Mar 31, 2018
INDEPENDENT AUDITORS'' REPORT
To the Members of Vikas WSP Limited
Report on the Standalone Ind AS Financial Statements
We have audited the accompanying Standalone Ind AS financial statements of Vikas WSP Limited ("the Company"), which comprise the Balance Sheet as at March 31, 2018, 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 significant accounting policies and other explanatory information, (hereinafter referred to as "Ind AS Financial Statements")
Management''s 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 ("the Act") with respect to the preparation of these Ind AS financial statements that give a true and fair view of the (state of affairs) financial position, profit or loss (financial performance including other comprehensive income) cash flows and changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards specified under Section 133 of the Act. 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 and ensuring their operating effectiveness and 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.
Auditor''s Responsibility
Our responsibility is to express an opinion on these Ind AS 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 Ind AS financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the Ind AS financial statements. The procedures selected depend on the auditors'' 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 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 we have obtained 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 accounting principles generally accepted in India (including the Ind AS), of the state of affairs (financial position) of the Company as at March 31, 2018, its loss (financial performance including other comprehensive income), its cash flows and changes in equity for the year ended on that date.
Report on Other Legal and Regulatory Requirements
(1) As required by the Companies (Auditors'' Report) Order,
2016 ("the Order") issued by the Central Government of India in terms of sub-section (11) of Section 143 of the Act, we give in "Annexure 1", 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 it appears from our examination of those books;
c. The Balance Sheet, the Statement of Profit and Loss, the Cash Flow Statement and the Statement of Changes in Equity dealt with by this report are in agreement with the books of account;
d. In our opinion, the aforesaid Ind AS financial statements read with thereto comply with the Indian Accounting Standards specified under Section 133 of the Act;
e. On the basis of written representations received from the directors as on March 31, 2018, and taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2018 from being appointed as a director in terms of Section 164 (2) of the Act;
f. With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, we give our separate Report in "Annexure 2"; and
g. With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit 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 Ind AS financial statements - refer Note 29 on Contingent Liabilities to the Ind AS financial statements;
ANNEXURE 1 TO THE INDEPENDENT AUDITOR''S REPORT
[Referred to in paragraph 1 under ''Report on Other Legal and Regulatory Requirements'' in the Independent Auditor''s Report of even date to the members of Vikas WSP Limited on the financial statements for the year ended March 31, 2018]
(i) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of property, plant and equipment.
(b) During the year, property, plant and equipment has been physically verified by the management as per the regular programme of verification which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. As informed, no material discrepancies were noticed on such verification.
(c) The title deeds of immovable properties recorded as property, plant and equipment in the books
(ii) The Company did not have any long-term contracts including derivative contracts. Hence, the question of any material foreseeable losses does not arise;
(iii) There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company; and
(iv) The disclosure requirements relating to holdings as well as dealings in specified bank notes were applicable for the period from 8 November, 2016 to 30 December, 2016 which are not relevant to these standalone financial statements. Hence, reporting under this Clause is not applicable. of account of the Company are held in the name of the Company.
(ii) The inventory has been physically verified by the management during the year. In our opinion, the frequency of verification is reasonable. As informed, no material discrepancies were noticed on physical verification carried out during the year.
(iii) As informed, the Company has not granted any loans, secured or unsecured to companies, firms, Limited Liability Partnerships or other parties covered in the register maintained under Section 189 of the Act. Accordingly, paragraph 3 (iii)(a), 3 (iii)(b) and 3 (iii)
(c) of the Order are not applicable to the Company.
(iv) Based on information and explanation given to us, the Company has not granted any loans or made any investments or provided any guarantees or security, as referred in section 185 and 186 of the Act.
(v) In our opinion and according to the information and explanations given to us, the Company has not accepted any deposits from the public within the provisions of Sections 73 to 76 of the Act and the rules framed there under.
(vi) The Central Government has not prescribed the maintenance of cost records for any of the products of the Company under sub-section (1) of Section 148 of the Act and the rules framed there under.
(vii) (a) The Company is not regular in depositing with appropriate authorities, undisputed statutory dues including provident fund, employees'' state insurance, income tax, goods and services tax, sales tax, service tax, value added tax, customs duty, excise duty, cess and any other material statutory dues, as applicable to it, and there have been delays in a large number of cases.
(b) According to the information and explanations given to us, dues in respect of provident fund and income tax, goods and services tax, which were outstanding, at the year end for a period of more than six months from the date they became payable are as follows:
(viii) According to the information and explanations given to us, the Company has not taken any loans or borrowings from financial institution(s) or government(s) and the Company has not issued any debentures. Further, the Company has defaulted in repayment of loans or borrowings to banks as per detail given below (also refer note no. 36):
Name of the bank |
Principal |
Interest |
Period of default |
Rs in lacs |
Rs in lacs |
||
Punjab National Bank |
|||
Packing credit limit |
2,415.69 |
- |
More than 360 days |
A |
2,415.69 |
- |
|
Bank of India |
|||
Packing credit limit |
4,708.06 |
More than 360 days |
|
Foreign documentary bill purchase/discounting facility |
|||
Interest on above |
1,253.76 |
More than 360 days |
|
335.39 |
More than 180 days |
Name of the statute |
Nature of the dues |
Amount (in lacs) |
Period to which the amount relates |
Due Date |
Date of Payment |
Income Tax Act, 1961 |
TDS |
47.20 |
F.Y. 2016-17 |
Between Apr-Mar 2017 |
Not paid |
Name of the statute |
Nature of dues |
Amount (in lacs) |
Period to which the amount relates |
Forum where dispute is pending |
Income tax Act, 1961 |
Income tax |
30.72 |
A.Y. 1995-96 |
Hon''ble High Court of Punjab & Haryana |
Income tax Act, 1961 |
Income tax |
13,137.82 |
A.Y. 2013-14 |
Commissioner of Income Tax (Appeal) |
Income tax Act, 1961 |
Income tax |
2,377.05 |
A.Y. 2013-14 |
Commissioner of Income Tax (Appeal) |
Income tax Act, 1961 |
Income tax |
2,627.56 |
A.Y. 2013-14 |
Commissioner of Income Tax (Appeal) |
Service Tax Act, 1994 |
Service tax |
897.81 |
F.Y. 2006-07 to 2010-11 |
Custom, Excise and Service Tax Appellate Tribunal |
14.44 |
F.Y. 2017-18 |
Between Apr- Sep-2017 |
Not paid |
||
The Employees Provident Fund and Miscellaneous Provisions Act, 1952 |
Provident fund |
60.37 |
F.Y. 2015-16 |
Between Oct-Mar 2016 |
Not paid |
139.61 |
F.Y. 2016-17 |
Between Apr-Mar 2017 |
Not paid |
||
93.51 |
F.Y. 2017-18 |
Between Apr-Sep 2017 |
Not paid |
||
Employees'' State Insurance Act, 1948 |
ESI |
15.46 |
F.Y. 2016-17 |
Between Apr-Mar 2017 |
Not paid |
43.60 |
F.Y. 2017-18 |
Between Apr-Sep 2017 |
Not paid |
(c) According to the information and explanation given to us, the dues outstanding with respect to, income tax, sales tax, service tax, value added tax, customs duty, excise duty on account of any dispute, are as follows:
334.25 |
Less than 180 days |
||
B |
4,708.06 |
1,923.40 |
|
Union Bank of India |
|||
Packing credit limit |
6,299.11 |
More than 360 days |
|
Foreign documentary bill purchase/discounting facility |
3,248.81 |
More than 360 days |
|
C |
9,547.92 |
- |
|
Grand total A B C |
16,671.67 |
1,923.40 |
transactions with directors or persons connected with him during the year.
