Mar 31, 2016
INDEPENDENT AUDITORS'' REPORT
TO THE MEMBERS OF TRINETRA CEMENT LIMITED
Report on the Financial Statements
We have audited the accompanying financial statements of TRINETRA CEMENT LIMITED ("the Company"), which comprise the Balance Sheet as at 31st March 2016, the Statement of Profit and Loss and the Cash Flow Statement for the year then ended, and a summary of the significant accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation and presentation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting of frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditors'' Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made 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 the disclosures in the financial statements. The procedures selected depend on the auditors'' judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company''s preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by the Company''s Directors, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31st March 2016, and its profit and its cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2016 ("the Order") issued by the Central Government of India in terms of sub-section (11) of Section 143 of the Companies Act 2013, we give in the Annexure A, a statement on the matters specified in paragraphs 3 and 4 of the said Order, to the extent applicable.
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 purpose of our audit.
b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books.
c) The Balance Sheet, the Statement of Profit and Loss and the Cash Flow Statement dealt with by this Report are in agreement with the books of account.
d) In our opinion, the aforesaid financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
e) On the basis of the written representations received from the directors as on 31st March 2016 and taken on record by the Board of Directors, none of the directors is disqualified as on 31st March 2016 from being appointed as a director in terms of Section 164 (2) of the Act.
f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of the such controls, refer to our separate report in ''Annexure B''; and
g) With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit & Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
(i) The Company has disclosed the impact of pending litigations on its financial position in its financial statements - Refer Note 30 to the financial statements;
(ii) The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.
(iii) There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.
Referred to in Paragraph 1 under the heading of ''Report on Other Legal and Regulatory Requirements'' of our report of even date on the financial statements of TRINETRA CEMENT
LIMITED for the year ended 31st March 2016.
1. (a) The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets.
(b) The fixed assets were physically verified by the management according to a phased programme designed to cover all the items over a period of two years which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. Pursuant to the programme, the management has verified a portion of fixed assets during the year. According to information and explanations given to us, no material discrepancies were noticed on such verification.
(c) According to the information and explanations given to us and 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.
2. According to the information given to us, physical verification of inventory was conducted by the management during the year at reasonable intervals. According to the information and explanations given to us, no material discrepancies were noticed on physical verification of inventories.
3. According to the information and explanations given to us, the Company has not granted any loans, secured or unsecured, to companies, firms, Limited Liability Partnerships or other parties listed in the register maintained under Section 189 of the Companies Act, 2013. Accordingly, paragraphs 3(iii)(a), (b) and (c) of the Order are not applicable.
4. In our opinion and according to information and explanations given to us, the Company has complied with the provisions of Section 185 and 186 of the Act, in respect of the loans, investments, guarantees and security given.
5. In our opinion and according to the information and explanations given to us, the Company has not accepted any deposits from the public. The provisions of Sections 73 to 76 of the Companies Act, 2013 and the rules framed there under are not applicable.
6. Central Government has specified maintenance of cost records under Section 148(1) of the Companies Act, 2013 for Cement industry. In our opinion and according to the information and explanations given to us, the Company has made and maintained the cost records as required by the Rules.
7. (a) According to the records of the Company, the Company is generally regular in depositing undisputed statutory dues including Provident Fund, Income-tax, Sales-tax, Value Added Tax, Service tax, Custom duty, Excise duty, Cess and other statutory dues applicable to it. According to the information and explanations given to us, provisions of Employees'' State Insurance Scheme were not applicable to the company during this year. According to the information and explanations given to us, no undisputed amounts of above mentioned statutory dues were in arrears as at 31.03.2016 for a period of more than six months from the date they became payable.
(b) According to the information and explanations given to us, following amounts of excise duty and custom duty were under dispute hence not paid:
Nature of dues |
Period |
Amount Rs. in lakhs |
Forum where the dispute is pending |
Excise duty |
2010-11 |
1248.20 |
CESTAT, Delhi |
Custom Duty |
2012-13 |
523.74 |
CESTAT, Ahmadabad |
Custom Duty |
2011-12 |
8.93 |
Appeal under filing |
8. In our opinion and according to the information and explanations given to us by the management, the Company has not defaulted in repayment of loans or borrowings to the financial institutions or banks or Government or dues to the debenture-holders during the year.
9. The Company did not raise any money by way of initial public offer or further public offer (including debt instruments) and term loans during the year. Accordingly, paragraph 3(ix) of the Order is not applicable.
