Enter the first few characters of Company and click 'Go'

Auditor Report of Vadivarhe Speciality Chemicals Ltd.

Mar 31, 2016

To the Members of M/S VADIVARHE SPECIALITY CHEMICALS LIMITED

1] Report on the Financial Statements

We have audited the accompanying financial statements of M/S VADIVARHE SPECIALITY CHEMICALS LIMITED (âthe Companyâ)_; 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.

2] Managementâs Responsibility for the 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 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.

3] Auditorâs Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit.

We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.

We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statements. The procedures selected depend on the 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 financial statements.

4] Opinion

In our opinion & to the best of our information 85 according to the explanations given to us, they said accounts give the information required by the Companies Act, in the manner so required & give a true & 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 31^st, March 2016 &

(b) In the case of the statement of Profit & Loss, of the Profit 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 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 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 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

i. The Company has disclosed the impact of pending litigations on its financial position in its financial statements

ii. The Company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long-term contracts including derivative contracts.

iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.

VADIVARHE SPECIALITY CHEMICALS LIMITED Annexure A to the Auditors'' Report

The Annexure referred to paragraph 1 under the heading âReport on other legal and regulatory requirementsâ of our report to the members of VADIVARHE SPECIALITY CHEMICALS LIMITED âthe Companyâ) for the year Ended on 31/03/2016. We report that:

(i) (a) The company has maintained proper records so as to show full particulars, including quantitative details and situation of fixed assets.

(b) The fixed assets have been physically verified by the management at reasonable intervals. According to the information and explanations given to us, no material discrepancies were noticed on such verification.

[c] According to the information and explanation given to us the title deeds of immovable properties are held in the name of the company.

(ii) The physical verification of inventory has been conducted at reasonable intervals by the management and according to the information and explanation given to us no material discrepancies were noticed.

(iii) The company has not granted any loans, secured or unsecured to companies, firms, Limited Liability Partnerships or other parties covered in the register maintained under section 189 of the Companies Act, 2013. Accordingly, paragraph 3(iii) (a), (b) and (c) are not applicable to the company.

(iv) In our opinion and as per the information and explanation given to us, in respect of loans, investments, guarantees, and security whether provisions of section 185 and 186 of the Companies Act, 2013 have been complied with.

(v) In our opinion and according the information and explanations given to us, the company has not accepted deposits, and the directives issued by the Reserve Bank of India and the provisions of sections 73 to 76 or any other relevant provisions of the Companies Act. Accordingly paragraph 3 (v) of the Order is not applicable to the unit.

(vi) According to the information and explanations given to us, since the company does not fulfill the conditions pursuant to the companies (Cost Accounting Record) Rules 2011 prescribed by the central Government, under sub-section (1) of section 148 of the Companies Act, 2013 for maintenance of the prescribed cost records and therefore such cost records are not maintained by the company. Accordingly Paragraph 3{vi) of the order is not applicable.

(vii) (^a) According to the information and explanation given to us and on the basis of the our examination , the company is regular in depositing undisputed statutory dues including provident fund, employeesâ state insurance, income-tax, sales-tax, service tax, duty of customs, duty of excise, value added tax, cess and any other statutory dues with the appropriate authorities and that there are no arrears of outstanding statutory dues as at the last day of the financial year concerned for a period of more than six months from the date they became payable.

(b) There are no dues of income tax or sales tax or wealth tax or service tax or duty of customs or duty of excise or value added tax or cess deposited on account of any dispute.

(viii) In our opinion and according to the information and explanations given to us, the Company has not defaulted in repayment of loans or borrowings to a financial institution, bank, government or debenture holder as at the Balance sheet date. Accordingly paragraph 3 (viii) of the order is not applicable.

(ix) According to the information and explanation given to us, the company has not raised money by way of initial public offer or further public offer including debt instruments) and the term loans were applied for the purposes for which they were raised. Accordingly, paragraph 3(ix) of the order is not applicable.

(x) According to the information and explanation given to us, no fraud of material significance by the company or 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 explanation given to us, the company has paid/provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Companies Act,

(xii) In our opinion, and according to the information and explanation given to us, the company is not a nidhi company. Accordingly, paragraph 3(xii) of the order is not applicable.

(xiii) In our opinion and according to the information and explanation given to us, all transactions with the related parties are in compliance with section 177 and 188 of Companies Act, 2013 where applicable and the details have been disclosed in the Financial Statements etc. as required by the applicable accounting standards.