(xvi) According to the information and explanation given to us, the Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934.
(ix) The Company has neither raised money by way of public issue offer nor has obtained any term loans. Therefore, paragraph 3(ix) of the Order is not applicable to the Company.
(x) During the course of our examination of the books and records of the Company, carried out in accordance with the generally accepted auditing practices in India, and according to the information and explanations given to us, we have neither come across any instance of fraud by the Company or any fraud on the Company by its officers or employees, noticed or reported during the year, nor have we been informed of any such instance by the management.
(xi) According to the information and explanations given to us, managerial remuneration has been paid/ provided in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V to the Act.
(xii) In our opinion and according to the information and explanations given to us, the Company is not a Nidhi Company. Therefore, paragraph 3(xii) of the Order is not applicable to the Company.
(xiii) According to the information and explanation given to us, all transactions entered into by the Company with the related parties are in compliance with Sections 177 and 188 of Act, 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 explanations given to us, the Company has made preferential allotment of shares during the period under review, the requirement of section 42 of the Companies Act, 2013, as applicable has been complied with; and the amount raised have been applied by the Company during the year for the purposes for which the funds were raised.
(xv) According to the information and explanations given to us, the Company has not entered into any non-cash
ANNEXURE 2 TO THE INDEPENDENT AUDITOR''S REPORT OF EVEN DATE ON THE FINANCIAL STATEMENTS OF ("the Company")
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 ("the Act")
To the Members of Vikas WSP Limited ("the Company")
We have audited the internal financial controls over financial reporting of the Company as of March 31, 2018 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.
Management''s Responsibility for Internal Financial Controls
The Company''s Board of Directors 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 ("the guidance note") 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 Act.
Auditors'' Responsibility
Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Standards on Auditing issued by ICAI and deemed to be prescribed under section 143(10) of the Act, to the extent applicable to an audit of internal financial controls and the aforementioned guidance note. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company''s internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A Company''s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A Company''s internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company''s assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2018, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
Explanatory paragraph
We also have audited, in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India, as specified under section 143(10) of the Act, the standalone financial statements of (the Company), which comprise the Balance Sheet as at March 31, 2018, and the related Statement of Profit and Loss, the Cash Flow Statement and Statement of Change in it''s equity for the year then ended, and a summary of significant accounting policies and other explanatory information, and our report dated May 28, 2018 expressed unmodified opinion.
For S. Prakash Aggarwal & Co
Chartered Accountants
Firm Registration No.06105C
Som Prakash Aggarwal
Proprietor
Membership No.74813
Sri Ganganagar
May 28, 2018
Mar 31, 2016
INDEPENDENT AUDITOR''S REPORT
To the Members of Vikas WSP Limited Report on the Financial Statements
We have audited the accompanying financial statements of Vikas WSP Limited("the Company"), which comprise the Balance Sheet as at 31 March2016, 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.
Management''s Responsibility for the Financial Statements
The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with 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.
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 the disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether duet fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company''s preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of 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 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 31March2016 and its loss and its cash flows for the year ended on that date.
Other Matter
(a) The financial statements of the Company for the year ended 31 March 2015 were audited by another auditor whose report dated 12 June 2015expressed an unmodified opinion on those statements.
(b) The Company has not complied with the provisions of Section 203 (1) (iii) of the Act, regardingappoint-ment of Chief Financial Officer (CFO). Our opinions not qualified in respect of this matter.
Report on Other Legal and Regulatory Requirements
1. As required by Section 143 (3) of the Act, we report that:
(c) 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;
(d) 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;
(e) 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.;
(f) 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;
(g) On the basis of the written representations received from the directors as on 31 March 16 taken on record by the Board of Directors, none of the directors is disqualified as on 31 March 16 from being appointed as a director in terms of Section 164 (2) of the Act; and
(h) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate report in ''Annexure A''.
(i) 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:
1. The Company has disclosed the impact of pending litigations on its financial position in its financial statements - Refer Note 33to the financial statements;
ii. The Company did not have any long-term contracts for which there were any material foreseeable losses. The Company does not have any derivative contracts; and
iii. There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.
2. As required by the Companies (Auditor''s Report) Order, 2016 ("the Order") issued by the Central Government 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.
ANNEXURE A TO THE INDEPENDENT AUDITOR''S REPORT OF EVEN DATE ON THE FINANCIAL STATEMENTS OF ("the Company")
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 ("the Act")
To the Members of Vikas WSP Limited ("the Company")
We have audited the internal financial controls over financial reporting of ("the Company") as of 31 March 16 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.
Management''s Responsibility for Internal Financial Controls
The Company''s Management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India". These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to Company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Act.
Auditors'' Responsibility
Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the "Guidance Note") and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Act, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company''s internal financial controls system over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A Company''s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A Company''s internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company''s assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31 March 16, 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.
Explanatory paragraph
We also have audited, in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India, as specified under section 143(10) of the Act, the standalone financial statements of (the Company), which comprise the Balance Sheet as at 31 March 16, and the related 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, and our report dated 12 July 2016 expressed unmodified opinion.
ANNEXURE B TO THE INDEPENDENT AUDITOR''S REPORT
[Referred to in paragraph 1 under ''Report on Other Legal and Regulatory Requirements'' in the Independent Auditor''s Report of even date to the members of Vikas WSP Limited on the financial statements for the year ended 31 March 2016]
(i)
(a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
(b) During the year, fixed assets have been physically verified by the management as per the regular programme of verification which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. As informed, no material discrepancies were noticed on such verification.
