Mar 31, 2018
We have audited the accompanying standalone financial statements of VIP Clothing Limited (Formerly known as Maxwell Industries Limited), (âthe Companyâ), which comprise the Balance Sheet as at March 31, 2018, the Statement of Profit and Loss (including other comprehensive income), the cash flow statement, the statement of changes in equity for the year then ended and a summary of the significant accounting policies and other explanatory information (herein after referred to as ''standalone Ind AS financial statements'').
Management''s Responsibility for the standalone 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 standalone Ind AS financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income, cash flows and changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Ind AS specified under section 133 of the Act read with relevant rules issued thereunder. 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 standalone 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 standalone 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 thereunder.
We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the standalone Ind AS financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the standalone Ind AS financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the standalone 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 standalone Ind AS financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company''s Directors, as well as evaluating the overall presentation of the standalone 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 standalone 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 standalone 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, of the state of affairs of the Company as at March 31, 2018, its loss, total comprehensive income, its cash flows and the changes in equity for the year ended on that date.
Other Matter
The comparative financial information of the Company for the year ended March 31, 2017 and the transition date opening balance sheet as at April 1, 2016 included in these standalone Ind AS financial statements are based on the previously issued statutory financial statements prepared in accordance with the companies (Accounting Standards) Rules, 2006 which were audited by us and the predecessor auditor respectively, on which we have expressed an unmodified opinion dated May 11, 2017 and predecessor auditor has expressed unmodified opinion dated May 30, 2016. We have audited the transition date opening balance sheet as at April 1, 2016 and adjustments for the differences in the accounting principles adopted by the company subsequent to the transition to Ind AS.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2016 (the ''Order'') issued by the Central Government of India in terms of Section 143(11) of the Act, we give in the âAnnexure Aâ; a statement on the matters specified in paragraphs 3 and 4 of the Order.
2. As required by Section 143(3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit;
(b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books;
(c) The Balance Sheet, the Statement of Profit and Loss including Other Comprehensive Income, the Cash Flow Statement and Statement of Changes in Equity dealt with by this Report, are in agreement with the relevant books of account;
(d) In our opinion, the aforesaid standalone Ind AS 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 March 31, 2018 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2018 from being appointed as a director in terms of Section 164 (2) of the Act;
(f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate report in âAnnexure Bâ; 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 does not have any pending litigations which would impact its financial position in its standalone Ind AS financial statements, refer note no. 36 to the standalone Ind AS financial statements;
ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses; and
iii. There has been no delay in transferring amounts required to be transferred to the Investor Education and Protection Fund by the Company.
The Annexure referred to in Independent Auditor''s report to the members of VIP Clothing Limited (formerly known as Maxwell Industries Limited) (âthe Companyâ) for the year ended 31st March 2018. We report that:
We report that:
1. (a) The Company has maintained adequate records to show full particulars including quantitative details and situation of the property, plant & equipment (fixed assets).
(b) As explained to us, these fixed assets have been physically verified by the management in accordance with a phased manner program of verification which in our opinion is reasonable, having regard to the size of the Company and nature of its assets. The frequency of physical verification is reasonable and no material discrepancies were noticed on such verification.
(c) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the title deed of immovable property is held in the name of the Company.
2. In our opinion the inventories have been physically verified during the year by the Management at reasonable intervals and as explained to us no material discrepancies were noticed on physical verification.
3. The Company has not granted any loans to parties covered in the register maintained under section 189 of the Companies Act, 2013 (''the Act''). Therefore, Paragraph 3 (iii) of the Order is not applicable to the Company.
4. In our opinion and according to the information and explanations given to us, there are no loans, investments, guarantees, and securities granted in respect of which provisions of section 185 and 186 of the Companies Act 2013 are applicable, Therefore, Paragraph 3 (iv) of the Order is not applicable to the Company.
5. The Company has not accepted any deposits during the year from the public to which the directives issued by Reserve Bank of India and the provisions of Section 73 to 76 and any other relevant provisions of the Act and the rules framed thereunder apply.
6. As per the information and explanations given to us, in respect of the class of industry the Company falls under, the maintenance of cost records has not been prescribed by the Central Government under section 148(1) of the Companies Act, 2013. Therefore, Paragraph 3 (vi) of the Order is not applicable to the Company.
7. (a) According to the information and explanations given to us and the records of the Company examined by us, the Company is generally regular in depositing undisputed statutory dues including provident fund, employees'' state insurance, income tax, sales tax, service tax, duty of customs, duty of excise, value added tax, goods & service tax and any other material statutory dues as applicable to the Company, with the appropriate authorities. There were no material undisputed amounts payable in respect of provident fund, employees'' state insurance, income tax, sales tax, Service Tax, duty of customs, duty of excise, value added tax, goods & service tax and any other material statutory dues as applicable to the Company outstanding as at March 31, 2018 for a period of more than six months from the date they became payable.
(b) According to the information and explanations given to us and records of the Company examined by us, there are no cases of non-deposit with the appropriate authorities of disputed dues of income tax, sales tax, service tax, duty of customs, duty of excise, goods & service tax and profession tax. However, according to the information and explanations given to us, the following dues of value added tax have not been deposited by the Company on account of dispute
Name of statute |
Nature of the disputed dues |
Amount of tax (Rs. in Lakhs) |
Period to which the amount relates |
Forum where dispute is pending |
Income Tax Act, 1961 |
Penalty under Section 158 BFA (2) |
1173.39 |
AY 1993-1994 to AY 2002-2003 |
High Court of Mumbai |
TNVAT ACT, 2006 |
Non submission of form âHâ |
8.54 |
FY 1999-2000 |
High Court of Chennai |
TNVAT ACT, 2006 |
Claim of Concessional rate of tax disallowed |
195.46 |
FY 2001-2002 |
High Court of Chennai |
TNVAT ACT, 2006 |
Disallowance of CSD Sales |
13.30 |
FY 2001-2002 |
Deputy Commercial Tax Office - Tamil Nadu |
TNVAT ACT, 2006 |
Disallowance of concessional rate of tax on BT |
5.43 |
FY 2001-2002 |
Deputy Commercial Tax Office - Tamil Nadu |
TNVAT ACT, 2006 |
CST rate of Hosiery Goods |
802.77 |
FY 2002-2003 |
Deputy Commercial Tax Office - Tamil Nadu |
Central Sales Tax Act, 1956 |
Non Submission of form âCâ |
7.33 |
FY 2005-2006 |
Deputy Commercial Tax Office - Delhi |
Income Tax Act, 1961 |
Penalty under Section 271(1)(c) |
18.04 |
AY 2012-2013 |
Commissioner of Income Tax |
Central Sales Tax Act, 1956 |
Non Submission of Form âCâ & Form âHâ, (collected and pending for submission-Refer note no 36 to the financial statement) |
3615.62 |
FY 2007-2008 to FY 2015-2016 |
Deputy Commercial Tax Office - Tamil Nadu |
8. Based on our audit procedures and according to the information and explanations given to us, the Company has not defaulted in repayment of its dues to banks and financial institution during the year. The Company has not borrowed from government and debenture holders during the year.
