concern status of the Company is not
affected;
(ii) (a) The inventory has been physically verified at reasonable
intervals during the year by the Management;
(b) In our opinion and according to the information and explanations
given to us, the procedures for physical verification of inventory
followed by the Management is reasonable and adequate in relation to
the size of the Company and the nature of its business;
(c) On the basis of our examination of the inventory records, in our
opinion, the Company is maintaining proper records of inventory. The
discrepancies noticed on physical verification of inventory as compared
to book records were not material.
(iii) (a) The Company has not granted any loans, secured or unsecured,
during the year to companies firms and other parties covered in the
register maintained under Section 301 of the Companies Act, 1956.
Accordingly Clauses (iii)(b) to (iii)(d) of paragraph 4 of the order
are not applicable to the Company;
The Company had taken unsecured loan from a Company covered in the
register maintained under Section 301 of the Companies Act, 1956. The
Company has taken a total Rs.6,44,10,000/- from one such Company. The
year end balance is of Rs. 1,71,94,530/34.
(b) In our opinion, the rate of interest and other terms and conditions
on which loans have been taken from such 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) There is no stipulation as to the repayment of loan and interest
thereon, hence reply to Clauses (iii)(c) & (iii)
(d) is nil; (iv) In our opinion, there is adequate internal control
system commensurate with the size of the Company and the nature of its
business with regard to purchase of inventory, fixed assets and for the
sale of goods. During the course of our audit, we have neither come
across nor have been informed of any continuing failure to correct
major weaknesses in the aforesaid internal control system;
(v) Based on the audit procedures applied by us and according to the
information and explanations given to us, we are of the opinion that
the transactions that need to be entered into the register maintained
under section 301 of the Companies Act, 1956 have been so entered.
(vi) The Company has not accepted any deposits from the public within
the meaning of Section 58A, 58AA or any other relevant provisions of
the Companies Act, 1956 and the rules framed there under;
(vii) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
(viii) The requirement of maintenance of cost records as prescribed by
the Central Government u/s 209(1) (d) of the Companies Act, 1956 is not
applicable to the Company.
(ix) (a) According to information and explanations given to us and
records of the Company examined by us, the Company is regular in
depositing with appropriate authorities undisputed statutory dues
including provident fund, employees state insurance, income tax, sales
tax, custom duty, excise duty, cess and other statutecy dues to the
extent applicable to it. There are no undisputed statutory dues as
referred to above as at 31st March 2010 outstanding for a period of
more than six months from the date they become payable.
(b) According to the information and explanations given to us and the
records of the Company examined by us, there are no dues in respect of
income tax, sales tax, wealth tax, service tax, custom duty, excise
duty, cess which have not been deposited on account of any dispute.
(x) Clause (x) of paragraph 4 of the order is not applicable to the
Company;
(xi) The Company has not defaulted in repayment of dues to bank. The
Company had no transactions with financial institutions and had no
debentures outstanding during the year;
(xii) The Company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities;
(xiii) The nature of activities of the Company does not attract any
special statute applicable to chit fund and nidhi / mutual benefit fund
/ societies;
(xiv) The Company does not deal or trade in shares, securities,
debentures and other investments;
(xv) On the basis of the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks or financial institutions;
(xvi) On the basis of the records examined by us, and relying on the
information compiled by the Company for co-relating the funds raised to
the end use of term loans, we have to state that, the Company has,
prima-facie, applied the term loans for the purposes for which they
were obtained;
(xvii) According to information and explanations given to us and on an
overall examination of the financial statements of the Company and
after placing reliance on the reasonable assumptions made by the
Company for classification of usage of funds, we are of the opinion
that, primafacie, as at the close of the year, short term funds have
not been utilized for long term investment;
(xviii) The Company has not made any preferential allotment of shares;
(xix) During the year, the Company has not issued any debentures;
(xx) We have verified the end use of money raised by Public Issue as
disclosed in Note. 04 of Schedule 21. Pending Utilization of the funds
raised through Public Issue a sum of Rs. 2854.10 Lakhs has been
temporarily invested in Mutual Funds and Bank Deposits.
(xxi) Based upon the audit procedures performed in accordance with the
generally accepted auditing practices in India and according to the
information and explanations given to us, we report that we have
neither come across any instances of fraud on or by the Company,
noticed or reported during the year, nor we have been informed of such
cases by the Management.
For Pankaj Somaiya & Associates
Firm Registration No. 010081 C
Chartered Accountants
C A Pankaj Somaiya
Partner
Membership No.079918
Place: Burhanpur (MP)
Date :29th July 2010
Mar 31, 2009
1. We have audited the attached Balance Sheet of Texmo Pipes and
Products Limited ("the Company") for the period ending on 31st March,
2009 and also the Profit & Loss Account of the Company for the period
ended on that date annexed thereto. These financial statements are the
responsibility of the Companys management. Our responsibility is to
express an opinion on these financial statements based on our audit.
2. We conducted our audit in accordance with 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(s). 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 audi t provides a reasonable basis
for our opinion.
3. As required by the Companies (Auditors Report) Order, 2003, as
amended by the Companies (Auditors Report) (Amendment) Order 2004,
issued by the Central Government of India in terms of Section 227 (4A)
of the Companies Act, 1956 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 during the course of
the audit, we enclose in the Annexure a statement on the matters
specified in paragraphs 4 and 5 of the said order.