10. During the course of our examination of the books and records of the Company, carried out in accordance with the Generally Accepted Auditing Practices in India, and according to the information and explanations given to us, we have neither come across any instances of material fraud by the Company or on the Company by its officers or employees, noticed or reported during the year, nor have we been informed of such case by the management.
11. The Company has not paid any managerial remuneration during the year. Accordingly, paragraph 3(xi) of the Order is not applicable.
12. In our opinion, the Company is not a nidhi company. Accordingly, paragraph 3(xii) of the Order is not applicable.
13. According to the information and explanations given to us and based on our examination of the records of the Company, transactions with the related parties are in compliance with Sections 177 and 188 of the Act where applicable and details of such transactions have been disclosed in the financial statements as required by the applicable accounting standards. In respect of related party relationships, we have relied upon the representations of the Company.
14. The Company has not made any preferential allotment or private placement of shares and fully or partly convertible debentures during the year.
15. According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not entered into non-cash transactions with directors or persons connected with them. Accordingly, paragraph 3(xv) of the Order is not applicable.
16. In our opinion, the Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934.
Report on the Internal Financial Controls under Clause (i) of the sub-section 3 of Section 143 of the Companies Act, 2013 (''the Act'')
We have audited the internal financial controls over financial reporting of TRINETRA CEMENT LIMITED ("the Company") as of 31st March 2016 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 Control over Financial Reporting issued by the Institute of Chartered Accountant of India (''ICAI''). These responsibilities include the design, implementation and maintenance of adequate financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to the Company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the 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 were established and maintained and if such controls operated effectively in all material respects. Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the 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 31st March 2016, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
For CHATURVEDI SK & FELLOWS
Chartered Accountants
Firm Registration No. 112627W
SRIKANT CHATURVEDI
Place : Chennai Partner
Date : 26th May, 2016 Membership No. 70019
Mar 31, 2015
We have audited the accompanying financial statements of TRINETRA
CEMENT LIMITED ("the Company"), which comprise the Balance Sheet as at
31st March 2015, the Statement of Profit and Loss and the Cash Flow
Statement for the year then ended, and a summary of the significant
accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
The Company's Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 ("the Act") with respect
to the preparation of these financial statements that give a true and
fair view of the financial position, financial performance and cash
flows of the Company in accordance with the accounting principles
generally accepted in India, including the Accounting Standards
specified under Section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014.This responsibility also includes
maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding of the assets of the Company
and for preventing and detecting of frauds and other irregularities;
selection and application of appropriate accounting policies; making
judgments and estimates that are reasonable and prudent; and design,
implementation and maintenance of adequate internal financial
controls, that were operating effectively for ensuring the accuracy
and completeness of the accounting records, relevant to the
preparation and presentation of the financial statements that give a
true and fair view and are free from material misstatement, whether
due to fraud or error.
Auditors' Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit.
We have taken into account the provisions of the Act, the accounting
and auditing standards and matters which are required to be included
in the audit report under the provisions of the Act and the Rules made
thereunder.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the
audit to obtain reasonable assurance about whether the financial
statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial control relevant
to the Company's preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances. An audit also includes evaluating
the appropriateness of accounting policies used and the reasonableness
of the accounting estimates made by the Company's Directors, as well
as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the financial
statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India, of the state of affairs of the Company as
at 31st March 2015, and its loss and its cash flows for the year ended
on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2015 ("the
Order") issued by the Central Government of India in terms of
sub-section (11) of Section 143 of the Companies Act 2013, we give in
the Annexure a statement on the matters specified in paragraphs 3 and
4 of the said Order, to the extent applicable.
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
purpose of our audit.
b) In our opinion, proper books of account as required by law have
been kept by the Company so far as it appears from our examination of
those books.
c) The Balance Sheet, the Statement of Profit and Loss and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account.
d) In our opinion, the aforesaid financial statements comply with the
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014.
e) On the basis of the written representations received from the
directors as on 31st March 2015 and taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March 2015
from being appointed as a director in terms of 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 & Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us:
(i) The Company has disclosed the impact of pending litigations on its
financial position in its financial statements - Refer Note 30 to the
financial statements;
(ii) The Company did not have any long-term contracts including
derivative contracts for which there were any material foreseeable
losses.
(iii) There were no amounts which were required to be transferred to
the Investor Education and Protection Fund by the Company.
ANNEXURE TO THE AUDITORSÂ REPORT
Referred to in Paragraph 1 under the heading of 'Report on Other Legal
and Regulatory Requirements' of our report of even date on the
financial statements of TRINETRA CEMENT LIMITED for the year ended
31st March 2015.