(xiv) According to the information and explanation given to us and on the basis of explanation given to us, the company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year. Accordingly, paragraph 3(xiv) of the order is not applicable at unit level.

(xv) In our opinion and according to the information and explanation given to us, the company has not entered into any 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. Accordingly paragraph 3(xvi) of the order is not applicable.

Annexure - B to the Auditorsâ Report

Refer to Para 5 (2)(f) of the Independent Auditors Report of the even date to the members of Vadivarhe Specialty Chemicals Limited on financial statements for the year ended 31^st March 2016

Report on the Internal Financial Controls under Clause ) of Sub-section 3 of Section 143 of the Companies Act. 2013 (âthe Actâ)

We have audited the internal financial controls over financial Vadivarhe Specialty Chemicals Limited as of 31 March 2016 in conjunction with our audit of the financial statements of the Company for the year ended on that date.

Managementâs Responsibility for Internal Financial Controls

The Companyâs management is responsible for establishing and maintaining internal financial controls based on the internal control 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 (âICAIâ). 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 Companyâs 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 auditorâs judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the companyâs internal financial controls system over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company''s internal financial control over financial reporting includes those policies and procedures that (1} pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company''s assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls over Financial Reporting

Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion, the company has, in all material respects, an adequate internal financial controls systems over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31^st 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 S.R. Rahalkar & Associates

Chartered Accountants

Firm Registration Number - 108283W

Date: 30/06/2016

Place: Nashik

S.R Rahalkar

Partner

Membership Number 14509

Mar 31, 2015

INDEPENDENT AUDITORâS REPORT

The Members,

M/S VADIVARHE SPECIALITY CHEMICALS LIMITED,

1] Report on the Financial Statements

We have audited the accompanying Financial Statements of M/S VADIVARHE SPECIALITY CHEMICALS LIMITED which comprise the Balance Sheet as at 31^st March 2015 & also the Statement of Profit & Loss for the year, the cash flow Statement for the year then ended and a summary of significant accounting policies and other explanatory information.

2] Managementâs Responsibility for the 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 of these standalone financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies(Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting 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

3] Our responsibility is to express an opinion on these financial statements based on our audit.

4] We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.

5] We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10)of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

6] An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the 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 control relevant to the 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.

7] We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

8] In our opinion 8s to the best of our information 8s according to the explanations given to us, they said accounts give the information required by the Act, in the manner so required & give a true & 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 31^st, March 2015&

(b) In the case of the Profit 85 Loss Account, of the Profit for the year ended On that date.

Report on other Legal and Regulatory Requirements

9] As required by the Companies (Auditorâs Report) Order, 2015 (âthe Orderâ), issued by the Central Government of India in terms of sub-section (11) of section 143 of the Companies Act, 2013, we give in the Annexure a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.

10] As required by Section 143(3) of the Act we report that:

i. We have sought and obtained all the information & explanations, which to the best of our knowledge & belief were necessary for the purpose of out audit;

ii. In our opinion, proper books of accounts as required by law have been kept by the company so far as appears from our examination of those books;

iii. The Balance sheet, Profit& 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 8s Loss Account and cash flow statement dealt with by this report comply with the accounting standards referred to section 133 of the Act, read with rule 7 of the Companies (Accounts) rules, 2014.

v. On the basis of written representations received from the directors, as on 31^st March 2015, & taken on record by the Board of Directors, we report that none of the directors is disqualified as on 31^st March 2015 from being appointed as a director in terms of sub section 2 of section 164 of the Act;

vi. 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 knowledge and belief and according to the information and explanation given to us

i) The company has disclosed the impact of pending litigations as at 31^st March 2015 on its financial position in its financial statements.

ii) The company has made provision as at 31^st March 2015 as required under the applicable law or accounting standards for material foreseeable losses, if any, on long term contracts including derivative contracts.

iii) There were no amounts to be transferred to Investor Education and Protection Fund by the company.

Annexure to the Auditorsâ Report

The Annexure referred to in our report to the members of VADIVARHE SPECIALITY CHEMICALS LIMITED âthe Companyâ) for the year Ended on 31/03/2014. We report that:

(i) (a) The company has maintained the proper records so as to show full particulars, including quantitative details and situation of fixed assets.

(b) The fixed assets have been physically verified by the management at reasonable intervals; and according to the information and explanations given to us, no material discrepancies were noticed on such verification.