4. Further to our comments in the Annexure referred to in paragraph 3
above, we report that:
(a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the 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 and Profit & Loss Account dealt with by this
report are in agreement with the books of account;
(d) In our opinion, the Profit and Loss Account and Balance Sheet dealt
with by this report comply with the Accounting Standards referred to in
sub-section (3C) of Section 211 of the Companies Act, 1956 to the
extent applicable;
(e) On the basis of the written confirmations received from the
Directors and taken on record by the Board of Directors, we report that
none of the Directors of the Company is disqualified as on 31.03.2009
from being appointed as a Director of the Company in terms of Clause
(g) of Sub-section (1) of Section 274 of the Companies Act, 1956;
(f) In our opinion and to the best of our information and according to
the explanations given to us, the said financial statement read
together with the 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 principle generally
accepted in India :-
(i) in case of the Balance Sheet, of the state of affairs of the
Company for the period ending 31st March, 2009; and (ii) in case of the
Profit & Loss Account, of the Profit of the Company for the period
ended on that date.
(Referred to in paragraph 03 of our Report of even date of Texmo Pipes
and Products Limited (For the period ending 31st March 2009)
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of its fixed
assets;
(b) Physical verification of the fixed assets of the Company was
conducted by the Management during the year, which in our opinion is
reasonable having regard to the size of the Company and nature of its
assets. No material discrepancies were noticed on such verification as
compared with the book records.
(c) During the period, the Company has not disposed off substantial
part of fixed assets and the going concern status of the Company is not
affected;
(ii) (a) The inventory has been physically verified at reasonable
intervals during the year by the Management;
(b) In our opinion and according to the information and explanations
given to us, the procedures for physical verification of inventory
followed by the Management is reasonable and adequate in relation to
the size of the Company and the nature of its business;
(c) The Company has maintained proper records of inventory and no
discrepancies were noticed on physical verification as compared with
book records;
(iii) (a) The Company has not granted any loans, secured or unsecured,
during the year to companies firms and other parties covered in the
register maintained under Section 301 of the Companies Act, 1956.
Accordingly Clauses (iii)(b) to (iii)(d) of paragraph 4 of the order
are not applicable to the Company; The Company had taken unsecured loan
from a Company covered in the register maintained under
Section 301 of the Companies Act, 1956. The Company has taken a total
Rs.4,90,30,581/- from one such Company. The year end balance is of
Rs.4,87,33,528/-.
(b) In our opinion, the rate of interest and other terms and conditions
on which loans have been taken from such 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) There is no stipulation as to the repayment of loan and interest
thereon, hence reply to Clauses (iii)(c) &(iii)(d)is nil;
(iv) In our opinion, there is adequate internal control system
commensurate with the size of the Company and the nature of its
business with regard to purchase of inventory, fixed assets and for the
sale of goods. During the course of our audit, we have neither come
across nor have been informed of any continuing failure to correct
major weaknesses in the aforesaid internal control system;
(v) Based on the audit procedures applied by us and according to the
information and explanations given to us, we are of the opinion that
the transactions that need to be entered into the register maintained
under section 301 of the Companies Act, 1956 have been so entered.
(vi) The Company has not accepted any deposits from the public within
the meaning of Section 58A, 58 A A or any other relevant provisions of
the Companies Act, 1956 and the rules framed there under;
(vii) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business. 209(l)(d) of
the Companies Act, 1956 is not applicable to the Company.
(a) According to information and explanations given to us, the Company
is regular in depositing with appropriate authorities undisputed
statutory dues including provident fund, employees state insurance,
income tax, sales tax, custom duty, excise duty, cess and other
statutory dues to the extent applicable to it, except for Service Tax
realised and payable of Rs. 1,06,358/- outstanding as on 31st March
2009 for a period of more than six months from the date they became
payable;
(b) According to the information and explanation given to us, there are
no dues in respect of income tax, sales tax, wealth tax, service tax,
custom duty, excise duty, cess which have not been deposited on account
of any dispute;
(ix) Clause (x) of paragraph 4 of the order is not applicable to the
Company;
(x) The Company has not defaulted in repayment of dues to bank. The
Company had no transactions with financial institutions and had no
debentures outstanding during the year;
(xi) The Company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities;
(xii) The nature of activities of the Company does not attract any
special statute applicable to chit fund and nidhi /mutual benefit
fund/societies;
(xiii) The Company does not deal or trade in shares, securities,
debentures and other investments;
(xiv) On the basis of the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks or financial institutions;
(xv) On the basis of the records examined by us, and relying on the
information compiled by the Company for co-relating the funds raised to
the end use of term loans, we have to state that, the Company has,
prima-facie, applied the term loans for the purposes for which they
were obtained;
(xvi) According to information and explanations given to us and on an
overall examination of the financial statements of the Company and
after placing reliance on the reasonable assumptions made by the
Company for classification of usage of funds, we are of the opinion
that, prima-facie, as at the close of the year, short term funds have
not been utilized for long term investment;
(xvii) The Company has not made any preferential allotment of shares;
(xviii) During the year, the Company has not issued any debentures;
(xix) The Company has not raised any money by public issues during the
year;
(xx) Based upon the audit procedures performed in accordance with the
generally accepted auditing practices in India and according to the
information and explanations given to us, we report that we have
neither come across any instances of fraud on or by the Company,
noticed or reported during the year, nor we have been informed of such
cases by the Management.
For Pankaj Somaiya & Associates
Chartered Accountants
Place : Burhanpur (M.P.) CA Pankai Somaiya
Date : 14th August 2009
Partner