Mar 31, 2018
Report on the Ind AS Financial Statements
We have audited the accompanying Ind AS financial statements of Vadilal Enterprises Limited (âthe Companyâ), which comprise the Balance Sheet as at March 31, 2018 and the Statement of Profit and Loss (including Other Comprehensive Income), the Cash Flow Statement and the Statement of Changes in Equity for the year then ended, and a summary of the significant accounting policies and other explanatory information.
Managementâs Responsibility for the Ind AS Financial Statements
The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these Ind AS financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income, cash flows and changes in equity of the Company in accordance with the Indian Accounting Standards (Ind AS) prescribed under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended, and other accounting principles generally accepted in India.
This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditorâs Responsibility
Our responsibility is to express an opinion on these Ind AS financial statements based on our audit.
In conducting 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 and the Order issued under section 143(11) of the Act.
We conducted our audit of the Ind AS financial statements in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the Ind AS financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the Ind AS financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the Ind AS financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company''s preparation of the Ind AS financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company''s Directors, as well as evaluating the overall presentation of the Ind AS financial statements.
We believe that the audit evidence obtained by us is sufficient and appropriate to provide a basis for our audit opinion on the Ind AS financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid Ind AS financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the Ind AS and other accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2018, and its profit, total comprehensive income, its cash flows and the changes in equity for the year ended on that date.
Other Matters
The comparative financial information of the Company for the year ended March 31, 2017 and the transition date opening balance sheet as at April 1, 2016 prepared in accordance with Ind AS included in these Ind AS financial statements has been audited by the predecessor auditor. The report of the predecessor auditor on comparative financial information and the said opening balance sheet dated May 26, 2018 expressed an unmodified opinion.
Our opinion on the Standalone Ind AS Financial Statements and our report on Other Legal and Regulatory Requirements below, is not modified in respect of this matter.
Report on Other Legal and Regulatory Requirements
1. As required by Section 143(3) of the Act, based on our audit we report that:
a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books.
c) The Balance Sheet, the Statement of Profit and Loss including Other Comprehensive Income, the Cash Flow Statement and Statement of Changes in Equity dealt with by this Report are in agreement with the relevant books of account.
d) In our opinion, the aforesaid Ind AS financial statements comply with the Indian Accounting Standards prescribed under section 133 of the Act.
e) On the basis of the written representations received from the directors of the Company as on March 31, 2018 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2018 from being appointed as a director in terms of Section 164(2) of the Act.
f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in âAnnexure Aâ. Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the Company''s internal financial controls over financial reporting.
g) With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, as amended, 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 Ind AS 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 has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
2. As required by the Companies (Auditor''s Report) Order, 2016 (âthe Orderâ) issued by the Central Government in terms of Section 143(11) of the Act, we give in âAnnexure Bâ a statement on the matters specified in paragraphs 3 and 4 of the Order.
ANNEXURE âAâ
TO THE INDEPENDENT AUDITORâS REPORT OF VADILAL ENTERPRISES LIMITED (Referred to in paragraph 1(f) under âReport on Other Legal and Regulatory Requirementsâ section of our report of even date)
Report on the Internal Financial Controls Over Financial Reporting under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
We have audited the internal financial controls over financial reporting of Vadilal Enterprises Limited (âthe Companyâ) as of March 31, 2018 in conjunction with our audit of the Ind AS financial statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
The Company''s management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India. These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to respective 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.
Auditorâs Responsibility
Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting of the Company based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the âGuidance Noteâ) issued by the Institute of Chartered Accountants of India and the Standards on Auditing prescribed under Section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor''s judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained, is sufficient and appropriate to provide a basis for our audit opinion on the Company''s internal financial controls system over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A company''s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company''s internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorisations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the company''s assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, to the best of our information and according to the explanations given to us, 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 criteria for internal financial control over financial reporting 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.
ANNEXUREâBâ
TO THE INDEPENDENT AUDITORâS REPORT OF VADILAL ENTERPRISES LIMITED (Referred to in paragraph (2) under
âReport on Other Legal and Regulatory Requirementsâ section of our report of even date)
(i) (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 during the year by the Management in accordance with a regular programme of verification, which in our opinion, provides for physical verification of all the fixed assets at reasonable intervals. According to the information and explanation given to us, no material discrepancies were noticed on such verification.
(c) Immovable properties of building whose title deed has been pledged as security for loans are held in the name of the Company based on the confirmations directly received by us from lender.
(ii) As explained to us, the inventories were physically verified during the year by the Management at reasonable intervals and no material discrepancies were noticed on physical verification.
(iii) The Company has not granted loans to any bodies corporate covered in the register maintained under section 189 of the Companies Act, 2013 (''the Act'') hence reporting under clause (iii) of the Order is not applicable.
(iv) In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of Sections 185 and 186 of the Companies Act, 2013 in respect of grant of loans, making investments and providing guarantees and securities, as applicable.
(v) In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of Sections 73 to 76 or any other relevant provisions of the Companies Act, 2013 and the Companies (Acceptance of Deposits) Rules, 2014, as amended, with regard to the deposits accepted. According to the information and explanations given to us, no order has been passed by the Company Law Board or the National Company Law Tribunal or the Reserve Bank of India or any Court or any other Tribunal.
(vi) Having regard to the nature of the Company''s business / activities, reporting under clause (vi) of the Order is not applicable.
(vii) According to the information and explanations given to us, in respect of statutory dues:
(a) The Company has generally been regular in depositing undisputed statutory dues, including Provident Fund, Employees'' State Insurance, Income-tax, Sales Tax, Service Tax, Value Added Tax, Goods and Service tax, cess and other material statutory dues applicable to it to the appropriate authorities. As informed to us, the provisions of Customs Duty and Excise Duty were not applicable to the Company during the year.
(b) There were no undisputed amounts payable in respect of Provident Fund, Employees'' State Insurance, Income-tax, Sales Tax, Service Tax, Value Added Tax, Goods and Service tax, cess and other material statutory dues in arrears as at March 31, 2018 for a period of more than six months from the date they became payable.
(c) There are no dues of Income-tax, Sales Tax, Service Tax, Goods and Service Tax and Value Added Tax which have not been deposited as on March 31, 2018 on account of disputes except as given below:
Name of Statute |
Nature of Dues |
Forum where Dispute is Pending |
Period to which the Amount Relates |
Amount Involved (Rs. In Lacs) |
Amount Unpaid (Rs. In Lacs) |
Central Sales Tax,1956 and Sales Tax Act |
Sales Tax Demand |
MEMBER COMMERCIAL TAX TRIBUNAL, BAREILLY |
2008-09 |
20.49 |
13.51 |
Sales Tax Demand |
MEMBER COMMERCIAL TAX TRIBUNAL, BAREILLY |
2009-10 |
26.50 |
17.47 |
|
Sales Tax Demand |
MEMBER COMMERCIAL TAX TRIBUNAL, BAREILLY |
2010-11 |
21.66 |
4.88 |
|
Sales Tax Demand |
ADDITIONAL COMMESIONOR- GRADE-2(APPEAL), BAREILLY |
2011-12 |
3.65 |
3.65 |
|
Sales Tax Demand |
MEMBER COMMERCIAL TAX TRIBUNAL, BAREILLY |
2012-13 |
11.04 |
6.62 |
|
Sales Tax Demand |
ADDITIONAL COMMESIONOR- GRADE-2(APPEAL) |
2011-12 |
0.67 |
0.67 |
Name of Statute |
Nature of Dues |
Forum where Dispute is Pending |
Period to which the Amount Relates |
Amount Involved (Rs. In Lacs) |
Amount Unpaid (Rs. In Lacs) |
Sales Tax Demand |
ADDITIONAL COMMESIONOR- GRADE-2(APPEAL) |
2012-13 |
0.87 |
0.87 |
|
Sales Tax Demand |
ADDITIONAL COMMESIONOR- GRADE-2(APPEAL) |
2014-15 |
0.29 |
0.29 |
|
Sales Tax Demand |
ADDITIONAL COMMESIONOR- GRADE-2(APPEAL) |
2015-16 |
1.04 |
0.74 |
|
Income Tax Act,1961 |
Income Tax Demand |
High court |
A.Y. 1993-94 |
24.97 |
24.97 |
Income Tax Demand |
High court |
A.Y. 1994-95 |
19.14 |
19.14 |
|
Income Tax Demand |
High court |
A.Y. 1993-94 & 1994-95 |
6.48 |
6.48 |
|
Income Tax Demand |
CIT(A) |
A.Y.2014-15 |
2.59 |
2.59 |
(viii) In our opinion and according to the information and explanations given to us, the Company has not defaulted in the repayment of loans or borrowings to financial institutions and banks. The Company has not borrowed from Government and also the Company has not issued debentures.