(c) The title deeds of immovable properties recorded as fixed assets in the books of account of the Company are held in the name of the Company.
(ii) The inventory has been physically verified by the management during the year. In our opinion, the frequency of verification is reasonable. As informed, no material discrepancies were noticed on physical verification carried out during the year.
(iii)As informed, the Company has not granted any loans, secured or unsecured to companies, firms, Limited Liability Partnerships or other parties covered in the register maintained under Section 189 of the Act. Accordingly, paragraph 3 (iii)(a), 3 (iii)(b) and 3 (iii)(c) of the Order are not applicable to the Company.
(iv) Based on information and explanation given to us, the Company has not granted any loans or made any investments in or provided any guarantees or security, to parties covered under section 185 and section 186 of the Act.
(v) In our opinion and according to the information and explanations given to us, the Company has not accepted any deposits from the public within the provisions of Sections 73 to 76 of the Act and the rules framed there under.
(vi)The Central Government has not prescribed the maintenance of cost records for any of the products of the Company under sub-section (1) of Section 148 of the Act and the rules framed there under.
(a) The Company is not regular in depositing with appropriate authorities, undisputed statutory dues including provident fund, employees'' state insurance, income tax, sales tax, service tax, value added tax, customs duty, excise duty, cess and any other material statutory dues applicable to it, and there have been serious delays in a large number of cases.
(b) According to the information and explanations given to us, undisputed dues in respect of provident fund, employees'' state insurance, income tax, sales tax, service tax, value added tax, customs duty, excise duty, cess and any other material statutory dues applicable to it, which were outstanding, at the yearend for a period of more than six months from the date they became payable are as follows:
Name of the statute |
Nature of the dues |
Amount (in lacs) |
Period to which the amount relates |
Due Date |
Date of Payment |
Income Tax Act, 1961 |
Income tax |
193.04 |
A.Y, 2015-16 |
September 2015 |
Not paid |
Income Tax Act, 1961 |
TDS |
8.94 |
F.Y* 2015-16 |
Between May-Qct 2015 |
Not paid |
The Employees Provident Fund and Miscellaneous Provisions Act, 195Z |
Provident fund |
41,25 |
F.Y. 2015-16 |
Between May-Qct 2015 |
Not paid |
Employee State Insurance Act, 1948 |
10,85 |
F.Yr 2015-16 |
Between May-Qct 2015 |
Not paid |
(c) According to the information and explanation given to us, there are no outstanding disputed dues in respect of sales tax, value added tax, customs duty and excise duty. The dues outstanding with respect to income tax and service tax on account of any dispute, are as follows.
Name of the statute |
Nature of dues |
Amount (in lacs) |
Period to which the amount relates |
Forum where dispute is pending |
Income tax Act, 1961 |
Income tax |
30,72 |
A,Y. 1995-96 |
Honâble High Court of Punjab & Haryana |
Income tax Act, 1961 |
Income tax |
13,137.82 |
A.Y. 2013-14 |
Commissioner of Income Tax (Appeal) |
Income tax Act, 1961 |
Income tax |
2,377.05 |
A-Y. 2013-14 |
Commissioner of Income Tax (Appeal) |
Income tax Act, 1961 |
Income tax |
2,627.56 |
A.Y. 2013-14 |
Commissioner of Income Tax (Appeal) |
Service Tax Act, 1994 |
Service tax |
897.81 |
F.Y. 2006 07 to 2010-11 |
Custom, Excise and Service Tax Appellate Tribunal |
(viii) According to the information and explanations given to us, the Company has not taken any loans from financial institution(s) or government(s). The Company has not issued any debentures. Further, the Company has defaulted in repayments of dues to banks as per details below:.
Name of the bank |
Principal |
Interest |
Period of default |
Rs in lacs |
Rs in lacs |
||
Punjab National Bank |
|||
Packing credit limit |
901.42 |
- |
More than 180 days |
2,096.88 |
- |
Less than 180 days |
Name of the bank |
Principal |
Interest |
Period of default |
Rs in lacs |
Rs in lacs |
||
Foreign documentary bill purchase/discounting facility |
1,215.02 |
More than 180 days |
|
Interest on above |
34.37 |
Less than 180 days |
|
A |
4,213.32 |
34.37 |
|
Bank of India |
|||
Packing credit limit |
4,996.48 |
More than 180 days |
|
Foreign documentary bill purchase/discounting facility |
|||
Interest on above |
114.27 |
More than 180 days |
|
473.38 |
Less than 180 days |
||
B |
4,996.48 |
587.65 |
|
Union Bank of India |
|||
Packing credit limit |
4,969.73 |
More than 180 days |
|
Foreign documentary bill purchase/discounting facility |
2,429.05 |
" |
More than 180 days |
Interest on above |
424.01 |
Less than 180 days |
|
C |
7,398.78 |
424.01 |
|
Grand total At-B C 16,608.58 1,046.03 |
(ix) During the year, the Company has neither raised money by way of public issue offer nor has obtained any term loans. Therefore, paragraph 3(ix) of the Order is not applicable to the Company.
(x) During the course of our examination of the books and records of the Company, carried out in accordance with the generally accepted auditing practices in India, and according to the information and explanations given to us, we have neither come across any instance of fraud by the Company or any fraud on the Company by its officers or employees, noticed or reported during the year, nor have we been informed of any such instance by the management.
(xi) According to the information and explanations given to us, managerial remuneration has been paid in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V to the Act.
(xii) In our opinion and according to the information and explanations given to us, the Company is not a Nidhi Company. Therefore, paragraph 3(xii) of the Order is not applicable to the Company.
(xiii) According to the information and explanation given to us, all transactions entered into by the Company with the related parties are in compliance with Sections 177 and 188 of Act, where applicable and the details have been disclosed in the Financial Statements etc., as required by the applicable accounting standards.
(xiv) The Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review. Therefore, paragraph 3(xiv) of the Order is not applicable to the Company.
(xv) According to the information and explanations given to us, the Company has not entered into any non-cash transactions with directors or persons connected with him during the year.
(xvi) According to the information and explanation given to us, the Company is not required to be registered under Section 45-IAof the Reserve Bank of India Act, 1934.
For S. Prakash Aggarwal & Co
Chartered Accountants
Firm Registration No.06105C
S.P. Aggarwal
Partner
Membership No.74813
Place : Sriganganagar
Date : 12 July 2016
Mar 31, 2015
We have audited the accompanying financial statements of VIKAS WSP
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 the significant accounting
policies and other explanatory information.