1. (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) The fixed assets were physically verified by the management
according to a phased programme designed to cover all the items over a
period of two years which, in our opinion, is reasonable having regard
to the size of the Company and the nature of its assets. Pursuant to
the programme, the management has verified a portion of fixed assets
during the year. According to information and explanations given to
us, no material discrepancies were noticed on such verification.
2. (a) According to the information given to us, physical
verification of inventory was conducted by the management during the
year at reasonable intervals.
(b) In our opinion, the procedures of physical verification of
inventory followed by the management are reasonable and adequate in
relation to the size of the Company and the nature of its business.
(c) The Company is maintaining proper records of inventory. According
to the information and explanations given to us, no material
discrepancies were noticed on physical verification of inventories.
3. The Company has not granted any loans, secured and unsecured, to
companies, firms or other parties listed in the register maintained
under Section 189 of the Companies Act, 2013. Accordingly, paragraphs
3(iii)(a) and (b) of the Order are not applicable.
4. 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 with
regard to the purchase of inventory and fixed assets and for the sale
of goods and services. Further, on the basis of our examination of the
books and records of the Company and according to the information and
the explanations given to us, we have neither come across nor have
been informed of any continuing failure to correct major weaknesses in
the aforesaid internal control system.
5. In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposits from the
public. The provisions of Sections73 to 76 of the Companies Act, 2013
and the rules framed thereunder are not applicable.
6. In our opinion and according to the information and explanations
given to us, the Company has made and maintained the cost records as
required by the Rules for the maintenance of cost records under
Section 148(1) of the Companies Act, 2013 for Cement industry. We have
however not made detailed examination of the said records to verify
correctness or completeness of the said records.
7. (a) According to the records of the Company, the
Company is generally regular in depositing undisputed statutory dues
including Provident Fund, Income-tax, Sales-tax, Value Added Tax,
Service tax, Custom duty, Excise duty, Cess and other statutory dues
applicable to it. According to the information and explanations given
to us, provisions of Employees' State Insurance Scheme were not
applicable to the company during this year. According to the
information and explanations given to us, no undisputed amounts of
above mentioned statutory dues were in arrears as at 31.03.2015 for a
period of more than six months from the date they became payable.
(b) According to the information and explanations given to us,
following amount of tax, duty or cess was under dispute hence not
paid:
Nature of dues Period Amount Forum where
Rs. in the dispute is
lakhs pending
Excise duty 2010-11 1248.20 CESTAT, Delhi
Custom Duty 2012-13 582.34 CESTAT, Ahmedabad
Environment & 2010-15 394.90 Supreme Court
Health Cess
(c) No amount was due for transfer to Investor Education and
Protection Fund during this year.
8. The Company is registered for a period of more than five years.
Its accumulated losses at the end of the financial year were less than
fifty per cent of its net worth. The Company has earned cash profit
during the current financial year but incurred cash losses during the
immediately preceding financial year.
9. In our opinion and according to the information and explanations
given to us by the management, the Company has not defaulted in
repayment of dues to the financial institutions or banks or the
debenture holders during the year.
10. According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others.
11. In our opinion and according to the information and explanations
given to us, on an overall basis, the term loans availed by the
Company during the year were applied for the purpose for which they
were obtained.
12. During the course of our examination of the books and records of
the Company, carried out in accordance with the Generally Accepted
Auditing Practices in India, and according to the information and
explanations given to us, we have neither come across any instances of
material fraud on or by the Company, noticed or reported during the
year, nor have we been informed of such case by the management.
For CHATURVEDI SK & FELLOWS
Chartered Accountants
Firm Registration No. 112627W
ABHINAV CHATURVEDI
Place : Chennai Partner
Date :29th May, 2015 Membership No. 143376
Mar 31, 2014
We have audited the accompanying financial statements of TRINETRA
CEMENT LIMITED ("the Company"), which comprise the Balance Sheet as at
31st March 2014, 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 notified under the Companies Act, 1956 ("the
Act") read with the General Circular 15/2013 dated 13th September 2013
of the Ministry of Corporate Affairs in respect of Section 133 of the
Companies Act, 2013. This responsibility includes the design,
implementation and maintenance of internal control relevant to the
preparation and presentation of the financial statements that give a
true and fair view and are free from material misstatement, whether due
to fraud or error.
Auditors'' Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the effectiveness of the entity''s
internal control. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of
the accounting estimates made by the Management, as well as evaluating
the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
a) In the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March 2014;
b) In the case of the Statement of Profit and Loss, of the 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 ("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 paragraph 4 of the Order.
