Mar 31, 2018
Report on the Standalone Ind AS Financial Statements
We have audited the accompanying standalone Ind AS financial statements of M/s VIVID GLOBAL INDUSTRIES LIMITED (âthe Companyâ), which comprise the Balance Sheet as at March 31, 2018, and the Statement of Profit and Loss (including Other Comprehensive Income), the Cash Flow Statement and the Statement of Changes in Equity for the year then ended, and a summary of the significant accounting policies and other explanatory information.
Managementâs Responsibility for the Standalone Ind AS Financial Statements
The Companyâs Board of Directors are responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) 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 Indian Accounting Standards (Ind AS) prescribed 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 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.
Auditorâs Responsibility
Our responsibility is to express an opinion on these standalone Ind AS financial statements based on our audit.
In conducting our audit, We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder.
We conducted our audit of the standalone Ind AS financial statements in accordance with the Standards on Auditing specified under Section143(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 auditorâs 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 Companyâs 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 Companyâs Directors, as well as evaluating the overall presentation of the standalone Ind AS financial statements.
We believe that the audit evidence obtained by us, is sufficient and appropriate to provide a basis for our audit opinion on the 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, 2017, and its Profit, total comprehensive income, its cash Flows and the changes in equity for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by section 143 (3) of the Act we report, to the extent applicable 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 Indian Accounting Standards prescribed under section 133 of the Act.
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 Aâ. Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the Companyâs internal financial controls over financial reporting.
g. With respect to the other matters to be included in the Auditorâs Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, as amended, in our opinion and to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financial position in its standalone Ind AS financial statements;
ii. The Company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long-term contracts including derivative contracts;
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
2. As required by the Companies (Auditorâs Report) Order, 2016 (âthe orderâ) issued by the Central Government in terms of Section 143(11) of the Act, we give in âAnnexure Bâ a statement on the matters specified in paragraphs 3 and 4 of the Order.
Annexure âAâ to the Independent Auditorâs Report
(Referred to in paragraph 1(f) under âReport on Other Legal and Regulatory Requirementsâ section of our report of even date)
Report on the Internal Financial Controls Over Financial Reporting under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
We have audited the internal financial controls over financial reporting of M/s VIVID GLOBAL INDUSTRIES LIMITED(âthe Companyâ) 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.
Managementâs Responsibility for Internal Financial Controls
The Companyâs management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India. These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to respective companyâs policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditorsâ Responsibility
Our responsibility is to express an opinion on the Companyâs internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the âGuidance Noteâ) issued by the ICAI and the Standards on Auditing prescribed under section 143(10)of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditorâs judgement, including the assessment of the risks of material misstatement of the financial statements,whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Companyâs internal financial controls system over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A companyâs 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 companyâs internal financial control over financial reporting includes those policies and procedures that
(1) pertain to the maintenance of records that, in reasonable detail,accurately and fairly reflect the transactions and dispositions of the assets of the company;
(2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorisations of management and directors of the company; and
(3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the companyâs 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 and to the best of our information and according to the explaination 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 on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of Indiaâ.
âAnnexure Bâ to the Independent Auditorsâ Report
(Referred to in paragraph 2 under âReport on Other Legal & Regulatory Requirementsâ section of our report of even date)
1) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
(b) The Company has a program of verification of Fixed assets to cover all the items in a phased manner over have been physically verified by the management in a phased manner, designed to cover all the item over a period of three years, which in our opinion, is reasonable having regard to the size of the company and nature of its assets. Pursuant to the program, certain fixed assets were physically verified by the management during the year. According to the information and explanations given to us no material discrepancies were noticed on such verification.
(c) According to the information and explanations given to us and the records examined by us and based on the examination of the registered sale deeds, transfer deeds, mutation of title papers, property tax papers and conveyance deeds provided to us, we report that the title deeds, comprising all the immovable properties in respect of land and buildings which are freehold, are held in the name of the company as at the balance sheet date.
(ii) As explained to us, inventories of finished and semi-finished goods and raw materials were physically verified during the year by the Management. In respect of inventories of stores and spare parts and stocks at, the Company has a programme of verification of stocks over a three year period. In our opinion and according to the information and explanations given to us, the inventories have been verified by the management at reasonable intervals in relation to size of the Company and nature of business and no material discrepancies were noticed on physical verification.
(iii) According to the information and explanations given to us, the Company has not granted any loans, secured or unsecured, to companies, firms, Limited Liability Partnerships or other partiescovered in the register maintained under section 189 of the Companies Act, 2013, in respect of which:
(a) The terms and conditions of the grant of such loans are, in our opinion, prima facie, not prejudicial to the Companyâs interest. - Not Applicable
(b) The schedule of repayment of principal and payment of interest has been stipulated and the repayments of principal amounts and interest have been regular as per stipulations. - Not Applicable
(c) Amounts referred to (b) above have been overdue for more than 90 days and, as explained to us, the Management has taken reasonable steps for recovery of the principal amounts and interest thereon. -Not Applicable
(iv) In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of Sections 185 and 186 of the Companies Act, 2013 in respect of grant of loans, making investments and providing guarantees and securities, as applicable.
(v) According to the information and explanations given to us, the Company has not accepted any deposit during the year. In respect of unclaimed deposits, the Company has complied with the provisions of Sections 73 to 76 or any other relevant provisions of the Companies Act, 2013.
(vi) The maintenance of cost records has not been specified by the Central Government under section 148(1) of the Companies Act, 2013.
(vii) According to the information and explanations given to us, in respect of statutory dues:
(a) The Company has generally been regular in depositing undisputed statutory dues, including Provident Fund, Employeesâ State Insurance, Income-tax, Sales Tax, Service Tax, Customs Duty, Excise Duty, Value Added Tax, Cess and other material statutory dues applicable to it with the appropriate authorities. The Company has however not registered itself as required under the Gratuity Act and have informed us that they are in process of obtaining the same at the earliest.
(b) There were no undisputed amounts payable in respect of Provident Fund, Employeesâ State Insurance, Income-tax, Sales Tax, Service Tax, Customs Duty, Excise Duty, Value Added Tax, Cess and other material statutory dues in arrears as at March 31, 2018 for a period of more than six months from the date they became payable, except for the following:
(viii) In our opinion and according to the information and explanations given to us, the Company has not defaulted in the repayment of loans or borrowings to financial institutions, banks and government and dues to debenture holders.
(ix) In our opinion and according to the information and explanations given to us, term loans taken have been applied by the Company during the year for the purposes for which they were raised.
(x) To the best of our knowledge and according to the information and explanations given to us, no fraud by the Company has been noticed or reported during the year.
(xi) In our opinion and according to the information and explanations given to us, the Company has paid / provided managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Companies Act, 2013.
(xii) The Company is not a Nidhi Company and hence reporting under clause (xii) of the CARO 2016 Order is not applicable.
(xiii) In our opinion and according to the information and explanations given to us the Company is in compliance with Section 177 and 188 of the Companies Act, 2013, where applicable, for all transactions with the related parties and the details of related party transactions have been disclosed in the financial statements as required by the applicable accounting standards.