(ii) (a) The physical verification of inventory has been conducted at reasonable intervals by the management.

(b) The procedures of physical verification, in our opinion, are reasonable and adequate in relation to the size of the Company and nature of its business.

c) In our opinion and according to the information and explanations given to us, the Company is maintaining proper records of inventory. The discrepancies noticed on verification between the physical stocks and the books records were not material having regard to the size of the operations of the company and the same have been properly dealt with in the books of account.

(iii) The company has not granted any loans, secured or unsecured to companies, firms or other parties covered in the register maintained under section 189 of the Companies Act.

''''

(a) There was no receipt of principal amount or interest during the year,

(b) The company has not granted any loan during the year and the overdue amount does not exceed rupees one lakh.

(iv) In our opinion and according the information and explanations given to us, there are adequate internal control procedures commensurate with the size of the Company and the nature of its business with regard to purchases of

inventory, fixed assets and with regard to the sale of goods. During the couf-se of our audit, we have not observed any major weakness in the internal controls.

(v) In our opinion and according the information and explanations given to us, the company has not accepted deposits, and the directives issued by the Reserve Bank of India and the provisions of sections 73 to 76 or any other relevant provisions of the Companies Act 2013 and the rules framed there under are complied with.

(vii) (a) The company is regular in depositing undisputed statutory dues including provident fund, employeesâ state insurance, income-tax, sales-tax, wealth tax, service tax, duty of customs, duty of excise, value added tax, cess and any other statutory dues with the appropriate authorities and that there are no arrears of outstanding statutory dues as at the last day of the financial year concerned for a period of more than six months from the date they became payable.

(b) There are no dues of income tax or sales tax or wealth tax or service tax or duty of customs or duty of excise or value added tax or cess have not been deposited on account of any dispute.

(c) The company is not required to transferred any amount to investor education and protection fund in accordance with the relevant provisions of the Companies Act, 1956 (1 of 1956) and rules made there under has been transferred to such fund within time.

(viii) The company has accumulated losses of Rs. 3,38,40,359/- as at the end of the financial year. The company has not incurred any cash losses during current Financial Year and preceding financial year.

(ix) In our opinion and according to the information and explanations given to us, the Company has not defaulted in repayment of dues to a financial institution, bank or debenture holder as at the Balance sheet date.

(x) In our opinion and according to information and explanations given to us, the company has not given guarantee for loans, taken by others from banks or financial institutions.

(xi) In our opinion and according to information and explanations given to us, the term loans have been applied for the purpose for which they were raised.

(xii) In our opinion, considering the size and nature of the companyâs operations, no fraud of material significance on or by the company has been noticed or reported during the year.

For S.R.RAHALKAR & ASSOCIATES.

Place: Nasik Chartered Accountants

Firm Registration Number 108283W

Date: 30/06/2015 S. R/RAHALKAR.

PARTNER

Membership Number 014509

Mar 31, 2014

INDEPENDENT AUDITORâS REPORT

The Share Holders of M/S VADIVARHE SPECIALITY CHEMICALS LIMITED,

Report on the Financial Statements

1] We have audited the accompanying Financial Statements of M/s VADIVARHE SPECIALITY CHEMICALS LTD., GAT N0.204, WADIVARHE, TAL.-IGATPURI, DIST.- NASHIK 422 403, which comprise the Balance Sheet as at 31^st March 2014 & also the Statement of Profit & Loss for the year then ended and a summary of significant accounting policies and other explanatory information.

The companies Act 2013 is effective from 01/04/2014 however as per General Circular No. 8/2014 (number 1/19/2013-CL-VI, dated 04/04/2014) issued by the Government of India Ministry of Corporate affairs. The audit reports in the financial statements are prepared as per the Companies Act 1956.

Managementâs Responsibility for the Financial Statements

2] Management is responsible for the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the company in accordance with the accounting principles generally accepted in India including Accounting Standards referred to in Section 211(3C) of the Companies Act 1956 (the âActâ). This responsibility includes the design, implementation and maintenance of internal control relevant to 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.

3] Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

4] An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the 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 control relevant to the 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.

5] We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

6] In our opinion 8s to the best of our information 8& according to the explanations given to us, they said accounts give the information required by the Companies Act, 1956, in the manner so required 8s give a true 8s 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 31^st, March 2014 85

(b) In the case of the Profit 85 Loss Account, of the Loss for the year ended on that date.