Management's Responsibility for the Financial Statements
The Company's Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 ("the Act") with respect
to the preparation of these financial statements that give a true and
fair view of the financial position, financial performance and cash
flows of the Company in accordance with the accounting principles
generally accepted in India, including the Accounting Standards
specified under Section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014. This responsibility also includes
maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding 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.
Auditors' Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit.
We have taken into account the provisions of the Act, the accounting
and auditing standards and matters which are required to be included in
the audit report under the provisions of the Act and the Rules made
there under.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. Those
Standards require that we comply with ethical requirements and plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial control relevant
to the Company's preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing
an opinion on whether the Company has in place an adequate internal
financial controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of 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 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.
Emphasis of Matters
We draw attention to Note No. 39 in the notes to financial statements
with regard to settlement of claims for non performance of orders with
foreign buyers and Indian suppliers. Our opinion is not qualified in
respect of this matter.
Other Matters
The company has not complied with the provisions of Section 203 (1)
(iii) of the Companies Act, 2013 regarding appointment of Chief
Financial Officer (CFO). Our opinion is not qualified in respect of
this matter.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 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 the paragraph 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
andexplanationswhichtothebest 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 31st March, 2015 taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March, 2015
from being appointed as a director in terms of Section 164 (2) of the
Act.
(f) With respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit 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 33 to the
financial statements;
ii. The Company is not required to make any provision for any material
foreseeable losses under any law or accounting standards on long terms
contracts. Also the company is not
dealing into derivative contracts - Refer Note 41 to the financial
statements;
iii. There has been no delay in transferring any amount to the Investor
Education and Protection Fund during the year - Refer Note 40 to the
financial statements.
Annexure to Independent Auditors' Report
The Annexure referred to in our Independent Auditors' Report to the
members of the Company on the financial statements for the year ended
31st March 2015, we report that:
(i) a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
b) The Company has a system of physical verification of fixed assets by
which all the fixed assets are verified in a phased manner over a
period of three years. In our opinion, this periodicity of physical
verification is reasonable having regard to the size of the Company and
the nature of its assets. No material discrepancies were noticed on
such verification during the year.
(ii) a) The inventory has been physically verified by the management
during the year, except goods in transit. In our opinion, the frequency
of such verification is reasonable.
b) The procedures for the physical verification of inventories followed
by the management are reasonable and adequate in relation to the size
of the Company and the nature of its business.
c) The Company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stocks and
book records were not material and have been properly adjusted in the
books of account.
(iii) As informed to us, the Company has neither granted nor taken any
loans, secured or unsecured, to or from companies or firms or other
parties covered in the register maintained under section 189 of the
Companies Act, 2013.
(iv) In our opinion and according to the information and explanations
given to us, that purchases of certain raw materials are for the
Company's specialised requirements and similarly goods sold are for the
specialised requirements of the buyers and suitable alternative sources
are not available to obtain comparable quotations. Internal control
system of the company is adequate looking into the size and operations
of the company except in respect of fixed assets, where no capital
budget was placed before the board.
(v) The Company has not accepted any deposits from the public.
(vi) We have broadly reviewed the books of account maintained by the
company in pursuant to the rules prescribed by the Central Government
for the maintenance of cost records under sub-section (1) of section
148 of the Act, and are of the opinion that, prima facie, the
prescribed accounts and records have been made and maintained. We have
not, however, made a detailed examination of the records with a view to
determine whether they are accurate or complete.
(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, Sales tax, Income tax,
Service tax, Excise duty, Wealth tax, Customs duty, Investor Education
and Protection Fund, Cess and other material statutory dues to the
extent applicable, have generally been deposited regularly during the
year by the Company with the appropriate authorities except there have
been slight delays in few cases in respect of tax deducted at source.
According to the information and explanations given to us, no
undisputed amounts payable in respect of Provident Fund, Income-tax,
Sales tax, Service tax, Customs duty, Wealth tax, Excise duty, Cess and
other material statutory due were in arrears as at 31 March 2015 for a
period of more than sixmonths from the date they became payable.
(b) According to the information and explanations given to us, there
are no dues of Sales tax, Wealth tax, Service tax, Excise duty, Customs
duty and Cess, which have not been deposited with the appropriate
authorities on account of any dispute other than those mentioned below:
Name Nature Amount Amount
of the of the demanded deposited
statute dues (Rs.in under
lacs) protest (Rs. in lacs)
Income- Income 30.72 30.72
tax Act, tax
1961
Service Service 1387.81 490.00
tax Act Tax
Name of the
Statute Disputed Period to Forum
amount not which the where
deposited amount dispute is
(Rs. in relates pending
lacs)
Income - 1995-96 High
Tax Act 1961 Court of
Punjab and
Haryana
Service 897.81 2006-07 to Custome,
2010-11 Excise and
service tax
Appellate
Tribunal
[c) According to the information and explanations given to us the
amounts which were required to be transferred to the investor education
and protection fund in accordance with the relevant provisions of the
Companies Act, 1956(1 of 1956) and rules there under has been
transferred to such fund within time.
(viii) The Company does not have any accumulated losses at the end of
the financial year and has not incurred cash losses in the financial
year and in the immediately preceding financial year.
(ix) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to any
financial institution or bank. The Company did not have any outstanding
debentures during the year.
(x) In our opinion and according to the information and explanations
given to us, the company has not given any guarantee for loans taken by
others from banks or financial institutions.
(xi) The company did not have any termloans outstanding during the
year.
(xii) Based on the information and explanations given and audit
procedure performed by us, no fraud on or by the company has been
noticed or reported during the year.
For Arun K. Agarwal & Associates
Chartered Accountants
FRN03917N
Vimal Kumar Jain
Place : Sri Ganganagar Partner
Date : 12.06.2015 Membership No,086657
Mar 31, 2014
We have audited the accompanying financial statements of VIKAS WSP
LIMITED ("the CompanyÂ), which comprise the Balance Sheet as at
31stMarch , 2014, the Statement of Profit and Loss and the Cash Flow
Statement for the year then ended, and a summary of the significant
accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956 ("the ActÂ) read with the General Circular
15/2013 dated 13 September 2013 of the Ministry of Corporate Affairs in
respect of section 133 of the Companies Act, 2013. This responsibility
includes the design, implementation and maintenance of internal control
relevant to the preparation and presentation of the financial
statements that give a true and fair view and are free from material
misstatements, whether due to fraud or error.