(xiv) During the year the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures and hence reporting under clause (xiv) of CARO 2016 is not applicable to the Company.
(xv) In our opinion and according to the information and explanations given to us, during the year the Company has not entered into any non-cash transactions with its directors or directors of its sister concerns or persons connected with them and hence provisions of section 192 of the Companies Act, 2013 are not applicable.
(xvi) the company is not required to be registered under section 45 IA of the Reserve Bank of India Act, 1934.
For Saumil J. Kapadia & Co.
(Chartered Accountants)
Firm Reg. No. 135970W
Place: Mumbai (Saumil Kapadia)
Dated: 18th May, 2018 Membership No.: 144873
Mar 31, 2016
To the Members of
M/s VIVID GLOBAL INDUSTRIES LIMITED
Report on the Financial Statements
We have audited the accompanying financial statements of M/s VIVID GLOBAL INDUSTRIES LIMITED which comprise the Balance Sheet as at March 31,2016, the Statement of Profit and Loss, Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information.
Managementâs Responsibility for the Financial Statements
The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditorâs Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statements. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Companyâs preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances, 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 Companyâs Directors, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the financial statements.
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 March 31, 2016, and its Profit/Loss and its Cash Flow for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ), as amended, issued by the Central
Government of India in terms of sub-section (11) of section 143 of the Act, we give in the âAnnexure Aâ a statement on the matters specified in 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 purpose of our audit;
b. in our opinion proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books;
c. the Balance Sheet, the Statement of Profit and Loss and the Cash Flow Statement dealt with by this Report are in agreement with the books of account
d. in our opinion, the aforesaid financial statements comply with the Accounting Standards specified under section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
e. On the basis of written representations received from the directors as on March 31, 2016 taken on record by the Board of Directors, none of the directors is disqualified as on March 31,2016 from being appointed as a director in terms of Section 164 (2) of the Act.
f. With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in âAnnexure Bâ.
g. With respect to the other matters to be included in the Auditorâs Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
i. According to the information and explanation given to us, there is a disputed matter under the Central Excise Act. The company is facing a court cases with The Central Excise Department in respect of Modvat credit claimed for F.Y. 1994-95 The company has preferred an appeal against the said order and is confident of succeeding in this appeal. The contingent liability for this matter is Rs.1,14,000/- plus Interest till the date of the finalization of the matter (if applicable). Out of the same the company has deposited Rs.50,000/- with the Excise Department.
ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.
iii. There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.
Referred to in paragraph 1 under the heading âReport on Other Legal & Regulatory Requirementâ of our report of even date to the financial statements of the Company for the year ended March 31, 2016:
1) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets;
(b) The Fixed Assets have been physically verified by the management in a phased manner, designed to cover all the items over a period of three years, which in our opinion, is reasonable having regard to the size of the company and nature of its business. Pursuant to the program, a portion of the fixed asset has been physically verified by the management during the year and no material discrepancies between the books records and the physical fixed assets have been noticed.
(c) The title deeds of immovable properties are held in the name of the company.
2) (a) The management has conducted the physical verification of inventory at reasonable intervals.
(b) The discrepancies noticed on physical verification of the inventory as compared to books records which has been properly dealt within the books of account were not material.
3) 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, the provisions of clause 3 (iii) (a) to (C) of the Order are not applicable to the Company and hence not commented upon.
4) In our opinion and according to the information and explanations given to us, the company has complied with the provisions of section 185 and I86 of the Companies Act, 2013 In respect of loans, investments, guarantees, and security.
5 The Company has not accepted any deposits from the public and hence the directives issued by the Reserve Bank of India and the provisions of Sections 73 to 76 or any other relevant provisions of the Act and the Companies (Acceptance of Deposit) Rules, 2015 with regard to the deposits accepted from the public are not applicable.
6) As informed to us, the maintenance of Cost Records has not been specified by the Central Government under subsection (1) of Section 148 of the Act, in respect of the activities carried on by the company.
7) According to information and explanations given to us and on the basis of our examination of the books of account, and records:
a) the Company has been 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, Cess and any other statutory dues with the appropriate authorities.
b) no undisputed amounts payable in respect of the above were in arrears as at March 31, 2016 for a period of more than six months from the date on when they become payable.
c) there is a disputed matter under the Central Excise Act. The company is facing a court cases with The Central Excise Department in respect of Modvat credit claimed for F.Y. 1994-95 The company has preferred an appeal against the said order and is confident of succeeding in this appeal. The contingent liability for this matter is Rs.1,14,000/- plus Interest till the date of the finalization of the matter (if applicable). Out of the same the company has deposited Rs.50,000/- with the Excise Department.
8) In our opinion and according to the information and explanations given to us, the Company has not defaulted in the repayment of dues to banks. The Company has not taken any loan either from financial institutions or from the government and has not issued any debentures.
9) Based upon the audit procedures performed and the information and explanations given by the management, the company has not raised moneys by way of initial public offer or further public offer including debt instruments and term Loans. Accordingly, the provisions of clause 3 (ix) of the Order are not applicable to the Company and hence not commented upon.
10) Based upon the audit procedures performed and the information and explanations given by the management, we report that no fraud by the Company or on the company by its officers or employees has been noticed or reported during the year.
11) Based upon the audit procedures performed and the information and explanations given by the management, the managerial remuneration has been paid or provided in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Companies Act;
12) In our opinion, the Company is not a Nidhi Company. Therefore, the provisions of clause 4 (xii) of the Order are not applicable to the Company.
13) In our opinion, all transactions with the related parties are in compliance with section 177 and 188 of Companies Act, 2013 and the details have been disclosed in the Financial Statements as required by the applicable accounting standards.
14) Based upon the audit procedures performed and the information and explanations given by the management, the company has made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review to the wife of the Managing Director of 2,57,070 Eq. Shares of Rs.5/- each. This is within a permissible limits set up by SEBI Regulations and at the price ascertained by the necessary guidelines.
15) Based upon the audit procedures performed and the information and explanations given by the management, the company has not entered into any non-cash transactions with directors or persons connected with him. Accordingly, the provisions of clause 3 (xv) of the Order are not applicable to the Company and hence not commented upon.
16) In our opinion, the company is not required to be registered under section 45 IA of the Reserve Bank of India Act, 1934 and accordingly, the provisions of clause 3 (xvi) of the Order are not applicable to the Company and hence not commented upon.
âAnnexure Bâ to the Independent Auditorâs Report of even date on the Financial Statements of M/s VIVID GLOBAL INDUSTRIES LIMITED
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
We have audited the internal financial controls over financial reporting of M/s VIVID GLOBAL INDUSTRIES LIMITED (âthe Companyâ) as of March 31, 2016 in conjunction with our audit of the financial statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
The Companyâs management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India. 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 companyâs policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditorsâ Responsibility
Our responsibility is to express an opinion on the Companyâs internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the âGuidance Noteâ) and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditorâs judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Companyâs internal financial controls system over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A companyâs 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 companyâs 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 (if any);
(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 companyâs 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 31,2016, based on âthe 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 Indiaâ.