9. During the year Company has raised monies by way of right issue of equity shares. Based on our audit procedures and according to the information and explanations given to us, the monies raised were applied for the purpose for which those were raised. The monies raised by way of term loan has been applied for the purpose for which it was raised.
10. During the course of our examination of the books and records of the Company, carried out in accordance with generally accepted auditing practices in India and according to the information and explanations given to us, no material fraud by the Company or on the Company by its officers or employees has been noticed or reported during the course of our audit.
11. According to the information and explanations given to us and based on our examination of the records of the Company, the Company has paid / provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Act.
12. 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.
13. According to the information and explanations given to us and based on our examination of the records of the Company, transactions with the related parties are in compliance with sections 177 and 188 of the Act where applicable, and details of such transactions have been disclosed in the standalone Ind AS financial statements as required by the applicable accounting standards.
14. According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year. Therefore, paragraph 3(xiv) of the Order is not applicable to the Company.
15. According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not entered into non-cash transactions with directors or persons connected with him. Therefore, paragraph 3 (xv) of the Order is not applicable to the Company.
16. The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act 1934.
Annexure - B to the Independent Auditors'' Report dated May 16, 2018 to the members of VIP Clothing Limited (formerly known as Maxwell Industries Limited) ("the Companyâ) on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 ("the Actâ).
We have audited the internal financial controls over financial reporting of the Company as of March 31, 2018 in conjunction with our audit of the standalone Ind AS 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 (''ICAI''). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to Company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
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 âGuidance Noteâ) and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the ICAI. 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 standalone Ind AS 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 standalone Ind AS 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 standalone Ind AS 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 standalone Ind AS financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, to the best of our information and according to the explanations given to us, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2018, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note issued by ICAI.
For Sharp and Tannan
Chartered Accountants
Firm''s Registration No.:109982W
By the hand of
Tirtharaj Khot
Partner
Membership No.:(F) 037457
Place: Mumbai
Date: May 16, 2018
Mar 31, 2015
We have audited the accompanying financial statements of MAXWELL
INDUSTRIES LIMITED ("the Company"), which comprise the Balance
Sheet as at 31st March, 2015 and the Statement of Profit and Loss and
Cash Flow statement for the year then ended, and a summary of
significant accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
The Company's Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 ("the Act") with
respect to the preparation of these financial statements that give a
true and fair view of the financial position, financial performance and
cash flows of the Company in accordance with the accounting principles
generally accepted in India, including the Accounting Standards
specified under Section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014. This responsibility also includes
maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding of the assets of the Company and
for preventing and detecting 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 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 provision of
the Act and the Rules made thereunder including accounting standard and
matters which are required to be included in the audit report.
We conducted our audit in accordance with the Standards on Auditing
specified under the Section 143(10) of the Act and other applicable
authoritative pronouncement issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and 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 gives 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 control system over financial reporting and the operative
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 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, 2015;
b) In the case of the Statement of Profit and Loss Account, of the
profit for the year ended on that date.
c) In 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 (Auditors' Report) Order, 2015 ("the
Order") issued by the Central Government of India in terms of
sub-section (11) of Section 143 of the Act, we give in the Annexure, a
statement on the matters specified in paragraphs 3 and 4 of the Order,
to the extent applicable.
2. As required by Section 143(3) of the Act, we report that:
a) We have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purpose of our audit.
b) In our opinion proper books of account as required by law have been
kept by the Company so far as it appears from our examination of those
books.
c) The Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
d) In our opinion, the aforesaid financial statements comply with the
Accounting Standards specified under Section 133 of the Act read with
Rule 7 of the Companies (Accounts) Rules, 2015;
e) on the basis of written representations received from the directors
as on 31st March, 2015 and taken on record by the Board of Directors,
none of the directors is disqualified as on 31st March, 2015, from the
being appointed as a director in terms of Section 164(2) Act.
f) With respect to other matters to be included in the Auditor's Report
in accordance with Rule 11 of the Companies (Audit and Auditors) Rules,
2014, 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 as referred to in CARO
2015, Sr. 7 (b) as at March 31,2015.
2. The Company did not have any long-term contacts including derivative
contracts; as such the question of commenting on any material
foreseeable losses thereon does not arise.
3. There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company.
(Referred to in paragraph 1 under the heading of "Report on Other Legal
and Regulatory Requirements" of our report of even date)
1. In respect of its fixed assets:
a. The company has maintained proper records showing full particulars
including quantitative details and situation of its fixed assets.
b. As explained to us, a portion of the fixed assets have been
physically verified by the management in a phased periodical manner,
which in our opinion is reasonable, having regard to the size of the
Company and nature of its assets. No material discrepancies were
noticed on such verification.
2. In respect of its inventories:
a. The Inventories have been physically verified during the year by the
management. In our opinion, the frequency of verification is
reasonable.
b. In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
c. The Company has maintained proper records of inventories. As
explained to us, there were no material discrepancies noticed on
physical verification of inventories as compared to book records.
3. In respect of the loans, secured or unsecured, granted or taken by
the Company to / from companies, firms or other parties covered in the
register maintained under Section 189 of the Companies Act, 2013:
According to the information and explanations given to us and on the
basis of our examination of the books of account, the Company has not
granted any loans, secured or unsecured, to companies, firms or other
parties listed in the register maintained under Section 189 of the
Companies Act, 2013. Consequently, the provisions of clauses iii (a)
and iii(b) of the Order are not applicable to the Company.