Auditors'' Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with the
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatements.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s 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 company''s
internal control. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Management, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion In our opinion and to the best of our information and according
to the explanations given to us, the financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31stMarch, 2014;
(b) in the case of the Statement of Profit and Loss, of the profit for
the year ended on that date; and
(c) in the case of the Cash Flow Statement, of the cash flowsfor the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003("the
OrderÂ) as amended, issued by the CentralGovernment of India in terms
of sub-section (4A) ofsection 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 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 Balance Sheet, the Statement of Profit and Loss
and the Cash Flow Statement comply
(e) On the basis of the written representations received from the
directors as on 31st March, 2014, and taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March,
2014, from being appointed as a director in terms of clause (g) of
sub-section (1) of section 274 of the Act.
Annexure to Independent Auditors'' Report to the Members of Vikas WSP
Limited
Referred to Paragraph 1 under the heading of "Report on Other Legal and
Regulatory Requirements" 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 Company has a system of physical verification of fixed assets by
which all the fixed assets are verified in a phased manner over a
period of three years. In our opinion, this periodicity of physical
verification is reasonable having regard to the size of the Company and
the nature of its assets. No material discrepancies were noticed on
such verification during the year.
c) No fixed assets were disposed off during the year.
(ii) a) The inventory has been physically verified by the management
during the year, except goods-in-transit. In our opinion, the frequency
of such verification is reasonable.
b) The procedures for the physical verification of inventories followed
by the management are reasonable and adequate in relation to the size
of the Company and the nature of its business.
c) The Company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stocks and
book records were not material and have been properly adjusted in the
books of account.
(iii) As informed to us, the Company has neither granted nor taken any
loans, secured or unsecured, to or from companies or firms or other
parties covered in the register maintained under section 301 of the
Companies Act, 1956.
(iv) In our opinion and according to the information and explanations
given to us,that purchases of certain raw materials are for the
Company''s specialised requirements and similarly goods sold are for the
specialised requirements of the buyers and suitable alternative sources
are not available to obtain comparable quotations. Internal control
system of the company is adequate looking into the size and operations
of the company except in respect of fixed assets, where no capital
budget was placed before the board.
(v) (a) In our opinion and according to the information and
explanations given to us, the contracts or arrangements, referred to in
section 301 of the Companies Act, 1956 have been entered in the
register required to be maintained under that section.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts and
arrangements referred to in (a) above and exceeding the value of Rs 5
lakh are for purchases of certain items of inventories which are of
specialised requirements of the company and similarly sale of certain
goods are for the specialised requirements of the buyers and for which
suitable alternative sources are not available to obtain the comparable
quotations. However, on the basis of information and explanations
provided, the same appear reasonable.
(vi) The company has not accepted any deposits from the public.
(vii)The Company has an internal audit system. In our opinion, the
scope of work of internal audit and compliance needs be strengthened to
make it commensurate with the size and nature of its business.
(viii) We have broadly reviewed the books of account maintained by the
company in pursuant to the rules prescribed by the Central Government
for the maintenance of cost records under clause (d) of sub- section
(1) of section 209 of the Act, and are of the opinion that, prima
facie, the prescribed accounts and records have been made and
maintained. We have not, however, made a detailed examination of the
records with a view to determine whether they are accurate or complete.
(ix) (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, Sales tax, Income tax,
Service tax, Excise duty, Wealth tax, Customs duty,Investor Education
and Protection Fund, Cess and other material statutory dues to the
extent applicable, have generally been deposited regularly during the
year by the Company with the appropriate authorities except there have
been slight delays infew cases in respect of tax deducted at source.
According to the information and explanations given to us, no
undisputed amounts payable in respect of Provident Fund, Income-tax,
Sales tax, Service tax, Customs duty, Wealth tax, Investor and
Education Fund, Excise duty, Cess and other material statutory due were
in arrears as at 31 March 2014 for a period of more than six months
from the date they became payable.
(b) According to the information and explanations given to us, there
are no dues of Sales tax, Wealth tax, Service tax, Excise duty, Customs
duty and Cess, which have not been deposited with the appropriate
authorities on account of any dispute. As informed to us, dues relating
to Income tax and service tax which has been deposited under protest is
as follows:
Name Nature of Amount Period to Forum where
of the the dues (Rs.) which the dispute is
statute amount pending
relates
Income- Income tax 3,072,093 1995-96 High Court of
tax Act, Punjab and
1961 Haryana
Service Service Tax 4,90,00,499 2006- 07 Custom, Excise
tax Act to 2010-11 and service
tax Appellate
Tribunal
(x) The Company does not have any accumulated losses at the end of the
financial year and has not incurred cash losses in the financial year
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 any
financial institution or bank. The Company did not have any outstanding
debentures during the year.
(xii) According to the information and explanations given to us, the
Company has not granted any loans and advances on the basis of security
by way of pledge of shares, debentures and other securities.
(xiii) According to the information and explanations given to us, the
Company is not a chit fund or a nidhi/ mutual benefit fund/ society.
(xiv) According to the information and explanations given to us, the
Company is not dealing or trading in shares, securities, debentures and
other investments.
(xv) In our opinion and according to the information and explanations
given to us, the company has not given any loans taken by others from
banks or financial institutions.
(xvi) According to the information and explanations given to us, the
term loans availed by the company, were prima facie, applied for the
purpose for which the loans were obtained.
(xvii) According to the information and explanations given to us and on
an overall examination of financial statement of the Company, funds
raised on shortterm basis have, prima facie, not been used for longterm
investments.
(xviii) The Company has not made any preferential allotment of shares
to companies or firm or parties covered in the register maintained
under Section 301 of the Companies Act, 1956.
(xix) The Company did not have any outstanding debentures during the
year.
(xx) The Company has not raised any money by way of public issues
during the year.
(xxi) Based on the information and explanations given and audit
procedure performed by us, no fraud on or by the company has been
noticed or reported during the year.
For Arun K. Agarwal & Associates
Chartered Accountants
FRN:03917N
Vimal Kumar Jain
Place : Sri Ganganagar Partner
Date: 29.05.2014 Membership No.:086657
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of VIKAS WSP
LIMITED ("the Company"), which comprise the Balance Sheet as at 31st
March , 2013, the Statement of Profit and Loss and the Cash Flow
Statement for the year then ended, and a summary of the significant
accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956 ("the Act"). This responsibility includes
the design, implementation and maintenance of internal control relevant
to the preparation and presentation of the financial statements that
give a true and fair view and are free from material misstatements,
whether due to fraud or error.