For K. M. Kapadia & Associates
(Chartered Accountants)
Firm Reg. No. 104777W
Sd/-
Place: Mumbai (Kamlesh M Kapadia)
Dated: 24th May 2016 Membership No.: 039707
Mar 31, 2015
We have audited the accompanying financial statements of M/s VIVID
GLOBAL INDUSTRIES LIMITED, which comprise the Balance Sheet as at 31
March 2015, the Statement of Profit and Loss, the Cash Flow Statement
for the year then ended, and a summary of significant accounting
policies and other explanatory information.
Management's Responsibility for the Financial Statements
The Company's Board of Directors is responsible for the matters in
section 134(5) of the Companies Act, 2013 ("the Act") with respect to
the preparation of these financial statements that give a true and fair
view of the financial position, financial performance and cash flows of
the Company in accordance with the accounting principles generally
accepted in India, including the Accounting Standards specified under
Section 133 of the Act, read with Rule 7 of the Companies (Accounts)
Rules, 2014. This responsibility also includes the maintenance of
adequate accounting records in accordance with the provision of the Act
for safeguarding of the assets of the Company and for preventing and
detecting the frauds and other irregularities; selection and
application of appropriate accounting policies; making judgments and
estimates that are reasonable and prudent; and design, implementation
and maintenance of internal financial control, that were operating
effectively for ensuring the accuracy and completeness of the
accounting records, relevant to the preparation and presentation of the
financial 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 disclosures in the financial statements. The procedures
selected depend on the auditor's judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal financial control relevant to the Company's
preparation of the financial statements that give true and fair view in
order to design audit procedures that are appropriate in the
circumstances. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of the accounting
estimates made by Company's Directors, as well as evaluating the
overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the financial
statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements, give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India;
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31,2015;
b) in the case of the Statement of Profit and Loss, of the profit for
the year ended on that date; and
Report on other Legal and Regulatory Requirements
As required by the Companies (Auditor's Report) Order,2015, issued by
the Central Government of India in term of sub-section (11) of section
143 of the Companies Act,2013, we give in the Annexure a statement on
the matters specified in the paragraphs 3 and 4 of the Order, to the
extent applicable.
As required by section 143(3) of the Act, we report that:
a) We have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purposes of our audit.
b) In our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books (and proper returns adequate for the purposes of our audit have
been received from the branches not visited by us)
c) the Balance Sheet, and the Statement of Profit and Loss, dealt with
by this Report are in agreement with the books of account.[and the
returns received from the branches not visited by us]
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) The going concern matter described in sub-paragraph (b) under the
Emphasis of Matters paragraph above, in our opinion, may have an
adverse effect on the functioning of the Company.
f) On the basis of written representations received from the directors
as on 31 March, 2015, taken on record by the Board of Directors, none
of the directors is disqualified as on 31 March, 2015, from being
appointed as a director in terms of Section 164(2) of the Act.
g) With respect to the other matters included in the Auditor's Report
and to our best of our information and according to the explanations
given to us :
i. According to the information and explanation given to us, there is
a disputed matter under the Excise law. The company is facing court
cases with The Central Excise Department in respect of Modvat credit
claimed for F.Y. 1994-95 The company has preferred an appeal against
the said order and is confident of succeeding in this appeal. The
contingent liability for this matter is Rs.1,14,000/-(Out of the same
the company has deposited Rs.50,000/- with the Excise Department.)
ii. The Company has made provision, as required under the applicable
law or accounting standards, for material foreseeable losses, if any,
on long term contracts including derivative contracts
iii. There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company [or, following are the instances of delay in transferring
amounts, required to be transferred, to the Investor Education and
Protection Fund by the Company or there were no amounts which required
to be transferred ]
For K. M. Kapadia & Associates
Chartered Accountants
Sd/-
Firm Registration No.104777 W)
CA. Kamlesh Kapadia
M. No. 39707
Place: Mumbai
Date: 19.5.2015
Mar 31, 2014
We have audited the accompanying financial statements of VIVID GLOBAL
INDUSTRIES LIMITED ("the Company"), which comprise the Balance Sheet as
at March 31, 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
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956 ("the Act"). This responsibility includes
the design, implementation and maintenance of internal control relevant
to the preparation and presentation of the financial statements that
give a true and fair view and are free from material misstatement,
whether due to fraud or error.
Auditors Responsibilty
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement. An audit involves performing procedures to
obtain audit evidence about the amounts and disclosures in the financial
statements. The procedures selected depend on the auditor''s judgment,
including the assessment of the risks of material misstatement of the
financial statements, whether due to fraud or error. In making those
risk assessments, the auditor considers internal control relevant to
the Company''s preparation and fair presentation of the financial
statements in order to design audit procedures that are appropriate in
the circumstances. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of
the accounting estimates made by management, as well as evaluating the
overall presentation of the financial statements.
We believe that the audit evidence we have obtained is suffcient 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 to be read with the
Notes to Accounts thereon give the information required by the Act in
the manner so required and give a true and fair view in conformity with
the accounting principles generally accepted in India:
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2014;
b) in the case of the Profit and Loss Account, of the Profit/ loss for
the year ended on that date; and
c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on the legal & regulatory requirments
1. As required by the Companies (Auditor''s Report) Order, 2003
("theOrder") 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
subsection (3C) of section 211 of the Companies Act, 1956;
e) on the basis of written representations received from the directors
as on March 31, 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2014, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
f) Since the Central Government has not issued any notifcation 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 REFERRED TO IN PARAGRAPH 1 OF OUR REPORT OF EVEN DATE TO
THE SHAREHOLDERS OF VIVID GLOBAL INDUSTRIES LIMITED
As required by the Companies (Auditors Report) Order, 2003 issued by
the department of Company Affairs, Government of India in terms of
Section 227(4A) of the Companies Act 1956 and on the basis of such
checks of Books and records of the Company as we considered appropriate
and according to the information and explanations given to us during
the course of audit, we further state that:
I (a) The Company has maintained reasonable records, showing
particulars like the situation of Fixed Assets.
(b) We are informed that most of the Fixed Assets have been verifed
once during the year by the management, which in our opinion is
reasonable having regard to the size of the Company and the nature of
its assets. No material discrepancies were noticed by the management as
compared with the records maintained by the Company.
(c) The preparation of Financial Statements on a going concern basis is
not affected on this account.
II (a) The Stock of Goods have been physically verifed by the
management during the year at reasonable intervals. In our opinion the
frequency of verifcation is reasonable.
(b) The procedure of physical verifcation of stocks 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 reasonable records of inventory. The
discrepancies noticed on verifcation between the physical stock and
book records were not material.
III In respect of loans, secured or unsecured, granted or taken by the
company to/from companies, firms or other parties covered in the
register maintained under section 301 of the companies Act, 1956;
(a) The company has not granted loans secured / unsecured to the
companies, firms or other parties listed in the register maintained
under section 301 of the Companies Act, 1956. The balance amount due to
be received from these parties as on 31st March 2014 is Rs. Nil. The
maximum amount due from such loans during the year was Rs. Nil.
