Mar 31, 2018
TO
THE MEMBERS OF
V.S.T. TILLERS TRACTORS LIMITED
Report on the Financial Statements
We have audited the accompanying financial statements of V.S.T. Tillers Tractors 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 Statement of Changes in Equity and the Statement of Cash Flows 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 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 Indian Accounting Standards (Ind AS) prescribed under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules,2015, as amended, and other accounting principles generally accepted in India.
This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgements 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 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. In conducting our audit, we have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder and the Order issued under section 143(11) of the Act.
We conducted our audit of the financial statements in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether 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 judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Companyâs preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and 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 obtained by us 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 explanation 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, 2018, and its profit , total comprehensive income, the change in equity and its cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by Section 143(3) of the Act, based on our audit we report that:
a) we have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
b) in our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books.
c) the Balance sheet, the statement of Profit and Loss including Other Comprehensive Income, Statement of Changes in Equity and the Statement of Cash Flow dealt with by this Report are in agreement with books of account.
d) in our opinion, the aforesaid financial statements comply with the Indian accounting standards prescribed under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended.
e) on the basis of the written representations received from the directors of the Company as on March 31, 2018 taken on record by the Board of Directors, none of the Directors is disqualified as on March 31, 2018 from being appointed as a director in terms of Section 164(2) of the Act.
f) with respect to the adequacy of the internal financial controls with reference to financial statements of the Company and the operating effectiveness of such controls, refer to our separate in âAnnexure Aâ. Our report expresses a Qualified Opinion on the adequacy and operating effectiveness of the Companyâs internal financial controls with reference to financial statements
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 to the best of the explanation given to us:
i. The Company has disclosed the impact of pending litigations on its financial position in its financial statements.
ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses;
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
2. As required by the Companies (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 AUDITORSâ REPORT.
(Referred to in paragraph 1(f) under Report on Other Legal and Regulatory Requirementsâ section of our report to the Members of VS.T. Tillers Tractors Limited of even date)
Report on the Internal Financial Controls with reference to Financial Statements under Clause (i) of Sub- section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
We have audited the internal financial controls with reference to financial statements of V.S.T. Tillers Tractors Limited (âthe Companyâ) as of March 31, 2018 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 Board of Directors of the Company is responsible for establishing and maintaining internal financial controls based on internal financial controls with reference to financial statements criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India(âICAIâ). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditorâs Responsibility
Our responsibility is to express an opinion on the internal financial controls with reference to financial statements of the Company based on our audit. We conducted our audit in accordance with Guidance Note on Audit of Internal Financial Control Over Financial Reporting (the âGuidance Noteâ) issued by the Institute of Chartered Accountants of India and the Standards on Auditing prescribed under Section 143(10) of the
Companies Act 2013, to the extent applicable to an audit of internal financial controls. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether 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 internal financial controls with reference to financial statements and their operating effectiveness. Our audit of internal financial controls with reference to financial statements included obtaining an understanding of internal financial controls with reference to financial statements, 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 procedure selected depend on the auditorâs judgement, including the assessment of the risks material misstatement of the financial statements, whether due 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 with reference to financial statements.
Meaning of Internal Financial Controls with reference to financial statements
A companyâs internal financial controls with reference to financial statements 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 controls with reference to financial statements 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 preparations of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditure of the company are being made only in accordance with authorisations of management and directions 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 with Reference to Financial Statements
Because of the inherent limitations of Internal financial controls with reference to financial statements, 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 with reference to financial statements to future periods are subject to the risk that the internal financial controls with reference to financial statements may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Qualified Opinion
According to the information and explanations given to us and based on our audit, the following material weakness has been identified in the operating effectiveness of the Companyâs Internal financial controls with reference to financial statements as at March 31, 2018:
The Company has designed and established internal financial controls over accounting of expenditure and payment processing. However, adequate âmaker and checker controls âwere not effective with respect to review of expenditure entries, generation of EDI (Electronic Data Interchange) file for payments, modifications to EDI file and uploading the EDI file onto the Bankâs website for payments, as detailed in note no. 45 to financial statements as at March 31, 2018 which resulted in creation of fictitious accounting entries in the system and payments to unauthorised parties.
A âmaterial weaknessâ is a deficiency, or a combination of deficiencies, in internal financial control over financial reporting, such that there is a reasonable possibility that a material misstatement of the Companyâs annual or interim financial statements will not be prevented or detected on a timely basis.
In our opinion, except for the possible effects of the material weakness described above on the achievement of the objectives of the control criteria, the Company has maintained, in all material respects, adequate internal financial controls with reference to financial statements and such internal financial controls with reference to financial statements were operating effectively as of March 31, 2018 based on the internal financial controls with reference to financial statements criteria established by the Company considering the essential components of internal control stated in the âGuidance Note on Audit of Internal Financial Controls Over Financial Reportingâ issued by the Institute of Chartered Accountants of India.
Explanatory paragraph
We also have audited, in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India, as specified under Section 143(10) of the Act, the financial statements of the Company, which comprise the Balance Sheet as at March 31, 2018, and the related Statement of Profit and Loss, including the Statement of Other Comprehensive Income, the Cash Flow Statement and the Statement of Changes in Equity for the year then ended, and a summary of significant accounting policies and other explanatory information. This material weakness was considered in determining the nature, timing, and extent of audit tests applied in our audit of the March 31, 2018 financial statements of the Company and this report does not affect our unqualified opinion on these financial statements.
ANNEXURE âBâ TO THE INDEPENDENT AUDITORSâ REPORT.
(Referred to in paragraph 2 under âReport on Other Legal and Regulatory Requirementsâ section of our report to the Members of V.S.T Tillers Tractors Limited of even date)
(i) In respect of the Companyâs Fixed Assets:
(a) As per the information and explanation provided to us the Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
(b) The Company has a regular program of physical verification of its fixed assets by which fixed assets are verified in a phased manner over a period of three years. In accordance with the programme, the management has conducted physical verification of certain fixed assets during the year and no material discrepancies were noticed on such verification. In our opinion, this periodicity of physical verification is reasonable having regard to size and nature of the Company and nature of its assets.
(c) According to information and explanations given to us and on the basis of our examination of the records of the Company, the title deeds of immovable properties are held in the name of the Company.
(ii) The Company has conducted physical verification of Inventory at reasonable intervals and any material discrepancies noticed have been properly dealt in the books and accounts.
(iii) According to the information and explanations given to us, the Company has granted unsecured loan to the company covered 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.
(b) The schedule of repayment of principal and payment of interest has been stipulated
and repayments or receipts of principal amounts and interest have been regular as per stipulations.
(c) There is no amount overdue for more than 90 days as at the balance sheet date.
(iv) In our opinion and according to the information and explanation given to us, the Company has complied with the provisions of section 185 and 186 of the Act in respect of grant of loans, making investments and providing guarantees and securities as applicable.
(v) The Company has not accepted any deposits from the public. Accordingly, clause 3(v) of paragraph of the Order is not applicable.
(vi) We have broadly reviewed the books of account maintained by the Company pursuant to the rules made by the Central Government for the maintenance of cost records under section 148(1) of the Companies Act, 2013, related to the products manufactured and are of the opinion that prima facie, the specified accounts and records have been made and maintained. However, we have not made a detailed examination of the same.
(vii) According to the information and explanation given to us, in respect of statutory dues:
a. The Company is regular in depositing the undisputed statutory dues including Income Tax, Goods and Service Tax, Sales Tax, Service Tax, Custom Duty, Excise Duty, Cess and other statutory dues to the extent applicable to it. There are no arrears of outstanding statutory dues as at March 31, 2018 for a period of more than six months from the date they became payable.
b. According to the information and explanations given to us, there are no dues in respect of Income Tax, Goods and Service Tax, Sales Tax, Service Tax, Custom Duty, Excise Duty and Cess which have not been deposited on account of dispute except the following:
Statute |
Nature of dues |
Forum where Dispute is pending |
Period to which the amount relates |
Amount involved (In Rupees) |
The Income Tax Act, 1961. |
Disallowance of expenditure incurred in connection with earning exempted income |
Income Tax Appellate Tribunal |
April 2010 -March 2011 |
3,41,988 |
Statute |
Nature of dues |
Forum where Dispute is pending |
Period to which the amount relates |
Amount involved (In Rupees) |
The Income Tax Act, 1961. |
Disallowance of Marketing expenses |
Income Tax Appellate Tribunal. |
April 2011 -March 2012 |
3,44,94,802 |
The Income Tax Act, 1961. |
Disallowance of expenditure incurred in connection with earning exempted income |
Commission of Income Tax (Appeals) |
April 2012 -March 2013 |
4,05,486 |
The Income Tax Act, 1961. |
Disallowance of expenditure incurred in connection with earning exempted income |
Income Tax Appellate Tribunal |
April 2013 -March 2014 |
16,45,492 |
The Customs Act, 1962 |
Disallowance of Concessional Custom Duty availed under Customs Notification No. 12/2012 for Reaper Combiner |
Appellate Tribunal |
April 2014 -March 2017 |
23,36,692 |
(viii) The Company has not taken any loan or borrowings from financial institution or bank and the Government or has not issued any debentures. Hence reporting under clause 3 (viii) of the Order is not applicable to the Company.
