Mar 31, 2018
Report on the Financial Statements
1. We have audited the accompanying financial statements of TIJARIA POLYPIPES LIMITED, which comprise the Balance Sheet as at March 31, 2018, the Statement of Profit and Loss and Cash Flow Statement for the year ended, and a summary of significant accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
2. The management and Board of Directors of the Company are responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (''the act'') with respect to 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 principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with rule 7 of Companies (Accounts) Rules, 2014. This responsibility includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; design, implementation and maintenance of adequate internal financial controls, that are 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
3. Our responsibility is to express an opinion on these financial statements based on our audit. We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made 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.
4. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company''s preparation of the financial statements, that give a true and fair view, in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on whether the Company has in place an adequate internal financial controls system over financial reporting and the operating effectiveness of such controls An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by the Company''s management and Board of Directors, as well as evaluating the overall presentation of the financial statements.
5. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Opinion
6. In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial statements give the information required by the Act in the manner so required and gives a true and fair view in conformity with the accounting principles generally accepted in India of the state of affairs of the Company as at 31st March 2018, its profit/loss and its cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
7. As required by the Companies (Auditor''s Report) Order, 2016 issued by the Central Government of India in terms of sub-section (11) of section143 of the Act, we have given in the Annexure a statement on the matters Specified in paragraphs 3 and 4 of the Order.
8. As required by section 143(3) of the Act, we further report that:
a) we have sought and obtained all the information and explanations to the best of our knowledge and belief were necessary for the purpose of our audit;
b) in our opinion proper books of account as required by law have been kept by the Company so far as appears from our examination of those books;
c) the Balance Sheet, Statement of Profit and Loss, and Cash Flow Statement dealt with by this Report are in agreement with the books of account;
d) in our opinion, the aforesaid financial statements comply with the applicable 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, 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 controls over financial reporting of the company and the operating effectiveness of such controls, refer to our separate report in Annexure
g) in our opinion and to the best of our information and according to the explanations given to us, we report as under with respect to other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014:
i. The Company has disclosed the impact of pending litigations on its financial position in the financial statements at point no.1 and 2 to Notes to Accounts of Note No.26 for Significant Accounting policies & Notes on Account .
ii. The Company did not have any long-term contracts including derivative contracts; as such the question of commenting on any material foreseeable losses thereon does not arise.
iii. There has not been an occasion in case of the Company during the year under report to transfer any sums to the Investor Education and Protection Fund. The question of delay in transferring such sums does not arise.
Annexure referred to in paragraph 7 Our Report of even date to the members of TITARIA POLYPIPES LIMITED, TAIPUR on the accounts of the company for the year ended 31st March, 2018
On the basis of such checks as we considered appropriate and according to the information and explanations given to us during the course of our audit, we report that:
1. (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 by the management in a phased manner, designed to cover all the items over a period of three years, which in our opinion, is reasonable having regard to the size of the company and nature of its business. Pursuant to the program, a portion of the fixed asset has been physically verified by the management during the year and no material discrepancies between the books records and the physical fixed assets have been noticed.
(c) The title deeds of immovable properties are held in the name of the company.
2. (a) The management has conducted the physical verification of inventory at reasonable intervals.
(b) The discrepancies noticed on physical verification of the inventory as compared to books records which has been properly dealt with in the books of account were not material.
3. The Company has not granted any loans, secured or unsecured to companies, firms, Limited Liability partnerships or other parties covered in the Register maintained under section 189 of the Act. Accordingly, the provisions of clause 3 (iii) (a) to (C) of the Order are not applicable to the Company and hence not commented upon.
4. In our opinion and according to the information and explanations given to us, the company has complied with the provisions of section 185 and I86 of the Companies Act, 2013 In respect of loans, investments, guarantees, and security.
5. The Company has not accepted any deposits from the public and hence the directives issued by the Reserve Bank of India and the provisions of Sections 73 to 76 or any other relevant provisions of the Act and the Companies (Acceptance of Deposit) Rules, 2015 with regard to the deposits accepted from the public are not applicable.
6. As informed to us, the Central Government has prescribed maintenance of cost records under sub-section (1) of Section 148 of the Act and such records and accounts have been maintained by the company.
7. (a) According to information and explanations given to us and on the basis of our examination of the books of account, and records, the Company has been generally regular in depositing undisputed statutory dues including Provident Fund, Employees State Insurance, Income-Tax, Sales tax, Service Tax, Duty of Customs, Duty of Excise, Value added Tax, Cess and any other statutory dues with the appropriate authorities. According to the information and explanations given to us, no undisputed amounts payable in respect of the above were in arrears as at March 31, 2018 for a period of more than six months from the date on when they become payable.
(b) According to the information and explanations given to us and based on the records of the company examined by us, there are no dues of Wealth Tax, Service Tax, Sales Tax, Customs Duty and Excise Duty which have not been deposited on account of any disputes but there are dues of Income-tax and sales tax which have not been deposited on account of disputes, details of which are as under:
S.No. |
Assessment Year |
Demand raised by the AO |
Amount deposited against the disputed demand |
Appeal Pending before |
1. |
2010-11 |
2,63,31,545/- |
2,61,25,750/- |
ITAT, Jaipur |
2. |
2009-10 |
3,90,26,553/- |
60,00,000/- |
Sales Tax Tribunal, Mumbai |
8. In our opinion and according to the information and explanations given to us, the Company has defaulted in the repayment of dues to banks. dues financial institution or banks and has not issued debentures. Detail of Default s as follows:
The Company has defaulted in payment of interest and Installments due on credit facilities availed from Bank of India since November 2015 and in turn the facilities have been classified as Sub-Standard by the Bank.