The company has taken interest free / interest bearing loans, secured /
unsecured in the earlier years from various parties listed in the
register maintained under section 301 of the Companies Act, 1956 and
the balance outstanding as on 31.03.2014 is Rs. 80.00 Lakhs. The
maximum amount involved during the year was Rs.80.00 Lakhs.
The registers required to be maintained u/s 301 of the Companies Act
1956 have been maintained in the prescribed format by the Company.
(a) In our opinion and according to the information and explanation
given to us, the rate of interest in case of loan taken, wherever
applicable, and other terms and conditions are not prima  facie
prejudicial to the interest of the company.
(b) In respect of the loans taken by the company, the principal as well
as interest is regularly paid by the company.
(c) There is no over due amount in respect of the loans taken by the
company.
IV In our opinion and according to the information and explanation
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of the
business for the purchase of the inventory and fixed assets and for the
sale of goods. During the course of our audit, no major weakness in
internal controls were either reported or noticed.
V (a) The registers required to be maintained u/s 301 of the Companies
Act 1956 have been maintained in the prescribed format by the Company.
(b) In our opinion and according to the information given to us all the
transactions entered into by the Company with related parties in
pursuance to Section 301 of the Companies Act have been done with fair
amount of reasonability vis-Ã -vis the prevailing market prices at the
relevant time.
VI During the year under review the Company has not accepted Loan or
Deposits. Hence no Deposits have been accepted from public during the
year.
VII The company has Internal Audit system commensurate with its size
and nature of its business.
VIII No Cost Records have been prescribed by the Central Govt. undr
Clause (d) of Sub Section (1) of Section 209 of the Companies Act,
1956.
IX (a) According to the records of the Company, the Company has been
depositing with appropriate authorities the statutory dues such as
Provident Fund, Employees State Insurance, Sales Tax, Custom Duty,
Excise Duty, Cess and other statutory dues applicable to it. However
some nominal delays have been noticed in the payment of the same during
the year.
(b) According to the information and explanation given to us, there is
a disputed matter under the Excise law. The company is facing court
cases with The Central Excise Department in respect of Modvat credit
claimed for F.Y. 1994-95 The company has preferred an appeal against
the said order and is confdent of succeeding in this appeal. The
contingent liability for this matter is Rs.1,14,000/- (Out of the same
the company has deposited Rs.50,000/ Â with the Excise Department.)
X The Company has not recorded any losses in the period covered by this
audit. However the company has brought forward the losses of the
earlier years, the details of the brought forward unabsorbed
depreciation and Book Loss are as follows:
DETAILS OF BROUGHT FORWARD LOSS OR DEPRECIATION ALLOWANCE PART T B,
CLAUSE 25 Exhibit 5
Sr.No. Financial Year Depreciation Cash Loss
Rs. Rs.
1 2008-09 19,15,685 78,45,155
2 2011-12 1,53,844 18,68,148
XI As per the explanation and information given to us the Company has
not defaulted in repayment of any dues to any Financial Institution or
Banks. There is no issue of any Debentures by the Company in the year
under review or any of the preceeding years.
XII The Company has not granted loan and advances on the basis of
security by way of pledge of Shares, debentures or other securities.
XIII In our opinion, the Company is not a chit fund or a nidhi/ mutual
benefit fund / society. Therefore, the provision of clause 4 (xiii) of
said order are not applicable to the company.
XIV In our opinion, the company is not dealing in or trading in shares
,securities, debentures and other investments. Therefore the provision
of clause (xiv) of the said order are not applicable to the Company.
XV According to the information and explanation given to us, the
company has not given any guarantee for the loans taken by others from
Banks and Financial Institutions. Accordingly, clause 4(xv) of the said
order is not applicable.
XVI According to the information and explanation of the Company, term
loan taken have been applied for the purpose for which they were
obtained.
XVII In our opinion and according to the information and explanations
given to us and on an overall examinations of the balance sheet of the
company, we report that fund raised on short term basis have not been
used for long term investment and vice-versa.
XVIII During the year, the company has made any preferential allotment
of 1,50,000 Equity Shares of Rs. 10/ Â each at par to the parties and
the company covered in the register maintained under section 301 of the
Act.
XIX In our opinion and according to the information and explanation
given to us, the company has not issued any debentures during the
period covered by our report. Accordingly, clause 4 (xix) of the said
order is not applicable.
XX During the period covered by our reports the Company has not raised
any money by the public issues.
XXI According to the information and explanation given to us, no fraud
on or by the company has been noticed or reported during the course of
our audit.
For K M Kapadia & Associates.
FRN: 104777 W
CA.Kamlesh Kapadia
Membership No. :039707
Place:Mumbai
Date:29th May 2014
Mar 31, 2013
Report on the fnancial Statements
We have audited the accompanying fnancial statements of VIVID GLOBAL
INDUSTRIES LIMITED ("the Company"), which comprise the Balance Sheet as
at March 31, 2013, and the Statement of Proft and Loss and Cash Flow
Statement for the year then ended, and a summary of signifcant
accounting policies and other explanatory information.
Management''s responsibility for the fnancial statements
Management is responsible for the preparation of these fnancial
statements that give a true and fair view of the fnancial position,
fnancial performance and cash fows 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 fnancial 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 fnancial
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 fnancial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the fnancial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the fnancial 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 fnancial 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 fnancial statements.
We believe that the audit evidence we have obtained is suffcient 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 fnancial statements to be read with the
Notes to Accounts thereon 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 Proft and Loss Account, of the proft/ loss for
the year ended on that date; and
c) in the case of the Cash Flow Statement, of the cash fows for the
year ended on that date.
Report on the legal & regulatory requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specifed 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 Proft 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 Proft and Loss, and
Cash Flow Statement comply with the Accounting Standards referred to in
subsection (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 disqualifed 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 notifcation 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 REFERRED TO IN PARAGRAPH 1 OF OUR REPORT OF EVEN DATE TO THE
SHAREHOLDERS OF VIVID GLOBAL INDUSTRIES LIMITED
As required by the Companies (Auditors Report) Order, 2003 issued by
the department of Company Affairs, Government of India in terms of
Section 227(4A) of the Companies Act 1956 and on the basis of such
checks of Books and records of the Company as we considered appropriate
and according to the information and explanations given to us during
the course of audit, we further state that:
I (a) The Company has maintained reasonable records, showing
particulars like the situation of Fixed Assets.
(b) We are informed that most of the Fixed Assets have been verifed
once during the year by the management, which in our opinion is
reasonable having regard to the size of the Company and the nature of
its assets. No material discrepancies were noticed by the management as
compared with the records maintained by the Company.
(c) The preparation of Financial Statements on a going concern basis is
not affected on this account.
II (a) The Stock of Goods have been physically verifed by the
management during the year at reasonable intervals. In our opinion the
frequency of verifcation is reasonable.
(b) The procedure of physical verifcation of stocks 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 reasonable records of inventory. The
discrepancies noticed on verifcation between the physical stock and
book records were not material.