Auditors'' Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with the
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatements.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s 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 the accounting policies used
and the reasonableness of the accounting estimates made by the
Management, as well as evaluating the overall presentation of the
financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2013;
(b) in the case of the Statement of Profit and Loss, of the 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("the
Order") as amended, 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 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 Balance Sheet, the Statement of Profit and Loss
and the Cash Flow Statement comply with the Accounting Standards
referred to in sub-section (3C) of section 211 of the Act.
(e) On the basis of the written representations received from the
directors as on 31st March, 2013, and taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March,
2013, from being appointed as a director in terms of clause (g) of
sub-section (1) of section 274 of the Act.
Annexure to Independent Auditors'' Report to the Members of Vikas WSP
Limited
Referred to Paragraph 1 under the heading of "Report on Other Legal and
Regulatory Requirements" 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 Company has a system of physical verification of fixed assets by
which all the fixed assets are verified in a phased manner over a
period of three years. In our opinion, this periodicity of physical
verification is reasonable having regard to the size of the Company and
the nature of its assets. No material discrepancies were noticed on
such verification during the year.
c) No fixed assets were disposed off during the year.
(ii) a) The inventory has been physically verified by the management
during the year, except goods-in- transit. In our opinion, the
frequency of such verification is reasonable.
b) The procedures for the physical verification of inventories followed
by the management are reasonable and adequate in relation to the size
of the Company and the nature of its business.
c) The Company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stocks and
book records were not material and have been properly adjusted in the
books of account.
(iii) As informed to us, the Company has neither granted nor taken any
loans, secured or unsecured, to or from companies or 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, that purchases of certain raw materials are for the Company''s
specialised requirements and similarly goods sold are for the
specialised requirements of the buyers and suitable alternative sources
are not available to obtain comparable quotations. Internal control
system of the company is adequate looking into the size and operations
of the company except in respect of fixed assets, where no capital
budget was placed before the board.
(v) (a) In our opinion and according to the information and
explanations given to us, the contracts or arrangements, referred to in
section 301 of the Companies Act, 1956 have been entered in the
register required to be maintained under that section.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts and
arrangements referred to in (a) above and exceeding the value of Rs 5
lakh are for purchases of certain items of inventories which are of
specialised requirements of the company and similarly sale of certain
goods are for the specialised requirements of the buyers and for which
suitable alternative sources are not available to obtain the comparable
quotations. However, on the basis of information and explanations
provided, the same appear reasonable.
(vi) The company has not accepted any deposits from the public.
(vii) The Company has an internal audit system. In our opinion, the
scope of work of internal audit and compliance needs be strengthened to
make it commensurate with the size and nature of its business.
(viii) We have broadly reviewed the books of account maintained by the
company in pursuant to the rules prescribed by the Central Government
for the maintenance of cost records under clause (d) of sub- section
(1) of section 209 of the Act, and are of the opinion that, prima
facie, the prescribed accounts and records have been made and
maintained. We have not, however, made a detailed examination of the
records with a view to determine whether they are accurate or complete.
(ix) (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, Sales tax, Income tax,
Service tax, Excise duty, Wealth tax, Customs duty, Investor Education
and Protection Fund, Cess and other material statutory dues to the
extent applicable, have generally been deposited regularly during the
year by the Company with the appropriate authorities except there have
been slight delays in few cases in respect of tax deducted at source.
According to the information and explanations given to us, no
undisputed amounts payable in respect of Provident Fund, Income-tax,
Sales tax, Service tax, Customs duty, Wealth tax, Investor and
Education Fund, Excise duty, Cess and other material statutory due were
in arrears as at 31 March 2013 for a period of more than six months
from the date they became payable.
(b) According to the information and explanations given to us, there
are no dues of Sales tax, Wealth tax, Service tax, Excise duty, Customs
duty and Cess, which have not been deposited with the appropriate
authorities on account of any dispute. As informed to us, dues
relating to Income tax and service tax which has been deposited under
protest is as follows:
Name Nature of Amount Period to Forum where
of the the dues (Rs.) which the dispute is
statute amount pending
relates
Income- Income tax 3,072,093 1995-96 High Court of
tax Act, Punjab and
1961 Haryana
Service Service Tax 4,90,00,499 2006-07 to Custome, Excise
tax Act 2010-11 and service
tax Appellate
Tribunal
(x) The Company does not have any accumulated losses at the end of the
financial year and has not incurred cash losses in the financial year
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 any
financial institution or bank. The Company did not have any outstanding
debentures during the year.
(xii) According to the information and explanations given to us, the
Company has not granted any loans and advances on the basis of security
by way of pledge of shares, debentures and other securities.
(xiii) According to the information and explanations given to us, the
Company is not a chit fund or a nidhi/ mutual benefit fund/ society.
(xiv) According to the information and explanations given to us, the
Company is not dealing or trading in shares, securities, debentures and
other investments.
(xv) In our opinion and according to the information and explanations
given to us, the terms and conditions of the guarantees given by the
Company, for loans taken by others from banks during the year, are,
prima facie, not prejudicial to the interest of the Company.
(xvi) According to the information and explanations given to us, the
term loans availed by the company, were prima facie, applied for the
purpose for which the loans were obtained.
(xvii) According to the information and explanations given to us and on
an overall examination of financial statement of the Company, funds
raised on short- term basis have, prima facie, not been used for long-
term investments.
(xviii) The Company has not made any preferential allotment of shares
to companies or firm or parties covered in the register maintained
under Section 301 of the Companies Act, 1956.
(xix) The Company did not have any outstanding debentures during the
year.
(xx) The Company has not raised any money by way of public issues
during the year.
(xxi) Based on the information and explanations given and audit
procedure performed by us, no fraud on or by the company has been
noticed or reported during the year.
For Arun K. Agarwal & Associates
Chartered Accountants
FRN:03917N
Vimal Kumar Jain
Place : Sri Ganganagar Partner
Date : 28.05.2013 Membership No.: 086657
Mar 31, 2012
1. We have audited the attached Balance Sheet of Vikas WSP Limited
("the Company") as at 31 March 2012, Statement of Profit and Loss and
also the Cash Flow Statement of the Company for the year ended on that
date, annexed thereto. These financial statements are the
responsibility of the Company's management. Our responsibility is to
express an opinion on these financial statements based on our audit.
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 (Ãthe
Order'), issued by the Central Government of India in terms of
sub-section (4A) of Section 227 of the Companies Act, 1956, we enclose
in the Annexure, a statement on the matters specified in paragraphs 4
and 5 of the said Order.