(ix) The Company did not raise any money by way of initial public offer or further public offer (including debt instruments) and term loans and hence reporting under clause 3(ix) of the Order is not applicable.
(x) According to information and explanations given to us, no fraud by the Company or on the Company by its officers or employees has been noticed or reported during the course of the audit except a fraud committed by an employee of the Company on the Company to the tune of Rs.37,89,699 as explained in Note 45 of the financial statements. Further, Management has represented that the Company is evaluating to appoint an independent agency to carry out a detailed investigation. In the absence of a detailed investigation and taking into consideration the available evidence as on the date, we are unable to comment on existence of fraud beyond the above reported amount.
(xi) According to the information and explanations give to us and based on our examination of the records of the Company, we report that managerial remuneration has been paid /provided in accordance with the provisions of Sec 197 read with Schedule V to the Act.
(xii) The Company is not a Nidhi Company and hence reporting under clause 3(xii) of the Order is not applicable.
(xiii) According to the information and explanations given to us and based on our examination of the records of the Company, transactions with the related parties are in compliance with sections 177 and 188 of the Act where applicable and details of such transactions have been disclosed in the financial statements as required by the applicable accounting standards.
(xiv) During the year, the Company has not made any preferential allotment or private placement of shares or fully or partly paid convertible debentures and hence reporting under clause 3 (xiv) of the Order is not applicable to the Company.
(xv) In our opinion and according to the information and explanation given to us, during the year the Company has not entered into any noncash transactions with its Directors or persons connected to its directors and hence provisions of section 192 of the Companies Act, 2013 are not applicable to the Company.
(xvi) According to the information and explanations given to us, the provisions of section 45-IA of the Reserve Bank of India Act, 1934 are not applicable to the Company.
For K.S. Rao & Co.,
Chartered Accountants
ICAI Firmâs Registration No. 003109S
Place : Bengaluru Hitesh Kumar P
Date : May 11, 2018 Partner
Membership No. 233734
Mar 31, 2017
INDEPENDENT AUDITORSâ REPORT
TO
THE MEMBERS OF
V.S.T. TILLERS TRACTORS LIMITED
Report on the Financial Statements
We have audited the accompanying financial statements of VS.T. Tillers Tractors Limited (the Company which comprise the Balance Sheet as at March 2017, the Statement of Profit and Loss, the Cash Flow Statement for the year then ended, and a summer the significant accounting policies and other explanatory information.
Managementâs Responsibility for the Financial Statements
The Companyâs Board of Directors is responsible the matters stated in Section 134(5) of the Company Act, 203 (the Act)â with respect to the prepared 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 principle generally accepted in Indi including the Accounting Standards specified under Section 33 of the Act, read with Rule 7 of Companies (Accounts) Rules, 204 This responsibility also includes maintenance of adequate account records in accordance with the provisions of the for safeguarding of the assets of the Company an preventing and detecting frauds and other irregular selection and application of appropriate account policies; making judgments and estimates that reasonable and prudent; and design, implementation a maintenance of adequate internal financial controls, that were operating effectively for ensuring the accrue and completeness of the accounting records, reel'' to the preparation and presentation of the financial statements; hat give a true and fair view and are from material misstatement, whether due to from error.
Auditorâs Responsibility
Our responsibility is to express an opinion on t financial statements based on our audit. We have taken into account the provisions of the Act, the account and auditing standards and matters which are red to be included in the audit report under the prove of the Act and the Rules made there under. conducted our audit in accordance with the Stand 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.
3An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor 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 controls relevant to the Companyâs preparation op) the financial statements that give a true and fair view send order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by the Companyâs Directors, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements.
Opinion
In our opinion and to the best of our informant disaccording to the explanations given to us, the aforesaid financial statements give the information required by et he 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, of its profit and nits cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
As required by the Companies (Audit report) or Order, 20I> (the Order)â issued by the Central Government of India in terms of sub-section (]) of section 43 of the Act, we give in the Annexure âAâ, a statement on the matters specified in paragraphs 3 and 4 of the Order
As required by Section 43 (3) of the Act, we red report that:
a) We have sought and obtained all the We information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books.
c) The Balance Sheet, the Statement of Profit and Loss, and the Cash Flow Statement dealt with by this Report are in agreement with the books of account;
d) In our opinion, the aforesaid financial statements comply with the Accounting Standards specified under Section133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
e) On the basis of the written representations received from the directors as on March 3} 207 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2017from being appointed as a director in terms of Section 64 (2) of the Act.
f) With respect to the adequacy of the internal controls over financial reporting of the company and the operating effectiveness of such controls, refer to our separate report in Annexure Bâ â and
g) With respect to the other matters to be included in the Auditors 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 position in its financial statements - Refer Note 28 to the financial statements;
ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses;
iii. There has been no delay in transfer ring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
iv. The company had provided requisite disclosures in its financial statements as regards its holdings and dealings in Specified Bank Notes during November 08, 2016 to December 30, 2016, as defined in the Notification S.O 3407(E) dated the November 08, 2016 and it is in accordance with the books of accounts maintained by the company. However, as stated in note 39 to the financial statements, amounts aggregating to Rs. 7500''- as represented to us by the management have been received from the source other than permitted transactions.
ANNEXURE âAâ TO INDEPENDENT
AUDITORSâ REPORT OF
V.S.T. TILLERS TRACTORS LIMITED.
The Annexure referred to in Independent Auditors Report to the members of the Company on the financial statements for the year ended March 3} 207 we report that:
(ii) In respect of the Companyâs Fixed Assets :
(a) As per the informal) and explanation provided to us the company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
(b) The company has a regular programme of physical verification of its fixed assets
by which fixed assets are verified in a (v phased manner over a period of three years. In accordance with the programme, the management has conducted physical verification of certain fixed assets during the year and no material discrepancy noticed on such verification. In our opinion, this periodicity of physical verification is reasonable having regard to size and nature of the company and nature of its assets.
(c) According to information and explanations ( given to us and on the basis of our examination of the records of the company, the title deeds of immovable properties are held in the name of the company.
(ii) The company has conducted physical verification of Inventor yeast reasonable intervals and any material discrepancies noticed have been properly dealt in the books and accounts.
(iii) According to the information and explanations given to us, the Company has granted unsecured loan to the company covered in the Register maintained under Section 189 of the Companies Act, 203, 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.
b. The schedule of repayment of principal and payment of interest has been stipulated and repayments or receipts of principal amounts and interest have been regular as per stipulations.
c. There is no amount overdue for more than 90 days as at the balance sheet date.
In our opinion and according to the information and explanation given to us, the Company has complied with the provisions of section 85 and 86 of the Companies Act, 203 in respect of grant of loans, making investments and providing guarantees and securities as applicable.
The Company has not accepted any deposits from the public. Accordingly, clause 3(v) of paragraph of the Order is not applicable.
We have broadly reviewed the books of account maintained by the Company pursuant to the rules made by the Central Government for the maintenance of cost records under section 48() of the Companies Act, 203, related to the products manufactured and are of the opinion that prima facie, the specified accounts and records have been made and maintained. We have not, however, made a detailed examination of the same.
i) a. According to the information and explanations given to us and according to the records as produced and examined by us, in our opinion, the Company is regular in depositing with appropriate authorities the undisputed statutory dues including Income Tax, Sales Tax, Service Tax, Custom Duty, Excise Duty, Cess and other statutory dues to the extent applicable to it. There are no arrears of outstanding statutory dues as at March 3, 2017 for a period of more than six months from the date they became payable.
b. According to the information and explanations given to us, there are no dues in respect of Sales Tax, Income Tax, Customs Duty, Wealth Tax, Service Tax, Excise Duty, and Cess which have not been deposited on account of dispute except the following.
Name of the statute |
Nature of due s |
Forum where dispute is pending |
Period to which amount relates |
Amount (Rs) |
The Income Tax Act, 1961 |
Disallowance of expenditure incensed in connection with earning exempted income |
Commission of Income Tax (Appeals) |
April 2010 -March 2011 |
341,988 |
Name of the statute |
Nature of due s |
Forum where dispute is pending |
Period to which amount relates |
Amount (Rs) |
The Income Tax Act, 1961 |
Disallowance of Provision for Marketing expenses |
Income Tax Appellate Tribunal |
April 2011 -March 2012 |
3,44,94,802 |
The Income Tax Act, 1961 |
Disallowance of expenditure incurred in connection with earning exempted income |
Commission of Income Tax (Appeals) |
April 202 -March 2013 |
405,486 |
The Income Tax Act, 1961 |
Disallowance of expenditure incurred in connection with earning exempted income |
Commission of Income Tax (Appeals) |
April 2013 -March 2014 |
16,45,492 |
The Customs Act, 1962 |
Disallowance of Concessional Custom Duty availed under Customs Notification No. 12/2012 for Reaper Combiner |
Appellate Tribunal |
April 2014 -March 2015 |
21,05,228* |
*the amount includes penalty of Rs. 550,000/-
(viii) According to the information and explanations given to us, the Company has no outstanding loan during the year to a financial institution or banks and the Government he Company has not issued any debentures.