(ix) The Company has not raised monies by way of initial public offer or further public offer (including debt instruments). The Company has utilised the money raised by way of term loans during the year for the purpose for which they were raised.
(x) To the best of our knowledge and according to the information and explanations given to us, no fraud by the Company and no material fraud on the Company by its officers or employees has been noticed or reported during the year.
(xi) In our opinion and according to the information and explanations given to us and based on our examinations of the records, no managerial remuneration is payable by the Company and hence reporting under clause (xi) of the Order is not applicable.
(xii) The Company is not a Nidhi Company and hence reporting under clause (xii) of the Order is not applicable.
(xiii) In our opinion and according to the information and explanations given to us the Company is in compliance with Section 177 and 188 of the act, where applicable, for all transactions with the related parties and the details of related party transactions have been disclosed in the Ind AS financial statements as required by the applicable accounting standards.
(xiv) During the year the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures and hence reporting under clause (xiv) of the Order is not applicable to the Company.
(xv) In our opinion and according to the information and explanations given to us, during the year the Company has not entered into any non-cash transactions with its directors or persons connected with him and hence provisions of section 192 of the act are not applicable.
(xvi) The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934.
For Deloitte Haskins and Sells LLP
Chartered Accountants
(Firm''s Registration No. 117366W/W-100018)
(Kartikeya Raval)
(Partner)
(Membership No. 106189)
Place : Ahmedabad
Date : May 28, 2018
Mar 31, 2016
To the Members of Vadilal Enterprises limited
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of Vadilal Enterprises limited (''the Company''), which comprise the balance sheet as at 31 March 2016, the statement of profit and loss and the cash flow statement for the year then ended, and a summary of significant accounting policies and other explanatory information.
Managementâs Responsibility for the Standalone Financial Statements
The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation and presentation of these standalone financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditorâs Responsibility
Our responsibility is to express an opinion on these standalone financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. 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 auditorâs judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Companyâs preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Companyâs Directors, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31 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 (Auditorâs Report) Order, 2016 (âthe Orderâ) issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in the âAnnexure Aâ, a statement on the matters specified in the paragraph 3 and 4 of the order.
2. As required by Section 143 (3) of the Act, we report that:
(a) we have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
(b) in our opinion proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books;
(c) the balance sheet, the statement of profit and loss and the cash flow statement dealt with by this Report are in agreement with the books of account;
(d) in our opinion, the aforesaid standalone financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014;
(e) on the basis of the written representations received from the directors as on 31 March 2016 taken on record by the Board of Directors, none of the directors is disqualified as on 31 March 2016 from being appointed as a director in terms of Section 164 (2) of the Act;
(f) with respect to the adequacy and the operating effectiveness of the internal financial controls over financial reporting of the Company, refer to our separate report in âAnnexure Bâ; and
(g) with respect to the other matters to be included in the Auditorâs Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
i. the Company has disclosed the impact of pending litigations on its financial position in its financial statements - Refer Note 27.1 to the financial statements;
ii. the Company did not have any long term contracts, including derivate contracts for which there were any material foreseeable losses.
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
Annexure - A to the Auditorsâ Report
The Annexure referred to in Independent Auditorsâ Report to the members of the Company on the standalone financial statements for the year ended 31 March 2016, we report that:
(i) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets
(b) In respect of Deep freeze machines, push carts and freezer on wheels lying with third parties we are informed that the company has formulated a programme of physical verification of these assets over a period of three years. Major Deep freeze machines and push carts are covered as per formulated programme during the year. No material discrepancies were noticed on such physical verification. Other assets viz. furniture & office equipments are not verified during the year. In absence of physical verification of such fixed assets, material discrepancies if any could not be ascertained.
(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.
(ii) As explained to us, the inventories were physically verified during the year by the management at reasonable intervals and no material discrepancies were noticed on physical verification.
(iii) The Company has not granted loans to any bodies corporate covered in the register maintained under section 189 of the Companies Act, 2013 (''the Act''). Thus, paragraph 3(iii) of the Order is not applicable to the Company.
(iv) In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of section 185 and 186 of the Act in respect of grant of loan, making investments and providing guarantees and securities, as applicable.
(v) The company has accepted deposits from members during the year under audit the directives issued by Reserve Bank of India and provisions of sections 73 & 76 or any other relevant provisions of the Companies Act, 2013 and the rules framed there under have been generally complied with.
We are informed that no order has been passed by the Company Law Board or National Company Law Tribunal or Reserve Bank of India or any Court or any other Tribunal.
(vi) The maintenance of cost records has not been specified by Central Government under section 148(1) of the companies Act, 2013
(vii) (a) According to the information and explanations given to us and on the basis of our examination of the records of the Company, amounts deducted/ accrued in the books of account in respect of undisputed statutory dues including provident fund, employees state insurance, income-tax, sales tax, value added tax, duty of customs, duty of excise, service tax, cess and other material statutory dues have been regularly deposited during the year by the Company with the appropriate authorities.
According to the information and explanations given to us, no undisputed amounts payable in respect of provident fund, income tax, sales tax, value added tax, duty of customs, service tax, cess and other material statutory dues were in arrears as at 31 March 2016 for a period of more than six months from the date they became payable.
(b) According to the information and explanations given to us, and on the basis of our examination of the records of the company, the detail of disputed amounts in respect of sales Tax, income tax, service tax, value added tax, custom duty and excise duty / cess not deposited with the appropriate authorities are as follow:
_(Rs.in lakhs)
Sr. No. |
Dispute under: |
Amt. (net of deposit) |
Nature of Dues |
Period to which the amount Relates |
Forum where dispute is pending |
1 |
Central Sales Tax 1956 |
0.44 |
CST Assessment demand |
2008-09 |
Tribunal |
and Sales Tax Act |
13.51 |
Sales Tax Demand |
2008-09 |
Tribunal |
|
10.05 |
Sales Tax Demand |
2008-09 |
D.Comm |
||
(Appeals) |
|||||
50.19 |
Sales Tax Demand |
2009-10 |
Tribunal |
||
17.47 |
Sales Tax Demand |
2009-10 |
Dy.Comm |
||
13.58 |
Sales Tax Demand |
2010-11 |
Dy.Comm |
||
3.65 |
Sales Tax Demand |
2011-12 |
Addl Comm |
||
Total |
108.89 |
||||
2 |
Income |
24.96 |
Income Tax Demand |
A.Y. 1993-94 |
High Court |
Tax Act, |
19.14 |
Income Tax Demand |
A.Y. 1994-95 |
High Court |
|
1961 |
6.48 |
Income Tax Demand |
A.Y. 1991-92 |
High Court |
|
& 1992-93 |
|||||
5.73 |
Penalty u/s 271(1)( c) |
A.Y. 2010-11 |
CIT(A) |
||
1.48 |
Income Tax Demand |
A.Y. 2012-13 |
CIT(A) |
||
0.37 |
Income Tax Demand |
A.Y. 2013-14 |
CIT(A) |
||
Total |
58.16 |
(viii) In our opinion and according to information and explanation given to us, the company has not defaulted in the repayment of loans or borrowings to the banks/ financial institution. The company does not have any loans or borrowings from government and has not issued any debentures.