2. As required by Section 227(3) of the Act, we report that:
a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit.
b) In our opinion, proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books.
c) The Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
d) In our opinion, the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement comply with the Accounting Standards notified under
the Companies Act, 1956 read with the General Circular 15/2013 dated
13th September 2013 of the Ministry of Corporate Affairs in respect of
Section 133 of the Companies Act, 2013.
e) On the basis of written representations received from the directors
as on 31st March 2014 and taken on record by the Board of Directors,
none of the directors is disqualified as on 31st March 2014 from being
appointed as a director in terms of clause (g) of sub-section (1) of
Section 274 of the Companies Act, 1956.
Referred to in Paragraph 1 under the heading of ''Report on Other Legal
and Regulatory Requirements'' of our report of even date on the
financial statements of TRINETRA CEMENT LIMITED for the year ended 31st
March 2014.
1. (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) The fixed assets were physically verified by the management
according to a phased programme designed to cover all the items over a
period of two years which, in our opinion, is reasonable having regard
to the size of the Company and the nature of its assets. Pursuant to
the programme, the management has verified a portion of fixed assets
during the year. According to information and explanations given to us,
no material discrepancies were noticed on such verification.
(c) The Company has not disposed off substantial part of its fixed
assets during the year.
2. (a) According to the information given to us, physical verification
of inventory was conducted by the management during the year at
reasonable intervals.
(b) In our opinion, the procedures of physical verification of
inventory followed by the management are reasonable and adequate in
relation to the size of the Company and the nature of its business.
(c) The Company is maintaining proper records of inventory. According
to the information and explanations given to us, no material
discrepancies were noticed on physical verification of inventories.
3. (a) The Company has not granted any loans, secured and unsecured,
to companies, firms or other parties listed in the register maintained
under Section 301 of the Companies Act, 1956. Accordingly, paragraphs
4(iii)(b), (c) and (d) of the Order are not applicable.
(b) In our opinion and according to the information and explanations
given to us, the Company has not taken any loans from the 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 is adequate internal control system commensurate
with the size of the Company and the nature of its business with regard
to the purchase of inventory and fixed assets and for the sale of goods
and services. Further, on the basis of our examination of the books and
records of the Company and according to the information and the
explanations given to us, we have neither come across nor have been
informed of any continuing failure to correct major weaknesses in the
aforesaid internal control system.
5. According to the information and explanations given to us, the
Company did not do any transactions that needed entry in the register
maintained under Section 301 of the Companies Act, 1956.
6. In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposits from the public.
The provisions of Sections 58A and 58AA of the Companies Act, 1956 and
the rules framed thereunder are not applicable.
7. In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
8. In our opinion and according to the information and explanations
given to us, the Company has made and maintained the cost records as
required by the Rules for the maintenance of cost records under Section
209(1)(d) of the Companies Act, 1956 for Cement industry. We have
however not made detailed examination of the said records to verify
correctness or completeness of the said records.
9. (a) According to the records of the Company, the Company is
generally regular in depositing undisputed statutory dues including
Income-tax, Sales-tax, Custom duty, Excise duty, Provident Fund and
other statutory dues applicable to it. According to the information and
explanations given to us, provisions of Employees'' State Insurance
Scheme were not applicable to the Company during this year. According
to the information and explanations given to us, no undisputed amounts
of above mentioned statutory dues were in arrears as at 31.03.2014 for
a period of more than six months from the date they became payable.
(b) According to the information and explanations given to us,
following amount of tax, duty or cess was under dispute hence not paid:
Nature of dues Period Amount Forum where
Rs. in the dispute is
lakhs pending
Rajasthan Entry 2009-14 362.10 Rajasthan
Tax High Court
Excise Duty 2010-11 1328.20 CESTAT
Delhi
10. The Company is registered for a period of more than five years.
Its accumulated losses at the end of the financial year were less than
fifty per cent of its net worth. The Company incurred cash losses
during the current financial year but earned cash profit during the
immediately preceding financial year.
11. In our opinion and according to the information and explanations
given to us by the management, the Company has not defaulted in
repayment of dues to the financial institutions or banks or the
debenture holders during the year.
12. The Company has not granted loans and advances on the basis of
security of shares, debentures and other securities.
13. The Company is not engaged in the business of chit funds, nidhi,
mutual benefit fund or mutual benefit society.
14. The Company is not dealing or trading in shares, securities,
debentures or other investments.
15. According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others.
16. In our opinion and according to the information and explanations
given to us, on an overall basis, the term loans availed by the Company
during the year were applied for the purpose for which they were
obtained.