(ix) The Company did not raise any money by way (xiv of initial public offer or further public offer (including debt instruments) and term loans during the year. Accordingly, clause 3(ix) of paragraph of the Order is not applicable.
(x) According to the information and explanations given to us, no fraud by the Company or on the Company by its officers or employees has been (xv) noticed or reported during the course of our audit. Accordingly, clause 3(x) of paragraph of the Order is not applicable.
(xi) According to the information and explanations give to us and based on our examination the records of the Company, we report that managerial remuneration has been paid /provided(xvi in accordance with the provisions of Sec 197 read with Schedule V to the Companies Act, 203.
(xii) In our opinion nine according to the information and explanations given to us, the Company is not a Nidhi company. Accordingly, clause 3(xii) of paragraph of the Order is not applicable.
(xiii) According to the information and explanations given to us and based on our examination of the records of the Company, transactions with the
related parties are in compliance with sections 77 and 88 of the Act where applicable and details of such transactions have been disclosed in the financial statements as required by the applicable accounting standards.
According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year. Accordingly, clause
(xiv) of paragraph 3 of the Order is not applicable. According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not entered into non-cash transactions with directors or persons connected with him. Accordingly, clause (xv) of paragraph 3 of the Order is not applicable.
According to the information and explanations given to us, the provisions of section 45-IA of the Reserve Bank of India Act, 1934 are not applicable to the Company.
âANNEXURE - Bâ TO THE INDEPENDENT AUDITORSâ REPORT
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
We have audited the internal financial controls over financial reporting of V.S.T. Tillers Tractors Limited (the Company)â as of March 3} 207 in conjunction with our audit of the financial statements of the Company for the year ended on the 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 Guidance Note on Audit of Internal Financial Control over Financial Reporting issued by the Instate of Chartered Accountants of India (ICAI). The responsibilities include the design, implementation a maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly efficient conduct of its business, including adherence to companyâs policies, the safeguarding of its asset the prevention and detection of frauds and err the accuracy and completeness of the account records, and the timely preparation of reliable financial information, as required under the Companies A 2013.
Auditorsâ Responsibility
Our responsibility is to express an opinion on Companyâs internal financial controls over financial reporting based on our audit w e conducted our audit in accordance with the Guidance Note on Audit Internal Financial Controls over Financial Report(the Guidance Note)â and the Standards on Auditing issued by ICAI and deemed to be prescribed un section 4-3(0) of the Companies Act, 203, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Inter 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 includes 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 auditors judgment, including tithe assessment of the risks of material misstatement of those financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained dish sufficient and appropriate to provide a basis for our audit opinion on the Companyâs internal financial no trolls 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 t .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
(i) pertain to the maintenance of records that, in assumable detail, accurately and fairly reflect the in gens act ions 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 4 hat receipts and expenditures of the company arebeing made only in accordance with authorizations
(3)Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls system e aver financial reporting and such internal financial controls over financial reporting were operating effectively as at March 3} 207, based on the internal control over financial reporting criteria established by the Company considering the essential components of maternal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of e to-date.
of management and directors of the company; and provide reasonable assurance regarding prevention timely detection of unauthorized acquisition, use disposition of the companyâs assets that could have material effect on the financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of not financial controls over financial reporting, including the possibility of collusion or improper managed override of controls, material misstatements du error or fraud may occur and not be detected. 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 compile with the policies or procedures may deteriorate.
For K.S. Rao & Co.,
Chartered Accountants
ICAI Firmâs Registration No. 003109S
Place : Bengaluru Hitesh Kumar P
Date : May 25, 207 Partner
Membership No. 23 3734
Mar 31, 2016
THE MEMBERS OF
V.S.T. TILLERS TRACTORS LIMITED
Report on the Financial Statements
We have audited the accompanying financial statements of V.S.T. Tillers Tractors Limited(âthe Companyâ), which comprise the Balance Sheet as at March 31, 2016, the Statement of Profit and Loss and the Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information.
Managementâs Responsibility for the Financial Statements
The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation and presentation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditorâs Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under. We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statements. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Companyâs preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Companyâs Directors, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the financial statements.
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 and its Cash Flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ) issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in the âAnnexure Aâ, a statement on the matters specified in the paragraph 3 and 4 of the order.
2. As required by Section 143 (3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
(b) In our opinion proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books;
(c) The balance sheet, the statement of profit and loss and the cash flow statement dealt with by this Report are in agreement with the books of account;
(d) In our opinion, the aforesaid financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014;
(e) On the basis of the written representations received from the directors as on 31 March 2016 taken on record by the Board of Directors, none of the directors is disqualified as on 31 March 2016 from being appointed as a director in terms of Section 164 (2) of the Act;
(f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate report in âAnnexure Bâ; and
(g) with respect to the other matters to be included in the Auditorâs Report in
accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financial position in its financial statements - Refer Note 28 to the financial statements;
ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses;
iii. There were no amounts required be transferred to the Investor Education and Protection Fund by the Company.
The Annexure referred to in Independent Auditorsâ Report to the members of the Company on the financial statements for the year ended March 31, 2016 we report that:
i) In respect of the Companyâs Fixed Assets :
(a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
(b) The company has a regular programme of physical verification of its fixed assets by which fixed assets are verified in a phased manner over a period of three years. In accordance with this programme, certain fixed assets were verified during the year and no material discrepancies were noticed on such verification. In our opinion, this periodicity of physical verification is reasonable having regard to size and nature of the company and nature of its assets.
(c) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the title deeds of immovable properties are held in the name of the Company.
(ii) The management has conducted physical verification of inventory at reasonable intervals during the year and no material discrepancies were noticed on such physical verification;
(iii) The Company has not granted any loans, secured or unsecured, to any company, firm, to any Limited Liability Partnership Firm or other parties listed in the register maintained under section 189 of the Companies Act, 2013 (âthe Actâ). Accordingly, clauses (iii) (a) to (iii) (c) of paragraph 3(iii) of the Order is not applicable to the Company.
Name of the statute |
Nature of dues |
Amount (Rs) |
Period to which amount relates |
Forum where dispute is pending |
The Income Tax Act, 1961 |
Disallowance of expenditure incurred in connection with earning exempted income |
341,987 |
April 2010 -March 2011 |
Commission of Income Tax (Appeals) |
(iv) Based on our examination and according to the information and explanation given to us, there are no loans, investments, guarantees, and security given by the company that have been covered u/s 185 and 186 of the Companies Act, 2013. Accordingly, clause (iv) of paragraph 3 of the order is not applicable to the Company.
(v) The Company has not accepted any deposits from the public.
(vi) We have broadly reviewed the books of account maintained by the Company pursuant to the rules made by the Central Government for the maintenance of cost records under section 148(1) of the Companies Act, 2013, and are of the opinion that prima facie, the specified accounts and records have been made and maintained. We have not, however, made a detailed examination of the same.
(vii) (a) According to the information and
explanations given to us and according to the records as produced and examined by us, in our opinion, the Company is regular in depositing with appropriate authorities the undisputed statutory dues including Income Tax, Sales Tax, Service Tax, Custom Duty, Excise Duty, Cess and other statutory dues to the extent applicable to it and there are no undisputed arrears of outstanding statutory dues as at March 31, 2016 for a period of more than six months from the date they became payable.
(b) According to the information and explanations given to us, there are no dues in respect of Sales Tax, Income Tax, Customs Duty, Wealth Tax, Service Tax, Excise Duty, and Cess which have not been deposited on account of dispute except following:
*the amount includes penalty of Rs. 50,000/-
Name of the statute |
Nature of dues |
Amount (Rs) |
Period to which amount relates |
Forum where dispute is pending |
The Income Tax Act, 1961 |
Disallowance of Provision for Marketing expenses |
3,44,94,802 |
April 2011 -March 2012 |
Commission of Income Tax (Appeals) |
The Income Tax Act, 1961 |
Disallowance of expenditure incurred in connection with earning exempted income |
405,485 |
April 2012 -March 2013 |
Commission of Income Tax (Appeals) |
The Customs Act, 1962 |
Disallowance of Concessional Custom Duty availed under Customs Notification No. 12/2012 for Reaper Combiner |
8,86,267* |
April 2014 -March 2015 |
Appellate Tribunal |
(viii) According to the information and explanations given to us, the Company has no outstanding loan during the year to a financial institution or banks and the Government. The Company has not issued any debentures.
(ix) The Company did not raise any money by way of initial public offer or further public offer (including debt instruments) and term loans during the year. Accordingly, clause 3(ix) of paragraph of the Order is not applicable.
(x) According to the information and explanations given to us, no fraud by the Company or on the Company by its officers or employees has been noticed or reported during the course of our audit. Accordingly, clause 3(x) of paragraph of the Order is not applicable.