4. In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business for the
purchase of inventory and fixed assets and for the sale of goods and
services. During the course of our audit, we have not observed any
continuing failure to correct major weaknesses in such internal control
system.
5. According to the information and explanations given to us, the
Company has not accepted any deposit from the public during the year
from the public within provisions of Section 73 to 76 of the Act and
rule framed there under.
6. As per information & explanation given by the management,
maintenance of cost records has been prescribed by the Central
Government under sub-section (1) of section 148 of the Act and we 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 same with a view to determining whether they are
accurate or complete.
7. a) According to the records of the company, undisputed statutory
dues including Provident Fund, Investor Education and Protection Fund,
Employees' State Insurance, Income-Tax, Sales Tax, Wealth Tax, Service
Tax, Custom Duty, Excise Duty, Cess, and other material statutory dues
have been generally regularly deposited with the appropriate
authorities.
b) According to the information and explanations given to us, no
undisputed amounts payable in respect of the aforesaid dues as on 31st
of March, 2015 for a period of more than six months from the date of
becoming payable. The particulars of dues of income tax and sales tax
as at 31st March, 2015 which have not been deposited on account of
dispute are as follows:
Forum where the dispute Name of the Statute Rs. In Lakhs FY to which
is pending the amounts
relate to
High Court Of Mumbai Income Tax Act 1157.49 1992-01
High Court Of Chennai Central Sales Tax 8.54 1999-00
High Court Of Chennai Central Sales Tax 195.46 2001-02
Deputy Commercial Tax
Office - Tamil Nadu Central Sales Tax 13.30 2001-02
Deputy Commercial Tax
Office - Tamil Nadu Tamil Nadu General Sales 5.43 2001-02
Tax
Deputy Commercial Tax
Office - Tamil Nadu Central Sales Tax 802.77 2002-03
Deputy Commercial Tax
Office - Delhi Central Sales Tax 7.33 2005-06
Commissioner of Income Income Tax Act 18.04 2011-12
Tax
c) According to the information and explanations given to us, there has
been no delay in transferring amounts, required to be transferred, to
the Investor Education and Protection Fund by the Company.
8. The Company does not have accumulated losses at the end of the
financial year. The Company has not incurred cash losses during the
financial year covered by the audit and in the immediately preceding
financial year.
9. Based on our audit procedures and according to the information and
explanations given to us, we are of the opinion that the Company has
not defaulted in repayment of dues to financial institutions and banks.
10. According to the information and explanations given to us, the
Company has not given any guarantees for loan taken by others from a
bank or financial institution.
11. The company has not taken any term loan during the year.
12. During the course of our examination of the books and records of
the Company, carried out in accordance with the generally accepted
auditing practices in India, and according to the information and
explanations given to us, we have neither come across any instance of
fraud on or by the Company, noticed or reported during the year, nor
have we been informed of any such instance by the Management.
For Attar & Co.
Chartered Accountants
Firm Registration No.: 112600W
M.F.Attar
Proprietor
Place: Mumbai Membership No. : 034977
Date: 30thMay, 2015
Mar 31, 2014
We have audited the accompanying financial statements of MAXWELL
INDUSTRIES LIMITED ("the Company"), which comprise the Balance Sheet as
at 31st March, 2014 and the Statement of Profit and Loss and Cash Flow
statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
The Company''s Management is responsible for the preparation of these
financial statements that give a true and fair view of the financial
position and financial performance and cash flow of the Company in
accordance with the Accounting Standards notified under the Companies
Act, 1956 ("the Act") (which continue to be applicable in respect of
Section 133 of the Companies Act, 2103 in terms of General Circular
15/2013 dated 13th September, 2013 of the Ministry of Corporate
Affairs) and in accordance with the accounting principles generally
accepted in India. This responsibility includes the design,
implementation and maintenance of internal control relevant to the
preparation and presentation of the financial statements that give a
true and fair view and are free from material misstatement, whether due
to fraud or error.
Auditors'' Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and 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 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 31st March, 2014;
b) In the case of the Statement of Profit and Loss Account, of the
profit for the year ended on that date.
c) In case of the Cash Flow Statement, of the cash flows for the year
ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 (the
Order) issued by the Central Government of India in terms of Section
227 (4A) of the Act, we give in the Annexure a statement on the matters
specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit.
b) In our opinion proper books of account as required by law have been
kept by the Company so far as it appears from our examination of those
books.
c) The Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
d) In our opinion, the Balance Sheet, the Statement of Profit and Loss
and Cash Flow Statement dealt with by this report comply with the
Accounting Standards notified under the Act (which continue to be
applicable in respect of Section 133 of the Companies Act, 2013 in
terms of General Circular 15/2013 dated 13th September, 2013 of the
Ministry of Corporate Affairs).
e) on the basis of written representations received from the directors
as on 31st March, 2014 and taken on record by the Board of Directors,
none of the directors is disqualified as on 31st March, 2014, from the
being appointed as a director in terms of clause (1) of Section 274 of
the Act.
ANNEXURE TO THE INDEPENDENT AUDITOR''S REPORT
(Referred to in paragraph 1 under the heading of "Report on Other Legal
and Regulatory Requirements" of our report of even date)
1. In respect of its fixed assets:
a. The company has maintained proper records showing full particulars
including quantitative details and situation of its fixed assets.
b. As explained to us, a portion of the fixed assets have been
physically verified by the management in a phased periodical manner,
which in our opinion is reasonable, having regard to the size of the
Company and nature of its assets. No material discrepancies were
noticed on such verification.
c. In our opinion, the Company has not disposed off a substantial part
of its fixed assets during the year and the going concern status of the
Company is not affected.
2. In respect of its inventories:
a. The Inventories have been physically verified during the year by
the management. In our opinion, the frequency of verification is
reasonable.
b. In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
c. The Company has maintained proper records of inventories. As
explained to us, there were no material discrepancies noticed on
physical verification of inventoriesas compared to book records.
3. In respect of the loans, secured or unsecured, granted or taken by
the Company to / from companies, firms or other parties covered in the
register maintained under Section 301 of the Companies Act, 1956:
According to the information and explanations given to us and on the
basis of our examination of the books of account, the Company has not
granted any loans, secured or unsecured, to companies, firms or other
parties listed in the register maintained under Section 301 of the
Companies Act, 1956. Consequently, the provisions of clauses iii (b),
iii(c) and iii (d) of the order are not applicable to the Company.