(ix) The Company did not raise any money by way of initial public offer or further public offer (including debt instruments) and term loans was applied for the purpose for which the loan was obtained.
(x) According to the information and explanations given to us, no material fraud by the Company or on the Company by its officers or employees has been noticed or reported during the course of our audit.
(xi) According to the information and explanations give to us and based on our examination of the records of the Company, the Company has not paid/provided for managerial remuneration. Accordingly, paragraph 3(xi) of the Order is not applicable.
(xii) The Company is not a nidhi company. Accordingly, paragraph 3(xii) of the Order is not applicable.
(xiii) According to the information and explanations given to us and based on our 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.
(xiv) According to the information and explanations give to us and based on our examination of the records of the Company, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year.
(xv) 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 him. Accordingly, paragraph 3(xv) of the Order is not applicable.
(xvi) The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act 1934.
Annexure - B to the Auditorsâ Report
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
We have audited the internal financial controls over financial reporting of Vadilal Enterprises limited (âthe Companyâ) as of 31 March 2016 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
The Company''s management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India (''ICAI''). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditorsâ Responsibility
Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the âGuidance Noteâ) and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, 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, to the best of our information and according to explanations given to us, 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 31 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 KANTILAL PATEL & CO.,
CHARTERED ACCOUNTANTS
Firm Reg. No. : 104744W
Mayank S. Shah
Place : Ahmedabad Partner
Date : May 28, 2016 Membership No. : 44922
Mar 31, 2015
We have audited the accompanying financial statements of Vadilal
Enterprise Limited ("the company"), which comprise the Balance Sheet as
at 31st March, 2015, the Statement of Profit and Loss, the Cash Flow
Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
The Company's Board of Directors is responsible for the matters 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 the maintenance of
adequate accounting records in accordance with the provision of the Act
for safeguarding of the assets of the Company and for preventing and
detecting the frauds and other irregularities;selection and application
of appropriate accounting policies; making judgments and estimates that
are reasonable and prudent; and design, implementation and maintenance
of internal financial control, that were operating effectively for
ensuring the accuracy and completeness of the accounting records,
relevant to the preparation and presentation of the financial statement
that give a true and fair view and are free from material misstatement,
whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these 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 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 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 as adequate Internal Financial
controls system over financial reporting and the effectiveness of such
controls. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of the accounting
estimates made by Company's Directors, as well as evaluating the
overall presentation of the 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 profit and its cash flows for the year
ended on that date.
Report on other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2015 ("the
order") issued by the Central Government of India in terms of
sub-section (11) of Section 143 of the Act, we give in the Annexure a
statement on the matters specified in Paragraphs 3 and 4 of the 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
purposes of our audit.
b) In our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books
c) The Balance Sheet, the 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
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 31 March, 2015, taken on record by the Board of Directors, none
of the directors is disqualified as on 31 March, 2015, from being
appointed as a director in terms of Section 164(2) of the Act.
(f) With respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us:
I. The Company has disclosed the impact of pending litigations on its
financial position in its financial statements as referred to in Note
27.1.
II . The Company did not have any long-term contracts, including
derivate contracts for which there were any material foreseeable
losses.
III. There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company.
ANNEXURE REFERRED TO IN INDEPENDENT AUDITORS' REPORT OF EVEN DATE TO
THE MEMBERS OF VADILAL ENTERPRISE LIMITED, ON THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31st MARCH 2015.
i) In respect of fixed assets
(a) The company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
(b) The Company's management has provided us with a representation that
in respect of Deep freeze machines, push carts and freezer on wheels
lying with third parties the company has formulated a programme of
physical verification of these assets over a period of three years.
Major Deep freeze machines, push carts and freezer on wheels are
verified as per formulated programme during the year. No material
discrepancies were noticed on such physical verification.
Other assets viz. furniture & office equipments have not been verified
during the year. In absence of physical verification of such fixed
assets, material discrepancies if any could not be ascertained.
ii) (a) Physical verification at reasonable intervals has been carried
out by the management in respect of inventory. 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) In our opinion and according to the information and explanations
given to us, the company has maintained proper records of inventory
and the discrepancies noticed on such physical verification between
physical stocks and book records have been adequately dealt with in the
books of account.
iii) The Company has not granted any loan secured or unsecured to
companies, firms or other party covered 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.
iv) In our opinion and as per the information and explanation given to
us, having regard to the explanation that, except for purchase items of
inventory which are of special nature for which suitable alternative
sources do not exist, there is an adequate internal control
commensurate with the size of the company and nature of its business
for the purchase of inventory and fixed assets and for the sale of
goods and services. During the course of our audit, we have not
observed any continuing failure to correct major weakness in the
internal control system.
v) The company has accepted deposits from members during the year under
audit and the directives issued by Reserve Bank of India and
provisions of sections 73 to 76 or any other relevant provisions of the
Companies Act, 1956 and the rules framed there under are generally
complied with.
We are informed that no order has been passed by the Company Law Board
or National Company Law Tribunal or Reserve Bank of India or any Court
or any other Tribunal.
vi) The Company is a trading company, hence paragraph 3(vi) is not
applicable.
vii) (a) The Company is generally regular in depositing undisputed
statutory dues including provident fund, employees' state insurance,
investor education and protection fund, sales-tax, income-tax, wealth
tax, service tax, duty of customs, duty of excise, cess and other
material statutory dues as applicable with the appropriate authorities.
According to the information and explanations given to us, no
undisputed amount payable in respect of aforesaid statutory dues were
outstanding as at 31st March, 2015 for the period of more than six
months from the date they become payable.
(b) The details of disputed statutory dues as at March 31, 2015 that
have not been deposited by the company, are as under:
(Rs. in lakhs)
SrNo Dispute under: Amt. (net of Nature of Dues
deposit)
(i) Central Sales Tax Act, 1956 0.44 CST Assessment demand
and Sales Tax Act Sales tax demand
13.51
10.05
50.19
17.47
7.00
0.72
(ii) Income Tax Act 1961 24.96 Income tax Demand
19.14 Income tax Demand
1.15 Penalty u/s 271 D
5.73 Penalty u/s271(1)
(c)
SrNo Dispute under: Period to which
the amount Relates
(i) Central Sales Tax Act, 1956 2008-09
and Sales Tax Act
2008-09
2008-09
2009-10
2009-10
2010-11
2012-13
(ii) Income Tax Act 1961 A.Y. 1993-94
A.Y. 1994-95
A.Y. 2010-11
A.Y. 2008-09
SrNo Dispute under: Forum where
dispute is pending
(i) Central Sales Tax Act, 1956 Joint commissioner (A)
and Sales Tax Act
Tribunal
D.Comm (Appeals)
Tribunal
Dy .Comm
Dy .Comm
Joint commissioner (A)
(ii) Income Tax Act 1961 High Court
High Court
CIT (A)
CIT (A)
(c) The amount required to be transferred to investor education and
protection fund in accordance with the relevant provisions of the
Companies Act, 1956 (1 of 1956) and rules made thereunder has been
transferred to such fund within time.
viii) The Company neither has any accumulated losses nor has incurred
any cash losses during the financial year covered by our audit and the
immediately preceding financial year.
(ix) Based on our audit procedures and as per the information and
explanation given by the management, we are of the opinion that Company
has not defaulted in repayment of dues to the banks. The Company has
not taken any loan from financial institution. The Company has not
obtained any borrowing by way of debentures.
(x) To the best of our knowledge and belief and according to the
information and explanations given to us the Company has given
guarantee of Rs 800 Lacs for loans taken by others from banks or
financial institutions. In our opinion and based on the information and
explanations given to us, the terms and conditions are not prejudicial
to the interests of the Company.
xi) Based on information and explanations given to us by the
management, term loan was applied for the purpose for which the loan
was obtained.
xii) Based upon the audit procedures performed for the purpose of
reporting the true and fair view of the financial statements and as per
the information and explanations given by the management, we report
that no fraud on or by the Company has been noticed or reported during
the year nor we have been informed of any such case by the management.