(xi) According to the information and explanations give to us and based on our examination of the records of the Company, the Company has paid/provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Act.
(xii) In our opinion and according to the information and explanations given to us, the Company is not a Nidhi company. Accordingly, clause 3(xii) of paragraph of the Order is not applicable.
(xiii) According to the information and explanations given to us and based on our examination of the records of the Company, transactions with the related parties are in compliance with sections 177 and 188 of the Act where applicable and details of such transactions have been disclosed in the financial statements as required by the applicable accounting standards.
(xiv) According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year. Accordingly, clause
(xiv) of paragraph 3 of the Order is not applicable.
(xv) According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not entered into non-cash transactions with directors or persons connected with him. Accordingly, clause (xv) of paragraph 3 of the Order is not applicable.
(xvi) According to the information and explanations given to us, the provisions of section 45-IA of the Reserve Bank of India Act, 1934 are not applicable to the Company.
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 V.S.T. TILLERS TRACTORS 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 (âICAIâ). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to 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 judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Companyâs internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A 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 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 31 March 2016, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
For Brahmayya & Co.,
Chartered Accountants
ICAI Firmâs Registration No. 000515S
Place : Bengaluru G. Srinivas
Date : May 27, 2016 Partner
Membership No. 086761
Mar 31, 2015
We have audited the accompanying financial statements of V.S.T. Tillers
Tractors Limited ("The Company"), which comprise the Balance Sheet
as at March 31, 2015, the Statement of Profit and Loss, the Cash Flow
Statement for the year then ended, and a summary of the significant
accounting policies and other explanatory information
Management's Responsibility for the Financial Statements
The Company's Board of Directors is responsible for the matters
stated in Section 134(5) of the Companies Act, 2013 ("the Act")
with respect to the preparation of these financial statements that give
a true and fair view of the financial position, financial performance
and cash flows of the Company in accordance with the accounting
principles generally accepted in India, including the Accounting
Standards specified under Section 133 of the Act, read with Rule 7 of
the Companies (Accounts) Rules, 2014. This responsibility also includes
maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding of the assets of the Company and
for preventing and detecting frauds and other irregularities; selection
and application of appropriate accounting policies; making judgments
and estimates that are reasonable and prudent; and design,
implementation and maintenance of adequate internal financial controls,
that were operating effectively for ensuring the accuracy and
completeness of the accounting records, relevant to the preparation and
presentation of the financial statements that give a true and fair view
and are free from material misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit.
We have taken into account the provisions of the Act, the accounting
and auditing standards and matters which are required to be included in
the audit report under the provisions of the Act and the Rules made
thereunder.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial control relevant
to the Company's preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing
an opinion on whether the Company has in place an adequate internal
financial controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company's Directors, as well
as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the financial
statements.
Opinion
1. In our opinion and to the best of our information and according to
the explanations given to us, the financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India:
(a) In the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2015;
(b) In the case of the Statement of Profit and Loss, of the profit for
the year ended on that date; and
(c) In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's report) Order, 2015
("the Ordef') issued by the Central Government of India in terms of
sub-section (11) of section 143 of the Act, we give in the Annexure I,
a statement on the matters specified in paragraphs 3 and 4 of the
Order, to the extent applicable.
2. As required by Section 143 (3) of the Act, we report that:
a) We have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purposes of our audit.
b) In our opinion, proper books of account as required by law have been
kept by the Company so far as it appears from our examination of those
books.
c) The Balance Sheet, the Statement of Profit and Loss, and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account;
d) In our opinion, the aforesaid financial statements comply with the
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014.
e) On the basis of the written representations received from the
directors as on March 31, 2015 taken on record by the Board of Direct
-ors, none of the directors is disqualified as on March 31, 2015 from
being appointed as a director in terms of Section 164 (2) of the Act.
f) With respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us:
i. The Company does not have any pending litigations which -would
impact its financial position;
ii. The Company did not have any long- term contracts including
derivative contracts for which there were any material foreseeable
losses and;
iii. There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company.
ANNEXURE TO INDEPENDENT AUDITORS' REPORT
i) In respect of the Company's Fixed Assets :
(a) As per the information and explanations provided to us the Company
has maintained proper records showing full Particulars including
quantitative details and location of fixed assets.
(b) Fixed assets have been physically verified by the management during
the year and no material discrepancies between the book records and the
physical inventory have been noticed.
ii) In respect of the Company's Inventories :
(a) The Management has conducted physical verification of inventory at
reasonable intervals during the year.
(b) The procedures of physical verification of inventory followed by
the Management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
(c) The Company is maintaining proper records of inventory and no
material discrepancies were noticed on physical verification.
(iii) The Company has not granted any loans, secured or unsecured, to
any Company, firm or other parties listed in the Register maintained
under Section 189 of the Act. Accordingly, clauses (iii) (a) & (iii)
(b) of paragraph 3 of Order are not applicable for the year.
(iv) In our opinion and according to the information and explanations
given to us, there is adequate internal control system commensurate
with the size of the Company and the nature of its business, for the
purchases of inventory and fixed assets and for the sale of goods and
services.
Further, during the course of our audit, we have not observed any major
weakness or continuing failure to correct any major weakness in the
aforesaid internal control system.
(v) According to the information and explanations given to us, the
Company has not accepted any deposits within the meaning of sections 73
to 76 of the Act and the rules framed there under.
(vi) We have broadly reviewed the books of account maintained by the
Company pursuant to the rules made by the Central Government for the
maintenance of cost records under section 148(1) of the Companies Act,
2013, and are of the opinion that prima facie, the specified accounts
and records have been made and maintained. We have not, however, made a
detailed examination of the same.
(vii) In respect of the Company's Statutory dues:
(a) According to the information and explanations given to us and
according to the records as produced and examined by us, in our
opinion, the Company is regular in depositing with appropriate
authorities the undisputed statutory dues including Income Tax, Sales
Tax, Service Tax, Custom Duty, Excise Duty, Cess and other statutory
dues to the extent applicable to it except slight delay in case of TDS.
There are no arrears of outstanding statutory dues as at March 31, 2015
for a period of more than six months from the date they became payable;
(b) According to the information and explanations given to us, the
disputed dues in respect of Sales Tax, Income Tax, Customs Duty, Wealth
Tax, Service Tax, Excise Duty, and Cess are follows:
Name of the Nature of dues Amount of
statute dues (Rs)
Income tax Sales promotion 24,020,873
act, 1961 expenditure disallowed
Name of the Period to which Forum where dispute
statute the amount relates is pending
Income tax April 2011 to CIT(Appeals)
act, 1961 March 2012
According to the information and explanations given to us the amounts
which were required to be transferred to the Investor Education and
Protection Fund by the Company in accordance with the relevant
provisions of the Companies Act, 1956 (1 of 1956) and rules made
thereunder has been transferred to such fund within time.
(viii) The Company's does not have accumulated losses at the end of
the financial year and it has not incurred cash losses in the current
and immediately preceding financial year.
(ix) Based on our audit procedures and as per the information and
explanations given by the management, there were no dues to the
financial institutions and banks. There were no Debenture holders
during the period.
(x) According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from bank
or financial institutions.
(xi) According to the information and explanations given to us, the
Company has not availed any term loans. Accordingly, clause (xi) of
Paragraph 3 of the Order is not applicable.
(xii) Based on our examination of the books and records of the Company,
carried out in accordance with the generally accepted auditing
practices in India, and according to the information and explanations
given to us, we have not come across any instance of fraud on or by the
Company, has been noticed or reported during course of our audit, nor
we have been informed of any such case by the Management.
For Brahmayya & Co.,
Chartered Accountants
ICAI Firm's Registration No. 000515S
Place : Bengaluru G. Srinivas
Date : May 29, 2015 Partner
Membership No. 086761
Mar 31, 2014
Report on the Financial Statements
1) We have audited the accompanying fnancial statements of V.S.T.
Tillers Tractors Limited ("The Company"), which comprise the Balance
Sheet as at March 31, 2014, the Statement of Profit and Loss and Cash
Flow Statement for the year then ended and a summary of significant
accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
2) Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards notified under the Companies Act, 1956 ("the
Act") read with General Circular 8/2014 dated April 04, 2014, issued by
the Ministry of Corporate Affairs. This responsibility includes the
design, implementation and maintenance of internal control relevant to
the preparation and presentation of the financial statements that give a
true and fair view and are free from material misstatement, whether due
to fraud or error.
Auditor''s Responsibility
3. Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
4. An audit involves performing procedures to obtain audit evidence
about the amounts and disclosures in the financial statements. The
procedures selected depend on the auditor''s judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the
Company''s preparation and fair presentation of the financial statements
in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the company''s internal control. An audit also includes
evaluating the appropriateness of accounting policies used and the
reasonableness of the accounting estimates made by management, as well
as evaluating the overall presentation of the financial statements.
5. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our audit opinion.