4. In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business for the
purchase of inventory and fixed assets and for the sale of goods.
During the course of our audit, we have not observed any continuing
failure to correct major weaknesses in such internal control system.
5. In our opinion and according to the information and explanations
given to us, there are no transactions in pursuance of contracts or
arrangements entered in the register maintained under Section 301 of
the Companies Act, 1956, aggregating during the year to Rs. 5 lakhs or
more, in respect of any party have been made at a price which are
reasonable having regard to prevailing market price, at the relevant
time.
6. According to the information and explanations given to us, the
Company has not accepted any deposit from the public during the year.
7. In our opinion, the company has an Internal audit system
commensurate with its sizeand the nature of its business.
8. As per information & explanation given by the management,
maintenance of cost records has been prescribed by the Central
Government under clause (d) of sub-section (1) of section 209 of the
Act and we 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 same with a view to determining whether
they are accurate or complete.
9. According to the records of the company, undisputed statutory dues
including Provident Fund, Investor Education and Protection Fund,
Employees'' State Insurance, Income-Tax, Sales Tax, Wealth Tax, Service
Tax, Custom Duty, Excise Duty, Cess, and other material statutory dues
have been generally regularly deposited with the appropriate
authorities. According to the information and explanations given to us,
no undisputed amounts payable in respect of the aforesaid dues as on
31st of March, 2014for a period of more than six months from the date
of becoming payable.
Forum where the dispute
is pending Name of the Statute Rs. In Lakhs FY
to which the amounts
relate to
High Court of Mumbai Income Tax Act 1157.49 1992-01
High Court of Chennai Central Sales Tax 8.54 1999-00
High Court of Chennai Central Sales Tax 195.46 2001-02
Deputy Commercial Tax Central Sales Tax 13.30 2001-02
Office- Tamil Nadu
Deputy Commercial Tax
Office - Tamil Nadu Tamil Nadu General
Sales Tax 5.43 2001-02
Deputy Commercial Tax
Office-Tamil Nadu Central Sales Tax 802.77 2002-03
Deputy Commercial
Tax Office - Delhi Central Sales Tax 7.33 2005-06
10. The Company does not have accumulated losses at the end of the
financial year. The Company has not incurred cash losses during the
financial year covered by the audit and in the immediately preceding
financial year.
11. Based on our audit procedures and according to the information and
explanations given to us, we are of the opinion that the Company has
not defaulted in repayment of dues to financial institutions and banks.
12. According to the information and explanations given to us, the
Company has not granted loans and advances on the basis of security by
way of pledge of shares, debentures and other securities.
13. In our opinion, the Company is not a chit fund / nidhi/mutual
benefit fund/society. Therefore, the provisions of clause (xiii) of
paragraph 4 of the Order are not applicable to the Company.
14. According to information and explanations given to us, the Company
is not trading in Shares, Mutual funds & other Investments, the
provision of clause 4[xiv] of the Companies (Auditors Report) Order,
2003 is not applicable to the Company.
15. According to the information and explanations given to us, the
Company has not given any guarantees for loan taken by others from a
bank or financial institution.
16. The company has not taken any term loan during the year.
17. According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the Company, we are of
the opinion that there are no funds raised on short-term basis that
have been used for long-term investment.
18. The Company has not made any preferential allotment of shares to
the promoters of the company during the year.
19. The Company has not issued any debentures during the year.
20. The Company has not raised any monies by way of public issues
during the year.
21. In our opinion and according to the information and explanations
given to us, no material fraud on or by the Company has been noticed or
reported during the year.
For Attar & Co.
Chartered Accountants
Firm Registration No.: 112600W
M.F.Attar
Proprietor
Place: Mumbai
Membership No. : 034977
Date: 9th May, 2014
Mar 31, 2013
We have audited the accompanying financial statements of Maxwell
Industries Limited ("the Company"), which comprise the Balance Sheet as
at March 31, 2013, and the Statement of Profit and Loss and Cash Flow
Statement for the year ended, and a summary of significant accounting
policies and other explanatory information.
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956 ("the Act"). This responsibility includes
the design, implementation and maintenance of internal control relevant
to the preparation and presentation of the financial statements that
give a true and fair view and are free from material misstatement,
whether due to fraud or error.
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statement. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by management, as
well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2013;
b) in the case of the Profit and Loss Account, of the profit 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.
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
a) we have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b) in our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books;
c) the Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
d) in our opinion, the Balance Sheet, Statement of Profit and Loss, and
Cash Flow Statement comply with the Accounting Standards referred to in
sub-section (3C) of section 211 of the Companies Act, 1956;
e) on the basis of written representations received from the directors
as on March 31, 2013, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2013, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956;
f) Since the Central Government has not issued any notification as to
the rate at which the cess is to be paid under section 441A of the
Companies Act, 1956 nor has it issued any Rules under the said section,
prescribing the manner in which such cess is to be paid, no cess is due
and payable by the Company.
ANNEXURE TO THE INDEPENDENT AUDITORS'' REPORT
The Annexure referred to in paragraph 1 of the Our Report of even date
to the members of Maxwell Industries Limited on the accounts of the
company for the year ended 31st March, 2013.
On the basis of such checks as we considered appropriate and according
to the information and explanation given to us during the course of our
audit, we report that:
1. (a) The company has maintained proper records showing full
particulars including quantitative details and situation of its fixed
assets.
(b) As explained to us, some of the fixed assets have been physically
verified by the management during the year in accordance with the
programme of verification, which in our opinion is reasonable; no
material discrepancies were noticed on such verification.
(c) In our opinion and according to the information and explanations
given to us, no fixed asset has been disposed during the year and
therefore does not affect the going concern assumption.
2. (a) As explained to us, inventories have been physically verified
during the year by the management at reasonable intervals.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the company and the nature of its business.
(c) In our opinion and on the basis of our examination of the records,
the Company is generally maintaining proper records of its inventories.
No material discrepancy was noticed on physical verification of stocks
by the management as compared to book records.