9. Based upon the audit procedures performed and the information and explanations given by the management, the company has not raised moneys by way of initial public offer or further public offer including debt instruments and term Loans. Accordingly, the provisions of clause 3 (ix) of the Order are not applicable to the Company and hence not commented upon.
10. Based upon the audit procedures performed and the information and explanations given by the management, we report that no fraud by the Company or on the company by its officers or employees has been noticed or reported during the year.
11. Based upon the audit procedures performed and the information and explanations given by the management, the managerial remuneration has been paid or provided in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Companies Act;
12. In our opinion, the Company is not a Nidhi Company. Therefore, the provisions of clause 4 (xii) of the Order are not applicable to the Company.
13. In our opinion, all transactions with the related parties are in compliance with section 177 and 188 of Companies Act, 2013 and the details have been disclosed in the Financial Statements as required by the applicable accounting standards.
14. Based upon the audit procedures performed and the information and explanations given by the management, the company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review. Accordingly, the provisions of clause 3 (xiv) of the Order are not applicable to the Company and hence not commented upon.
15. Based upon the audit procedures performed and the information and explanations given by the management, the company has not entered into any non-cash transactions with directors or persons connected with him. Accordingly, the provisions of clause 3 (xv) of the Order are not applicable to the Company and hence not commented upon.
16. In our opinion, the company is not required to be registered under section 45 IA of the Reserve Bank of India Act, 1934 and accordingly, the provisions of clause 3 (xvi) of the Order are not applicable to the Company and hence not commented upon.
"Annexureâ to the Independent Auditor''s Report
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 ("the Actâ)
We have audited the internal financial controls over financial reporting of TIJARIA POLYPIPES LIMITED ("the Company") as of March 31, 2018 in conjunction with our audit of the financial statements of the Company for the year ended on that date.
Management''s Responsibility for Internal Financial Controls
The Company''s management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India". These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditors'' Responsibility
Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the "Guidance Note") and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company''s internal financial controls system over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A company''s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company''s internal financial control over financial reporting includes those policies and procedures that
(1) Pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company;
(2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and
(3) Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company''s assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 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".
Chartered Accountants
For AGRAWAL JAIN & GUPTA
Firm No. 013538C
Place: Jaipur (CA. GAURAV JAIN)
Date: August 30,2018 PARTNER
Membership No. 405875
Mar 31, 2015
1. We have audited the accompanying financial statements of TIJARIA
POLYPIPES LIMITED, which comprise the Balance Sheet as at March 31,
2015, the Statement of Profit and Loss and Cash Flow Statement for the
year then ended, and a summary of significant accounting policies and
other explanatory information.
Management's Responsibility for the Financial Statements
2. The management and Board of Directors of the Company are
responsible for the matters stated in Section 134(5) of the Companies
Act, 2013 ('the act') with respect to 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 principles generally accepted in India,
including the Accounting Standards specified under Section 133 of the
Act, read with rule 7 of Companies (Accounts) Rules, 2014. This
responsibility includes maintenance of adequate accounting records in
accordance with the provisions of the Act for safeguarding the assets
of the Company and for preventing and detecting frauds and other
irregularities; selection and application of appropriate accounting
policies; making judgments and estimates that are reasonable and
prudent; design, implementation and maintenance of adequate internal
financial controls, that are 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
3. Our responsibility is to express an opinion on these financial
statements based on our audit. We have taken into account the
provisions of the Act, the accounting and auditing standards and
matters which are required to be included in the audit report under the
provisions of the Act and the Rules made 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.
4. An audit involves performing procedures to obtain audit evidence
about the amounts and disclosures in the financial statements. The
procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial control relevant
to the Company's preparation of the financial statements, that give a
true and fair view, in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing
an opinion on whether the Company has in place an adequate internal
financial controls system over financial reporting and the operating
effectiveness of such controls An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of
the accounting estimates made by the Company's management and Board of
Directors, as well as evaluating the overall presentation of the
financial statements.
5. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our audit opinion.
Opinion
6. In our opinion and to the best of our information and according to
the explanations given to us, the aforesaid financial statements give
the information required by the Act in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India of the state of affairs of the Company as
at 31st March 2015, its profit/loss and its cash flows for the year
ended on that date.
Report on Other Legal and Regulatory Requirements
7. As required by the Companies (Auditor's Report) Order, 2015 issued
by the Central Government of India in terms of sub-section (11) of
section143 of the Act, we give in the Annexure a statement on the
matters specified in paragraphs 3 and 4 of the Order.
8. As required by section 143(3) of the Act, we further report that:
a) we have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purpose of our audit;
b) in our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books;
c) the Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
d) in our opinion, the aforesaid financial statements comply with the
applicable 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) In our opinion and to the best of our information and according to
the explanations given to us, we report as under with respect to other
matters to be included in the Auditor's Report in accordance with Rule
11 of the Companies (Audit and Auditors) Rules, 2014.
i. The Company does have pending litigation with Securities Exchange
Board of India regarding utilization of IPO Proceeds which could impact
its financial position.
ii. The Company did not have any long-term contracts including
derivative contracts; as such the question of commenting on any
material foreseeable losses thereon does not arise.
iii. There has not been an occasion in case of the Company during the
year under report to transfer any sums to the Investor Education and
Protection Fund. The question of delay in transferring such sums does
not arise
Annexure referred to in paragraph 7 in our Report of even date to the
members of TIJARIA POLYPIPES LIMITED, JAIPUR
on the Accounts of the Company for the year ended 31st March, 2015
On the basis of such checks as we considered appropriate and according
to the information and explanations given to us during the course of
our audit, we report that:
i. (a). The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b). As explained to us, fixed assets have been physically verified by
the management at regular intervals; as informed to us no material
discrepancies were noticed on such verification.