For KANTILAL PATEL & CO.,
Chartered Accountants
Firm Registration No. 104744W
Mayank S. Shah
Place : Ahmedabad Partner
Date : June 01, 2015 Membership No.: 44922
Mar 31, 2014
We have audited the accompanying financial statements of Vadilal
Enterprise Limited, which comprise the Balance Sheet as at March
31,2014, 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
accounting principles generally accepted in India, including the
Accounting Standards notified under the Companies Act, 1956, read with
General Circular 15/2013 dated 13 September, 2013 issued by the
Ministry of Corporate Affairs in respect of Section 133 of the
Companies Act, 2013. This responsibility includes the design,
implementation and maintenance of internal control relevant to the
preparation and presentation of the financial statements that give a
true and fair view and are free from material misstatement, whether due
to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We have 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 management, as well as evaluating
the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2014;
(b) in the case of the Statement of Profit and Loss, of the 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, as
amended by the Companies (Auditor''s Report) (Amendment) Order, 2004
(together with "Order") issued by the Central Government of India
in terms of sub-section (4A) of section 227 of the Act, we give in the
Annexure a statement on the matters specified in paragraphs 4 and 5 of
the Order.
2. As required by section 227(3) of the Act, we report that:
a. we have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b. in our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books;
c. the Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
d. in our opinion, the Balance Sheet, Statement of Profit and Loss, and
Cash Flow Statement comply with the accounting standards notified under
the Companies Act, 1956, read with General Circular 15/2013 dated 13
September, 2013 issued by 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 March 31 , 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2014, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
ANNEXURE TO INDEPENDENT AUDITORS'' REPORT
Referred to in paragraph 1 under the heading of "Report on Other
Legal and Regulatory Requirements" of our report of even date
(i) In respect of its fixed assets:
[a] The company has maintained proper records showing full particulars
including quantitative details and situation only in respect of
building, vehicles and deep freeze machines capitalized onwards
1997-98. In respect of deep freeze machines capitalized prior to
1997-98 and other assets, individual details as to cost and accumulated
depreciation, remains to be reconciled with ledger balances appearing
in the financial statements.
[b] In respect of Deep freeze machines, push carts and freezer on
wheels lying with third parties we are informed that the company has
formulated a programme of physical verification of these assets over a
period of three years. In majority cases freezer on wheels were
verified during the financial year 2011-12 and major Deep freeze
machines and push carts are covered as per formulated programme during
the year. No material descrepancies were noticed on such physical
verification. Acrylic boards and other assets viz. furniture & office
equipments are not verified during the year. In absence of physical
verification of such fixed assets, material discrepancies if any could
not be ascertained.
[c] The company has not disposed off substantial part of fixed assets
during the year.
(ii) In respect of its Inventories:
[a] As explained to us, inventories have been physically verified by
the management at reasonable intervals during the year.
[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] In our opinion and according to explanations given to us, the
company has maintained proper records of inventories and the
discrepancies noticed on such physical verification between physical
stock and book records have been adequately dealt with in the books of
accounts.
(iii) In respect of loans, secured or unsecured, granted or taken by
the company to/from companies, firms or other parties covered in the
register maintained under section 301 of the Companies Act, 1956:
The company has not granted or taken any loans, secured or unsecured to
/from companies, firms or other parties covered in the register
maintained under section 301 of the Act. Hence, paragraph 4 (iii)(a),
(b), (c), (d), (e), (f) and (g) are not considered applicable to the
company.
(iv) In respect of main trading item viz. ice-cream, mango pulp, mango
ras, frozen vegetables the purchases are made at agreed terms and
conditions, hence the question of internal control system in respect of
purchases of goods traded in does not arise. In our opinion and
according to the explanations given to us, there are adequate internal
control system commensurate with the size of the company and the nature
of its business for the purchase of fixed assets and also for the sale
of goods and services. During the course of our audit, we have not
observed any continuing failure to correct major weaknesses in the
internal control system.
(v) In respect of transactions covered under Section 301 of the
Companies Act, 1956:
[a] In our opinion and according to the information and explanations
given to us, the particulars of contracts or arrangements referred to
in Section 301 of the Act, have been entered in the register required
to be maintained under that section.
[b] The transactions for purchase of goods and materials and sale of
goods, materials and services, made in pursuance of contracts or
arrangements entered in the register maintained under section 301 of
the Companies Act, 1956 and aggregating during the year to Rs. 5 Lakhs
or more in respect of each party, according to the information and
explanations given to us, in respect of main trading item viz.
ice-cream, mango pulp, mango ras, frozen vegetables the purchases are
made at agreed terms and conditions, hence the question of
reasonableness of the purchase price paid to the supplying firm does
not arise. Other purchases are made with reference to prevailing
market prices at the relevant time for such goods, materials or
services for the prices at which transactions for similar goods or
services have been made with other parties.
(vi) In our opinion and according to the information and explanations
given to us, the company has generally complied with the provisions of
section 58 A and 58AA or any other relevant provisions of the Companies
Act, 1956 and the rules framed there under with regard to the deposits
accepted from the public.
We are informed that no order has been passed by the Company Law Board
or National Company Law Tribunal or Reserve Bank of India or any Court
or any other tribunal.
(vii) In our opinion, the company has an internal audit system
commensurate with its size and the nature of its business.
(viii) As the company is a trading company, Paragraph 4(viii) is not
applicable.
(ix) In respect of statutory dues:
[a] According to the records of the company, undisputed statutory dues
including provident fund, investor education & protection fund,
employees state insurance, income tax, sales tax, wealth tax, service
tax, custom duty, excise duty, cess and other statutory dues wherever
applicable to the company have generally been regularly deposited by
the company with the appropriate authorities.
[b] According to the information and explanations given to us, no
undisputed amount payable in respect of aforesaid statutory dues were
outstanding as at 31st March, 2014 for the period of more than six
months from the date they become payable.
[c] The details of disputed statutory dues as at March 31 , 2014 that
have not been deposited by the Company are as under:
Dispute Under Amt. (Net of deposit) Period to which
(Rs in lacs) amount relates
Sales Tax Act 19.45 2008-09
8.05 2008-09
17.53 2009-10
0.72 2012-13
Income Tax Act 1961 2.41 A.Y. 2007-08
Dispute Under Forum where dispute is pending
Sales Tax Act D.Comm (Appeals) Joint commissioner (A)
D.Comm Joint commissioner (A)
Income Tax Act 1961 CIT (A)
(x) I he company has no accumulated losses as at March 31,2014. I he
Company has not incurred cash losses during the trnancial year covered
by our audit and in the immediately preceding financial year.
(xi) In our opinion and according to the information and explanations
given to us, the company has not defaulted in repayment of dues to
banks. The company has not obtained any borrowings from financial
institution or by way of debentures.
(xii) The company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
(xiii) The company has given guarantee for loans taken by others from
banks or financial institutions. In our opinion and based on the
information and explanations given to us, the terms and conditions are
considered not prima facie prejudicial to the interest of the company.
(xiv) To the best of our knowledge and belief and according to the
information and explanations given to us, in our opinion, the term
loans raised during the year were prima facie been used for the purpose
for which they were raised. The term loans outstanding at the beginning
of the year were applied for the purpose for which they were obtained.
(xv) 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.
(xvi) During the year, 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.
(xvii) According to information and explanations given to us, the
company has not issued any debentures during the year.
(xviii) The company has not raised any money by way of public issue
during the year.
(xix) To the best of our knowledge and belief and according to the
information and explanation given to us, no fraud on or by the company
has been noticed or reported during the year that causes the financial
statements to be materially misstated.
(xx) In our opinion and according to the information and explanations
given to us, the nature of the company''s business/activities during
the year are such that paragraphs 4(xiii) provisions of any special
statue applicable to chit fund; 4(xiv) dealing or trading in shares, securities, debentures and other investments of Company (Auditor''s
Reports) Order, 2003 are not applicable to the company.