4. Further to our comments in the Annexure referred to above, we
report that:
(a) we have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
(b) in our opinion, proper books of account as required by law have
been kept by the Company so far as appears from our examination of
those books;
(c) the Balance Sheet, Statement of Profit and Loss and the 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
the Cash Flow Statement dealt with by this report comply with the
applicable 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 31 March 2012, and taken on record by the Board of Directors, we
report that none of the directors of the Company are disqualified as on
31 March 2012 from being appointed as a director in terms of clause (g)
of sub-section (1) of Section 274 of the Companies Act, 1956;
(f) Without qualifying our report, attention is invited to note 39 with
regard to cash payment made to farmers under contract farming
agreement.
(g) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts give th e information
required by the Companies Act, 1956, in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India:
(i) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31 March 2012;
(ii) in the case of the statement of Profit and Loss, of the profit for
the year ended on that date; and
(iii) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Annexure referred to in paragraph 3 of the Auditors' Report to the
Members of Vikas WSP Limited on the accounts for the year ended 31
March 2012
(i) a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
b) The Company has a system of physical verification of fixed assets by
which all the fixed assets are verified in a phased manner over a
period of three years. In our opinion, this periodicity of physical
verification is reasonable having regard to the size of the Company and
the nature of its assets. No material discrepancies were noticed on
such verification during the year.
c) No fixed assets were disposed off during the year.
(ii) a) The inventory has been physically verified by the management
during the year, except goods- in-transit. In our opinion, the
frequency of such verification is reasonable.
b) The procedures for the physical verification of inventories followed
by the management are reasonable and adequate in relation to the size
of the Company and the nature of its business.
c) The Company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stocks and
book records were not material and have been properly adjusted in the
books of account.
(iii) As informed to us, the Company has neither granted nor taken any
loans, secured or unsecured, to or from companies or firms or other
parties covered in the register maintained under section 301 of the
Companies Act, 1956.
(iv) In our opinion and according to the information and explanations
given to us, that purchases of certain raw materials are for the
Company's specialised requirements and similarly goods sold are for the
specialised requirements of the buyers and suitable alternative sources
are not available to obtain comparable quotations. Internal control
system of the company is adequate looking into the size and operations
of the company except in respect of fixed assets, where no capital
budget was placed before the board.
(v) (a) In our opinion and according to the information and
explanations given to us, the contracts or arrangements, referred to in
section 301 of the Companies Act, 1956 have been entered in the
register required to be maintained under that section.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts and
arrangements referred to in (a) above and exceeding the value of Rs 5
lakh are for purchases of certain items of inventories which are of
specialised requirements of the company and similarly sale of certain
goods are for the specialised requirements of the buyers and for which
suitable alternative sources are not available to obtain the comparable
quotations. However, on the basis of information and explanations
provided, the same appear reasonable.
(vi) The company has not accepted any deposits from the public.
(vii) The Company has an internal audit system. In our opinion, the
scope of work of internal audit and compliance needs be strengthened to
make it commensurate with the size and nature of its business.
(viii) As informed to us, the Central Government has not prescribed the
maintenance of cost records under Section 209(1)(d) of the Companies
Act, 1956.
(ix) (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, Sales tax, Income tax,
Service tax, Excise duty, Wealth tax, Customs duty, Investor Education
and Protection Fund, Cess and other material statutory dues to the
extent applicable, have generally been deposited regularly during the
year by the Company with the appropriate authorities except there have
been slight delays in few cases in respect of tax deducted at source.
There were no dues on account of cess under Section 441A of the
Companies Act, 1956 since the date from which the aforesaid section
comes into force has not yet been notified by the Central Government.
According to the information and explanations given to us, no
undisputed amounts payable in respect of Provident Fund, Income-tax,
Sales tax, Service tax, Customs duty, Wealth tax, Investor and
Education Fund, Excise duty, Cess and other material statutory due were
in arrears as at 31 March 2012 for a period of more than six months
from the date they became payable.
(b) According to the information and explanations given to us, there
are no dues of Sales tax, Wealth tax, Service tax, Excise duty, Customs
duty and Cess, which have not been deposited with the appropriate
authorities on account of any dispute. As informed to us, dues relating
to Income tax which has been deposited under protest is as follows:
Name of Nature Amount Period to Forum where
the statute of the dues (Rs.) which the dispute
amount is pending
relates
Income- Income tax 3,072,093 1995-96 High Court of
tax Act, Punjab and
1961 Haryana
(x) The Company does not have any accumulated losses at the end of the
financial year and has not incurred cash losses in the financial year
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 its
bankers except, defaults in payment of loan installments and interest
due to a Financial Institution for the quarter of May and August, 2011
of Rs. 8 crore and 6.18 crore respectively. However the Company has
paid all overdue installments along with interest by 30 September 2011.
The Company did not have any outstanding debentures during the year.
(xii) According to the information and explanations given to us, the
Company has not granted any loans and advances on the basis of security
by way of pledge of shares, debentures and other securities.
(xiii) According to the information and explanations given to us, the
Company is not a chit fund or a nidhi/ mutual benefit fund/ society.
(xiv) According to the information and explanations given to us, the
Company is not dealing or trading in shares, securities, debentures and
other investments.
(xv) In our opinion and according to the information and explanations
given to us, the terms and conditions of the guarantees given by the
Company, for loans taken by others from banks during the year, are,
prima facie, not prejudicial to the interest of the Company.
(xvi) According to the information and explanations given to us, the
term loans were applied for the purpose for which the loans were
obtained.
(xvii) According to the information and explanations given to us and on
an overall examination of the balance sheet of the Company, we are of
the opinion that the funds raised on short-term basis have not been
used for long-term investments.
(xviii) The Company has not made any preferential allotment of shares
to companies or firm covered in the register maintained under Section
301 of the Companies Act, 1956. As mentioned above, there are no other
parties listed in the register maintained under section 301 of the
Companies Act, 1956.
(xix) The Company did not have any outstanding debentures during the
year.
(xx) `The Company has not raised any money by way of public issues
during the year.
(xxi) Based on the information and explanations given and audit
procedure performed by us, no fraud on or by the company has been
noticed or reported during the course of audit.
For Arun K. Agarwal & Associates
Chartered Accountants
FRN:03917N
Vimal Kumar Jain
Place : Sri Ganganagar Partner
Date : 16.07.2012 Membership No.: 086657
Mar 31, 2010
1. We have audited the attached Balance Sheet of Vikas WSP Limited
("the Company") as at 31 March 2010 and also the Profit and Loss
Account and the Cash Flow Statement of the Company for the year ended
on that date, annexed thereto. These financial statements are the
responsibility of the Companys management. Our responsibility is to
express an opinion on these financial statements based on our audit.