Opinion
6. In our opinion and to the best of our information and according to
the explanations given to us, the financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India:
(a) In the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2014;
(b) In the case of the Statement of Profit and Loss, of the profit for
the year ended on that date; and
(c) In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
7. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
8. 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, the Statement of Profit and Loss, and Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
(d) In our opinion, the Balance Sheet, Statement of the Profit and Loss,
and Cash Flow Statement comply with the Accounting Standards notified
under the Act, read with General Circular no.8/2014 dated April 04,
2014, issued by the Ministry of Corporate Affairs; and
(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.
Referred to paragraph 7 of our report of even date to the Members of
V.S.T.Tillers Tractors Limited ("the Company") for the year ended March
31, 2014
i) In respect of the Company''s Fixed Assets :
(a) As per the information and explanation provided to us the Company
has maintained proper records showing full Particulars including
quantitative details and location of fixed assets.
(b) The fixed assets are physically verified by the management according
to a phased programme 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 the nature of its assets. Pursuant to the
programme, portion of the fixed assets have been physically verified by
the management during the year and no material discrepancies between
the book records and the physical inventory have been noticed.
(c) During the year, in our opinion, the Company has not disposed off
any major part of fixed assets and there by does not affect the going
concern status of the Company.
ii) In respect of the Company''s Inventories :
(a) The Management has conducted physical verification of inventory at
reasonable intervals during the year.
(b) The procedure of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the company and nature of its business.
(c) On the basis of our examination of the records of inventory, we are
of the opinion that the company is maintaining proper records of
inventory. The discrepancies noticed on verification between the
physical stocks and the books of records were not material and have
been properly dealt with in the books of accounts.
iii) The Company has not given and taken any loans, secured or
unsecured, to any company, firm or other parties listed in the Register
maintained under section 301 of the Act. Accordingly, clauses (iii) (b)
to (iii) (d) of paragraph 4 of the Order are not applicable for the
year.
(iv) In our opinion and according to the information and explanations
given to us, there is adequate internal control system commensurate
with the size of the Company and the nature of its business, for the
purchases of inventory and fixed assets and for the sale of goods and
services. Further, during the course of our audit, we have not
observed any major weakness or continuing failure to correct any major
weakness in the aforesaid internal control system.
v) (a) Based on the audit procedures applied by us and according to the
information and explanations provided by the management, we are of the
opinion that the transactions that need to be entered into the register
maintained under section 301 of the Act, have been so entered.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the Register maintained under section 301 of
the Act, exceeding the value of rupees five lakh in respect of each
party during the year have been made at prices which are reasonable
having regard to prevailing market prices at the relevant time.
vi) According to the information and explanations given to us, the
Company has not accepted any deposits from the public within the
meaning of sections 58A and 58AA of the Act and the rules framed there
under.
vii) In our opinion, the Company has an internal audit system
commensurate with the size of the Company and nature of its business.
viii) We have broadly reviewed the books of accounts maintained by the
Company in respect of products where, pursuant to the rules made by the
Central Government of India, the maintenance of Cost records has been
prescribed under clause (d) of sub section (1), of section 209 of the
Act, and are of the opinion that prima facie, the prescribed accounts
and records have been made and maintained. However, we have not made a
detailed examination of records with a view to determine whether they
are accurate or complete.
ix) In respect of the Companies Statutory dues:
(a) According to the information and explanations given to us and
according to the records as produced and examined by us, in our
opinion, the Company is regular in depositing with appropriate
authorities the undisputed statutory dues including Provident Fund,
Investor Education and Protection Fund, Employees'' State Insurance,
Income Tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise
Duty, Cess and other statutory dues to the extent applicable to it.
There are no arrears of outstanding statutory dues as at March 31, 2014
for a period of more than six months from the date they became payable.
(b) According to the information and explanations given to us, there
are no dues in respect of Sales Tax, Income Tax, Customs Duty, Wealth
Tax, Service Tax, Excise Duty, and Cess which have not been deposited
on account of dispute.
x) The Company does not have accumulated losses as at March 31, 2014
and has not incurred any cash losses during the financial year covered
by our Audit or in the immediately preceding financial year.
xi) Based on our audit procedures and as per the information and
explanations given by the management, we are of the opinion that
Company has not defaulted in repayment of dues to the financial
institutions and banks. The Company did not have any outstanding dues
to any Debenture holders during the year.
xii) Based on our examination of documents and records, the Company has
not granted loans and advances on the basis of security by way of
pledge of shares, debentures and other securities. Accordingly clause
(xii) of the paragraph 4 of the Order is not applicable to the Company.
xiii) In our opinion, the Company is not a Chit Fund / Nidhi / Mutual
Benefit Fund / Society. Accordingly, clause (xiii) of paragraph 4 of
the Order is not applicable to the company.
xiv) In our opinion, the Company is not dealing in or trading in
Shares, Securities, Debentures and other Securities. Accordingly,
clause (xiv) of paragraph 4 of the Order is not applicable to the
Company.
xv) According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from bank
or financial institutions. Accordingly, clause (xv) of paragraph 4 the
Order is not applicable to the Company.
xvi) According to the information and explanations given to us, the
term loans have been applied for the purpose for which they were
obtained.
xvii) According to the information and explanations given to us and an
overall examination of the Balance Sheet of the Company, we report that
no funds raised on short-term basis have been used for long-term
investment.
xviii) The company has not made any preferential allotment of shares to
parties and companies covered in the register maintained under Section
301 of the Act. Accordingly, clause (xviii) of paragraph 4 of the Order
is not applicable to the Company.
xix) The Company did not have any outstanding debentures during the
year. Accordingly, clause (xix) of paragraph 4 of the Order is not
applicable to the Company
xx) The Company has not raised any money by public issues during the
year and accordingly, clause (xx) of paragraph 4 of the Order is not
applicable to the Company.
xxi) Based on our examination of the books and records of the Company,
carried out in accordance with the generally accepted auditing
practices in India, and according to the information and explanations
given to us, we have not come across any instance of the fraud on or by
the Company, has been noticed or reported during course of our audit,
nor we have been informed of any such case by the management.
For Brahmayya & Co.,
Chartered Accountants
ICAI Firm''s Registration No. 000515S
Place : Bengaluru G. Srinivas
Date : May 29, 2014 Partner
Membership No. 086761
Mar 31, 2013
Report on the Financial Statements
1) We have audited the accompanying fnancial statements of
VST Tillers Tractors Limited (the company) which comprise the
Balance Sheet as at March 31, 2013, 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 Financial Statements
2) 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. 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.
Auditor''s Responsibility
3. 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.
4. 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.
5. We believe that the audit evidence we have obtained is suffcient
and appropriate to provide a basis for our audit opinion.
Opinion
6. In our opinion and to the best of our information and according to
the explanations given to us, the fnancial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2013;
(b) in the case of the statement of Proft and Loss, of the proft 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 Other Legal and Regulatory Requirements
7. As required by the Companies (Auditor''s Report) Order, 2003 (as
amended) ("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.
8. 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 the Cash Flow Statement dealt with by this report are in
agreement with the books of account ;
(d) in our opinion, the Balance Sheet, Statement of Proft and Loss and
the Cash Flow Statement comply with the Accounting Standards referred
to in sub-section(3C) of section 211 of the Companies Act, 1956;
(e) on the basis of written representations received from the directors
as on March 31, 2013, and taken on record by the Board of Directors,
none of the directors
is 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.
ANNEXURE TO
INDEPENDENT AUDITORS'' REPORT
Referred to paragraph 7 of our report of even date to the members of
V.S.T.Tillers Tractors Limited (Âthe Company'') for the year ended 31
March, 2013.
i) (a) the Company has maintained proper records showing full
Particulars including quantitative details and situation of fxed
assets.
(b) The fxed assets are physically verifed
by the management according to a phased programme 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 the nature of
its assets. Pursuant to the programme, portion of the fxed assets has
been physically verifed by the management during the year and no
material discrepancies between the book records and the physical
inventory have been noticed.
(c) During the year, in our opinion, the Company has not disposed off
any major part of fxed assets and there by does not affects the going
concern status of the Company.
ii) (a) the Management has conducted physical verifcation of inventory
at reasonable intervals during the year.
(b) The procedures of physical verifcation of
inventories followed by the management are reasonable and adequate in
relation to the size of the Company and the nature of its business.
(c) On the basis of our examination of the records of inventory, we are
of the opinion that the Company is maintaining proper records of
inventory. the discrepancies noticed on verifcation between the
physical stocks and the book records were not material and have been
properly dealt within the books of accounts.
iii) (a) the Company has not given any loans, secured or unsecured, to
any company frm or other parties listed in the Register maintained
under section 301 of the Act. Accordingly, clauses (iii) (b) to (iii)
(d) of paragraph 4 Order are not applicable for the year.