III In respect of loans, secured or unsecured, granted or taken by the
company to/from companies, frms or other parties covered in the
register maintained under section 301 of the companies Act, 1956;
(a) The company has not granted loans secured / unsecured to the
companies, frms or other parties listed in the register maintained
under section 301 of the Companies Act, 1956. The balance amount due to
be received from these parties as on 31st March 2013 is Rs. Nil. The
maximum amount due from such loans during the year was Rs. Nil.
The company has taken interest free / interest bearing loans, secured /
unsecured in the earlier years from various parties listed in the
register maintained under section 301 of the Companies Act, 1956 and
the balance outstanding as on 31.03.2013 is Rs. 80.00 Lakhs. The
maximum amount involved during the year was Rs.100.00 Lakhs.
The registers required to be maintained u/s 301 of the Companies Act
1956 have been maintained in the prescribed format by the Company.
(b) In our opinion and according to the information and explanation
given to us, the rate of interest in case of loan taken, wherever
applicable, and other terms and conditions are not prima  facie
prejudicial to the interest of the company.
(c) In respect of the loans taken by the company, the principal as well
as interest is regularly paid by the company.
(d) There is no over due amount in respect of the loans taken by the
company.
IV In our opinion and according to the information and explanation
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the natures of the
business for the purchase of the inventory and fxed assets and for the
sale of goods. During the course of our audit, no major weakness in
internal controls were either reported or notice
V (a) The registers required to be maintained u/s 301 of the Companies
Act 1956 have been maintained in the prescribed format by the Company.
(b) In our opinion and according to the information given to us all the
transactions entered into by the Company with related parties in
pursuance to Section 301 of the Companies Act have been done with fair
amount of reasonability vis-Ã -vis the prevailing market prices at the
relevant time.
VI During the year under review the Company has not accepted Loan or
Deposits. Hence no Deposits have been accepted from public during the
year.
VII The company has Internal Audit system commensurate with its size
and nature of its business.
VIII No Cost Records have been prescribed by the Central Govt. under
Clause (d) of Sub Section (1) of Section 209 of the Companies Act,
1956.
IX (a) According to the records of the Company, the Company has been
depositing with appropriate authorities the statutory dues such as
Provident Fund, Employees State Insurance, Sales Tax, Custom Duty,
Excise Duty, Cess and other statutory dues applicable to it. However
some nominal delays have been noticed in the payment of the same during
the year.
(b) According to the information and explanation given to us, there is
a disputed matter under the Excise law. The company is facing court
cases with The Central Excise Department in respect of Modvat credit
claimed for F.Y. 1994-95 The company has preferred an appeal against
the said order and is confdent of succeeding in this appeal. The
contingent liability for this matter is Rs.1,14,000/-(Out of the same
the company has deposited Rs.50,000/ Â with the Excise Department.)
X The Company has not recorded any losses in the period covered by this
audit. However the company has brought forward the losses of the
earlier years, the details of the brought forward unabsorbed
depreciation and Book Loss are as follows:
DETAILS OF BROUGHT FORWARD LOSS OR DEPRECIATION ALLOWANCE PART
B,CLAUSE 25 Exhibit 5
Sr. Financial Depreciation Cash Loss
No. Year Rs. Rs.
1 2008-09 19,15,685 78,45,155
2 2011-12 1,53,844 18,68,148
XI As per the explanation and information given to us the Company has
not defaulted in repayment of any dues to any Financial Institution or
Banks. There is no issue of any Debentures by the Company in the year
under review or any of the preceeding years.
XII The Company has not granted loan and advances on the basis of
security by way of pledge of Shares, debentures or other securities.
XIII In our opinion, the Company is not a chit fund or a nidhi/ mutual
beneft fund / society. Therefore, the provision of clause 4 (xiii) of
said order are not applicable to the company.
XIV In our opinion, the company is not dealing in or trading in shares
,securities, debentures and other investments. Therefore the provision
of clause (xiv) of the said are not applicable to the Company.
XV According to the information and explanation given to us, the
company has not given any guarantee for the loans taken by others from
Banks and Financial Institutions. Accordingly, clause 4(xv) of the said
order is not applicable.
XVI According to the information and explanation of the Company, term
taken have been applied for the purpose for which they were obtained.
XVII In our opinion and according to the information and explanations
given to us and on an overall examinations of the balance sheet of the
company, we report that fund raised on short term basis have not been
used for long term investment and vice-versa.
XVIII During the year, the company has not made any preferential
allotment of shares to the parties and the company covered in the
register maintained under section 301 of the Act.
XIX In our opinion and according to the information and explanation
given to us, the company has not issued any debentures during the
period covered by our report. Accordingly, clause 4 (xix) of the said
order is not applicable.
XX During the period covered by our reports the Company has not raised
any money by the public issues.
XXI According to the information and explanation given to us, no fraud
on or by the company has been noticed or reported during the course of
our audit.
For K M Kapadia & Associates
FRN: 104777 W
CA.Kamlesh Kapadia
Membership No. :039707
Place: Mumbai
Date : 29th May 2013
Mar 31, 2012
We have audited the attached Balance Sheet of M/S VIVID GLOBAL
INDUSTRIES LIMITED, as at 31st March, 2012 and also the Proft and Loss
Account for the year ended on that date annexed thereto. These fnancial
statements are the responsibility of the Company's management. Our
responsibility is to express an opinion on these fnancial statements
based on our audit.
We conducted our audit in accordance with auditing standards generally
accepted in India. Those Standards require that we plan and perform the
audit to obtain reasonable assurance about whether the fnancial
statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and
disclosures in the fnancial statements. An audit also includes
assessing the accounting principles used and signifcant estimates made
by management, as well as evaluating the overall fnancial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
As required by the Companies (Auditor's Report) Order, 2003 issued by
the Department of Company Affairs, Government of India, in terms of
Section 227(4A) of the Companies Act, 1956, we enclose in the Annexure
a statement on the matters specifed in paragraphs 4 and 5 of the said
Order on the basis of such checks as we considered appropriate and
according to the information and explanations given to us.
Further to our comments in the Annexure referred to above, we report
that:
i We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit
ii In our opinion, proper books of account as required by law have been
kept by the company so far as appears from our examination of those
books.
iii The Balance Sheet and Proft and Loss Account dealt with by this
report are in agreement with the books of account.
iv In our opinion, the Balance Sheet and Proft and Loss Account dealt
with by this report comply with the accounting standards referred to in
sub section (3C) of section 211 of the Companies Act, 1956;
v In our opinion, no cess is payable under section 441A
On the basis of written representations received from the directors, as
on 31st March, 2012, and taken on record by the Board of Directors, we
report that none of the directors is disqualifed as on 31st March 2012
from being appointed as a director in terms of clause (g) of sub
section (1) of section 274 of the Companies Act, 1956;
In our opinion and to the best of our information and according to the
explanations given to us, subject to the accounts give the information
required by the Companies Act, 1956 in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India:
a. In the case of the Balance Sheet, of the state of affairs of the
company as at 31st March, 2012; and
b. In the case of Proft and Loss Account, of the Proft for the year
ended on that date.