17. According to the information and explanations given to us and on
an overall examination of the balance sheet of the Company, we report
that no funds raised on short term basis 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 during the year.
19. The Company did not have any outstanding secured debentures as on
the date of the balance sheet.
20. The Company has not raised any money by way of public issue during
the year.
21. During the course of our examination of the books and records of
the Company, carried out in accordance with the Generally Accepted
Auditing Practices in India and according to the information and
explanations given to us, we have neither come across any instances of
material fraud on or by the Company, noticed or reported during the
year, nor have we been informed of such case by the management.
For CHATURVEDI SK & FELLOWS
Chartered Accountants
Firm Registration No. 112627W
SRIKANT CHATURVEDI
Place : Chennai Partner
Date :26th May, 2014 Membership No. 070019
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of TRINETRA
CEMENT LIMITED ("the Company"), which comprise the Balance Sheet as at
31st March 2013, 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.
Auditors'' Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by the Management,
as well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
a) In the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March 2013;
b) In the case of the Statement of Profit and Loss, of the 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 ("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 paragraph 4 of the Order.
2. As required by Section 227(3) of the Act, we report that:
a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit.
b) In our opinion, proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books.
c) The Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
d) In our opinion, the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement comply with the Accounting Standards referred to in
sub-section (3C) of Section 211 of the Companies Act, 1956.
e) On the basis of written representations received from the directors
as on 31st March 2013 and taken on record by the Board of Directors,
none of the directors is disqualified as on 31st March 2013 from being
appointed as a director in terms of Clause (g) of sub-section (1) of
Section 274 of the Companies Act, 1956.
Referred to in Paragraph 1 under ''Report on Other Legal and Regulatory
Requirements'' section of our report of even date of TRINETRA CEMENT
LIMITED for the year ended 31st March 2013.
1. (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) The fixed assets were physically verified by the management
according to a phased programme designed to cover all the items over a
period of two years which, in our opinion, is reasonable having regard
to the size of the Company and the nature of its assets. Pursuant to
the programme, the management has verified a portion of fixed assets
during the year. According to information and explanations given to us,
no material discrepancies were noticed on such verification.
(c) The Company has not disposed off substantial part of its fixed
assets during the year.
2. (a) According to the information given to us, physical verification
of inventory was conducted by the management during the year at
reasonable intervals.
(b) In our opinion, the procedures of physical verification of
inventory followed by the management are reasonable and adequate in
relation to the size of the Company and the nature of its business.
(c) The Company is maintaining proper records of inventory. According
to the information and explanations given to us, no material
discrepancies were noticed on physical verification of inventories.
3. (a) The Company has not granted any loans, secured and unsecured,
to companies, firms or other parties listed in the register maintained
under Section 301 of the Companies Act, 1956. Accordingly, paragraphs
4(iii)(b), (c) and (d) of the Order are not applicable.
(b) In our opinion and according to the information and explanations
given to us, the Company has not taken any loans from the 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 is adequate internal control system commensurate
with the size of the Company and the nature of its business with regard
to the purchase of inventory and fixed assets and for the sale of goods
and services. Further, on the basis of our examination of the books and
records of the Company and according to the information and the
explanations given to us, we have neither come across nor have been
informed of any continuing failure to correct major weaknesses in the
aforesaid internal control system.
5. According to the information and explanations given to us, the
Company did not do any transactions that needed entry in the register
maintained under Section 301 of the Companies Act, 1956.
6. In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposits from the public.
The provisions of Sections 58A and 58AA of the Companies Act, 1956 and
the rules framed thereunder are not applicable.
7. In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
8. In our opinion and according to the information and explanations
given to us, the Company has made and maintained the cost records as
required by the Rules for the maintenance of cost records under Section
209(1)(d) of the Companies Act, 1956 for Cement industry. We have
however not made detailed examination of the said records to verify
correctness or completeness of the said records.
9. (a) According to the records of the Company, the Company is
generally regular in depositing undisputed statutory dues including
Income-tax, Sales-tax, Custom duty, Excise duty, Provident Fund and
other statutory dues applicable to it. According to the information and
explanations given to us, provisions of Employees'' State Insurance
Scheme were not applicable to the company during this year. According
to the information and explanations given to us, no undisputed amounts
of above mentioned statutory dues were in arrears as at 31.03.2013 for
a period of more than six months from the date they became payable.