For KANTILAL PATEL & CO.,
Chartered Accountants
Firm Registration No. 104744W
Mayank S. Shah
Place : Ahmedabad Partner
Date : May 29, 2014 Membership No.: 44922
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of Vadilal
Enterprises Limited, which comprise the Balance Sheet as at March 31,
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. This responsibility includes the design,
implementation and maintenance of internal control relevant to the
preparation and presentation of the financial statements that give a
true and fair view and are free from material misstatement, whether due
to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We have conducted our audit in
accordance with the Standards on Auditing issued by the Institute of
Chartered Accountants of India. Those Standards require that we comply
with ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by management, as
well as evaluating the overall presentation of the financial
statements. We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2013;
(b) in the case of the Statement Profit and Loss, of the profit for the
year ended on that date; and
(c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003, as
amended by the Companies (Auditor''s Report) (Amendment) Order, 2004
(together with "Order") issued by the Central Government of India in
terms of sub-section (4A) of section 227 of the Act, we give in the
Annexure a statement on the matters specified in paragraphs 4 and 5 of
the Order.
2. As required by section 227(3) of the Act, we report that:
a. we have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b. in our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books;
c. the Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
d. in our opinion, the Balance Sheet, Statement of Profit and Loss,
and Cash Flow Statement comply with the Accounting Standards referred
to in sub-section (3C) of section 211 of the Companies Act, 1956;
e. on the basis of written representations received from the directors
as on March 31, 2013, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2013, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
ANNEXURE TO INDEPENDENT AUDITORS'' REPORT Referred to in paragraph 1
under the heading of "Report on Other Legal and Regulatory
Requirements" of our report of even date
(i) In respect of its fixed assets:
[a] The company has maintained proper records showing full particulars
including quantitative details and situation only in respect of
building, vehicles and deep freeze machines capitalized onwards
1997-98. In respect of deep freeze machines capitalized prior to
1997-98 and other assets, individual details as to cost and accumulated
depreciation, remains to be reconciled with ledger balances appearing
in the financial statements.
[b] In respect of Deep freeze machines, push carts and freezer on
wheels lying with third parties we are informed that the company has
formulated a programme of physical verification of these assets over a
period of three years. In majority cases freezer on wheels were
verified during the financial year 2011-12 and in respect of Deep
Freeze machines and push carts, no major physical verification has been
carried out during the year. Acrylic boards and other assets viz.
furniture & office equipments are not verified during the year.
In absence of physical verification of fixed assets, material
discrepancies if any could not be ascertained.
[c] The company has not disposed off substantial part of fixed assets
during the year. (ii) In respect of its Inventories:
[a] As explained to us, inventories have been physically verified by
the management at reasonable intervals during the year.
[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] In our opinion and according to explanations given to us, the
company has maintained proper records of inventories and the
discrepancies noticed on such physical verification between physical
stock and book records have been adequately dealt with in the books of
accounts
(iii) In respect of loans, secured or unsecured, granted or taken by
the company to/from companies, firms or other parties covered in the
register maintained under section 301 of the Companies Act, 1956:
The company has not granted or taken any loans, secured or unsecured to
/from companies, firms or other parties covered in the register
maintained under section 301 of the Act. Hence, paragraph 4 (iii)(a),
(b), (c), (d), (e), (f) and (g) are not considered applicable to the
company.
(iv) In respect of main trading item viz. ice-cream, mango pulp, mango
ras, frozen vegetables the purchases are made at agreed terms and
conditions and hence the question of internal control system in respect
of purchases of goods traded in does not arise. In our opinion and
according to the explanations given to us, there are adequate internal
control system commensurate with the size of the company and the nature
of its business for the purchase of fixed assets and also for the sale
of goods and services. During the course of our audit, we have not
observed any continuing failure to correct major weaknesses in the
internal control system.
(v) In respect of transactions covered under Section 301 of the
Companies Act, 1956:
[a] In our opinion and according to the information and explanations
given to us, the particulars of contracts or arrangements referred to
in Section 301 of the Act, have been entered in the register required
to be maintained under that section.
[b] The transactions for purchase of goods and materials and sale of
goods, materials and services, made in pursuance of contracts or
arrangements entered in the register maintained under section 301 of
the Companies Act, 1956 and aggregating during the year to Rs. 5 Lakhs
or more in respect of each party, according to the information and
explanations given to us, in respect of main trading item viz.
ice-cream, mango pulp, mango ras, frozen vegetables the purchases are
made at agreed terms and conditions, hence the question of
reasonableness of the purchase price paid to the supplying firm does
not arise. Other purchases are made with reference to prevailing
market prices at the relevant time for such goods, materials or
services or the prices at which transactions for similar goods or
services have been made with other parties.
(vi) In our opinion and according to the information and explanations
given to us, the company has generally complied with the provisions of
section 58 A and 58AA or any other relevant provisions of the Companies
Act, 1956 and the rules framed there under with regard to the deposits
accepted from the public.
We are informed that no order has been passed by the company law board
or national company law tribunal or Reserve Bank of India or any Court
or any other tribunal.
(vii) In our opinion, the company has an internal audit system
commensurate with its size and the nature of its business.
(viii) As the company is a trading company, Paragraph 4(viii) is not
applicable.
(ix) In respect of statutory dues:
[a] According to the records of the company, undisputed statutory dues
including provident fund, investor education & protection fund,
employees state insurance, income tax, sales tax, wealth tax, service
tax, custom duty, excise duty, cess and other statutory dues wherever
applicable to the company have generally been regularly deposited by
the company with the appropriate authorities.
[b] According to the information and explanations given to us, no
undisputed amount payable in respect of aforesaid statutory dues were
outstanding as at 31st March, 2013 for the period of more than six
months from the date they become payable.
[c] The details of disputed statutory dues on March 31, 2013 that have
not been deposited by the Company are as under:
Sr. Dispute Under Amt. (Net
of deposit) Period to which Forum where
dispute
No (Rs. in lacs) amount relates is pending
(i) Sales Tax Act 19.45 2008-09 D.Comm (Appeals)
8.05 2008-09 Joint commissioner
(A)
17.53 2009-10 D.Comm
0.72 2012-13 Joint commissioner
(A)
(ii) Income Tax Act
1961 2.41 A.Y. 2007-08 CIT (A)
(x) The company has no accumulated losses as at March 31, 2013. The
Company has not incurred cash losses during the financial year covered
by our audit and in the immediately preceding financial year.
(xi) In our opinion and according to the information and explanations
given to us, the company has not defaulted in repayment of dues to
banks. The company has not obtained any borrowings from financial
institution or by way of debentures.
(xii) The company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
(xiii) The company has given guarantee for loans taken by others from
banks or financial institutions. In our opinion and based on the
information and explanations given to us, the terms and conditions are
considered not prima facie prejudicial to the interest of the company.
(xiv) To the best of our knowledge and belief and according to the
information and explanations given to us, in our opinion, the term
loans raised during the year were prima facie been used for the purpose
for which they were raised. The term loans outstanding at the
beginning of the year were applied for the purpose for which they were
obtained.
(xv) 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.
(xvi) During the year, 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.
(xvii) According to information and explanations given to us, the
company has not issued any debentures during the year.
(xviii) The company has not raised any money by way of public issue
during the year.
(xix) To the best of our knowledge and belief and according to the
information and explanation given to us, no fraud on or by the company
has been noticed or reported during the year that causes the financial
statements to be materially misstated.
(xx) In our opinion and according to the information and explanations
given to us, the nature of the company''s business/activities during the
year are such that paragraphs 4(xiii) provisions of any special statue
applicable to chit fund; 4(xiv) dealing or trading in shares,
securities, debentures and other investments of Company (Auditor''s
Reports) Order, 2003 are not applicable to the company.
For KANTILAL PATEL & CO.,
Chartered Accountants
Firm Registration No. 104744W
Mayank S. Shah
Place : Ahmedabad Partner
Date : May 30, 2013 Membership No.: 44922
Mar 31, 2012
1. We have audited the attached balance sheet of Vadilal Enterprises
Limited as at March 31, 2012, Statement of profit & loss and also the
cash flow statement for the year ended on that date annexed thereto.
