Mar 31, 2015
We have audited the accompanying standalone Financial Statements of M/S
IMPEX FERRO TECH LIMITED ("the Company"), which comprise the Balance
Sheet as at 31st March 2015, the Statement of Profit and Loss and Cash
Flow Statement for the year ended on that date, and a summary of
significant accounting policies and other explanatory information.
Management's Responsibility for the Standalone Financial Statements
The Company's management is responsible for the matters stated in
Section 134(5) of Companies Act, 2013 ("the Act") with respect to the
preparation of these Standalone Financial Statements that give a true
and fair view of the financial position, financial performance and cash
flows of the Company in accordance with the accounting principles,
generally accepted in India, including the Accounting Standards
specified under section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014. This responsibility also includes
maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding 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 are 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 Standalone
Financial Statements based on our audit.
We have taken into account the provisions of the Act, the accounting
and auditing standards, and matters which are required to be included
in the audit report under the provisions of the Act and the Rules made
there under.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the Financial Statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the Financial Statements. The
procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the Financial
Statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial control relevant
to the Company's preparation of the Financial Statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing
an opinion on whether the company has in place an adequate internal
financial control system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of
the accounting estimates made by the company's management, as well as
evaluating the overall presentation of the Standalone 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 information and according to the
explanations given to us, the aforesaid Standalone 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 Balance Sheet of the state of affairs of the Company
as at 31st March 2015;
(b) In the case of Statement of Profit and Loss, of the Loss 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 that date.
Emphasis of Matter
1. We draw attention to Note No.27 of the financial results, relating
to CDR Package. The CDR Package of the company has been sanctioned vide
LOA dated 10th November, 2014. Pursuant to the said LOA, implementation
of CDR policy is completed and the effect thereof has been given in
these accounts with respect to the CDR scheme as per the said LOA. The
said accounts are subject to confirmation and reconciliation with the
Lenders. The reported financials would have consequential impact once
the reconciliation is completed, the quantum where of remains
unascertained.
Our report is not qualified in respect of this matter.
2. We draw attention to the Note No. 39 of the statement which
indicates that as at March 31st 2015, the accumulated losses amounting
to ' 6,349.26 Lacs has substantially eroded net worth of the Company,
indicating the existence of a material uncertainty about the company's
ability to continue as a going concern. These financial results have
been prepared on a going concern basis for the reasons stated in the
said note.
Our report is not qualified in respect of this matter.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors Report) Order, 2015 ('the
order') issued by the Central Government of India in terms of
subsection (11) of the section 143 of the Act, we give in the Annexure
a statement on the matters specified in the 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 Standalone Financial Statements
comply with the Accounting Standards specified under section 133 of the
Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
(e) On the basis of written representations received from the directors
as on 31st March 2015, and taken on record by the Board of Directors,
none of the directors is disqualified as on 31st March 2015, from being
appointed as a director in terms of Section 164 (2) of the Act; and
(f) With respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on the
financial position in the Financial Statements - Refer Note - 28 A(b)
to (f) to 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 were no amounts which were required to be transferred by the
Company to the Investor Education and Protection fund.
Annexure to the Independent Auditors' Report
Annexure referred to in paragraph 1 under the heading of "Report on
Other Legal and Regulatory Requirements" of even date to the members of
IMPEX FERRO TECH LIMITED on the accounts of the Company for the year
ended 31st March 2015. On the basis of such checks as we considered
appropriate and according to the information and explanations given to
us during the course of our audit, we report that:
(i) (a) The Company is maintaining proper records showing full
particulars, including quantitative details and situation, of fixed
assets.
(b) All fixed assets were physically verified by the management during
the year in accordance with a planned program of verifying them once in
three years 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.
(ii) (a) The inventory, except goods-in-transit has been physically
verified by the management during the year. In respect of inventory
lying with the third parties, these have substantially been confirmed by
them. In our opinion, the frequency of such verification is reasonable.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of stocks followed
by the management are reasonable and adequate in relation to the size
of the Company and the nature of its business.
(c) In our opinion and according to the information and explanations
given to us, the Company is maintaining proper records of inventory.
The discrepancies noticed on verification between the physical stocks
and the book records were not material having regard to the size of the
operations of the Company and the same have been properly dealt with in
the books of account.
(iii) The Company has not granted any loan, secured or unsecured, to
companies, firms or other parties listed in the register maintained
under Section 189 of the Companies Act, 2013. Therefore, the provisions
of Clause (iii) (b), (c) and (d) of the said Order are not applicable
to the Company.