ANNEXURE REFERRED TO IN PARAGRAPH 1 OF OUR REPORT OF EVEN DATE TO THE
SHAREHOLDERS OF VIVID GLOBAL INDUSTRIES LIMITED
As required by the Companies (Auditors Report) Order, 2003 issued by
the department of Company Affairs, Government of India in terms of
Section 227(4A) of the Companies Act 1956 and on the basis of such
checks of Books and records of the Company as we considered appropriate
and according to the information and explanations given to us during
the course of audit, we further state that:
I (a) The Company has maintained reasonable records, showing
particulars like the situation of Fixed Assets.
(b) We are informed that most of the Fixed Assets have been verifed
once during the year, which in our opinion is reasonable having regard
to the size of the Company and the nature of its assets. No material
discrepancies were noticed by the management as compared with the
records maintained by the Company.
(c) The preparation of Financial Statements on a going concern basis is
not affected on this account.
II (a) The Stock of Goods have been physically verifed by the
management during the year at reasonable intervals. In our opinion the
frequency of verifcation is reasonable.
(b) The procedure of physical verifcation of stocks 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 reasonable records of inventory. The
discrepancies noticed on verifcation between the physical stock and
book records were not material.
III In respect of loans, secured or unsecured, granted or taken by the
company to/from companies, frms or other parties covered in the
register maintained under section 301 of the companies Act, 1956;
(a) The company has not granted loans secured / unsecured to the
companies, frms or other parties listed in the register maintained
under section 301 of the Companies Act, 1956. The balance amount due to
be received from these parties as on 31st March 2012 is Rs. Nil. The
maximum amount due from such loans during the year was Rs. Nil.
The company has taken interest free / interest bearing loans, secured /
unsecured in the earlier years from various parties and the balance
outstanding as on 31.03.2012 is Rs. Nil. The maximum amount involved
during the year was Rs. Nil.
The registers required to be maintained u/s 301 of the Companies Act
1956 have been maintained in the prescribed format by the Company.
(a) In our opinion and according to the information and explanation
given to us, the rate of interest in case of loan taken, wherever
applicable, and other terms and conditions are not prima à facie
prejudicial to the interest of the company.
(b) In respect of the loans taken by the company, the principal as well
as interest is regularly paid by the company.
(c) There is no over due amount in respect of the loans taken by the
company.
IV In our opinion and according to the information and explanation
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of business
for the purchase of the inventory and fxed assets and for the sale of
goods. During the course of our audit, no major weakness in internal
controls were either reported or noticed.
V (a) The registers required to be maintained u/s 301 of the Companies
Act 1956 have been maintained in the prescribed format by the Company.
(b) In our opinion and according to the information given to us all the
transactions entered into by the Company with related parties in
pursuance to Section 301 of the Companies Act have been done with fair
amount of reasonability vis ÃÂ vis the prevailing market prices at the
relevant time.
VI During the year under review the Company has not accepted Loan or
Deposits. Hence no Deposits have been accepted from public during the
year.
VII The company has Internal Audit system commensurate with its size
and nature of its business.
VIII No Cost Records have been prescribed by the Central Govt. under
Clause (d) of Sub Section (1) of Section 209 of the Companies Act,
1956.
IX (a) According to the records of the Company, the Company has been
depositing with appropriate authorities the statutory dues such as
Provident Fund, Employees State Insurance, Sales Tax, Custom Duty,
Excise Duty, Cess and other statutory dues applicable to it. However
some nominal delays have been noticed in the payment of the same during
the year.
(b) According to the information and explanation given to us, there are
no disputed matters under any of the statute under the law.
X The Company has not recorded any losses in the period covered by this
audit as well as the fnancial year immediately preceeding this audit.
However as the company has brought forward the losses of the earlier
years, the details of the Cash Loss brought forward by them are as
follows:
XI As per the explanation and information given to us the Company has
not defaulted in repayment of any dues to any Financial Institution or
Banks. There is no issue of any Debentures by the Company in the year
under review or any of the preceeding years.
XII The Company has not granted loan and advances on the basis of
security by way of pledge of Shares, debentures or other securities.
XIII In our opinion, the Company is not a chit fund or a nidhi/ mutual
beneft fund / society. Therefore, the provision of clause 4 (xiii) of
said order are not applicable to the company.
XIV In our opinion, the company is not dealing in or trading in shares
,securities, debentures and other investments. Therefore the provision
of clause (xiv) of the said are not applicable to the Company.
XV According to the information and explanation given to us, the
company has not given any guarantee for the loans taken by others from
Banks and Financial Institutions. Accordingly, clause 4(xv) of the said
order is not applicable.
XVI According to the information and explanation of the Company, term
taken have been applied for the purpose for which they were obtained.
XVII In our opinion and according to the information and explanations
given to us and on an overall examinations of the balance sheet of the
company, we report that fund raised on short term basis have not been
used for long term investment and vice versa.
XVIII During the year, the company has not made any preferential
allotment of shares to the parties and the company covered in the
register maintained under section 301 of the Act.
XIX In our opinion and according to the information and explanation
given to us, the company has not issued any debentures during the
period covered by our report. Accordingly, clause 4 (xix) of the said
order is not applicable.
XX During the period covered by our reports the Company has not raised
any money by the public issues.
XXI According to the information and explanation given to us, no fraud
on or by the company has been noticed or reported during the course of
our audit.
For K.M. KAPADIA & ASSOCIATES
(Chartered Accountants)
Membership No.39707
Place: Mumbai.
Date : 31/07/2012
Mar 31, 2011
We have audited the attached Balance Sheet of M/S VIVID GLOBAL
INDUSTRIES LIMITED, as at 31st March, 2011 and also the Profit and Loss
Account for the year ended on that date annexed thereto. These
financial statements are the responsibility of the Company's
management. Our responsibility is to express an opinion on these
financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally
accepted in India. Those Standards require that we plan 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 disclo-
sures 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.
As required by the Companies (Auditor's Report) Order, 2003 issued by
the Department of Company Affairs, Govern- ment of India, in terms of
Section 227(4A) 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 on the basis of such checks as we considered appro- priate and
according to the information and explanations given to us.
Further to our comments in the Annexure referred to above, we report
that:
i. We have obtained all the information and explanations, which to the
best of our knowledge and belief were neces- sary for the purposes of
our audit
ii. In our opinion, proper books of account as required by law have
been kept by the company so far as appears from our examination of
those books.
iii. The Balance Sheet and Profit and Loss Account dealt with by this
report are in agreement with the books of account.
iv. In our opinion, the Balance Sheet and Profit and Loss Account dealt
with by this report comply with the accounting standards referred to in
sub-section (3C) of section 211 of the Companies Act, 1956;
v. In our opinion, no cess is payable under section 441A
On the basis of written representations received from the directors, as
on 31st March, 2011, and taken on record by the Board of Directors, we
report that none of the directors is disqualified as on 31st March 2011
from being ap- pointed as a director in terms of clause (g) of
sub-section (1) of section 274 of the Companies Act, 1956; In our
opinion and to the best of our information and according to the
explanations given to us, subject to the accounts give the information
required by the Companies Act, 1956 in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India:
a. in the case of the Balance Sheet, of the state of affairs of the
company as at 31st March, 2011; and
b. in the case of Profit and Loss Account, of the Profit for the year
ended on that date.