These financial statements are the responsibility of the Company's
management. Our responsibility is to express an opinion on these
financial statements based on our audit.
2. We conducted our audit in accordance with 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 sub- section (4A)
of section 227 of the Companies Act, 1956, we enclose in the annexure
here to a statement on the matters specified in paragraphs 4 and 5 of
the said Order.
4. Further to our comments in the annexure referred to in paragraph 3
above, we report that :
(i) 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.
(ii) 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.
(iii) 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.
(iv) In our opinion, the balance sheet, statement of profit & loss and
cash flow statement dealt with by this report comply with the mandatory
accounting standards referred to in sub section (3C) of section 211 of
the Companies Act, 1956.
(v) On the basis of the written representations received from
Directors, as on 31st March 2012, and taken on record by the Board of
Directors, we report that none of the Directors is disqualified as on
31st March, 2012 from being appointed as a Director in terms of clause
(g) of sub section (1) of section 274 of the Companies Act, 1956, on
the said date.
(vi) In our opinion and to the best of our information and according to
the explanations given to us, the said 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:
(a) in the case of the balance sheet, of the state of affairs of the
Company as at 31st March, 2012;
(b) in the case of the statement of profit & loss, of the 'profit'
of the Company 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.
ANNEXURE TO THE AUDITORS' REPORT TO THE MEMBERS OF VADILAL
ENTERPRISES LIMITED, ON THE FINANCIAL STATEMENTS FOR THE YEAR ENDED
31st MARCH 2012.
(i) In respect of its fixed assets :
[a] The company has maintained proper records showing full particulars
including quantitative details and situation only in respect of
building, vehicles and deep freeze machines capitalized onwards
1997-98. In respect of deep freeze machines capitalized prior to
1997-98 and other assets, individual details as to cost and accumulated
depreciation, remains to be reconciled with ledger balances appearing
in the financial statements.
[b] In respect of Deep freeze machines, push carts and freezer on
wheels lying with third parties we are informed that the company has
formulated a programme of physical verification of these assets over a
period of three years. In majority cases deep freeze machines and
pushcarts were verified during the financial year 2009-10 and in
majority cases freezer on wheels were verified during the year. Acrylic
boards and other assets viz. furniture & office equipments are not
verified during the year.
As explained to us, no material discrepancies were noticed in case of
freezer on wheels on the physical verification.
[c] The company has not disposed off substantial part of fixed assets
during the year.
(ii) In respect of its Inventories :
[a] As explained to us, inventories have been physically verified by
the management at reasonable intervals during the year.
[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] In our opinion and according to explanations given to us, the
company has maintained proper records of inventories and the
discrepancies noticed on such physical verification between physical
stock and book records have been adequately dealt with in the books of
accounts
(iii) In respect of loans, secured or unsecured, granted or taken by
the company to/from companies, firms or other parties covered in the
register maintained under section 301 of the Companies Act, 1956 :
The company has not granted nor taken any loans, secured or unsecured
to /from companies, firms or other parties covered in the register
maintained under section 301 of the Act. And hence, paragraph 4
(iii)(a), (b), (c), (d), (e), (f) and (g) are not considered applicable
to the company.
(iv) In respect of main trading item viz. ice-cream, mango pulp, mango
ras, frozen vegetables the purchases are made at agreed terms and
conditions and hence the question of internal control system in respect
of purchases of goods traded in does not arise.. In our opinion and
according to the explanations given to us, there are adequate internal
control system commensurate with the size of the company and the nature
of its business for the purchase of inventory, fixed assets and also
for the sale of goods and services. During the course of our audit, we
have not observed any continuing failure to correct major weaknesses in
the internal control system.
(v) In respect of transactions covered under Section 301 of the
Companies Act, 1956:
[a] In our opinion and according to the information and explanations
given to us, the particulars of contracts or arrangements referred to
in Section 301 of the Act, have been entered in the register required
to be maintained under that section.
[b] The transactions for purchase of goods and materials and sale of
goods, materials and services, made in pursuance of contracts or
arrangements entered in the register maintained under section 301 of
the Companies Act, 1956 and aggregating during the year to Rs. 5 lakhs
or more in respect of each party, according to the information and
explanations given to us, in respect of main trading item viz.
ice-cream, mango pulp, mango ras, frozen vegetables the purchases are
made at agreed terms and conditions and hence the question of
reasonableness of the purchase price paid to the supplying firm does
not arise. Other purchases are made with reference to prevailing market
prices at the relevant time for such goods, materials or services or
the prices at which transactions for similar goods or services have
been made with other parties.
(vi) In our opinion and according to the information and explanations
given to us, the company has complied with the provisions of section 58
A and 58AA or any other relevant provisions of the Companies Act, 1956
and the rules framed there under with regard to the deposits accepted
from the public.
We are informed that no order has been passed by the Company Law Board
or National Company Law Tribunal or Reserve Bank of India or any Court
or any other tribunal.
(vii) In our opinion, the company has an internal audit system
commensurate with its size and the nature of its business.
(viii) As the company is a trading company, Paragraph 4(viii) is not
applicable.
(ix) In respect of statutory dues:
[a] According to the records of the company, undisputed statutory dues
including provident fund, investor education & protection fund,
employees state insurance, income tax, sales tax, wealth tax, service
tax, custom duty, excise duty, cess and other statutory dues wherever
applicable to the company have generally been regularly deposited by
the company with the appropriate authorities.
[b] According to the information and explanations given to us, no
undisputed amount payable in respect of aforesaid statutory dues were
outstanding as at 31st March, 2012 for the period of more than six
months from the date they become payable.
[c] The details of disputed statutory dues on March 31, 2012 that have
not been deposited by the Company are as under:
Sr. Dispute Under Amt. (Net of Period Forum
No deposit) to which where dispute
(Rs.in lacs) amount
relates is pending
(i) Sales Tax Act 19.45 2008-09 D.Comm(Appeals)
2.97 2010-11 Joint
commissioner (A)
0.03 2007-08 Joint
commissioner (A)
(ii) Income Tax Act 1961 12.24 2007-08 ITAT
4.70 2008-09 ITAT
(x) The company has no accumulated losses as at March 31, 2012. The
Company has not incurred cash losses during the financial year covered
by our audit and in the immediately preceding financial year.
(xi) In our opinion and according to the information and explanations
given to us, the company has not defaulted in repayment of dues to
banks. The company has not obtained any borrowings from financial
institution or by way of debentures.
(xii) The company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
(xiii) The company has given guarantee for loans taken by others from
banks or financial institutions. In our opinion and based on the
information and explanations given to us, the terms and conditions are
considered not prima facie prejudicial to the interest of the company.
(xiv) To the best of our knowledge and belief and according to the
information and explanations given to us, in our opinion, the term
loans raised during the year were prima facie been used for the purpose
for which they were raised. The term loans outstanding at the beginning
of the year were applied for the purpose for which they were obtained.
(xv) 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.
(xvi) During the year, 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.
(xvii) According to information and explanations given to us, the
company has not issued any debentures during the year.
(xviii) The company has not raised any money by way of public issue
during the year.
(xix) To the best of our knowledge and belief and according to the
information and explanation given to us, no fraud on or by the company
has been noticed or reported during the year that causes the financial
statements to be materially misstated.
(xx) In our opinion and according to the information and explanations
given to us, the nature of the company's business/activities during the
year are such that paragraphs
4(xiii) provisions of any special statue applicable to chit fund;
4(xiv) dealing or trading in shares, securities, debentures and other
investments of Company (Auditor's Reports) Order, 2003 are not
applicable to the company.
For KANTILAL PATEL & CO.,
Chartered Accountants
Firm Registration No. 104744W
Mayank S. Shah
Place : Ahmedabad Partner
Date : May 30, 2012 Membership No.: 44922
Mar 31, 2011
1. We have audited the attached balance sheet of Vadilal Enterprises
Limited as at March 31, 2011, the profit & loss account and also the
cash flow statement for the year ended on that date annexed thereto.