(b) According to the information and explanations given to us,
following amount of tax, duty or cess was under dispute hence not paid:
Nature of dues Period Amount Forum where
Rs. in the dispute is
lakhs pending
Rajasthan Entry 2009-13 254.42 Rajasthan
Tax High Court
Excise duty 2010-11 1328.20 Appellate
Tribunal*
* Company has decided to file appeal against the Order of the
Commissioner of Central Excise. Last date for filing of appeal is in
July 2013.
10. The Company is registered for a period of more than five years.
Its accumulated losses at the end of the financial year were less than
fifty per cent of its net worth. The Company incurred cash losses
during the immediately preceding financial year. It has earned cash
profit during the current financial year.
11. In our opinion and according to the information and explanations
given to us by the management, the Company has not defaulted in
repayment of dues to the financial institutions or banks or the
debenture holders during the year.
12. The Company has not granted loans and advances on the basis of
security of shares, debentures and other securities.
13. The Company is not engaged in the business of chit funds, nidhi,
mutual benefit fund or mutual benefit society.
14. The Company is not dealing or trading in shares, securities,
debentures or other investments.
15. According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others.
16. In our opinion and according to the information and explanations
given to us, on an overall basis, the term loans availed by the Company
during the year were applied for the purpose for which they were
obtained.
17. According to the information and explanations given to us and on
an overall examination of the balance sheet of the Company, we report
that no funds raised on short term basis 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 during the year.
19. The Company did not have any outstanding secured debentures as on
the date of the balance sheet.
20. The Company has not raised any money by way of public issue during
the year.
21. During the course of our examination of the books and records of
the Company, carried out in accordance with the Generally Accepted
Auditing Practices in India and according to the information and
explanations given to us, we have neither come across any instances of
material fraud on or by the Company, noticed or reported during the
year, nor have we been informed of such case by the management.
For CHATURVEDI SK & FELLOWS
Chartered Accountants
Firm Registration No. 112627W
SRIKANT CHATURVEDI
Place :Chennai Partner
Date :20th May, 2013 Membership No. 070019
Mar 31, 2012
We have audited the attached Balance Sheet of TRINETRA CEMENT LIMITED
as at 31st March, 2012 and also the Statement of Profit and Loss and
the Cash Flow Statement of the Company for the year ended on that date
annexed thereto. These financial statements are the responsibility of
the Company's management. Our responsibility is to express an opinion
on these financial statements based on our audit. 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 from 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 (Auditor's Report) Order 2003, issued by
the Central Government of India in terms of Section 227(4A) of the
Companies Act, 1956, we give in the Annexure a statement on the matters
specified in paragraph 4 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 account as required by law have been
kept by the company so far as appears from our examination of the
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
and in our opinion comply with the accounting standards referred to in
sub-section (3C) of Section 211 of the Companies Act, 1956.
d) On the basis of written representation received from the directors
as on 31.03.2012 and taken on record by the Board of Directors, we
report that none of the directors is disqualified as on 31st March 2012
from being appointed as a director in terms of provisions of Section
274(1 )(g) of the Companies Act, 1956.
e) In our opinion and to the best of our information and according to
the explanation given to us, the said accounts read with the notes to
accounts give the information required by the Companies Act, 1956 in
the manner so required and give a true and fair view in conformity with
the accounting principles generally accepted in India:
(i) In the case of the Balance Sheet, of the state of affairs of the
company as at 31st March 2012;
(ii) In the case of Statement of Profit & Loss, of the loss for the
year ended on that date;
(iii) In the case of Cash Flow Statement, of the cash flows for the
year ended on that date.
Referred to in our report of even date on the accounts of TRINETRA
CEMENT LIMITED for the year ended 31st March 2012.
1. (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) According to the information and explanations given to us, the
fixed assets were physically verified during the period by the
management. No material discrepancies were noticed on such
verification.
(c) The Company has not disposed off substantial part of its fixed
assets during the year.
2. (a) According to the information given to us, physical verification
of inventory was conducted by the management during the year at
reasonable intervals.
(b) In our opinion, the procedures of physical verification of
inventory followed by the management are reasonable and adequate in
relation to the size of the Company and the nature of its business.
(c) The Company is maintaining proper records of inventory. According
to the information and explanations given to us, no material
discrepancies were noticed on physical verification of inventories.
3. (a) The Company has not granted any loans, secured and unsecured to
companies, firms or other parties listed in the register maintained
under Section 301 of the Companies Act, 1956. Accordingly, paragraphs
4(iii)(b), (c) and (d) of the Order are not applicable.