ii. a) The inventories have been physically verified during the year by
the management. In our opinion, the frequency of verification is
reasonable.
b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
c) The Company has maintained proper records of inventories. As per the
information and explanation given to us, no material discrepancies were
noticed on physical verification.
iii. The company has not granted any loans, secured or unsecured to
companies, firms or other parties covered in the register maintained
under section 189 of the Act.
iv. In our opinion and according to the information and explanations
given to us, there is adequate internal control system commensurate
with the size of the Company and the nature of its business, for the
purchase of fixed assets and for the sale of services. Further, on the
basis of our examination of the books and records of the Company and
according to the information and explanations given to us, no major
weakness has been noticed or reported.
v. According to the information and explanations given to us, the
Company has not accepted any deposit from the public covered under
Section 73 to 76 of the Companies Act, 2013. Therefore, the provisions
of Clause (v) of paragraph 3 of the CARO 2015 are not applicable to the
Company.
vi. As informed to us, the Central Government has prescribed
maintenance of cost records under sub-section (1) of Section 148 of the
Act and such records and accounts have been maintained by the company.
vii. (a) According to the information and explanations given to us and
based on the records of the company examined by us, the company is
regular in depositing the undisputed statutory dues,including Provident
Fund, , Employees' State Insurance, Income-tax, Sales-tax, Wealth Tax,
Service Tax, Custom Duty,Excise Duty and other material statutory dues,
as applicable, with the appropriate authorities in India ;
(b) According to the information and explanations given to us and based
on the records of the company examined by us, there are no dues of
Wealth Tax, Service Tax, Sales Tax, Customs Duty and Excise Duty which
have not been deposited on account of any disputes but there are dues
of Income-tax which have not been deposited on account of dispute,
details of which are as under:
S.No. Assessment Demand Amount deposited Appeal Pending
Year raised by against the before
the AO disputed demand
1 2009-10 5,07,730/- 2,00,000/- CIT (A)II,Jaipur
2 2010-11 2,63,31,545/- 2,61,25,750/- ITAT, Jaipur
3 2009-10 3,90,26,553/- 60,00,000/- STAT, Mumbai
i. The Company have accumulated losses Rs.10,21,10,376/- at the end of
the financial year. The Company has not incurred cash losses during the
financial year covered by the audit and in the immediately preceding
financial year.
ii. According to the records of the company examined by us and as per
the information and explanations given to us, the company has not
defaulted in repayment of dues financial institution or banks and has
not issued debentures subject to following :
The Company has defaulted in payment of interest due on term loan to
Bank of India amounting to Rs.2,21,66,097/- which became due from July
2014 to December 2014, this was cleared on 7th January 2015.
iii. In our opinion, and according to the information and explanations
given to us, the Company has not given any guarantee for loan taken by
others from a bank or financial institution during the year.
iv. In our opinion, and according to the information and explanations
given to us, the company has utilized all term loan raised for the
purpose those were obtained.
v. During the course of our examination of the books and records of
the company, carried in accordance with the auditing standards
generally accepted in India, we have neither come across any instance
of fraud or by the Company noticed or reported during the course of our
audit nor have we been informed of any such instance by the Management
For AGRAWAL JAIN & GUPTA
Chartered Accountants
Firm No. 013538C
Date : 27.05.2015
Place : Jaipur
(CA. NITESH AGRAWAL)
PARTNER
Membership No. 406155
Mar 31, 2014
1. We have audited the accompanying financial statements of TIJARIA
POLYPIPES LIMITED which comprise the Balance Sheet as at March 31, 2014
and statement of Profit and Loss and cash flow statement for the year
then ended and a summary of significant accounting policies and other
explanatory information.
Management''s Responsibility for the Financial Statements
2. Management is responsible for the preparation of these financial
statements that give 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
211of the Companies Act ,1956.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 misstatements ,whether
due to fraud and error.
Auditor''s Responsibility
3. Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with Standards on auditing issued by the Institute of Chartered
Accountants of India. Those standards require that we comply with the
ethical requirements plan and perform the audit to obtained reasonable
assurance about whether the financial statements are free from material
misstatements. 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 judgement, including
the assessment of the risk of material misstatements 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 and the reasonableness of accounting estimates made
by management, as well as evaluating the overall financial statement.
4. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our audit opinion.
Opinion
5. In our opinion, and to the best of our information and according to
the explanations given to us, the financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2014;
(b) in the case of the Profit and Loss Account, of the profit/ loss for
the year ended on that date; and
(c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 issued
by the Central Government of India in terms of sub-section (4A) of
Section 227 of Act, ,we give in the Annexure a statement on the matter
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 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
these books (and proper returns adequate for the purpose of our audit
have been received from the branches not visited by us);
c) The Balance Sheet and Profit and Loss Account 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, Profit and Loss Account and cash
flow statements comply with the accounting standards referred to in
sub- section (3C) of Section 211 of the Companies Act, 1956;
e) On the basis of written representation 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 Section 274 (1)(g) of the Companies
Act 1956.
ANNEXURE REFERRED TO IN PARAGRAPH (C) OF OUR REPORT OF EVEN DATE Re:
TIJARIA POLYPIPES LIMITED, JAIPUR
1) The Company is maintaining proper records showing full particulars,
including quantitative details and situation of fixed assets. As
explained to us, All fixed assets were physically verified by the
management in the year before last year in accordance with a planned
programmed of verifying these once in three years, which in our opinion
is reasonable, having regard to the size of the Company and the nature
of its assets and no material discrepancies were found on such
verification. There was no substantial disposal of fixed assets during
the year.