(b) the Company has not taken loans, from companies, frms or other
parties listed in the Register maintained under section 301 of the
Companies Act, 1956. Accordingly, clauses (iii) (f) and (iii) (g) of
paragraph 4 Order are not applicable for the year.
iv) In our opinion and according to the information and explanations
given to us, there is adequate internal control system commensurate
with the size of the Company and the nature of its business, for the
purchases of inventory and fxed assets and for the sale of goods and
services. Further During the course of our audit, we have not observed
any major weakness or continuing failure to correct any major weakness
in the aforesaid internal control system.
v) (a) Based on the audit procedures applied by us and according to the
information and explanations provided by the management, we are of the
opinion that the transactions that need to be entered into the register
maintained under Section 301 of the companies Act 1956, have been so
entered.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the Register maintained under section 301 of
the Companies Act, 1956 exceeding the value of rupees fve lakh in
respect of each party during the year have been made at prices which
are reasonable having regard to prevailing market prices at the
relevant time.
vi) the Company has not accepted any deposits from the public; as such
the provisions of Sections 58A and 58AA of the Companies Act, 1956 and
the Companies (Acceptance of Deposits) Rules, 1975, do not apply.
vii) In our opinion, the Company has an internal audit system
commensurate with the size of the Company and nature of its business.
viii) We have broadly reviewed the books of accounts maintained by the
Company in respect of products where, pursuant to the rules made by the
Central Government of India, the maintenance of Cost records has been
prescribed under clause (d) of sub section (1), of section 209 of the
Companies Act, 1956, and are of the opinion that prima facie, the
prescribed accounts and records have been made and maintained. However
we have not made a detailed examination of records with a view to
determine whether they are accurate or complete.
ix) (a) According to the information and explanations given to us and
according to the records as produced and examined by us, in our
opinion, the Company is regular in depositing with appropriate
authorities the undisputed statutory dues including Provident Fund,
Investor Education and Protection Fund, Employees'' State Insurance,
Income tax, Sales tax, Wealth tax, Service tax, Custom Duty, Excise
Duty, Cess and other statutory dues to the extent applicable to it
except few delay in case of tDS. there are no arrears of outstanding
statutory dues as at 31st March, 2013 for a period of more than six
months from the date they became payable.
(b) According to the information and explanations given to us, there
are no dues in respect of Sales tax, Income tax, Customs Duty, Wealth
tax, Service tax, Excise Duty/Cess which have not been deposited on
account of dispute.
x) the Company does not have accumulated losses as at 31st March, 2013
and has not incurred any cash losses during the fnancial year covered
by our Audit or in the immediately preceding fnancial year.
xi) Based on our audit procedures and as per the information and
explanations given by the management, we are of the opinion that
Company has not defaulted in repayment of dues to the fnancial
institutions and banks. The Company did not have any outstanding dues
to any Debenture holders during the year.
xii) Based on our examination of documents and records, the Company has
not granted loans and advances on the basis of security by way of
pledge of shares, debentures and other securities. Accordingly clause
(xii) of the paragraph 4 of the Order is not applicable to the Company.
xiii) In our opinion, the Company is not a Chit Fund / Nidhi / Mutual
Beneft Fund / Society. Accordingly, clause (xiii) of paragraph 4 of
the Order is not applicable to the company.
xiv) In our opinion, the Company is not dealing in or trading in
Shares, Securities. Accordingly, clause (xiv) of paragraph 4 of the
Order is not applicable.
xv) According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from bank
or fnancial institutions. Accordingly, clause (xv) of paragraph 4 of
the Order is not applicable.
xvi) According to the information and explanations given to us, the
term loans have been applied for the purpose for which they were
obtained.
xvii) According to the information and explanations given to us and an
overall examination of the Balance Sheet of the Company, we report that
no funds raised on short-term basis have been used for long-term
investment.
xviii) the company has not made preferential allotment of shares to
parties and companies covered in the register maintained under Section
301 of the Companies Act, 1956. Accordingly, clause (xviii) of
paragraph 4 of the Order is not applicable.
xix) the Company did not have any outstanding debentures during the
year. Accordingly, clause
(xix) of paragraph 4 of the Order is not applicable.
xx) the Company has not raised any money by public issues during the
year and accordingly, clause (xx) of paragraph 4 of the Order is not
applicable.
xxi) Based on our examination of the books and records of the Company,
carried out in accordance with the generally accepted auditing
practices in India, and according to the information and explanations
given to us, no material fraud on or by the Company has been noticed or
reported during course of our audit.
For Brahmayya & Co.,
Firm Reg. No. : 000515S
Chartered Accountants
Place : Bangalore G. Srinivas
Date : May 30, 2013 (Partner)
Membership No. 086761
Mar 31, 2012
1) We have audited the attached Balance sheet of V.S.T. Tillers
Tractors Limited ('the Company') as at 31 March, 2012, the Statement of
Profit and Loss and the Cash flow statement of the Company for the year
ended on that date, annexed thereto. These financial statements are the
responsibility of the Company's management. Our responsibility is to
express an opinion on these financial statements based on our audit.
2) We have conducted our audit in accordance with the auditing
standards generally accepted in India. Those Standards require that we
plan and perform the audit to obtain reasonable assurance about whether
the financial statements are free of material misstatement. An audit
includes examining, on a test base, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3) As required by the Companies (Auditor's Report) Order, 2003 (as
amended) ('the Order') issued by the Central Government of India in
terms of subsection (4A) of section 227 of the Companies Act, 1956
('the Act'), we enclose in the Annexure a statement on the matters
specified in paragraphs 4 and 5 of the said Order.
4) Further to our comments in the Annexure referred to in paragraph 3
above, we report as follows:
i) 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;
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, the Statement of Profit and Loss and the Cash
flow statement dealt
with by this report are in agreement with the books of account;
iv) in our opinion, the Balance Sheet, the Statement of Profit and Loss
and the Cash Flow Statement dealt with by this report comply with the
accounting standards referred to in sub-section (3C), of section 211 of
the Act;
v) on the basis of written representations received from the Directors,
as at 31 March, 2012 and taken on record by the Board of Directors, we
report that none of the Directors is disqualified as at 31 March, 2012
from being appointed as a Director in terms of section 274(l)(g) of the
Act;
vi) in our opinion and to the best of our information and according to
the explanations given to us, the accounts read with the notes 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 31 March, 2012;
b) in the case of the Statement of Profit and Loss, of the Profit of
the Company for the year ended on that date; and
c) in the case of Cash Flow statement, of the Cash Flows of the Company
for the year ended on the date.
ANNEXURE TO AUDITORS' REPORT
The Annexure referred to in paragraph 3 of our report of even date to
the members of V.S.T. Tillers Tractors Limited ('the Company') for the
year ended 31 March, 2012.
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) The fixed assets are physically verified by the management
according to a phased programme 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 the nature of its assets.
Pursuant to the programme, portion of the fixed assets has been
physically verified by the management during the year and no material
discrepancies between the book records and the physical inventory have
been noticed.
(c) There was no substantial disposal of fixed assets during the year.
(ii) (a) The inventory has been physically verified by the management.
In our opinion, the frequency of verification is reasonable.
(b) The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
(c) On the basis of our examination of the records of inventory, we are
of the opinion that the Company is maintaining proper records of
inventory. The discrepancies noticed on verification between the
physical stocks and the book records were not material and have been
properly dealt within the books of accounts.
(iii) (a) The Company has neither Granted nor taken any loans, secured
or unsecured, to/ from any company, firm or other parties listed in the
Register maintained under section 301 of the Act. Accordingly, clauses
(iii) (b), (iii) (c), (iii) (d), (iii) (e), (iii) (f) and (iii) (g) of
paragraph 4 of the Order are not applicable for the year.
(iv) In our opinion and according to the information and explanations
given to us, there is adequate internal control system commensurate
with the size of the Company and the nature of its business, for the
purchases of inventory and fixed assets and for the sale of goods and
services. Further During the course of our audit, we have not observed
any major weakness or continuing failure to correct any major weakness
in the aforesaid internal control system.
(v) (a) Based on the audit procedures applied by us and according to
the information and explanations provided by the management, we are of
the opinion that the transactions that need to be entered into the
register maintained under Section 301 of the companies Act 1956, have
been so entered.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the Register maintained under section 301 of
the Companies Act, 1956 exceeding the value of rupees five lakh in
respect of each party during the year have been made at prices which
are reasonable having regard to prevailing market prices at the
relevant time.
(vi) The Company has not accepted any deposits from the public; as such
the provisions of sections 58A and 58AA of the Companies Act, 1956 and
the Companies (Acceptance of Deposits) Rules, 1975, do not apply.
(vii) In our opinion, the Company has an internal audit system
commensurate with the size of the Company and nature of its business.
(viii) We have broadly reviewed the books of accounts maintained by the
Company in respect of products where, pursuant to the rules made by the
Central Government of India, the maintenance of Cost records has been
prescribed under clause (d) of sub section (1), of section 209 of the
Companies Act, 1956, and are of the opinion that prima facie, the
prescribed accounts and records have been made and maintained. However
we have not made a detailed examination of records with a view to
determine whether they are accurate or complete.
(ix) (a) According to the information and explanations given to us and
according to the records as produced and examined by us, in our
opinion, the Company is regular in depositing with appropriate
authorities the undisputed statutory dues including Provident Fund,
Investor Education and Protection Fund, Employees' State Insurance,
Income Tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise
Duty, Cess and other statutory dues to the extent applicable to it.