These financial statements are the responsibility of the Company's
management. Our responsibility is to express an opinion on these
financial statements based on our audit.
2. We conducted our audit in accordance with 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 sub- section (4A) of
section 227 of the Companies Act, 1956, we enclose in the annexure here
to a statement on the matters specified in paragraphs 4 and 5 of the
said Order.
4. Further to our comments in the annexure referred to in paragraph 3
above, we report that:
(i) 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.
(ii) 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.
(iii) The balance sheet, profit and loss account and cash flow
statement dealt with by this report are in agreement with the books of
account.
(iv) In our opinion, the balance sheet, profit & loss account and cash
flow statement dealt with by this report comply with the mandatory
accounting standards referred to in sub section (3C) of section 211 of
the Companies Act, 1956.
(v) On the basis of the written representations received from
directors, as on 31st March 2011, and taken on record by the Board of
Directors, we report that none of the directors is disqualified as on
31st March, 2011 from being appointed as a director in terms of clause
(g) of sub section (1) of section 274 of the Companies Act, 1956, on
the said date.
(vi) ln our opinion and to the best of our information and according to
the explanations given to us, the said 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:
(a) in the case of the balance sheet, of the state of affairs of the
company as at 31st March, 2011;
(b) in the case of the profit & loss account, of the Ãprofit' of the
company 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.
ANNEXURE TO THE AUDITORS' REPORT TO THE MEMBERS OF VADILAL ENTERPRISES
LIMITED, ON THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH
2011.
(i) In respect of its fixed assets :
[a] The company has maintained proper records showing full particulars
including quantitative details and situation only in respect of
building, vehicles and deep freeze machines capitalized onwards
1997-98. In respect of deep freeze machines capitalized prior to
1997-98 and other assets, individual details as to cost and accumulated
depreciation, remains to be reconciled with ledger balances appearing
in the financial statements.
[b] In respect to Deep freeze machines, push carts and freezer on
wheels lying with third parties we are informed that the company has
formulated a programme of physical verification of these assets over a
period of three years. In majority cases deep freeze machines, push
carts and freezer on wheels were verified during the financial year
2009-10. Acrylic boards and other assets viz. furniture & office
equipments are not verified during the year.
[c] The company has not disposed off substantial part of fixed assets
during the year. (ii) In respect of its Inventories :
[a] As explained to us, inventories have been physically verified by
the management at reasonable intervals during the year.
[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] In our opinion and according to explanations given to us, the
company has maintained proper records of inventories and the
discrepancies noticed on such physical verification between physical
stock and book records have been adequately dealt with in the books of
accounts.
(iii) In respect of loans, secured or unsecured, granted or taken by
the company to/from companies, firms or other parties covered in the
register maintained under section 301 of the Companies Act, 1956 :
The company has not granted nor taken any loans, secured or unsecured
to /from companies, firms or other parties covered in the register
maintained under section 301 of the Act. And hence, paragraph 4
(iii)(a), (b), (c), (d), (e), (f) and (g) are not considered applicable
to the company.
(iv) In respect of main trading item viz. ice-cream, mango pulp, mango
ras, frozen vegetables the purchases are made at agreed terms and
conditions and hence the question of internal control system in respect
of purchases of goods traded in does not arise. In our opinion and
according to the explanations given to us, there are adequate internal
control system commensurate with the size of the company and the nature
of its business for the purchase of inventory, fixed assets and also
for the sale of goods and services. During the course of our audit, we
have not observed any continuing failure to correct major weaknesses in
the internal control system.
(v) In respect of transactions covered under Section 301 of the
Companies Act, 1956:
[a] In our opinion and according to the information and explanations
given to us, the particulars of contracts or arrangements referred to
in Section 301 of the Act, have been entered in the register required
to be maintained under that section.
[b] The transactions for purchase of goods and materials and sale of
goods, materials and services, made in pursuance of contracts or
arrangements entered in the register maintained under section 301 of
the Companies Act, 1956 and aggregating during the year to Rs. 5 Lakhs
or more in respect of each party, according to the information and
explanations given to us, in respect of main trading item viz.
ice-cream, mango pulp, mango ras, frozen vegetables the purchases are
made at agreed terms and conditions and hence the question of
reasonableness of the purchase price paid to the supplying firm does
not arise. Other purchases are made with reference to prevailing market
prices at the relevant time for such goods, materials or services or
the prices at which transactions for similar goods or services have
been made with other parties.
(vi) In our opinion and according to the information and explanations
given to us, the company has complied with the provisions of section 58
A and 58AA or any other relevant provisions of the Companies Act, 1956
and the rules framed there under with regard to the deposits accepted
from the public.
We are informed that no order has been passed by the Company Law Board
or National Company Law Tribunal or Reserve Bank of India or any Court
or any other tribunal.
(vii) In our opinion, the company has an internal audit system
commensurate with its size and the nature of its business.
(viii) As the company is a trading company, Paragraph 4(viii) is not
applicable.
(ix) In respect of statutory dues:
[a] According to the records of the company, undisputed statutory dues
including provident fund, investor education & protection fund,
employees state insurance, income tax, sales tax, wealth tax, service
tax, custom duty, excise duty, cess and other statutory dues wherever
applicable to the company have generally been regularly deposited by
the company with the appropriate authorities.
Further, since the Central Government has till date not prescribed the
amount of cess payable under section 441A of the Companies Act, 1956,
we are not in a position to comment upon the regularity or otherwise of
the company in depositing the same.
[b] According to the information and explanations given to us, no
undisputed amount payable in respect of aforesaid statutory dues were
outstanding as at 31st March, 2011 for the period of more than six
months from the date they become payable.
[c] The details of disputed statutory dues on March 31,2011 that have
not been deposited by the Company are as under :
Sr. Dispute Under Amt. (Net of Period Forum
No deposit) to which where dispute
(Rs. in lacs) amount relates is pending
(i> Sales Tax Act. 19.45 2008-09 D. Comm (Appeals)
(ii) Income Tax Act,
1961 9.03 2007-08 CIT (A)
4.70 2008-09 CIT (A)
(x) The company has no accumulated losses as at March 31, 2011. The
Company has not incurred cash losses during the financial year covered
by our audit and in the immediately preceding financial year.
(xi) In our opinion and according to the information and explanations
given to us, the company has not defaulted in repayment of dues to
banks. The company has not obtained any borrowings from financial
institution or by way of debentures.
(xii) The company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
(xiii) The company has given guarantee for loans taken by others from
banks or financial institutions. In our opinion and based on the
information and explanations given to us, the terms and conditions are
considered not prima facie prejudicial to the interest of the company.
(xiv) To the best of our knowledge and belief and according to the
information and explanations given to us, in our opinion, the term
loans raised during the year were prima facie been used for the purpose
for which they were raised. The term loans outstanding at the beginning
of the year were applied for the purpose for which they were obtained.
(xv) 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.
(xvi) During the year, 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.
(xvii) According to information and explanations given to us, the
company has not issued any debentures during the year.
(xviii) The company has not raised any money by way of public issue
during the year.
(xix) To the best of our knowledge and belief and according to the
information and explanation given to us, no fraud on or by the company
has been noticed or reported during the year that causes the financial
statements to be materially misstated.
(xx) In our opinion and according to the information and explanations
given to us, the nature of the company's business/activities during the
year are such that paragraphs
(xiii) provisions of any special statue applicable to chit fund;
(xiv) dealing or trading in shares, securities, debentures and other
investments of Company (Auditor's Reports) Order, 2003 are not
applicable to the company.
For KANTILAL PATEL & CO.,
Chartered Accountants
Firm Registration No. 104744W
Mayank S. Shah
Place : Ahmedabad Partner
Date : July 18, 2011 Membership No.: 44922
Mar 31, 2010
1. We have audited the attached balance sheet of Vadilai Enterprises
Limited as at March 31, 2010, the profit & loss account and also the
cash flow statement for the year ended on that date annexed thereto.