2) In our opinion and according to the information and explanations
given to us, the management has conducted physical verification of
inventory at reasonable intervals. The procedures for physical
verification of inventory followed by the management are reasonable and
adequate in relation to the size of the company and the nature of its
business. The Company is maintaining proper records of inventory and no
material discrepancies were noticed on physical verification.
3) The detail of loans taken by the Company from a party covered in the
register maintained under Section 301 of the Companies Act, 1956 is
given below :
(Rs In Lacs)
Name of theParty Relationship Opening Amount Taken
Balance during the year
Tijaria Industries Ltd. Shareholder 128.95 16.00
Tijaria International Ltd. Common Directors 0.00 5.00
Tijaria Vinyl P Ltd. Shareholder 74.90 11.50
Alok Jain Tijaria Promoter-Director 26.92 37.26
Vikas Jain Tijaria Promoter-Director 22.00 32.60
Praveen Jain Tijaria Promoter-Director 0.00 45.00
Vineet Jain Tijaria Promoter-Director 0.00 49.60
(Rs In Lacs)
Name of theParty Relationship Amount Repaid Closing
during the year Balance
Tijaria Industries Ltd. Shareholder 0.50 144.45
Tijaria International Ltd. Common Directors 1.51 3.49
Tijaria Vinyl P Ltd. Shareholder 0.00 86.40
Alok Jain Tijaria Promoter-Director 42.18 22.00
Vikas Jain Tijaria Promoter-Director 37.00 17.60
Praveen Jain Tijaria Promoter-Director 15.00 30.00
Vineet Jain Tijaria Promoter-Director 19.60 30.00
In our opinion and according to the information and explanations given
to us, the loan has taken unsecured loan and other terms and conditions
for such
loans are not prima facie prejudicial to the interest of the Company.
In respect of loans taken, the repayment of the loan amount is as
stipulated and
there is no overdue amount of loans taken from the aforesaid party. The
company has not paid any interest on above loans.
As informed to us, the Company has not granted any loans, secured or
unsecured to firms, companies or other parties covered in the register
maintained
under Section 301 of the Companies Act 1956.
4) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business, for the purchase of inventory and fixed assets and for the
sale of goods.
5) Based on the audit procedures applied by us and according to
information and explanations provided by the management, 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. In our opinion and According to the information and
explanations given to us, the transactions with parties with whom
transactions exceeding value of rupees five lakhs have been entered
into during the financial year are at prices, which are reasonable
having regard to the prevailing market price at the relevant time.
6) The Company has not accepted any deposits from the public within the
meaning of sections 58A and 58AA of the act and the rules framed there
under.
7) In our opinion, the Company has an own internal audit system
commensurate with the size and nature of its business.
8) To the best of our knowledge and as explained to us, the Central
Government has not prescribed maintenance of cost records under Clause
(d) of sub-section (1) of Section 209 of the Companies Act, 1956 for
the products of the Company.
9) According to the information and explanation given to us and records
of the company examined by us in our opinion prima-facie the Company is
regular in depositing undisputed statutory dues with the appropriate
authorities. According to the information and explanations given to us,
no undisputed amounts payable in respect of wealth tax, sales tax,
customs duty and excise duty were outstanding, at the year end for a
period of more than six months from the date they became payable but
there are dues of Income-tax which have not been deposited on accounts
of dispute,
Assessment emand raised Amount deposited Appeal Pending before
Year by the AO against the
disputed demand
2009- 10 5,07,730/- 2,00,000.00 CIT (A) II, JAIPUR
2010- 11 23,95,92,620/- NiL DCIT, CIRCLE - 4, JAIPUR
2012- 13 47,21,156/- Nil Assistant Commissioner,
Commercial Taxes
Department, Special - 3,
Jaipur
2012- 13 30,70,021/ Nil Assistant Commissioner,
Commercial Taxes
Department, Special - 3,
JaipurSales Tax Officer,
Refund and Refund
2009- 10 3,84,49,118/- Nil Sales tax officer, refund
Audit, Nasik
10) The Company has accumulated losses of Rs.1,05,87,109/- at the end
of the financial year, though the company has not incurred cash losses
in the current and immediately preceding financial year.
11) Based on our audit procedures and on the basis of information and
explanations given by the management, we hereby report that the Company
has defaulted in repayment of Installments and Interest due to Bank of
India. Company has also defaulted in its commitments for Letter of
Credit issued by Bank of India. The Company did not have any
outstanding debentures during the year.
12) According to the information and explanations given to us and based
on the documents and records produced to us, the Company has not
granted loans and advances on the basis of security by way of pledge of
shares, debentures and other securities.
13) In our opinion, the nature of activities of the Company does not
attract any special statute applicable to chit fund and nidhi/ mutual
benefit fund/ societies. Therefore, provisions of clause 4 (xiii) of
the Companies (Auditor Report) Order, 2003 are not applicable to the
Company.
14) In our opinion, the Company does not deal or trade in shares,
securities, debentures and other investments. Accordingly, the
provisions of clause 4 (xiv) of the Companies (Auditor Report) Order,
2003 are not applicable to the Company.
15) According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks or financial institutions.
16) Based on the information and explanations given to us by the
management, The Company has not raised any term loan during the year,
but the company by its restructuring proposal to Bank of India has
converted its overdue Interest on existing term loans and overdue Cash
Credit Limits into Term Loans whose repayment shall start in November
2015.