There are no arrears of outstanding statutory dues as at 31 March, 2012
for a period of more than six months from the date they became payable.
(b) According to the information and explanations given to us, there
are no dues of Income-tax, Sales-tax, Service Tax, Customs duty,
Wealth-tax, Excise duty, Cess which have not been deposited on account
of any dispute.
(x) The Company does not have accumulated losses as at 31st March, 2012
and has not incurred any cash losses during the financial year covered
by our Audit or in the immediately preceding financial year.
(xi) Based on our audit procedures and as per the information and
explanations given by the Management, we are of the opinion that the
Company has not defaulted in repayment of dues to a financial
institution or banks. The Company did not have any outstanding dues to
any Debenture holders during the year.
(xii) According to the information and explanations given to us and
based on the documents and records produced to us, the Company has not
granted any loans and advances on the basis of security by way of
pledge of shares, debentures and other securities. Accordingly
paragraph 4 (xii) of the order is not applicable.
(xiii) In our opinion, the Company is not a chit fund or a nidhi/mutual
benefit fund/society. Accordingly, paragraph 4(xiii)(a) to 4(xiii)(d)
of the 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. Accordingly,
paragraph 4(xiv) of the Order is not applicable.
(xv) According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks or other financial institution. Accordingly, paragraph 4 (xv) of
the order is not applicable.
(xvi) According to the information and explanations given to us, the
term loans have been applied for the purpose for which they were
obtained.
(xvii) According to the information and explanations given to us and on
an overall examination of the balance sheet of the Company, we report
that no funds raised on short-term basis have been used for long-term
investment.
(xviii) The Company has not made any preferential allotment of shares
to parties or companies covered in the register maintained under
section 301 of the Companies Act, 1956. Accordingly, paragraph 4
(xviii) of the order is not applicable.
(xix) The Company did not have any outstanding debentures during the
year. Accordingly, paragraph 4 (xix) of the Order is not applicable.
(xx) The Company has not raised any money by public issues during the
year. Accordingly, paragraph 4 (xix) of the Order is not applicable.
(xxi) Based upon the audit procedures performed for the purpose of
reporting the true and fair view of the financial statements and as per
the information and explanations given by the Management, we report
that no fraud on or by the Company has been noticed or reported during
the year.
For Brahmayya & Co.,
Firm Reg. No. : 000515S
Chartered Accountants
G. Srinivas
(Partner)
Membership No. 086761
Place : Bangalore
Date : 29th May, 2012
Mar 31, 2011
1. We have audited the attached Balance sheet of M/s. V.S.T. TILLERS
TRACTORS LIMITED (the Company) as at 31st March, 2011, Profit and
Loss Account and also the cash flow statement for the year ended on
that date annexed thereto. These financial statements are the
responsibility of the Companys management. Our responsibility is to
express an opinion on these financial statements based on our audit.
2. We have conducted our audit in accordance with auditing standards
generally accepted in India. These Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by the management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
3. As required by the Companies (Auditors Report) Order, 2003 issued
by the Central Government of India in terms of sub section (4A) of
Section 227 of the Companies Act, 1956 and based on such checks as we
considered appropriate and according to the information and
explanations given to us, we state our comments on the matters
specified in paragraphs 4 and 5 of the said order in the Annexure
enclosed.
4. Further to our comments in the Annexure referred to above, we
report that:
a. We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the 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 the
books;
c. The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account;
d. In our opinion, the Balance Sheet, Profit and Loss Account and Cash
Flow Statement dealt with by this report comply with the accounting
standards referred to in sub-section (3C) of section 211 of the
Companies Act, 1956;
e. On the basis of written representations received from the
Directors, as on 31st March, 2011 and taken on record by the Board of
Directors, we report that none of the Directors is disqualified as on
31st March, 2011 from being appointed as a Director in terms of
clause(g) of sub- section(1) of section 274 of the Companies Act, 1956;
and
f. In our opinion and to the best of our information and according to
the explanations given to us, the accounts read with the notes thereon
give the information required by the Companies Act, 1956, in the manner
so required and give a true and fair view in conformity with the
accounting principles generally accepted in India:
(i) In the case of the Balance Sheet, of the State of Affairs of the
Company as at 31st March, 2011;
(ii) In the case of the Profit and Loss Account, of Profit for the year
ended on that date; and
(iii) In the case of Cash Flow Statement, of the Cash Flow for the year
ended on the date.
ANNEXURE TO AUDITORS REPORT
Referred to in paragraph 3 of our report of even date
i) (a) The Company has maintained proper records showing full
Particulars including quantitative details and situation of fixed
assets.
(b) The fixed assets are physically verified by the management
according to a phased programme 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 the nature of its assets.
Pursuant to the programme, portion of the fixed assets has been
physically verified by the management during the year and no material
discrepancies between the book records and the physical inventory have
been noticed.
(c) During the year, in our opinion, the Company has not disposed off
any major part of fixed assets and there by does not affects the going
concern status of the Company.
ii) (a) The Management has conducted physical verification of inventory
at reasonable intervals during the year.
(b) The procedures of physical verification of inventory followed by
the Management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
(c) On the basis of our examination of the records of inventory, we are
of the opinion that the Company is maintaining proper records of
inventory and the discrepancies noticed on verification between the
physical stocks and book records were not material and have been
properly dealt within the books of accounts.
iii) (a) The Company has neither Granted nor taken any loans, secured
or unsecured, to/ from any company, firm or other parties listed in the
Register maintained under section 301 of the Act. Accordingly, clauses
(iii) (b), (iii) (c), (iii) (d), (iii) (e), (iii) (f) and (iii) (g) of
paragraph 4 of the Order are not applicable for the year.
iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business with regard to purchases of inventory and fixed assets and
sale of goods and services. Further, on the basis of our examination,
and according to the information and explanations given to us, we have
neither come across nor have we been informed of any instance of major
weakness in the aforesaid internal control systems.
v) Based on the audit procedures applied by us and according to the
information and explanations provided by the management, in respect of
contracts or arrangements entered in the register maintained in
pursuance of Section 301 of the Companies Act, 1956:
a) The particulars of contracts or arrangements referred to Section 301
that needed to be entered in the register maintained under the said
section have been so entered.
b) Where each of such transaction is in excess of rupees five lakhs in
respect of any party, and having regard to our comments in para (v)
above, the transactions have been made at prices which are prima facie
reasonable having regard to the prevailing market prices at the
relevant time.
vi) According to the information and explanations given to us, the
Company has not accepted any deposits from the public; as such the
provisions of sections 58A and 58AA of the Companies Act, 1956 and the
Companies (Acceptance of Deposits) Rules, 1975, do not apply.
vii) In our opinion, the Company has an internal audit system
commensurate with the size of the Company and nature of its business.
viii) We have broadly reviewed the books of accounts maintained by the
Company in respect of products where, pursuant to the rules made by the
Central Government of India, the maintenance of Cost records has been
prescribed under clause (d) of sub section (1), of section 209 of the
Companies Act, 1956, and are of the opinion that prima facie, the
prescribed accounts and records have been made and maintained. However
we have not made a detailed examination of records with a view to
determine whether they are accurate or complete.
ix) (a) According to the information and explanations given to us and
according to the records as produced and examined by us, in our
opinion, the Company is regular in depositing with appropriate
authorities the undisputed statutory dues including Provident Fund,
Investor Education and Protection Fund, Employees State Insurance,
Income Tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise
Duty, Cess and other statutory dues to the extent applicable to it.
There are no arrears of outstanding statutory dues as at 31st March,
2011 for a period of more than six months from the date they became
payable.
Further, since the Central Government has till date not prescribed the
amount of cess payable under section 441 A of the Companies Act, 1956,
we are not in a position to comment upon the regularity or otherwise of
the company in depositing the same.
(b) According to the records of the Company and information and
explanations given to us, there are no dues in respect of Sales Tax,
Income Tax, Customs Duty, Wealth Tax, Service Tax,Excise Duty/Cess
which have not been deposited on account of dispute.
x) The Company does not have any accumulated losses at the end of the
financial year and has not incurred cash losses during the financial
year covered by our audit and the immediately preceding financial year.
xi) Based on our audit procedures and according to the information and
explanations given to us, we are of the opinion that Company has not
defaulted in repayment of dues to the financial institutions or banks
as at the balance sheet date and the Company has not issued any
debentures.
xii) According to the information and explanations given to us, the
Company has not granted any loans and advances on the basis of security
by way of pledge of shares, debentures and other securities.