3. (a) According to the information and explanations given to us and
on the basis of our examination of the books of account, the
Company has not granted any loans, secured or unsecured, to companies,
firms or other parties listed in the register maintained under Section
301 of the Companies Act, 1956. Consequently, the provisions of clauses
iii (b), iii(c) and iii (d) of the order are not applicable to the
Company.
(e) According to the information and explanations given to us and on
the basis of our examination of the books of account, the Company has
not taken loans from companies, firms or other parties listed in the
register maintained under Section 301 of the Companies Act, 1956. Thus
sub clauses (f) & (g) are not applicable to the company.
4. In our opinion and according to the information and explanations
given to us, there is generally an adequate internal control procedure
commensurate with the size of the company and the nature of its
business, for the purchase of inventories & fixed assets and payment
for expenses & for sale of goods. During the course of our audit, no
major instance of continuing failure to correct any weaknesses in the
internal controls has been noticed.
5. a) Based on the audit procedures applied by us and according to the
information and explanations provided by the management, the
particulars of contracts or arrangements referred to in section 301 of
the Act have been entered in the register required to be maintained
under that section.
b) As per information & explanations given to us and in our opinion,
where such transactions are in excess of Rupees Five Lakhs in respect
of any party during the year, transactions have been made at a price
which are prima facie reasonable having regard to the prevailing market
price at the relevant time.
6. The Company has not accepted any deposits from the public covered
under section 58A and 58AA of the Companies Act, 1956.
7. As per information & explanations given by the management, the
Company has an internal audit system in addition to existing internal
control procedures. However we are of the opinion the at the same needs
to be further extended and strengthened to make it commensurate with
its size and the nature of its business.
8. As per information & explanation given by the management,
maintenance of cost records has been prescribed by the Central
Government under clause (d) of sub-section (1) of section 209 of the
Act and we 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 same with a view to determining whether
they are accurate or complete.
9. (a) According to the records of the company, undisputed statutory
dues including Provident Fund, Investor Education and Protection Fund,
Employees'' State Insurance, Income-tax, Sales-tax, Wealth Tax, Service
Tax, Custom Duty, Excise Duty, cess to the extent applicable and any
other statutory dues have generally been regularly deposited with the
appropriate authorities.
10. The Company does not have any accumulated loss and has not
incurred cash loss during the financial year covered by our audit and
in the immediately preceding financial year.
11. Based on our audit procedures and on the information and
explanations given by the management, we are of the opinion that, the
Company has not defaulted in repayment of dues to a financial
institution, bank or debenture holders.
12. According to the information and explanations given to us, the
Company has not granted loans and advances on the basis of security by
way of pledge of shares, debentures and other securities.
13. The Company is not a chit fund or a nidhi /mutual benefit
fund/society. Therefore, the provision of this clause of the Companies
(Auditor''s Report) Order, 2003 (as amended) is not applicable to the
Company.
14. According to information and explanations given to us, the Company
is not trading in Shares, Mutual funds & other Investments.
15. According to the information and explanations given to us, the
Company has not given any guarantees for loan taken by others from a
bank or financial institution.
16. To the best of our knowledge and belief and according to the
information and explanation given to us, term loans availed by the
Company have been prima facie applied for the purpose for which the
loan was obtained.
17. Based on the information and explanations given to us and on an
overall examination of the Balance Sheet of the Company as at 31st
March, 2013, we report that no funds raised on short-term basis have
been used for long-term investment by the Company.
18. Based on the audit procedures performed and the information and
explanations given to us by the management, we report that the Company
has not made any preferential allotment of shares during the year.
19. The Company has no outstanding debentures during the period under
audit.
20. The Company has not raised any money by public issue during the
year.
21. During the course of our examination of the books and record of
the Company carried out in accordance with the generally accepted
auditing practices and ,based on the information and explanations given
to us, we report that ,we have neither come across any instance of
material fraud on or by the Company noticed or reported during the
year, nor have we been informed of such case by the management.
For Attar & Co.
Chartered Accountants
Firm Registration No.: 112600W
M.F.Attar
Proprietor
Membership No. : 034977
Place: Mumbai
Date: 15th May, 2013
Mar 31, 2012
We have audited the attached Balance Sheet of Maxwell Industries
Limited as at 31st March, 2012 and also the Statement of Profit and
Loss and the Cash Flow Statement for the year ended on that date
annexed thereto.
These financial statements are the responsibility of the Company's
Management. Our responsibility is to express an opinion on these
financial statements based on our audit.
We conducted our audit in accordance with the auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on test basis, evidence supporting the amount and
disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by the management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
1. As required by the Companies (Auditors' Report) Order, 2003 issued
by the Central Government in terms of Section 227 (4A)of the Companies
Act 1956, and on the basis of such checks of the books and record of
the Company and according to information and explanations received by
us, we annex hereto a statement on the matters specified in paragraphs
4 and 5 of the said Order,.
2. Further to our comments in the Annexure referred to in Paragraph
(1) above,
a) We have obtained all the information and explanations which, to the
best of our knowledge and belief were necessary for the purposes of the
audit
b) In our opinion, proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books
c) The Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement dealt with by this report are in agreement with the books of
account
d) In our opinion, the Balance Sheet, statement of Profit & Loss and
Cash Flow Statement comply with the accounting standards referred to in
sub-section (3C) of Section 211 of the Companies Act, 1956 to the
extent applicable;
e) According to information and explanation given to us and on the
basis of written representation from the directors taken on record by
the board of the directors, none of the directors is disqualified as on
31st March, 2012 from being appointed as a director under section 274
(1) (g) of the Companies Act, 1956.
f) In our opinion and to the best of our information and according to
explanations given to us, the accounts read with the notes thereon give
the information required by the Companies Act, 1956 in the manner so
required and give a true and fair view: -
i. In the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2012
ii. In the case of Statement of Profit and Loss, of the profit of the
Company for the year ended on that date; and
iii. In the case of Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
1) In respect of it's fixed assets:
a) The Company is maintaining proper records showing full particulars
including quantitative details and situation of the fixed assets.
b) Some of the Fixed Assets were physically verified by the Management
during the year in accordance with program of verification, which in
our opinion is reasonable. No material discrepancies were noticed on
such physical verification.
c) During the year Company has disposed off Spinning Mill Division at
Gobichettapalayam on a slum sale basis.