17) According to the information and explanations given to us and on an
overall examination of the Balance Sheet of the Company, we report that
no funds raised on short-term basis have been used for long-term
investments. No long-term funds have been used to finance short-term
assets except permanent working capital.
18) The Company has not made any preferential allotment of shares to
parties or companies covered in the register maintained under Section
301 of the Companies Act, 1956.
19) The Company did not have any outstanding debentures during the
year.
20) The Company has not raised any money through a public issue during
the year.
21) Based upon the audit procedures performed by us for expressing our
opinion on these financial statements and the information and
explanations given by the management, we report that no fraud on or by
the Company has been noticed or reported during of our audit.
For AGRAWAL JAIN & GUPTA
Chartered Accountants
Firm No. 013538C
(CA NITESH AGRAWAL)
PARTNER
Membership No. 406155
Date : 30.05.2014
Place : Jaipur
Mar 31, 2013
Report on the Financial Statements
1. We have audited the accompanying financial statements of TIJARIA
POLYPIPES LIMITED which comprise the Balance Sheet as at March 31, 2013
and statement of Profit and Loss and cash flow statement for the year
then ended and a summary of significant accounting policies and other
explanatory information.
Management''s Responsibility for the Financial Statements
2. Management is responsible for the preparation of these financial
statements that give 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
211of the Companies Act ,1956.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 misstatements ,whether
due to fraud and error.
Auditor''s Responsibility
3. Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with Standards on auditing issued by the Institute of Chartered
Accountants of India. Those standards require that we comply with the
ethical requirements plan and perform the audit to obtained reasonable
assurance about whether the financial statements are free from material
misstatements. 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 judgement, including
the assessment of the risk of material misstatements 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 and the reasonableness of accounting estimates made
by management, as well as evaluating the overall financial statement.
4. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our audit opinion.
Opinion
5. In our opinion, and to the best of our information and according to
the explanations given to us, the financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India:
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2013;
b) in the case of the Profit and Loss Account, of the profit/ loss for
the year ended on that date; and
c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 issued
by the Central Government of India in terms of sub-section (4A) of
Section 227 of Act, ,we give in the Annexure a statement on the matter
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 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
these books (and proper returns adequate for the purpose of our audit
have been received from the branches not visited by us);
c) The Balance Sheet and Profit and Loss Account 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, Profit and Loss Account and cash
flow statements comply with the accounting standards referred to in
sub-section (3C) of Section 211 of the Companies Act, 1956;
e) On the basis of written representation 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 Section 274 (1)(g) of the Companies
Act 1956.
ANNEXURE REFERRED TO IN PARAGRAPH (C) OF OUR REPORT OF EVEN DATE Re:
TIJARIA POLYPIPES LIMITED, JAIPUR
1) The Company is maintaining proper records showing full particulars,
including quantitative details and situation of fixed assets. As
explained to us, All fixed assets were physically verified by the
management in the year before last year in accordance with a planned
programme of verifying these once in three years, which in our opinion
is reasonable, having regard to the size of the Company and the nature
of its assets and no material discrepancies were found on such
verification. There was no substantial disposal of fixed assets during
the year.
2) In our opinion and according to the information and explanations
given to us, the management has conducted physical verification of
inventory at reasonable intervals. The procedures for physical
verification of inventory followed by the management are reasonable and
adequate in relation to the size of the company and the nature of its
business. The Company is maintaining proper records of inventory and no
material discrepancies were noticed on physical verification.
In our opinion and according to the information and explanations given
to us, the loan has taken unsecured loan and other terms and conditions
for such loans are not prima facie prejudicial to the interest of the
Company. In respect of loans taken, the repayment of the loan amount is
as stipulated and there is no overdue amount of loans taken from the
aforesaid party. The company has not paid any interest on above loans.
As informed to us, the Company has not granted any loans, secured or
unsecured to firms, companies or other parties covered in the register
maintained under Section 301 of the Companies Act 1956.
4) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business, for the purchase of inventory and fixed assets and for the
sale of goods.
5) Based on the audit procedures applied by us and according to
information and explanations provided by the management, 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. In our opinion and According to the information and
explanations given to us, the transactions with parties with whom
transactions exceeding value of rupees five lakhs have been entered
into during the financial year are at prices, which are reasonable
having regard to the prevailing market price at the relevant time.
6) The Company has not accepted any deposits from the public within the
meaning of sections 58A and 58AA of the act and the rules framed there
under.
7) In our opinion, the Company has an own internal audit system
commensurate with the size and nature of its business.
8) To the best of our knowledge and as explained to us, the Central
Government has not prescribed maintenance of cost records under Clause
(d) of sub-section (1) of Section 209 of the Companies Act, 1956 for
the products of the Company.
9) According to the information and explanation given to us and records
of the company examined by us in our opinion prima-facie the Company is
regular in depositing undisputed statutory dues with the appropriate
authorities. According to the information and explanations given to us,
no undisputed amounts payable in respect of wealth tax, sales tax,
customs duty and excise duty were outstanding.
10) The Company has no accumulated losses at the end of the financial
year and it has not incurred cash losses in the current and immediately
preceding financial year.
11) Based on our audit procedures and on the basis of information and
explanations given by the management, we are of opinion that the
Company has not defaulted in repayment of dues to banks and financial
institution. The Company did not have any outstanding debentures during
the year.
12) According to the information and explanations given to us and based
on the documents and records produced to us, the Company has not
granted loans and advances on the basis of security by way of pledge of
shares, debentures and other securities.
13) In our opinion, the nature of activities of the Company does not
attract any special statute applicable to chit fund and nidhi/ mutual
benefit fund/ societies. Therefore, provisions of clause 4 (xiii) of
the Companies (Auditor Report) Order, 2003 are not applicable to the
Company.