ANNEXURE REFERRED TO IN PARAGRAPH 1 OF OUR REPORT OF EVEN DATE TO THE
SHAREHOLDERS OF VIVID GLOBAL INDUSTRIES LIMITED
As required by the Companies (Auditors Report) Order, 2003 issued by
the department of Company Affairs, Govern- ment of India in terms of
Section 227(4A) of the Companies Act 1956 and on the basis of such
checks of Books and records of the Company as we considered appropriate
and according to the information and explanations given to us during
the course of audit, we further state that:
I (a) The Company has maintained reasonable records, showing
particulars like the situation of Fixed Assets.
(b) We are informed that most of the Fixed Assets have been verified
once during the year, which in our opinion is reasonable having regard
to the size of the Company and the nature of its assets. No material
discrepancies were noticed by the management as compared with the
records maintained by the Company.
(c) The preparation of Financial Statements on a going concern basis is
not affected on this account.
II (a) The Stock of Goods have been physically verified by the
management during the year at reasonable intervals. In our opinion the
frequency of verification is reasonable.
(b) The procedure of physical verification of stocks 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 reasonable records of inventory. The
discrepancies noticed on verification between the physical stock and
book records were not material.
III In respect of loans, secured or unsecured, granted or taken by the
company to/from companies, firms or other parties covered in the
register maintained under section 301 of the companies Act, 1956;
(a) The company has not granted loans secured / unsecured to the
companies, firms or other parties listed in the register maintained
under section 301 of the Companies Act, 1956. The balance amount due to
be received from these parties as on 31st March 2011 is Rs. Nil. The
maximum amount due from such loans during the year was Rs. Nil.
The company has taken interest free / interest bearing loans, secured /
unsecured in the earlier years from various parties and the balance
outstanding as on 31.03.2011 is Rs. Nil. The maximum amount involved
during the year was Rs. Nil.
The registers required to be maintained u/s 301 of the Companies Act
1956 have been maintained in the prescribed format by the Company.
(b) In our opinion and according to the information and explanation
given to us, the rate of interest in case of loan taken, wherever
applicable, and other terms and conditions are not prima- facie
prejudicial to the interest of the company.
(c) In respect of the loans taken by the company, the principal as well
as interest is regularly paid by the company.
(d) There is no over due amount in respect of the loans taken by the
company.
IV In our opinion and according to the information and explanation
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of business
for the purchase of the inventory and fixed assets and for the sale of
goods. During the course of our audit, no major weakness in internal
controls were either reported or noticed.
V (a) The registers required to be maintained u/s 301 of the Companies
Act 1956 have been maintained in the prescribed format by the Company.
(b) In our opinion and according to the information given to us all the
transactions entered into by the Company with related parties in
pursuance to Section 301 of the Companies Act have been done with fair
amount of reasonability vis-ÃÂ -vis the prevailing market prices at the
relevant time.
VI During the year under review the Company has not accepted Loan or
Deposits. Hence no Deposits have been accepted from public during the
year.
VII The company has Internal Audit system commensurate with its size
and nature of its business.
VIII No Cost Records have been prescribed by the Central Govt. under
Clause (d) of Sub Section (1) of Section 209 of the Companies Act,
1956.
IX (a) According to the records of the Company, the Company has been
depositing with appropriate authorities the statutory dues such as
Provident Fund, Employees State Insurance, Sales Tax, Custom Duty,
Excise Duty, Cess and other statutory dues applicable to it. However
some nominal delays have been noticed in the payment of the same during
the year.
(b) According to the information and explanation given to us, there are
no disputed matters under any of the statute under the law.
X The Company has not recorded any losses in the period covered by this
audit as well as the financial year immediately preceeding this audit.
However as the company has brought forward the losses of the earlier
years, the details of the Cash Loss brought forward by them are as
follows:
DETAILS OF BROUGHT FORWARD LOSS OR DEPRECIATION ALLOWANCE PART B,
CLAUSE 25 Exhibit 5
Sr. Financial Depriciation Cash Loss
No. year
1 2001-02 33,22,601 12,32,592
2 2003-04 31,03,317 68,63,786
3 2005-06 14,64,382 54,57,552
4 2006-07 19,14,972 41,35,258
5 2008-09 19,15,685 78,45,155
XI As per the explanation and information given to us the Company has
not defaulted in repayment of any dues to any Financial Institution or
Banks. There is no issue of any Debentures by the Company in the year
under review or any of the preceeding years.
XII The Company has not granted loan and advances on the basis of
security by way of pledge of Shares, debentures or other securities.
XIII In our opinion, the Company is not a chit fund or a nidhi/ mutual
benefit fund / society. Therefore, the provision of clause 4 (xiii) of
said order are not applicable to the company.
XIV In our opinion, the company is not dealing in or trading in shares
,securities, debentures and other investments. Therefore the provision
of clause (xiv) of the said are not applicable to the Company.
XV According to the information and explanation given to us, the
company has not given any guarantee for the loans taken by others from
Banks and Financial Institutions. Accordingly, clause 4(xv) of the said
order is not applicable.
XVI According to the information and explanation of the Company, term
taken have been applied for the purpose for which they were obtained.
XVII In our opinion and according to the information and explanations
given to us and on an overall examinations of the balance sheet of the
company, we report that fund raised on short term basis have not been
used for long term investment and vice-versa.
XVIII During the year, the company has not made any preferential
allotment of shares to the parties and the company covered in the
register maintained under section 301 of the Act.
XIX In our opinion and according to the information and explanation
given to us, the company has not issued any debentures during the
period covered by our report. Accordingly, clause 4 (xix) of the said
order is not applicable.
XX During the period covered by our reports the Company has not raised
any money by the public issues.
XXI According to the information and explanation given to us, no fraud
on or by the company has been noticed or reported during the course of
our audit.
For K. M. KAPADIA & ASSOCIATES
(KAMLESH KAPADIA)
Membership No.39707
Place: Mumbai
Date : 17/08/2011
Mar 31, 2010
We have audited the attached Balance Sheet of M/S VIVID GLOBAL
INDUSTRIES LIMITED, as at 31st March, 2010 and also the Profit and Loss
Account for the year ended on that date annexed thereto. These
financial statements are the responsibility of the Companys
management. Our responsibility is to express an opinion on these
financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally
accepted in India. Those Standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial state-
ments 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 pre- sentation. We
believe that our audit provides a reasonable basis for our opinion.
As required by the Companies (Auditors Report) Order, 2003 issued by
the Department of Company Affairs, Government of India, in terms of
Section 227(4A) 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 on the basis of such checks as we considered appropriate and
according to the information and explanations given to us.