2) In respect of it's inventories:
a) As explained to us, inventory has been physically verified by the
management at regular intervals during the year. In our opinion the
frequency of verification is reasonable.
b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventory
followed by the management are reasonable and adequate in relation to
the size of Company and nature of its business.
c) On the basis of our examination of records of inventories, in our
opinion, the Company has maintained proper records of inventory and no
material discrepancies were noticed on physical verification of
inventory as compared to book records.
3) In respect of loan secured or unsecured, taken from / granted to any
Company, firm or other parties covered in register maintained u/s. 301
of the Companies Act 1956
According to the information and explanations given to us, the Company
has not taken any loans, secured or unsecured, from companies firms or
others parties covered in the register maintained under Section 301 of
the Companies Act, 1956. Accordingly, the provisions of the clause
4(iii)(d), iii(e), (iii)(f) and (iii)(g) of the Companies (Auditors'
Report) Order, 2003 are not applicable to the company. j
4) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business for the purchase of inventory, fixed assets and for sale of
goods and services. During the course of our audit we have not observed
any major weakness in internal control.
5) In respect of transactions covered u/s. 301 oftheCompaniesAct1956
a) In our opinion and according to the information and explanations
given to us the transactions made in pursuance of contracts or
arrangements that needed to be entered into the register maintained
under Section 301 of Companies Act, 1956 have been so entered.
b) In our opinion and according to the information and explanations
given to us, where such transactions are in excess of Rupees Five lacs
in respect of any party during the year, the transactions have been
made at prices which are prima facie reasonable having regard to
prevailing market prices at the relevant time.
6) In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposits under the
provision of Section 58Aand Section 58AAof the Companies Act, 1956 and
the rules framed there under.
7) We are informed that the Company has the internal audit system in
addition to the existing internal control procedure. However we are of
the opinion that the same need to be further extended and strengthened
to make the same commensurate with the size of the Company and nature
of the business.
8) We have broadly reviewed the books of account maintained by the
Company in respect of it's spinning mill, pursuant to the rules made by
the Central Government, prescribing the maintenance of cost records
under Section 209(1 )(d) of the Companies Act, 1956.
We are of the opinion that prima facie the prescribed accounts and
records have been maintained and are being made up. We have not
however, made a detailed examination of the same with a view to
determining whether they are accurate or complete.
9) In respect of statutory dues
a) According to the information and explanation given to us and records
as produced and examined by us, in our opinion the Company is generally
regular in depositing the undisputed statutory dues including Provident
Fund, Investor Education and Protection Funds, Employees State
Insurance, Income Tax, Sales Tax, Wealth Tax, Customs Duty, Excise
Duty, Cess and other statutory dues which have not been deposited on
account of any dispute excepting those mentioned hereunder:
Forum where the Name of the Statute Rs In lakhs FY to which
dispute is pending the amounts
relate to
High Court of Income Tax Act 1,157.49 1992-01
Mumbai
High Court of Central Sales Tax 8.54 1999-00
Chennai
High Court of Central Sales Tax 195.46 2001-02
Chennai
Deputy Commercial Central Sales Tax 13.30 2001-02
Tax Office -
Tamil Nadu
Deputy Commercial Tamilnadu General Sales 5.43 2001-02
Tax Office - Tax
Tamil Nadu
Deputy Commercial Central Sales Tax 802.77 2002-03
Tax Office -
Tamil Nadu
Deputy Commercial Central Sales Tax 7.33 2005-06
Tax Office - Delhi
Deputy Commercial West Bengal Sales Tax 1.54 2005-06
Tax Office
West Bengal
10) The Company has no accumulated losses and has not incurred any cash
losses during the financial year covered by our audit or in the
immediately preceding financial year.
11) Based on our audit procedures and according to the information and
explanations given to us, we are of the opinion that the Company has
not defaulted in repayment of dues to financial institutions and banks.
The Company has not issued debentures that were outstanding during the
year.
12) The Company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
13) The provisions of any special statute applicable to chit fund,
nidhi, mutual benefit fund, societies are not applicable to the
Company.
14) In our opinion the Company is not a dealer or trader in shares,
securities, debentures and other investments.
15) 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 during the year.
16) To the best of our knowledge and belief and according to the
information and explanations given to us, term loans availed by the
Company were prima facie applied by the Company during the year for the
purpose for which the loan was obtained.
17) According to the information and explanations given to us, and on
an overall examination of the balance sheet of the Company we are of
the opinion that funds raised on short term basis have prima facie not
been used during the year for long term investment and vice versa.
There are no personal expenses of employees or directors have been
charged to revenue account, other than those payable under contractual
obligations.
18) According to the information and explanations given to us, the
Company has not made any preferential allotment of shares to parties
and companies covered in the register maintained u/s. 301 of the
Companies Act, 1956 during the year.
19) According to the information and explanations given to us, and the
records examined by us the Company has not issued any debentures during
the year.
20) The Company has not raised any money by way of public issue during
the year.
21) During the course of our examination of the books and records of
the Company carried out in accordance with the generally accepted
auditing practices, and according to the information and explanations
given to us we have neither come across any instance of material fraud
on or by the Company noticed or reported during the year nor have we
been informed of such case by the management.
For Attar & Co.
Chartered Accountants
Registration No 112600W
M.F. Attar
Proprietor
Membership No.: 34977
Mumbai.
Dated: 14th May 2012
Mar 31, 2011
We have audited the attached Balance Sheet of Maxwell Industries
Limited as at 31st March, 20 11 and also Profit and Loss Account and
Cash Flow Statement for the year ended on that date annexed thereto.
These financial statements are the responsibility of the Company's
Management. Our responsibility is to express an opinion on these
financial statements based on our audit.