Accordingly, clause (xii) of paragraph 4 of the Order is not applicable
for the year.
xiii) In our opinion and according to the information and explanation
given to us, the Company is not a Chit Fund / Nidhi / Mutual Benefit
Fund / Society. Accordingly, clause (xiii) of paragraph 4 of the Order
is not applicable.
xiv) In our opinion and according to explanations given to us, the
Company is not a dealer or a trader in Securities. Accordingly, clause
(xiv) of paragraph 4 of the Order is not applicable.
xv) According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from bank
or financial institutions. Accordingly, clause (xv) of paragraph 4 of
the Order is not applicable for the year.
xvi) According to the information and explanations given to us, the
term loans have been applied for the purpose for which they were
obtained.
xvii) Based on the information and explanations given to us and an
overall examination of the Balance Sheet of the Company, in our
opinion, there are no funds raised on short term basis which have been
used for long term investment.
xviii) The company has not made preferential allotment of shares to
parties and companies covered in the register maintained under section
301 of the Act during the year.
xix) The Company did not have any outstanding debentures during the
year. Accordingly, clause (xix) of paragraph 4 of the Order is not
applicable for the year.
xx) The Company has not raised any money by public issue during the
year and accordingly, clause (xx) of paragraph 4 of the Order is not
applicable for the year.
xxi) During the course of our examination of the books and records of
the Company, carried out in accordance with the generally accepted
auditing practices in India and according to the information and
explanation given to us, we have neither come across any instance of
the fraud on or by the Company, noticed or reported during the year,
nor have we been informed of such case by the management.
For Brahmayya & Co.,
Firm Reg. No. : 000515S
Chartered Accountants
Sd/-
Place : Bangalore G. Srinivas
Date : 30th May, 2011 (Partner)
Membership No. 086761
Mar 31, 2010
We have audited the attached Balance sheet of M/s.V.S.T. TILLERS
TRACTORS LIMITED (the Company) as at 31st March 2010, Profit and Loss
Account and also the cash flow statement for the year ended on that
date annexed thereto. These financial statements are the responsibility
of the Companys management. Our responsibility is to express an
opinion on these financial statements based on our audit.
1. We have conducted our audit in accordance with auditing standards
generally accepted in India. These Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by the management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
2. As required by the Companies (Auditors Report) Order, 2003 issued
by the Central Government of India in terms of sub section (4A) of
Section 227 of the Companies Act, 1956 and based on such checks as we
considered appropriate and according to the information and
explanations given to us, we state our comments on the matters
specified in paragraphs 4 and 5 of the said order in the Annexure
enclosed.
3. Further to our comments in the Annexure referred to above, we
report that:
a. We have obtained all the information and explanations which to the
best of-our knowledge and belief were necessary for the 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 the
books;
c. The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account;
d. In our opinion, the Balance Sheet, Profit and Loss Account and Cash
Flow Statement dealt with by this report comply with the accounting
standards referred to in sub-section (3C) of section 211 of the
Companies Act, 1956;
e. On the basis of written representations received from the
Directors, as on 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
and
f. In our opinion and to the best of our information and according to
the explanations given to us, the accounts read with the notes thereon
give the information required by the Companies Act, 1956, in the
manner so required and give a true and fair view in conformity with the
accounting principles generally accepted in India:
(i) In the case of the Balance Sheet, of the State of Affairs of the
Company as at 31 st March, 2010;
(ii) In the case of the Profit and Loss Account, of the Profit for the
year ended on that date; and
(iii) In the case of Cash Flow Statement, of the Cash Flow for the year
ended on the date.
ANNEXURE TO AUDITORS REPORT
Referred to in paragraph 2 of our report of even date
i) (a) The Company has maintained proper records showing full
Particulars including quantitative details and situation of fixed
assets.
(b) All the assets have been physically verified by the management
during the year as per programme of verification 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 on such
verification.
(c) During the year, in our opinion, the Company has not disposed off
any major part of fixed assets and there by does not affects the going
concern status of the Company.
ii) (a) The inventory has been physically verified by the management.
In our opinion, the frequency of verification is reasonable.
(b) The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
(c) On the basis of our examination of the records of inventory, we are
of the opinion that the Company is maintaining proper records of
inventory. The discrepancies noticed on verification between the
physical stocks and the book records were not material and have been
properly dealt within the books of accounts.
iii) (a) The Company has not granted any loans secured or unsecured, to
Companies, firms or other parties listed in the Register maintained
under section 301 of the Companies Act, 1956. As the Company has not
granted any loans, secured or unsecured, to parties listed in the
Register maintained under section 301 of the Companies Act, 1956,
paragraphs (iii)(b),(c) and (d) of the Order, are not applicable. (b)
The Company has not taken any loans secured or unsecured, from
companies, firms or other parties listed in the Register maintained
under section 301 of the Companies Act, 1956. As the Company has not
taken any loans, secured or unsecured, from parties listed in the
Register maintained under section 301 of the Companies Act, 1956,
paragraphs (iii) (f) and (g) of the Order, are not applicable.
iv) In our opinion and according to the informationand explanations
given to us, there are adequateinternal control procedures commensurate
withthe size of the Company and the nature of itsbusiness with regard
to purchases of inventory,fixed assets and with regard to the sale of
goods.Further, on the basis of our examination, and according to the
information and explanations given to us, we have neither come across
nor have we been informed of any instance of major weakness in the
aforesaid internal control systems.
v) (a) Based on the audit procedures applied by us and according to the
information and explanations provided by the management, we are of the
opinion that the transactions that need to be entered into the register
maintained under Section 301 of the companies Act 1956, have been so
entered.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the Register maintained under section 301 of
the Companies Act, 1956 exceeding the value of rupees five lakh in
respect of each party during the year have been made at prices which
are reasonable having regard to prevailing market prices at the
relevant time.
vi) According to the information and explanations given to us, the
Company has not accepted any deposits from the public ; as such the
provisions of sections 58A and 58AA of the Companies Act, 1956 and the
Companies (Acceptance of Deposits) Rules, 1975, do not apply.
vii) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
viii) We have broadly reviewed the books of accounts maintained by the
Company in respect of products where, pursuant to the rules made by the
Central Government of India, the maintenance of Cost records has been
prescribed under clause (d) of sub section (1), of section 209 of the
Companies Act, 1956, and are of the opinion that prima- facie, the
prescribed accounts and records have been made and maintained. However
we have not made a detailed examination of recods with a view to
determine whether they are accurate or complete.
ix) (a) According to the information and explanations given to us and
according to the records as produced and examined by us, In our
opinion, the Company is regular in depositing with appropriate
authorities the undisputed statutory dues including Provident Fund,
Investor Education and Protection Fund, Employees State Insurance,
Income Tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise
Duty, Cess and other statutory dues to the extent applicable to it.
There are no arrears of outstanding statutory dues as at 31st March,
2010 for a period of more than six months from the date they became
payable.
Further, since the Central Government has till date not prescribed the
amount of cess payable under section 441 A of the Companies Act, 1956,
we are not in a position to comment upon the regularity or otherwise
of the company in depositing the same.
(b) According to the records of the Company and information and
explanations given to us, there are no dues in respect of Sales Tax,
Income Tax, Customs Duty, Wealth Tax, Service Tax, Excise Duty/Cess
which have not been deposited on account of dispute except the
following;
Name of Nature of Amount in Period to Forum where
the Statue the dues (Rs.) which the pending
amount relates
The Central Central Rs.4,18,564/- 2005-06 The Revision Authority,
Excise Act,
1944 Excise Dept. of Revenue,
Ministry of Finance
New Delhi
x) The Company does not have accumulated losses as at 31st March, 2010
and has not incurred any cash losses during the financial year covered
by our Audit or in the immediately preceding financial year.
xi) According to the information and explanations given to us, the
Company has not defaulted in repayment of dues to banks. The Company
has no dues to Financial Institutions and banks at the balance sheet
date and the Company has not issued any Debentures.
xii) According to the information and explanations given to us, the
Company has not granted loans and advances on the basis of security by
way of pledge of shares, debentures and other securities.
xiii) The provisions of any special statute applicable to Chit Fund /
Nidhi / Mutual Benefit Fund / Societies are not applicable to the
Company.
xiv) In our opinion and according to explanations given to us, the
Company is not a dealer or a trader in Securities.
xv) According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from bank
or financial institutions.
xvi) According to the information and explanations given to us, the
term loans have been applied for the purpose for which they were
obtained.
xvii) Based on the information and explanations given to us and on an
overall examination of the Balance Sheet of the Company, In our
opinion, there are
no funds raised on short term basis which have been used for long term
purposes.
xviii) The Company has not made any preferential allotment of shares to
parties and Companies covered in the Register maintained under section
301 of the Companies Act, 1956 during the year and therefore paragraph
4 Clause (xviii) of the order is not applicable to the Company.
xix) The Company has not issued debentures during the year and
therefore paragraph 4 (xix) of the Order is not applicable.
xx) The Company has not raised any money by public issues during the
year and therefore paragraph 4 (xx) of the Order is not applicable.
xxi) During the course of our examination of the books and records of
the Company, carried out in accordance with the generally accepted
auditing practices in India and according to the information and
explanation given to us, we have neither come across any instance of
the fraud on or by the Company, noticed or reported during the year,
nor have we been informed of such case by the management.
For Brahmayya & Co.,
Firm Reg. No. : 000515S
Chartered Accountants
Sd/-
Place : Bangalore G. Srinivas
Date : 28th May, 2010 (Partner)
Membership No. 086761
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