(b) In our opinion and according to the information and explanations
given to us, the Company has not taken any loans from the 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 is adequate internal control system commensurate
with the size of the Company and the nature of its business with regard
to the purchase of inventory and fixed assets and for the sale of goods
and services. Further, on the basis of our examination of the books and
records of the Company and according to the information and the
explanations given to us, we have neither come across nor have been
informed of any continuing failure to correct major weaknesses in the
aforesaid internal control system.
5. According to the information and explanations given to us, the
Company did not do any transactions that needed entry in the register
maintained under Section 301 of the Companies Act, 1956.
6. In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposits from the public.
The provisions of Sections 58A and 58AA of the Companies Act, 1956 and
the Rules framed there under are not applicable.
7. In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
8. In our opinion and according to the information and explanations
given to us, the Company has made and maintained the cost records as
required by the Rules for the maintenance of cost records under Section
209(1)(d) of the Companies Act, 1956 for Cement industry. We have
however not made detailed examination of the said records to verify
correctness or completeness of the said records.
9. (a) According to the records of the Company, the Company is
generally regular in depositing undisputed statutory dues including
Income-tax, Sales-tax, Custom duty, Excise duty, Provident Fund and
other statutory dues applicable to it. According to the information and
explanations given to us, provisions of Employees' State Insurance
Scheme were not applicable to the company during this year. According
to the information and explanations given to us, no undisputed amounts
of above mentioned statutory dues were in arrears as at 31.03.2012 for
a period of more than six months from the date they became payable.
(b) According to the information and explanations given to us,
following amount of tax, duty or cess was under dispute hence not paid:
Nature of dues Period Amount Forum where
Rs. in lacs the dispute is
pending
Rajasthan Entry 2011-13 148.13 Rajasthan
Tax High Court
10. The Company is registered for a period of more than five years.
Its accumulated losses at the end of the financial year were less than
fifty percent of its net worth. The Company incurred cash losses
during the current financial year and the immediately preceding
financial year.
11. In our opinion and according to the information and explanations
given to us by the management, the Company has not defaulted in
repayment of dues to the financial institutions or banks or the
debenture holders during the year.
12. The Company has not granted loans and advances on the basis of
security of shares, debentures and other securities.
13. The Company is not engaged in the business of chit funds, nidhi,
mutual benefit fund or mutual benefit society.
14. The Company is not dealing or trading in shares, securities,
debentures or other investments.
15. According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others.
16. In our opinion and according to the information and explanations
given to us, on an overall basis, the term loans availed by the Company
during the year were applied for the purpose for which they were
obtained.
17. According to the information and explanations given to us and on
an overall examination of the balance sheet of the Company, we report
that no funds raised on short term basis 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 during the year.
19. The Company did not have any outstanding secured debentures as on
the date of the balance sheet.
20. The Company has not raised any money by way of public issue during
the year.
21. During the course of our examination of the books and records of
the Company, carried out in accordance with the Generally Accepted
Auditing Practices in India and according to the information and
explanations given to us, we have neither come across any instances of
material fraud on or by the Company, noticed or reported during the
year, nor have we been informed of such case by the management.
For CHATURVEDI SK & FELLOWS
Chartered Accountants
SRIKANT CHATURVEDI
Partner
Place : Chennai Firm Regn No. 112627W
Date :25th April 2012 Partner's Membership No. 70019
Mar 31, 2010
We have audited the attached Balance Sheet of INDO ZINC LTD. as at 31st
March, 2010 and also the Profit and Loss Account and the Cash Flow
Statement of the Company for the year ended on that date annexed
thereto. These financial statements are the responsibility of the
Companys management. Our responsibility is to express an opinion on
these financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally
accepted in India. Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial
statements are free from 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 section 227 (4A) of the
Companies Act, 1956, we give in the Annexure a statement on the matters
specified in paragraph 4 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 account as required by law have been
kept by the company so far as appears from our examination of the
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
and, in our opinion comply with the accounting standards referred to in
sub-section (3C) of section 211 of the Companies Act, 1956.
d) On the basis of written representation received from the directors
as on 31.03.2010 and taken on record by the Board of Directors, we
report that none of the directors is disqualified as on 31st March,
2010 from being appointed as a director in terms of provisions of
section 274 (1) (g) of the Companies Act,1956.
e) In our opinion and to the best of our information and according to
the explanation given to us, the said accounts read with the notes to
accounts give the information required by the Companies Act, 1956 in
the manner so required and give a true and fair view in conformity with
the accounting principles generally accepted in India:
(i) In the case of the Balance Sheet, of the state of affairs of the
company as at 31st March, 2010;
(ii) In the case of Profit & Loss Account, of the Profit for the year
ended on that date;
(iii) In the case of Cash Flow Statement, of the cash flows for the
year ended on that date.