Further to our comments in the Annexure referred to above, we report
that
i. We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit
ii. In our opinion, proper books of account as required by law have
been kept by the company so far as appears from our examination of
those books.
iii. The Balance Sheet and Profit and Loss Account dealt with by this
report are in agreement with the books of account
iv. In our opinion, the Balance Sheet and Profit and Loss Account dealt
with by this report comply with the accounting standards referred to in
sub-section (3C) of section 211 of the Companies Act, 1956;
v. In our opinion, no cess is payable under section 441A
On the basis of written representations received from the Directors, as
on 31st March, 2010, and taken on record by the Board of Directors, we
report that none of the Directors is disqualified as on 31st March 2010
from being appointed as a Director in terms of clause (g) of
sub-section (1) of section 274 of the Companies Act, 1956,
In our opinion and to the best of our information and according to the
explanations given to us, subject to the accounts give the information
required by the Companies Act, 1956 in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India:
a. in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2010; and
b. in the case of Profit and Loss Account, of the Profit for the year
ended on that date.
ANNEXURE REFERRED TO IN PARAGRAPH 1 OF OUR REPORT OF EVEN DATE TO THE
SHAREHOLDERS OF VIVID GLOBAL INDUSTRIES LIMITED
As required by the Companies (Auditors Report) Order, 2003 issued by
the department of Company Affairs, Govern- ment of India in terms of
Section 227(4A) of the Companies Act 1956 and on the basis of such
checks of Books and records of the Company as we considered appropriate
and according to the information and explanations given to us during
the course of audit, we further state that:
I (a) The Company has maintained reasonable records, showing
particulars like the situation of Fixed Assets.
(b) We are informed that most of the Fixed Assets have been verified
once during the year, which in our opinion is reasonable having regard
to the size of the Company and the nature of its assets. No material
discrepancies were noticed by the management as compared with the
records maintained by the Company.
(c) The preparation of Financial Statements on a going concern basis is
not affected on this account.
II (a) The Stock of Goods have been physically verified by the
management during the year at reasonable intervals. In our opinion the
frequency of verification is reasonable.
(b) The procedure of physical verification of stocks 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 reasonable records of inventory. The
discrepancies noticed on verification between the physical stock and
book records were not material.
III In respect of loans, secured or unsecured, granted or taken by the
company to/from companies, firms or other parties covered in the
register maintained under section 301 of the companies Act, 1956;
(a) The company has not granted loans secured / unsecured to the
companies, firms or other parties listed in the register maintained
under section 301 of the Companies Act, 1956. The balance amount due to
be received from these parties as on 31" March 2010 is Rs. Nil. The
maximum amount due from such loans during the year was Rs. Nil.
The company has taken interest free / interest bearing loans, secured /
unsecured in the earlier years from various parties and the balance
outstanding as on 31.03.2010 is Rs. Nil. The maximum amount involved
during the year was Rs Nil.
However the registers required to be maintained u/s 301 of the
Companies Act 1956 have been maintained in the prescribed format by the
Company.
(b) In our opinion and according to the information and explanation
given to us, the rate of interest in case of loan taken, wherever
applicable, and other terms and conditions are not prima- facie
prejudicial to the interest of the company.
(c) In respect of the loans taken by the company, the principal as well
as interest is regularly paid by the company.
(d) There is no over due amount in respect of the loans taken by the
company
IV In our opinion and according to the information and explanation
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the natures of the
business for the purchase of the inventory and fixed assets and for the
sale of goods. During the course of our audit, no major weakness in
internal controls were either reported or noticed.
V. (a) The registers required to be maintained u/s 301 of the
Companies Act 1956 have been maintained in the prescribed format by the
Company.
(b) In our opinion and according to the information given to us all the
transactions entered into by the Company with related parties in
pursuance to Section 301 of the Companies Act have been done with fair
amount of reasonability vis-a-vis the prevailing market prices at the
relevant time.
VI During the year under review the Company has not accepted Loan or
Deposits. Hence no Deposits have been accepted from public during the
year
VII The company has Internal Audit system commensurate with its size
and nature of its business.
VIII No Cost Records have been prescribed by the Central Govt, under
Clause (d) of Sub Section (1) of Section 209 of the Companies Act,
1956.
IX (a) According to the records of the Company, the Company has been
depositing with appropriate authorities the statutory dues such as
Provident Fund, Employees State Insurance, Sales Tax, Custom Duty,
Excise Duty, Cess and other statutory dues applicable to it. However
some nominal delays have been noticed in the payment of the same during
the year.
(b) According to the information and explanation given to us, there are
no disputed matters under any of the statute under the law. .
X The Company has accumulated losses for the following financial years.
DETAILS OF BROUGHT FORWARD LOSS OR DEPRECIATION ALLOWANCE PART
B, CLAUSE 25 Exhibit 5
Sr. Assessment Nature of Loss/ Amount Amount Assessment
No. year Allowance Returned Assessed Order
Rs. Rs. Rs. Reference
1 1997-98 Depreciation 42.49,717 4,249,717 CIT (A)
ORDER
DT.11.12.
2000
2 1999-00 Depreciation 44,51.443 44,51,443
Business Loss 23,24,406 23.24,406
3 2000-01 Depreciation 11.97.218 11,97,218
4 2001-02 Business Loss 67,295 67,295
Depreciation 27,55,584 27,55,584
5 2002-03 Business Loss - CIT (A)
ORDER
2002-03 Depreciation 29,05,955 29,05,955 DT. 24.05.
2008
6 2004-05 Business Loss 12,81,826 Not yet
Assessed
2004-05 Depreciation 16,01,568 Not yet
Assessed
7 2007-08 Depreciation 8,68,793 Not Yet
Assessed
Depreciation 6,24,381 Not Yet
Assessed
8 2009-10 Business Loss 71,42,607 Not Yet
Assessed
XI As per the explanation and information given to us the Company has
not defaulted in repayment of any dues to any Financial Institution or
Banks. There is no issue of any Debentures by the Company in the year
under review or any of the preceeding years.
Xli The Company has not granted loan and advances on the basis of
security by way of pledge of Shares, debentures or other securities.
XIII In our opinion, the Company is not a chit fund or a nidhi/ mutual
benefit fund / society. Therefore, the provision of clause 4 (xiii) of
said order are not applicable to the company.
XIV In our opinion, the company is not dealing in or trading in shares
.securities, debentures and other
investments. Therefore the provision of clause (xiv) of the said are
not applicable to the Company.
XV According to the information and explanation given to us, the
company has not given any guarantee for the loans taken by others from
Banks and Financial Institutions. Accordingly, clause 4(xv) of the said
order is not applicable.
XVI According to the information and explanation of the Company, term
taken have been applied for the purpose for which they were obtained.
XVII In our opinion and according to the information and explanations
given to us and on an overall exami nations of the balance sheet of the
company, we report that fund raised on short term basis have not been
used for long term investment and vice-versa.
XVIII During the year, the company has not made any preferential
allotment of shares to the parties and the company covered in the
register maintained under section 301 of the Act.
XIX In our opinion and according to the information and explanation
given to us, the company has not issued any debentures during the
period covered by our report. Accordingly, clause 4 (xix) of the said
order is not applicable.
XX During the period covered by our reports the Company has not raised
any money by the public issues.
XXI According to the information and explanation given to us, no fraud
on or by the company has been noticed or reported during the course of
our audit.
Place: Mumbai. For K.M. KAPADIA & ASSOCIATES
Date: 18/08/2010 (Chartered Accountants)
Membership No.39707
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