14) In our opinion, the Company does not deal or trade in shares,
securities, debentures and other investments. Accordingly, the
provisions of clause 4 (xiv) of the Companies (Auditor Report) Order,
2003 are not applicable to the Company.
15) According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks or financial institutions.
16) Based on the information and explanations given to us by the
management, The Company has not raised any term loan during the year.
17) According to the information and explanations given to us and on an
overall examination of the Balance Sheet of the Company, we report that
no funds raised on short-term basis have been used for long-term
investments. No long-term funds have been used to finance short-term
assets except permanent working capital.
18) The Company has not made any preferential allotment of shares to
parties or companies covered in the register maintained under Section
301 of the Companies Act, 1956.
19) The Company did not have any outstanding debentures during the
year.
20) The Company has not raised any money through a public issue during
the year. Though during the year 2011-12, The Company has made a public
issue of Rs. 60.00 Crores, part of which has been utilized during the
current year and the details of utilization and deviation are mentioned
in the notes to accounts.
21) Based upon the audit procedures performed by us for expressing our
opinion on these financial statements and the information and
explanations given by the management, we report that no fraud on or by
the Company has been noticed or reported during of our audit.
For AGRAWAL JAIN & GUPTA
Chartered Accountants
Firm No. : 013538C
(CA NITESH AGRAWAL)
PARTNER
Membership No. 406155
Date : 30.05.2013
Place : Jaipur
Mar 31, 2012
We have audited the attached Balance Sheet of Tijaria Polypipes
Limited, Jaipur, as at 31st March, 2012, the Statement of Profit and
Loss and also the Cash flow statement of the Company for the year ended
on that date annexed thereto. These financial statements are the
responsibility of the Company's Management. Our responsibility is to
express an opinion on these financial statements based on our audit.
We have conducted our audit in accordance with the Auditing Standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by the management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
As required by the Companies (Auditors' Report) order, 2003 issued by
the Central Government of India, in terms of Sub- Section (4A) of
section 227 of the Companies Act, 1956, we enclose in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the said
Order.
Further to our comments in the Annexure referred to above, we report
that:
a. We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b. In our opinion, proper books of accounts, as required by law, have
been kept by the Company, so far as appears from our examination of
those books;
c. The Balance Sheet, Statement of Profit and Loss and Cash flow
statement dealt with by this report are in agreement with the books of
account;
d. In our opinion, the Balance Sheet, Statement of Profit and Loss and
Cash flow statement dealt with by this report comply with the
Accounting standards referred to in sub-section (3C) of section 211 of
the Companies Act, 1956.
e. On the basis of the written representations received from the
Directors of the Company as on 31st March, 2012 and taken on record by
the Board of Directors, we report that no Director is prima-facie,
disqualified as on 31st March, 2012 from being appointed as a Director
in terms of clause (g) of sub-section (1) of section 274 of the
Companies Act, 1956.
f. In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read together with the
significant accounting policies and 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 of 31st March, 2012;
ii. In the case of the Statement of Profit and Loss of the loss of the
Company for the year ended on that date; and
iii. In case of the Cash Flow Statement, of the Cash flow of the
company for the year ended on that date.
REFERRED TO OUR REPORT OF EVEN DATE:
1. In respect of its fixed assets
(a) The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets on the
basis of available information.
(b) As explained to us, all the fixed assets have been physically
verified by the management in a phased periodical manner, which in our
opinion is reasonable, having regard to the size of the Company and the
nature of its assets. No material discrepancies were noticed on such
physical verification.
(c) In our opinion the Company has not disposed off a substantial part
of its fixed assets during the year and the going concern status of the
Company is not affected.
2. (a) As explained to us, the Inventories has been physically
verified during the year by the management. In our opinion, the
frequency of verification is reasonable.
(b) In our opinion and according to the information and explanation
given to us, the procedures of physical verification of Inventories
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its Business.
(c) In our opinion and according to the information and explanation
given to us, the Company has maintained records of its Inventories in
accordance with the Central Excise Law.
3. (a) According to information and explanations given to us, the
company has granted unsecured loans payable on demand to one party
covered in the register maintained under section 301 of the Companies
Act, 1956. Particulars as under:-
No. of Parties 1
Granted During the year 25,00,000/-
Repayment Received in Year 25,00,000/-
Closing Balance Nil
(b) The company has not received any interest on such loan mentioned
above and in our opinion, the term & conditions of the loan are not
prejudicial to the interest of the company as during the year company
has taken unsecured loan of' 5.74 Crores from the person who are
covered in the register maintained under section 301 of the Act on
which no interest has been paid by the company,
(c) The amount given as mentioned above has been received.
(d) In respect of the above said loan and interest thereon there are no
overdue amounts.
(e) According to information and explanations given to us, the Company
had taken loans from nine parties covered in the register maintained
under section 301 of the Companies Act, 1956, particulars of which are
as under
No. of Parties 9
Opening Balance 2,69,57,507.09
Taken or Accepted in year 5,74,00,000.00
Repaid during the year 6,72,08,569.59
Closing Balance 1,44,00,000.00
(f) The company has not paid any interest on such loan mentioned above
hence the question of prejudicial to the interest of the company does
not arise.
(g) The amount taken as mentioned above has been repaid by the company
except in case of one concern whose balance outstanding at the end of
the year was of' 1.44 Crores.
4. In our opinion and according to the information and explanations
given to us the company has its own internal control systems
commensurate with the size of the Company and the nature of its
business with regard to purchase of inventories and fixed assets and
for the sale of goods.