These financial statements are the responsibility of the Companys
management. Our responsibility is to express an opinion on these
financial statements based on our audit.
2. We conducted our audit in accordance with 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 [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 here
to a statement on the matters specified in paragraphs 4 and 5 of the
said Order.
4. Further to our comments in the annexure referred to in paragraph 3
above, we report that:
(i) 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.
(ii) In our opinion, pnper books of account as required by law have
been kept by the company so far as appears from our examination of
those books.
(iii) The balance sheet, profit and loss account and cash flow
statement dealt with by this report are in agreement with the books of
account.
(iv) In our opinion, the balance sheet, profit & loss account and cash
flow statement dealt with by this report comply with the mandatory
accounting standards referred to in sub section (3C) of section 211 of
the Companies Act, 1956.
(v) On the basis of the written representations received from
directors, as on 31st March 2010, and taken on record by the Board of
Directors, we report that none of the directors is disqualified as on
31st March, 2010 from being appointed as a director in terms of clause
(g) of sub section (1) of section 274 of the Companies Act, 1956, on
the said date.
(vi) In our opinion and to the best of our information and according to
the explanations given to us, the said 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:
(a) in the case of the balance sheet, of the state of affairs of the
company as at 31st March, 2010;
(b) in the case of the profit & loss account, of the profit of the
company 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.
ANNEXURE TO THE AUDITORS REPORT TO THE MEMBERS OF VADILAL ENTERPRISES
LIMITED, ON THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH
2010.
(i) In respect of its fixed assets :
[a] The company has maintained proper records showing full particulars
including quantitative details and situation only in respect of
building, vehicles and deep freeze machines capitalized onwards
1997-98. In respect of deep freeze machines capitalized prior to
1997-98 and other assets, individual details as to cost and accumulated
depreciation, remains to be reconciled with ledger balances appearing
in the financial statements.
[b] In respect of majority of fixed assets were verified during the
year, except acrylic boards and other assets viz. furniture & office
equipments. Material discrepancies noticed on Physical verification of
said fixed assets carried out during the year have been properly dealt
with in the books of account. Acrylic boards and other assets viz.
furniture & office equipments are not verified during the year hence
the question of reconciliation between physical verification and book
records does not arise.
[c] The company has not disposed off substantial part of fixed assets
during the year.
(ii) In respect of its Inventories :
[a] As explained to us, inventories have been physically verified by
the management at reasonable intervals during the year except stock of
stores and spares which have not been physically verified during the
year.
[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 needs to be strengthened, so as to cover
physical verification of stores and spares at least once in a year.
[c] The company has maintained proper records of inventories. As
explained to us, there were no material discrepancies noticed on such
physical verification of inventory as compared to the book records. In
absence of physical verification of stock of stores and spares, the
discrepancy if any, could not be ascertained..
(iii) In respect of loans, secured or unsecured, granted or taken by
the company to/from companies, firms or other parties covered in the
register maintained under section 301 of the Companies Act, 1956 :
The company has not granted nor taken any loans, secured or unsecured
to /from companies, firms or other parties covered in the register
maintained under section 301 of the Act. And hence, paragraph 4
(iii)(a), (b), (c), (d), (e), (f) and (g) are not considered applicable
to the company.
(iv) In respect of main trading item viz. ice-cream, mango pulp, mango
ras, frozen vegetables the purchases are made at agreed terms and
conditions. In our opinion and according to the explanations given to
us, there are adequate internal control system commensurate with the
size of the company and the nature of its business for the purchase of
inventory, fixed assets and also for the sale of goods and services.
During the course of our audit, we have not observed any continuing
failure to correct major weaknesses in the internal control system.
(v) In respect of transactions covered under Section 301 of the
Companies Act, 1956: [a] In our opinion and according to the
information
and explanations given to us, the particulars of contracts or
arrangements referred to in Section 301 of the Act, have been entered
in the register required to be maintained under that section.
[b] The transactions for purchase of goods and materials and sale of
goods, materials and services, made in pursuance of contracts or
arrangements entered in the register maintained under section 301 of
the Companies Act, 1956 and aggregating during the year to
Rs. 5 Lakhs or more in respect of each party, according to the
information and explanations given to us, purchase of specialized
items such as ice-cream, mango pulp, mango ras alternative sources
are limited and others are made with reference to prevailing market
prices at the relevant time for such goods, materials or services or
the prices at which transactions for similar goods or services have
been made with other parties.
(vi) In our opinion and according to the information and explanations
given to us, the company has complied with the provisions of section
58 A and 58AA or any other relevant provisions of the Companies
Act, 1956 and the rules framed there under with regard to the deposits
accepted from the public except there has been a slight shortfall
in maintaining liquid assets.
We are informed that no order has been passed by the company law
board or national company law tribunal or Reserve Bank of India or
any Court or any other tribunal.
(vii) In our opinion, the company has an internal audit system
commensurate with its size and the nature of its business.
(viii) As the company is a trading company, Paragraph 4
(viii) is not applicable.
(ix) In respect of statutory dues:
[a] According to the records of the company, undisputed statutory dues
including provident fund, investor education & protection fund,
employees state insurance, income tax, sales tax, wealth tax, service
tax, custom duty, excise duty, cess and other statutory dues wherever
applicable to the company except advance income tax, have generally
been regularly deposited by the company with the appropriate
authorities. Further, since the Central Government has till date not
prescribed the amount of cess payable under section 441A of the
Companies Act, 1956, we are not in a position to comment upon the
regularity or otherwise of the company in depositing the same.
[b] According to the information and explanations given to us, no
undisputed amount payable in respect of aforesaid statutory dues were
outstanding as at 31st March, 2010 for the period of more than six
months from the date they become payable, except advance income tax of
Rs.30.61 lacs which remains outstanding for a period of more than six
months from the date it became payable. However, same has been paid
subsequently there against.
[c] The disputed statutory dues aggregating to Rs.9.03 lacs that have
not been deposited on account of matters pending before appropriate
authorities are as under:
Sr. Description Amount of Forum
No Rupees where dispute
is pending
(i) Income Tax 9.03 lacs CIT
A.Y.2007-08 Appeals
(x) The company has no accumulated losses as at March 31, 2010. The
Company has not incurred cash losses during the financial year covered
by our audit and in the immediately preceding financial year.
(xi) In our opinion and according to the information and explanations
given to us, the company has not defaulted in repayment of dues to
banks. The company has not obtained any borrowings from financial
institution or by way of debentures.
(xii) The company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
(xiii) The company has given guarantee for loans taken by others from
banks or financial institutions. In our opinion and based on the
information and explanations given to us, the terms and conditions are
considered not prejudicial to the interest of the company.
(xiv) To the best of our knowledge and belief and according to the
information and explanations given to us, in our opinion, the term
loans raised during the year were prima facie been used for the purpose
for which they were raised. The term loans outstanding at the beginning
.of the year were applied for the purpose for
which they were obtained.
(xv) According to the information and explanations given to us and on
an overall examination of the balance sheel of the company, we report
that no funds raised on short-term basis have been used for long-term
investment.
(xvi) During the year, 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.
(xvii) According to information and explanations given to us, the
company has not issued any debentures during the year.
(xviii)The company has not raised any money by way of public issue
during the year.
(xix) To the best of our knowledge and belief and according to the
information and explanation given to us, no fraud on or by the company
has been noticed or reported during the year that causes the financial
statements to be materially misstated.
(xx) In our opinion and according to the information and explanations
given to us, the nature of the companys business/activities during the
year are such that paragraphs 4(xiii) provisions of any special statue
applicable to chit fund; 4(xiv) dealing or trading in shares, securities,
debentures and other investments of Company (Auditors Reports) Order,
2003 are not applicable to the company.
For KANTILAL PATEL & CO.,
Chartered Accountants
Firm Registration No. 104744W
Mayank S. Shah
Place : Ahmedabad Partner
Date : May 18, 2010 Membership No.: 44922
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