We conducted our audit in accordance with the auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on test basis, evidence supporting the amount and
disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by the management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
1. As required by the Companies (Auditors' Report) Order, 2003 issued
by the Central Government in terms of Section 227 (4A) of the Companies
Act 1956, and on the basis of such checks of the books and record of
the Company and according to information and explanations received by
us, we annex hereto a statement on the matters specified in paragraphs
4 and 5 of the said Order,
2. Further to our comments in the Annexure referred to in Paragraph
(1) above,
a) We have obtained all the information and explanations which, to the
best of our knowledge and belief were necessary for the purposes of the
audit;
b) In our opinion, proper books of accounts as required by law have
been kept by the Company so far as appears from our examination of
those books;
c) The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of accounts;
d) In our opinion, the Balance Sheet and Profit & Loss account and Cash
Flow Statement comply with the accounting standards referred to in
sub-section (3C) of Section 211 of the Companies Act, 1956 to the
extent applicable;
e) According to information and explanation given to us and on the
basis of written representation from the directors taken on record by
the board of the directors, none of the directors are disqualified as
on 31st March, 2011 from being appointed as a director under section
274 (1) (g) of the Companies Act, 1956;
f) In our opinion and to the best of our information and according to
explanations given to us, the accounts read with the notes thereon give
the information required by the Companies Act, 1956 in the manner so
required and give a true and fair view: -
i) In the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2011;
ii) In the case of Profit and Loss Account, of the profit of the
Company for the year ended on that date; and
iii) In the case of Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
ANNEXURE TO THE AUDITORS' REPORT
(Referred to in Paragraph 1 of our report of even date.)
1) In respect of it's fixed assets:
a) The Company is maintaining proper records showing full particulars
including quantitative details and situation of the fixed assets.
b) Some of the Fixed Assets were physically verified by the Management
during the year in accordance with program of verification, which in
our opinion is reasonable. No material discrepancies were noticed on
such physical verification.
c) In our opinion the Company has not disposed off substantial part of
fixed assets during the year.
2) In respect of it's inventories:
a) As explained to us, inventory has been physically verified by the
management at regular intervals during the year. In our opinion the
frequency of verification is reasonable.
b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventory
followed by the management are reasonable and adequate in relation to
the size of Company and nature of its business.
c) On the basis of our examination of records of inventories, in our
opinion, the Company has maintained proper records of inventory and no
material discrepancies were noticed on physical verification of
inventory as compared to book records.
3) In respect of loan secured or unsecured, taken from / granted to any
Company, firm or other parties covered in register maintained u/s.301
of the Companies Act 1956
According to the information and explanations given to us, the Company
has not taken any loans, secured or unsecured, from companies/firms or
others parties covered in the register maintained under Section 301 of
the Companies Act, 1956. Accordingly, the provisions of the clause
4(iii)(d), iii(e), (iii)(f) and (iii)(g) of the Companies (Auditors'
Report) Order, 2003 are not applicable to the company.
4) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business for the purchase of inventory, fixed assets and for sale of
goods and services. During the course of our audit we have not observed
any major weakness in internal control.
5) In respect of transactions covered u/s. 301 of the Companies Act
1956
a) In our opinion and according to the information and explanations
given to us the transactions made in pursuance of contracts or
arrangements that needed to be entered into the register maintained
under Section 301 of Companies Act, 1956 have been so entered.
b) In our opinion and according to the information and explanations
given to us, where such transactions are in excess of Rs.Five lacs in
respect of any party during the year, the transactions have been made
at prices which are prima facie reasonable having regard to prevailing
market prices at the relevant time.
6) In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposits under the
provision of Section 58A and Section 58AA of the Companies Act, 1956
and the rules framed there under.
7) Internal Audit has been carried out by firm of Chartered Accountants
during the year which is commensurate with the size of the Company and
the nature of its business.
8) We have broadly reviewed the books of account maintained by the
Company in respect of it's spinning mill, pursuant to the rules made by
the Central Government, prescribing the maintenance of cost records
under Section 209(1 )(d) of the Companies Act, 1956. We are of the
opinion that prima facie the prescribed accounts and records have been
maintained and are being made up. We have not however, made a detailed
examination of the same with a view to determining whether they are
accurate or complete.
9) In respect of statutory dues
a) According to the information and explanation given to us and records
as produced and examined by us, in our opinion the Company is generally
regular in depositing the undisputed statutory dues including Provident
Fund, Investor Education and Protection Funds, Employees State
Insurance, Income Tax, Sales Tax, Wealth Tax, Customs Duty, Excise
Duty, Cess and other statutory dues which have not been deposited on
account of any dispute excepting those mentioned hereunder:
10) The Company has no accumulated losses and has not incurred any cash
losses during the financial year covered by our audit or in the
immediately preceding financial year.
11) Based on our audit procedures and according to the information and
explanations given to us, we are of the opinion that the Company has
not defaulted in repayment of dues to financial institutions and banks.
The Company has not issued debentures that were outstanding during the
year.
12) The Company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
13) The provisions of any special statute applicable to chit fund,
nidhi, mutual benefit fund, societies are not applicable to the
Company.
14) In our opinion the Company is not a dealer or trader in shares,
securities, debentures and other investments.
15) 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 during the year.
16) To the best of our knowledge and belief and according to the
information and explanations given to us, term loans availed by the
Company were prima facie applied by the Company during the year for the
purpose for which the loan was obtained.
17) According to the information and explanations given to us, and on
an overall examination of the balance sheet of the Company we are of
the opinion that funds raised on short term basis have prima facie not
been used during the year for long term investment and vice versa.
There are no personal expenses of employees or directors have been
charged to revenue account, other than those payable under contractual
obligations.
18) According to the information and explanations given to us, the
Company has not made any preferential allotment of shares to parties
and companies covered in the register maintained u/s. 301 of the
Companies Act, 1956 during the year.
19) According to the information and explanations given to us, and the
records examined by us the Company has not issued any debentures during
the year.
20) The Company has not raised any money by way of public issue during
the year.
21) During the course of our examination of the books and records of
the Company carried out in accordance with the generally accepted
auditing practices, and according to the information and explanations
given to us we have neither come across any instance of material fraud
on or by the Company noticed or reported during the year nor have we
been informed of such case by the management.
For Attar&Co.
Chartered Accountants
Registration No 112600W
M.F. Attar
Proprietor
Membership No.: 34977
Mumbai.
Dated: 30th May, 2011
Mar 31, 2010
We have audited the attached Balance Sheet of Maxwell Industries
Limited as at 31st March, 2010 and also Profit and Loss Account and
Cash Flow Statement for the year ended on that date annexed thereto.
These financial statements, are the responsibility of the Companys
Management. Our responsibility is to express an opinion on these
financial statements based on our audit.