Report on other Legal and Regulatory Requirements

7) As required by the Companies (Auditor''s Report) Order, 2003 and further amendment as per Companies (Auditorsâ Report) (Amendment) Order, 2004 issued by the Central Government of India in terms of subsection (4A) of section 227 of the Companies Act, 1956, we enclose in the Annexure a statement on the matters specified in paragraphs 4 & 5 of the said order.

8) As required by Section 227(3) of the Act we report that:

i. We have obtained all the information 85 explanations, which to the best of our knowledge 8s belief were necessary for the purpose of out audit;

ii. In our opinion, proper books of accounts as required by law have been kept by the company so far as appears from our examination of those books;

iii. The Balance sheet & Profit & loss Account dealt with by this report are in agreement with the books of account.

iv. In our opinion, the Balance Sheet & Profit & Loss Account dealt with by this report comply with the accounting standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956;

v. On the basis of written representations received from the directors, as on 31^st March 2014, 8s taken on record by the Board of Directors, we report that none of the directors is disqualified as on 31^st March 2014 from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the Companies Act 1956) ;Auditorâs Report

Annexure referred to in paragraph 3 of our report of even date to the members of M/S VADIVARHE SPECIALITY CHEMICALS LTD.

a. The company has maintained the 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 program of verification which in our opinion, provides for physical verification of all the fixed assets at reasonable intervals. According to the information and explanations given to us, no material discrepancies were noticed on such verification.

c. The Company has disposed vehicle of Rs 81,37,947/-(Gross block) of any substantial part of its fixed assets but it does not affect its going concern status.

ii)

a. The inventories have been physically verified by the management at reasonable intervals during the year and partially at the close of the

- year.

b. The procedures of physical verification, in our opinion, are reasonable and adequate in relation to the size of the Company and nature of its business.

c. In our opinion and according to the information and explanations given to us, the Company is maintaining proper records of inventory. The discrepancies noticed on verification between the physical stocks and the books records were not material having regard to the size of the operations of the company and the same have been properly dealt with in the books of account.

iii) During the year the Company has taken loans from its Director of Rs. 8,57,64,424/- covered in the Register maintained under section 301 of the Companies Act, 1956.

Sl.No.	Name the Director	Maximum amount due at any time during the year Amount (Rs.)	Balance due as at the end of the Financial year Amount (Rs.)
1	Sunil Pophale	8,57,64,424/-	8,57,64,424/-

However, The Company has not granted loans to Companies, firms or other parties covered in the Register maintained under section 301 of the Companies Act, 1956.

iv) In our opinion and according the information and explanations given to us, there are adequate internal control procedures commensurate with the size of the Company and the nature of its business with regard to purchases of inventory, fixed assets and with regard to the sale of goods. During the course of our audit, we have not observed any major weakness in the internal controls.

a. According to the information and explanations given to us, we are of the opinion that there are contracts and arrangements, the particulars of which need to be entered into the register maintained under section 301 of the Companies Act, 1956.

b. In case of transactions exceeding the value of the five lakhs rupees in the financial year in respect of any party; in our opinion, each of these transactions have been made at prices which are reasonable having regard to the prevailing market prices at the relevant time.

vi) In our opinion and according to the information and explanations given to us, the company has not accepted deposits from the public during the period covered by our audit report.

vii) In our opinion, the company has no internal audit system in commensurate with the size and nature of the business.

viii) We have broadly reviewed the cost records maintained by the Company pursuant to the Companies (Cost Accounting Records) Rulesâ2011 prescribed by the Central Government under Section 209(1) (d) of the Companies Actâ1956 and are of the opinion that prima facie the prescribed cost records have been maintained. We have, however, not made a detailed examination of the cost records with a view to determine whether they are accurate or complete.

ix) a. The Company is generally regular in depositing with appropriate authorities, undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Employees State Insurance, Income tax, Sales tax, Wealth tax, Service tax, Custom duty, Excise duty, Cess and any other material statutory dues applicable to it and there are no arrears outstanding as at the yearend for a period of more than six months from the date they became payable,

b. According to the information and explanations given to us, no undisputed amounts payable in respect of income-tax, wealth tax, Service tax, sales tax, customs duty, excise duty and cess were in arrears, as at March 31, 2014 for the period of more than six months from the date they become payable.