ANNEXURE TO THE AUDITORS REPORT
Referred to in our report of even date on the accounts of INDO ZINC
LIMITED for the year ended 31st March 2010.
1. (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) According to the information and explanations given to us, the
fixed assets were physically verified during the period by the
management. No material discrepancies were noticed on such
verification.
(c) The company has not disposed off substantial part of its fixed
assets during the year.
2. (a) According to the information given to us, physical
verification of inventory was conducted by the management during the
year at reasonable intervals.
(b) In our opinion, the procedures of physical verification of
inventory followed by the management are reasonable and adequate in
relation to the size of the company and the nature of its business.
(c) The company is maintaining proper records of inventory. According
to the information and explanations given to us, no material
discrepancies were noticed on physical verification of inventories.
3. (a) The company has not granted any loans, secured and unsecured, to
companies, firms or other parties listed in the register maintained
under section 301 of the Companies Act, 1956. Accordingly, paragraphs
4(iii)(b),(c) and (d) of the Order are not applicable.
(b) In our opinion and according to the information and explanations
given to us, the company has not taken any loans from the 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 is adequate internal control system commensurate
with the size of the company and the nature of its business with
regards to the purchase of inventory and fixed assets and for the sale
of goods and services. Further, on the basis of our examination of the
books and records of the Company, and according to the information and
the explanations given to us, we have neither come across nor have been
informed of any continuing failure to correct major weaknesses in the
aforesaid internal control system.
5. According to the information and explanations given to us, the
Company did not do any transactions that needed entry into the register
maintained under section 301 of the Companies Act, 1956.
6. In our opinion and according to the information and explanations
given to us, the company has not accepted any deposits from the public.
The provisions of section 58A and 58AA of the Companies Act. 1956 and
the rules framed there under are not applicable.
7. According to information and explanations given to us, the company
did not have formal internal audit system during the year under
consideration.
8. We are informed that the Rules relating to maintenance of cost
records under section 209(1) (d) of the Companies Act, 1956 for Cement
industry were not applicable during the year since the Company has not
commenced production in its Cement project.
9. According to the records of the company, the company is generally
regular in depositing undisputed statutory dues including Income-tax,
Sales-tax, Custom duty, Excise duty and other statutory dues applicable
to it, except in cases mentioned below. According to information and
explanations given to us, provisions of Provident Fund Scheme and
Employees State Insurance Scheme were not applicable to the company
during this year. Following amounts of above mentioned statutory dues
were in arrears as at 31/03/2010 for a period of more than six months
from the date they became payable.
Nature of dues Amount- Rs. In lacs
Central Sales-tax 10.45
MP Sales-tax 10.56
MP Entry Tax 39.02
UP Trade Tax 2.19
10. The company is registered for a period of more than five years.
Its accumulated losses at the end of the financial
year were more than fifty per cent of its net worth. The company has
not incurred cash loss during the current financial year although it
incurred cash loss during the previous financial year.
11. In our opinion and according to the information and explanation
given to us by the management, the company has not defaulted in
repayment of dues to the financial institutions or banks or the
debenture-holders during the year.
12. The company has not granted loans and advances on the basis of
security of shares, debentures and other securities.
13. The company is not engaged in the business of chit funds, nidhi,
mutual benefit fund or mutual benefit society.
14. The company is not dealing or trading in shares, securities,
debentures or other investments.
15. According to the information and explanations given to us, the
company has not given any guarantee for loans taken by others.
16. In our opinion and according to the information and explanations
given to us, on an overall basis, the term loans availed by the company
during the year were applied for the purpose for which they were
obtained.
17. According to the information and explanations given to us and on
an overall examination of the balance sheet of the company, we report
that no funds raised on short term basis have been used for long term
investment.
18. The company has not made any preferential allotment of shares
during the year.
19. Company did not have any outstanding secured debentures as on the
date of the balance sheet.
20. The company has not raised any money by public issue during the
year.
21. During the course of our examination of the books and records of
the Company, carried out in accordance with the generally accepted
auditing practices in India, and according to the information and
explanations given to us, we have neither come across any instances of
material fraud on or by the company, noticed or reported during the
year, nor have we been informed of such case by the management.
For Chaturvedi SK & Fellows
Chartered Accountants
Srikant Chaturvedi
Partner
Place :Chennai (Firm Regn No. 112627W;
Dated : 13th August, 2010 Partners Membership No. 70019)