We have conducted our audit in accordance with the auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance, about whether the
financial statements are free of material mis-statement. An audit
includes examining, on test basis, evidence supporting the amount and
disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by the management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
1. As required by the Companies (Auditors Report) Order, 2003 issued
by the Central Government in terms of Section 227 (4A) of the Companies
Act, 1956, and on the basis of such checks of the books and records of
the Company and according to information and explanations received by
us, we annex hereto a statement on the matters specified in paragraphs
4 and 5 of the said Order.
2. Furtherto our comments in the Annexure referred to in Paragraph (1)
above, we report as follows:
a) We have obtained all the informations and explanations which, to the
best of our knowledge and belief were necessary for the purposes of the
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, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account.,
d) In our opinion, the Balance Sheet and Profit & Loss account and Cash
Flow Statement comply with the accounting standards referred to in
sub-section (3C) of Section 211 of the Companies Act, 1956 to the
extent applicable.
e) According to information and explanation given to us and on the
basis of written representation from the Directors taken on record by
the Board of the Directors, none of the Directors are disqualified as
on 31st March, 2010 from being appointed as a Director under section
274 (1) (g) of the Companies Act, 1956.,
f) In our opinion and to the best of our information and according to
explanations given to us, the accounts read with the notes thereon give
the information required by the Companies Act, 1956 in the manner so
required and give a true and fair view: -
i) In the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2010.,
ii) In the case of Profit and Loss Account, of the profit of the
Company forthe year ended on that date.,
iii) In the case of Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
1) In respect of its fixed assets:
a) The Company is maintaining proper records showing full particulars
including quantitative details and situation of the fixed assets.
b) Some of the Fixed Assets were physically verified by the Management
during the year in accordance with program of verification, which in
our opinion is reasonable. No material discrepancies were noticed on
such physical verification.
c) In our opinion the Company has not disposed off substantial part of
fixed assets during the year.
2) In respect of its inventories:
a) As explained to us, inventory has been physically verified by the
management at regular intervals during the year. In our opinion the
frequency of verification is reasonable.
b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventory
followed by the Management are reasonable and adequate in relation to
the size of Company and nature of its business.
c) On the basis of our examination of records of inventories, in our
opinion, the Company has maintained proper records of inventory and no
material discrepancies were noticed on physical verification of
inventory as compared to book records.
3) In respect of loan, secured or unsecured, taken from/granted to any
Company, firm or other parties covered in register maintained u/s. 301
of the Companies Act, 1956.
According to the information and explanations given to us, the Company
has not taken any loans, secured or unsecured, from companies firms or
others parties covered in the register maintained under Section 301 of
the Companies Act, 1956. Accordingly, the provisions of the clause 4
(iii)(d), iii(e), (iii)(f) and (iii)(g) of the Companies (Auditors
Report) Order, 2003 are not applicable to the Company.
4) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business, for the purchase of inventory, fixed assets and for sale of
goods and services. During the course of our audit we have not observed
any major weakness in internal control.
5) In respect of transactions covered u/s. 301 of the Companies Act,
1956:-
a) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements that needed to be entered into the register maintained
under Section 301 of Companies Act, 1956 have been so entered.
b) In our opinion, according to the information and explanations given
to us, where such transactions are in excess of Rs. Five lacs in
respect of any party during the year, the transactions have been made
at prices which are prima facie reasonable having regard to prevailing
market prices at the relevant time.
6) In our opinion, according to the information and explanations given
to us, the Company has not accepted any deposits under the provisions
of Section 58Aand Section 58AAof the Companies Act, 1956 and the rules
framed thereunder.
7) We are informed that the Company has an internal audit system in
addition to the existing internal control procedure. However we are of
the opinion that the same need to be further extended and strengthened
to make the same commensurate with the size of the Company and nature
of the business.
8) We have broadly reviewed the books of account maintained by the
Company in respect of its spinning mill, pursuant to the rules made by
the Central Government, prescribing the maintenance of cost records
under Section 209(1 )(d) of the Companies Act, 1956. We are of the
opinion that prima facie the prescribed accounts and records have been
maintained and are being made. We have not however, made a detailed
examination of the same with a view to determining whether they are
accurate or complete.
9) In respect of statutory dues:-
According to the information and explanation given to us and records as
produced and examined by us, in our opinion the Company is generally
regular in depositing the undisputed statutory dues including Provident
Fund, Investor Education and protection Funds, Employees State
Insurance, Income Tax, Sales Tax, Wealth Tax, Customs Duty, Excise
Duty, Cess and other statutory dues which have not been deposited on
account of any dispute excepting those mentioned hereunder:
10) The Company has no accumulated losses and has not incurred any cash
losses during the financial year covered by our audit or in the
immediately preceding financial year.
11) Based on our audit procedures and according to the information and
explanations given to us, we are of the opinion that the Company has
not defaulted in repayment of dues to financial institutions and banks.
The Company has not issued debentures that were outstanding during the
year.
12) The Company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
13) The provisions of any special statute applicable to chit fund,
nidhi, mutual benefit fund, societies are not applicable to the
Company.
14) In our opinion the Company is not a dealer or trader in shares,
securities, debentures and other investments.
15) 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 during the year.
16) To the best of our knowledge and belief and according to the
information and explanations given to us, term loans availed by the
Company were prima facie applied by the Company during the year for the
purpose for which the loan was obtained.
17) According to the information and explanations given to us, and on
an overall examination of the balance sheet of the Company we are of
the opinion that funds raised on short term basis have prima facie not
been used during the yearfor long term investment and vice versa. There
are no personal expenses of employees or Directors that have been
charged to revenue account, other than those payable under contractual
obligations.
18) According to the information and explanations given to us, the
Company has not made any preferential allotment of shares to parties
and companies covered in the register maintained u/s. 301 of the
Companies Act, 1956, during the year.
19) According to the information and explanations given to us, and the
records examined by us, the Company has not issued any debentures
during the year.
20) The Company has not raised any money by way of public issue during
the year.
21) During the course of our examination of the books and records of
the Company, carried out in accordance with the generally accepted
auditing practices, and according to the information and explanations
given to us. No material fraud on or by the Company has been noticed or
reported during the course of our Audit.
For Attar & Co.
Firm Membership No - 112600W
Chartered Accountants
M.F. Attar
Proprietor
Membership No.: 34977
Place: Mumbai.
Dated: 28th May,2010