x) The company has accumulated losses at the end of the financial year of Rs.8,63,26,605/-. The company has not incurred cash losses during the year.

xi) In our opinion and according to the information and explanations given to us, the Company has not doubtful in repayment of dues to a financial institution, bank as at the Balance sheet date.

xii) In our opinion and according to the information and explanations given to us, the company has maintained adequate records where the company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other investments.

xiii)

In our opinion, the Company is not a chit fund or a nidhi / mutual benefit fund / society. Therefore, the provisions of clause 4(xiii) of the companies (Auditorâs Report) Order 2003 are not applicable to the Company.

xiv)

In our opinion and according to information and explanations given to us, the Company is not dealing in or trading in shares, securities, debentures and other investments. Accordingly, the provisions of clause 4(xiv) of the Companies (Auditorsâ Report) Order 2003 are not applicable to the Company.

xv)

According to the information and explanations given to us, the Company has not given any guarantee for any loan.

xvi)

^{In our opinion}and according to the formation and explanations given to us, the funds raised have been applied for the purpose for which they were raised.

xvii)

In our opinion and according to the information and explanations given to us, and on an overall examination of the Balance Sheet of the company, we report that funds raised on short term basis have been used for short application and funds raised on long term basis have been significantly used for long term application.

xviii)

In our opinion and according to information and explanations given to us, company has not made any preferential allotment of shares to Directors covered by our report.

xix)

In our opinion and according to information and explanations given to us, the company has not issued any secured debentures during the penned covered by our report. Accordingly, the provisions of clause 4(xix) of the Companies (Auditorâs Report) Order, 2003 are not applicable to the Company.

xx)

During the period covered by our audit report, the Company has not raised any money by public issues.

xxi)

In our opinion, considering the size and nature of the companyâs operations, no fraud of material significance on or by the company has been noticed or reported during the year.

For S.R.RAHALKAR 8s ASSOCIATES

Chartered Accountants

_Place:Nasik ^Firm Registration Number: 108283W

Date : 01/07/2014 S.R. MHALKAR

Partner

Membership Number 014509

Mar 31, 2013

The Share Holders of M/S VADIVARHE SPECIALITY CHEMICALS LIMITED,

Report on the Financial Statements

1] We have audited the accompanying Financial Statements of M/s VADIVARHE SPECIALITY CHEMICALS LTD., GAT N0.204, WADIVARHE, TAL.-IGATPURI, DIST.- NASHIK 422 403, which comprise the Balance Sheet as at 31^st March 2013 & also the Statement of Profit & Loss for the year then ended and a summary of significant accounting policies and other explanatory information.

Managementâs Responsibility for the Financial Statements

2] Management is responsible for the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the company in accordance with the accounting principles generally accepted in India including Accounting Standards referred to in Section 211 (3C) of the Companies Act 1956 (the âActâ). This responsibility includes the design, implementation and maintenance of internal control relevant to 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

5] We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Auditorâs Opinion:

6] In our opinion & to the best of our information & according to the explanations given to us, they said accounts give the information required by the Companies Act, 1956, in the manner so required & give a true & 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 31^st, March 2013 &

(b) In the case of the Profit 8s Loss Account, of the Loss for the year ended on that date.

Report on other Legal and Regulatory Requirements

8) As required by Section 227(3) of the Act we report that:

i. We have obtained all the information 8s explanations, which to the best of our knowledge 8s belief were necessary for the purpose of out audit;

ii. In our opinion, proper books of accounts as required by law have been kept by the company so far as appears from our examination of those books;

iii. The Balance sheet 8s Profit 8& loss Account dealt with by this report are in agreement with the books of account.

iv. In our opinion, the Balance Sheet 85 Profit 8s Loss Account dealt with by this report comply with the accounting standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956;

v. On the basis of written representations received from the directors, as on 31^st March 2013, 8s taken on record by the Board of Directors, we report that none of the directors is disqualified as on 31^st March 2013 from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the Companies Act 1956) ;Auditorâs Report

Annexure to Auditorâs Report

Annexure referred to in paragraph 3 of our report of even date to the members of M/S VADIVARHE SPECIALITY CHEMICALS LTD.

a. The company has maintained the proper records showing full particulars, including quantitative details and situation of fixed assets.

c. The Company has not disposed of any substantial part of its fixed assets so as to affect its going concern status.

a. The inventories have been physically verified by the management at reasonable intervals during the year and partially at the close of the year

b. The procedures of physical verification, in our opinion, are reasonable and adequate in relation to the size of the Company and nature of its business.

iii) . During the year the Company has taken loans from its Director of Rs.3,07,72,876/- covered in the Register maintained under section 301 of the Companies Act, 1956.