5. In respect of the contracts or arrangements referred to in Section
301 of the Companies Act, 1956;
a) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements that need to be entered in 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 /
arrangements entered in the Register maintained under section 301 of
the Companies Act, 1956 and exceeding the value of' 5,00,000/- in
respect of each party during the year have been made at prices which
appear reasonable as per information available with the Company
6. According to the information and explanations given to us, the
Company has not accepted / invited deposits from the public falling
within the preview of Section 58A / 58AA of the Companies Act, 1956
during the financial year.
7. In our opinion, the Company have an Internal Audit system
commensurate with the size and nature of its Business.
8. In our opinion and according to the information and explanation
given to us, the company is not required for maintenance of cost
records under Section 209 (1) (d) of the Companies Act, 1956; however
the company has maintained the stock details necessary for the excise
department.
9. (a) According to the records of the Company, the Company is regular
in depositing with appropriate authorities undisputed Statutory dues
including Provident Fund, Investor Education Protection Fund, Employees
State Insurance, Income Tax , Sales Tax, Wealth Tax, Service Tax,
Customs Duty, Excise duty, Cess and other material statutory dues
applicable to it.
(b) According to the information and explanations given to us, no
undisputed amount payable in respect of Income Tax, Wealth Tax, Sales
Tax, Customs Duty, Excise Duty and Cess were in arrears, as of 31st
March, 2012 for a period of more than six months from the date they
became payable.
(c) According to the information and explanation given to us, there are
dues of Income Tax which have not been deposited on Account of dispute,
details of which are as under:
S.
No. Assessment Demand raised by Amount
deposited
against the Appeal Pending before
Year the AO disputed
demand
1. 2009-10 5,07,730.00 2,00,000.00 CIT (A) II, Jaipur
10. The Company does not have any accumulated losses at the end of the
financial year. The Company has not incurred cash losses during the
financial year covered by the audit and in the immediately preceding
financial year.
11. Based on our audit procedure and according to the information and
explanations given to us, we are of the opinion that the Company has
not defaulted in repayment of dues to financial Institutions, banks.
12. In our opinion and according to the explanations given to us and
based on the informations available, no loans and advances have been
granted by the Company on the basis of security by way of pledge of
shares, debentures and other securities.
13. In our opinion, the Company is not a chit fund / nidhi / mutual
benefit fund / society. Therefore, the provisions of clause (xiii) of
paragraph 4 of the Order are not applicable to the Company.
14. In our opinion, the Company is not dealing in or trading in
Shares, Securities, Debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the Companies (Auditor's Report) Order,
2003 are not applicable to the Company.
15. In our opinion and according to the information and explanations
given to us, the Company has not given guarantees for loans taken by
others from Bank or financial institutions.
16. The Company has raised new term loans during the year. The term
loans outstanding at the beginning of the year and those raised during
the year have been applied for the purposes for which they were raised.
17. According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the Company, we are of
the opinion that there are no funds raised on short term basis that
have been used for long term investment.
18. The Company has not made any preferential allotment of shares to
parties and companies covered in the Register maintained under Section
301 of the Companies Act, 1956.
19. The company has not issued any debentures during the year and
therefore the question of creating security in respect thereof does not
arise.
20. The Company has made Public Issue during the year which was open
for subscription from 27.09.2011 to 29.09.2011 and an amount of ' 10.00
Crores was received on account of equity share capital and ' 50.00
Crores was received on account of securities premium account. However,
as regard to the disclosure of the end use of money it is submitted
that an enquiry is pending before the Securities and Exchange Board of
India, which was also mentioned by us in the limited review report
filed for the quarter ended 31.12.2011 and report of year ended on
31.03.2012. The end use of the funds raised is under scrutiny before
the appropriate authorities and due mention has been made in the notes
to the financial statements and hence we have not commented upon the
utilization of IPO Proceeds.
21. According to the information and explanations given to us, based
upon the audit procedures performed and representations made by the
management, we report that no fraud on or by the Company has been
noticed or reported during the course of our Audit nor have we been
informed of such case by the management.
For LOKENDRA SHARMA & CO.
Chartered Accountants
Firm Registration No. 006684C
Lokendra Sharma
Partner
Membership No. 75502
Place: Jaipur
Dated: May 30, 2012
Mar 31, 2011
1. We have audited the attached Balance Sheet of M/s Tijaria Polypipes
Limited (the "Company") as at 31st March, 2011, the related Profit &
Loss Account and Cash Flow Statement 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. 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 (Auditor's Report) Order, 2003 issued
by the Central Government of India in terms of Section 227 (4A) of the
Companies Act, 1956, we enclose in the Annexure a statement on the
matters specified in paragraphs 4 and 5 of the said order, to the
extent applicable to the company
4. Further to our comments in the Annexure referred to in paragraph 3
above:
(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 accounts as required by law have
been kept by the Company so far as appears from our examination of such
books,
(c) The Balance Sheet, Profit and Loss account and Cash Flow Statement
dealt with by this report are in agreement with the books of account;
(d) In our opinion, the Balance Sheet, Profit & Loss Account and Cash
Flow Statement dealt with by the report are in compliance with the
Accounting Standards referred to in sub- section (3C) of Section 211 of
the Companies Act, 1956;
(e) On the basis of written representations received from the
directors, as on April 30, 2011 and taken on record by the Board of
Directors, we report that none of the directors of the Company is
disqualified as on 31st March, 2011 from being appointed as a director
m 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 and certificates dated 30th April 2011 given by the
management of the Company to us. the said financial statements together
with the notes thereon and attached thereto 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 balance sheet, of the state of affairs of the
company as at 31st March, 2011,
(ii) In the case of profit and loss account, of the profit of the
company for the year ended on that date;
ANNEXURE REFERRED TO IN PARAGRAPH 3 OF OUR REPORT OF EVEN DATE TO THE
MEMBERS OF TUARJA POLYPIPES LIMITED
1. a) The company has maintained proper records showing full
particulars including quantitative details and situation of its fixed
assets
b) According to the information and explanation given to us most of the
fixed assets of the company have been physically verified by the
management during the year and to the best of our knowledge, no serious
discrepancies were noticed on such verification.
c) During the year under audit, substantial part of the fixed assets
has not been disposed off by the Company. However, old vehicles out of
fixed assets were sold during the year under audit. Though, the said
sale does not affect going concern status of the company as the same
has been done towards replacement and expansion requirements.