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 (the
Order), issued by the Central Government of India in terms of
sub-section (4A) of Section 227 of the Companies Act, 1956, we enclose
in the Annexure, a statement on the matters specified in paragraphs 4
and 5 of the said Order.
4. Further to our comments in the Annexure referred to above, we
report that:
(a) we have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the 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 Profit and Loss Account and the Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
(d) in our opinion, the Balance Sheet, the Profit and Loss Account and
the Cash Flow Statement dealt with by this report comply with the
applicable
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 31 March 2010, and taken on record by the Board of Directors, we
report that none of the directors of the Company is disqualified as on
31 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; and
(f) 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:
(i) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31 March 2010;
(ii) in the case of the Profit and Loss Account, of the profit for the
year ended on that date; and
(iii) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Annexure referred to in paragraph 3 of the Auditors Report to the
Members of Vikas WSP Limited on the accounts for the year ended 31
March 2010
(i) a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
b) The Company has a programme of physical verification of fixed assets
by which all the fixed assets are verified in a phased manner over a
period of three years. In our opinion, this periodicity of physical
verification is reasonable having regard to the size of the Company and
the nature of its assets. No material discrepancies were noticed on
such verification during the year.
c) No fixed assets were disposed off during the year.
(ii) a) The inventory, except goods-in-transit, has been physically
verified by the management during the year. In our opinion the
frequency of such verification is reasonable.
b) The procedures for the physical verification of inventories followed
by the management are reasonable and adequate in relation to the size
of the Company and the nature of its business.
c) The Company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stocks and
book records were not material and have been properly adjusted in the
books of account.
(iii) As informed to us, the Company has neither granted nor taken any
loans, secured or unsecured, to or from companies or firms covered in
the register maintained under section 301 of the Companies Act, 1956.
According to the information and explanations given to us, there are no
other parties listed in the register maintained under section 301 of
the Companies Act, 1956.
(iv) In our opinion and according to the information and explanations
given to us, and having regard to the explanation that purchases of
certain raw materials and fixed assets are for the Companys
specialised requirements and similarly certain goods sold are for the
specialised requirements of the buyers and suitable alternative sources
are not available to obtain comparable quotations, there is an adequate
internal control system commensurate with the size of the Company and
the nature of its business with regard to purchase of inventories and
fixed assets and with regard to sale of goods. As explained to us, the
Company does not have any sale of services. We have not observed any
major weakness in the internal control system during the course of our
audit.
(v) (a) In our opinion, and according to the information and
explanations given to us, the contracts or arrangements, particulars of
which need to be entered into the register maintained under section 301
of the Companies Act, 1956 have been entered.
(b) In our opinion, and according to the information and explanations
given to us, the transactions made in pursuance of contracts and
arrangements referred to in (a) above and exceeding the value of Rs 5
lakh are for purchases of certain items of inventories which are for
the Companys specialised requirements and similarly for sale of
certain goods for the specialised requirements of the buyers and for
which suitable alternative sources are not available to obtain
comparable quotations. However, on the basis of information and
explanations provided, same appear reasonable.
(vi) The Company has not accepted any deposits from the public.
(vii) The Company has an internal audit system. In our opinion, the
scope of work and coverage of internal audit needs to be enlarged to
make it commensurate with the size of the Company and the nature of its
business.
(viii) We are informed that the Central Government has not prescribed
the maintenance of cost records under Section 209(1)(d) of the
Companies Act.
(ix) (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, Sales tax, Service tax,
Excise duty, Wealth tax, Customs duty, Employees State Insurance,
Investor Education and Protection Fund, Cess and other material
statutory dues have generally been deposited regularly during the year
by the Company with the appropriate authorities though there have been
slight delays in a few cases in respect of Income tax.
There were no dues on account of cess under Section 441A of the
Companies Act, 1956 since the date from which the aforesaid section
comes into force has not yet been notified by the Central Government.
According to the information and explanations given to us, no
undisputed amounts payable in respect of Provident Fund, Employees
State Insurance, Income-tax, Sales tax, Service tax, Customs duty,
Excise duty, Cess and other material statutory dues were in arrears as
at 31 March 2010 for a period of more than six months from the date
they became payable.
(b) According to the information and explanations given to us, there
are no dues of Sales tax, Wealth tax, Service tax, Excise duty, Customs
duty and Cess, which have not been deposited with the appropriate
authorities on account of any dispute. As informed to us, dues relating
to Income tax and Corporate Dividend tax which have not been deposited
on account of any dispute is as follows:
Name of the statute Nature of Amount Period to Forum where
the dues in (Rs.) which the dispute is
amount
relates pending
Income-tax Act, 1961 Corporate 11,679,780 September Debt Recovery
Dividend tax* 2009 Tribunal
Income-tax Act, 1961 Income tax# 3,072,093 1995-96 High Court of
Punjab and
Haryana
* The Debt Recovery Tribunal has decided the matter in favour of the
Company vide their order dated 22 July 2010.
# The Company has deposited the entire amount under dispute with the
appropriate authorities.
(x) The Company does not have any accumulated losses at the end of the
financial year and has not incurred cash losses in the financial year
and in the immediately preceding financial year.
(xi) The Company did not have any outstanding dues to any financial
institution, banks or debenture holders during the year.
(xii) According to the information and explanations given to us, the
Company has not granted any loans and advances on the basis of security
by way of pledge of shares, debentures and other securities.
(xiii) According to the information and explanations given to us, the
Company is not a chit fund or a nidhi/ mutual benefit fund/ society.
(xiv) According to the information and explanations given to us, the
Company is not dealing or trading in shares, securities, debentures and
other investments.
(xv) According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks or financial institutions.
(xvi) According to the information and explanations given to us, the
term loans were applied for the purpose for which the loans were
obtained.
(xvii) According to the information and explanations given to us and on
an overall examination of the balance sheet of the Company, we are of
the opinion that the funds raised on short-term basis have not been
used for long- term investments.
(xviii) The Company has not made any preferential allotment of shares
to companies or firm covered in the register maintained under Section
301 of the Companies Act, 1956. As mentioned above, there are no other
parties listed in the register maintained under section 301 of the
Companies Act, 1956.
(xix) The Company did not have any outstanding debentures during the
year.
(xx) The Company has not raised any money by way of public issues
during the year.
(xxi) Based on the audit procedures performed and according to the
information and explanations given to us, no fraud on or by the Company
has been noticed or reported during the course of our audit.
for B S R and Co
Chartered Accountants
Firm Registration No:128510W
Sd/-
Shashank Agarwal
Place:Gurgaon Partner
Date : 14-08-2010 Membership No.: 095109