Sl.No.	Name the Director	Maximum amount due at any time during the year Amount (Rs.)	Balance due as at the end of the Financial year Amount (Rs.)
1	Sunil Pophale	9,39,02,656/-	, 9,39,02,656/-

However The company has not granted loans to Companies, firms or other parties covered in the Register maintained under section 301 of the Companies Act, 1956.

In our opinion and according to the information and explanations given to us, the company has not accepted deposits from the public during the period covered by our audit report.

vii) .

In our opinion, the company has no internal audit system in commensurate with the size and nature of the business.

viii)

We have broadly reviewed the cost records maintained by the Company pursuant to the Companies (Cost Accounting Records) Rulesâ2011 prescribed by the Central Government under Section 209(1) (d) of the Companies Actâ1956 and are of the opinion that prima facie the prescribed cost records have been maintained. We have, however, not made a detailed examination of the cost records with a view to determine whether they are accurate or complete.

ix)

a. The Company is generally regular in depositing with appropriate authorities, undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Employees State Insurance, Income tax, Sales tax, Wealth tax, Service tax, Custom duty, Excise duty, Cess and any other material statutory dues applicable to it and there are no arrears outstanding as at the yearend for a period of more than six months from the date they became payable.

b. According to the information and explanations given to us, no undisputed amounts payable in respect of income-tax, wealth tax, Service tax, sales tax, customs duty, excise duty and cess were in arrears, as at March 31, 2013 for the period of more than six months from the date they become payable.

^x) .The company has accumulated losses at the end of the financial year of Rs.8,63,21,369/-. The company has incurred cash losses during the year Rs.3,24,06,046/-.

xi) ... .In our opinion and according to the information and explanations given to us, the Company has not doubtful in repayment of dues to a financial institution, bank as at the Balance sheet date.

xii) _

In our opinion and according to the information and explanations given to us, the company has maintained adequate records where the company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other investments.

xiii)

xiv)

xv)

According to the information and explanations given to us, the Company has not given any guarantee for any loan.

xvi)

In our opinion and according to information and explanations given to us, the funds raised have been applied for the purpose for which they were raised.

xvii)

xviii)

In our opinion and according to information and explanations given to us, company has not made any preferential allotment of shares to Directors covered by our report.

xix)

In our opinion and according to information and explanations given to us, the company has not issued any secured debentures during the period covered by our report. Accordingly, the provisions of clause 4(xix) of the Companies (Auditorâs Report) Order, 2003 are not applicable to the Company.

xx)

During the period covered by our audit report, the Company has not raised any money by public issues.

xxi)

In our opinion, considering the size and nature of the companyâs operations, no fraud of material significance on or by the company has been noticed or reported during the year.

For S.R.RAHALKAR & ASSOCIATES

Chartered Accountants

Firm Registration Number: 108283W

Place : Nasik ,

Date : 31/08/2013 s.r rahalkar

Partner

Membership Number 014509

Mar 31, 2012

The Share Holders,

M/S VADIVARHE SPECIALITY CHEMICALS LTD.

GAT NO.204, WADIVARHE,

TAL.-IGATPURI,

DIST.-NASHIK 422 403

We have audited the attached Balance Sheet of M/S VADIVARHE SPECIALITY CHEMICALS LTD., GAT NO.204, WADIVARHE, TAL.-IGATPURI, DIST.- NASHIK 422 403 as at 31^st March 2012 & also the Profit & Loss Account for the year ended on that date annexed thereto. These financial statements are the responsibility of the Company''s management. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with auditing standards generally accepted in India. Those Standards require that we plan & 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 & disclosures in the financial statements. An audit also includes assessing the accounting principles used & 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.

As required by the Companies (Auditor''s Report) Order, 2003 and further amendment as per Companies (Auditorsâ Report) (Amendment) Order, 2004 issued by the Central Government of India in terms of subsection (4A) of section 227 of the Companies Act, 1956, we enclose in the Annexure a statement on the matters specified in paragraphs 4 & 5 of the said order.