2. a) As explained to us, the inventory of raw material, finished
goods and stores etc. has been physically verified during the year by
the management. In our opinion, the frequency of physical verification
is reasonable.
b) The procedure of physical verification of inventories 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 examination of the records of inventory, we are of
the opinion that the company is maintaining proper records of inventory
and no material discrepancies were noticed on physical verification of
the same carried out by the management of the company.
3. a) The company has taken unsecured loans from eleven persons /
parties listed in the register maintained under section 301 of the
Companies Act, 1956 and three group Companies The balance at the end of
the reporting period aggregated to Rs. 1,74,45,559/-.
b) These unsecured loans & temporary advances are interest free & have
no prescribed repayment schedule. As explained to us by the management,
other terms & conditions of these unsecured loans & temporary advances
are not prejudicial to the interest of the Company.
c) in view of above, our reporting under para c & d of this clause is
irrelevant,
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the company and nature of its business
with regard to purchases, fixed assets and sales. No major weakness was
noticed in the internal control system during our course of audit.
5. a) According to information and explanations provided by the
management, the company did not enter into any transaction that need to
be entered into the register maintained under section 301, therefore
our reporting about the same under para a and b of this clause is
irrelevant.
6. As per the information and explanations given to us, the company
has not accepted deposits attracting the provisions of sections 58A and
58AA of the Companies Act, 1956 and the Companies (Acceptance of
Deposits) Rules, 1975.
7. In our opinion, the company's present internal audit system is
commensurate with its size and nature of business.
8. In our opinion, the maintenance of cost records has not been
prescribed for the company by the Central Government under section 209
(1) (d) of the Companies Act, 1956 (1 of 1956)
9. a) According to the books and records as produced and examined by
us in accordance with Generally Accepted Auditing Practices in India
and also based on management representations, undisputed statutory dues
in respect of provident fund, income tax, service tax, VAT, excise
duty, ESI and other material statutory dues have generally been
regularly deposited by the company during the period under review with
the appropriate authorities in India.
b) According to information and explanations given to us, no undisputed
amounts payable in respect of income tax, excise duty, service tax, VAT
and excise duty were outstanding as on 31st March, 2011 for a period of
more than six months from the date same became payable.
10. The company does not have any accumulated losses, nor it has
incurred any cash losses during the year ended on 31 032011 or in the
immediately preceding financial year, hence our comments on erosion of
net worth are not applicable.
11 As observed by us and as per the information and explanations given
by the management, we are of the opinion that the company has not
defaulted in repayment of dues to its financial institution or bank.
12. Since the company has not granted any loans or advances on the
basis of security by way of pledge of shares, debentures & other
securities. Hence, we have no comments to offer under this clause.
13. As per the information and explanations given to us, no provision
of any special statue including Chit Fund etc. is applicable to the
Company Since the Company is not a Nidhi / Mutual benefit fund /
society, other provisions of CARO 2003 clause xiii (a), (b) (c) & (d)
are not applicable.
14. As per the information and explanations given to us. the Company
is not dealing in Shares. Securities, Debentures or other investments,
hence, our comments on maintenance of records of transactions of such
contracts are not applicable
15 Since the company has not given any guarantee in respect of loans
taken by others to any bank or financial institutions, hence our
comments as regards terms and conditions of such guarantee are
irrelevant
16. On the basis of review of utilization of funds pertaining to term
loans on overall basis and related information as made available to us,
the term loans raised by the Company have been applied for the purpose
for which they were raised.
17. As observed by us and as per the information and explanations
given to us. we are of the opinion that the funds raised on short-term
basis have not been used for long-term investment and vice-versa.
18. Based on our examination of records and the information provided
to us by the management, we report that the company has made
preferential allotment of 13,10,770 Equity Shares (face value of Rs
10/- per Equity Share at a premium of Rs, 55/- per share, involving a
total amount of Rs. 8,52,00,050/-) to M/s Tijaria Vinyl Pvt. Ltd. which
is a party covered in the register maintained under section 301 of the
Act. As explained to us, the said allotment is not prejudicial to the
interest of the Company.
19. Since no debentures were issued by the company, hence the question
of creation of security In this respect does not arise.
20 Since no money has been raised by the company by means of public
issue hence the question of disclosure of same in financial statements
and verification of the same does not arise.
21, Based upon the audit procedures performed and information and
explanations given to us by the management, we report that no fraud on
or by the company has been noticed or reported during the half year
under audit or even till the date of audit.
For S. MISRA & ASSOCIATES For G.K. MITTAL & ASSOCIATES
CHARTERED ACCOUNTANTS CHARTERED ACCOUNTANTS
FRN - 004972C FRN -05842C
(SUNIL SHARMA) (JOGENDRA SINGH SHEKHAWAT)
PARTNER PARTNER
M. No. - 408683 M. No - 079348
DATE : MAY 2, 2011
PLACE : JAIPUR
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