Further to our comments in the Annexure referred to above, we report that:

i) We have obtained all the information & explanations, which to the best of our knowledge & belief were necessary for the purpose of out audit;

ii) In our opinion, proper books of accounts as required by law have been kept by the company so far as appears from our examination of those books;

iii) The Balance sheet 8b Profit & loss Account dealt with by this report are in agreement with the books of accounts

iv) In our opinion, the Balance Sheet 8s Profit 85 Loss Account dealt with by this report comply with the accounting standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956;

v) we report that none of the directors is disqualified as on 31^st 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) ;

vi) In our opinion & to the best of our information 8& according to the explanations given to us, the said accounts give the information required by the Companies Act, 1956, in the manner so required 8& give a true 8b 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 31^st, March 2012 8b

(b) In the case of the Profit 8b Loss Account, of the Loss for the year ended on that date.

Annexure referred to in paragraph 3 of our report of even date to the members of M/S VADIVARHE SPECIALITY CHEMICALS LTD.

i) .

a. The company has maintained the 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 program of verification which in our opinion, provides for physical verification of all the fixed assets at reasonable intervals. According to the information and explanations â¢ given to us, no material discrepancies were noticed on such verification.

c. The Company has not disposed of any substantial part of its fixed assets so as to affect its going concern status.

ii)

a. The inventories have been physically verified by the management at reasonable intervals during the year and partially at the close of the year.

b. The procedures of physical verification, in our opinion, are reasonable and adequate in relation to the size of the Company and nature of its business.

c. In our opinion and according to the information and explanations given to us, the Company is maintaining proper records of inventory.

The discrepancies noticed on verification between the physical stocks and the books records were not material having regard to the size of the operations of the company and the same have been properly dealt with in the books of account.

iii)

During the year the Company has taken loans from its Director of Rs.6,31,29,780/- covered in the Register maintained under section 301 of the Companies Act, 1956.

The company has not granted loans to Companies, firms or other parties covered in the Register maintained under section 301 of the Companies Act, 1956.

During the course of our audit, we have not observed any major weakness in the internal controls.

b. In case of transactions exceeding the value of the five lakhs rupees in the financial year in respect of any party; in our opinion, cach of these transactions have been made at prices which are reasonable having regard to the prevailing market prices at the relevant time.

In our opinion and according to the information and explanations given to us, the company has not accepted deposits from the public during the period covered by our audit report.

vii)

In our opinion, the company has no internal audit system in commensurate with the size and nature of the business.

viii)

To the best of our knowledge and as explained, the Central Government has not prescribed the maintenance of cost records under clause (d) of sub-section (1) of section 209 of the Companies Act, 1956 for the products of the Company.

a. The Company is generally regular in depositing with appropriate

authorities, undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Employees State Insurance, Income tax, Sales tax, Wealth tax, Service tax, Custom duty, Excise duty, Cess and any other material statutory dues applicable to it and there are no arrears outstanding as at the yearend for a period of more than six months from the date they became payable.

b. According to the information and explanations given to us, no undisputed amounts payable in respect of income-tax, wealth tax, Service tax, sales tax, customs duty, excisc duty and cess were in arrears, as at March 31, 2012 for the period of more than six months from the date they become payable.

^x) .

The company has accumulated losses at the end of the financial year of Rs.3,70,09,039/-. The company has incurred cash losses during the year Rs. 1,27,42,014/-.

In our opinion and according to the information and explanations given to us, the Company has not doubtful in repayment of dues to a financial institution, bank as at the Balance sheet date.

xii)

xiii)

xiv)

xv)

According to the information and explanations given to us, the Company has not given any guarantee for any loan.

xvi)

In our opinion and according to information and explanations given to us, the funds raised have been applied for the purpose for which they were raised.

xvii)

xviii)

In our opinion and according to information and explanations given to us, company has not made any preferential allotment of shares to Directors covered by our report.

xix)

xx)

During the period covered by our audit report, the Company has not raised any money by public issues.

xxi)

In our opinion, considering the size and nature of the companyâs operations, no fraud of material significance on or by the company has been noticed or reported during the year.

For S.R.RAHALKAR & ASSOCIATES

Chartered Accountants

Registration Number: 108283W

PLACE: Nasik S.R. RAHALKAR

DATE: 31/08/2012 Partner

Membership Number 014509

Disclaimer: This is 3rd Party content/feed, viewers are requested to use their discretion and conduct proper diligence before investing, GoodReturns does not take any liability on the genuineness and correctness of the information in this article