(iv) In our opinion, and according to the information and explanations
given to us, there is an adequate Internal Control System commensurate
with the size of the Company and the nature of its business for the
purchase of inventories and fixed assets and for the sale of goods and
services. Further, on the basis of our examination of the books and
records of the Company, and according to the information and
explanations given to us, we have neither come across, nor have been
informed of, any continuing failure to correct major weaknesses in the
aforesaid internal control system.
(v) The Company has not accepted any deposits from the public and
consequently, the directives issued by Reserve Bank of India and
provisions of Section 73 to Section 76 of the Companies Act, 2013 and
the rules framed there under are not applicable.
(vi) We have broadly reviewed the books of account maintained by the
Company in respect of manufacture of Iron & steel product & Power
generation unit 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 we are of the opinion that prima facie, the
records have been maintained. We have not however made a detailed
examination for the records with a view to determining whether they are
accurate and complete.
(vii) (a) According to the information and explanations given to us and
on the basis of our examination of the books of account, the Company has
been regularly deposited undisputed amount payable in respect of
Provident Fund, Employees' State Insurance, Income -Tax, Service Tax,
Sales Tax, Custom Duty, Excise Duty, Value Added Tax, Cess, Professional
Tax, and other Statutory Dues during the year with appropriate
authorities. However, there have been delays in few cases.
(b) According to the information and explanations given to us, there
are no dues of Sales Tax, Custom Duty, Wealth Tax, Excise Duty and Cess
which have not been deposited as on 31st March, 2015 with the
appropriate authorities on account of any dispute except the following
cases which are as follows:
Name of the Nature of Dues Financial Year Rs./Lacs
statute
2005- 06 12.36
2005-06 and 8.26
Central Excise
Act, 1994 Excise Duty 2006-07
2006- 07 0.5
2007- 08 15.55
Total 36.67
Name of the Forum where Dispute is Pending
statute
Commissioner of Central Excise (Appeals) (III)
CESTAT, Calcutta Bench
Central Excise
Act, 1994
Commissioner of Central Excise (Appeals) (IV)
CESTAT, Calcutta Bench
Total Rs. 20.92 Lacs paid under protest
Name of the Nature of Dues Financial Year Rs./Lacs
statute
2005-06 304.13
Central Sales
2006-07 479.91
Tax and Local VAT
2008- 09 748.45
Sales Tax Act
2009- 10 211.18
Total 1,743.67
W.B. Entry Tax Entry Tax 2012-13 and 272.51
Act 2013-14
Total 272.51
Income Tax Income Tax 2011-12 1606.46
Act, 1961
Total 1606.46
Name of the Forum where Dispute is Pending
statute
WBCT, Appellate and Revisional Board
Central Sales
WBCT, Appellate and Revisional Board
Tax and Local
WBCT, Appellate and Revisional Board
Sales Tax Act
Sr. Joint Commissioner of Commercial Taxes
Total Rs. 88.62 Lacs paid under protest
W.B. Entry Tax Hon'ble High Court of Calcutta
Act
Total Rs. NIL paid under protest
Income Tax Commissioner of Income Tax (Appeals), Kolkata
Act, 1961
Total Rs. NIL paid under protest
(c) There were no amounts which were required to be transferred to the
Investor Education and Protection Fund by the Company.
(viii) The accumulated losses at the end of the financial year are not
less than fifty percent of its net worth and the company has incurred
cash losses during the financial year covered by our audit and in the
immediately preceding financial year.
(ix) Based on our audit procedures and on the information and
explanations given by the management, we are of the opinion that the
Company has not defaulted in repayment of dues to the financial
institutions or banks.
(x) The Company has not given any guarantee for loans taken by others
from banks or financial institutions during the year.
(xi) In our opinion and according to the information and explanations
given to us, the term loan have been applied for the purpose they were
obtained.
(xii) According to the information and explanations given to us, no
fraud on or by the Company has been noticed or reported during the
year.
For R. Kothari & Company
Chartered Accountants
FRN : 307069E
Manoj Kumar Sethia
Place : Kolkata Partner
Date : 30th May, 2015 Membership No. 064308
Mar 31, 2014
We have audited the accompanying financial statements of IMPEX FERRO
TECH LIMITED ("the Company"), which comprise the Balance Sheet as at
31st March 2014, the Statement of Profit and Loss and Cash Flow
Statement for the year ended on that date and a summary of significant
accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these Financial
Statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards notified under the Companies Act, 1956 (the
"Act") read with the General Circular 15/2013 dated 13th September,
2013 of the Ministry of Corporate Affairs in respect of Section 133 of
the Companies Act, 2013 and in accordance with the accounting
principles generally accepted in India. This responsibility includes
the design, implementation and maintenance of internal control relevant
to the preparation and presentation of the Financial Statements that
give a true and fair view and are free from material misstatement,
whether due to fraud or error.
Auditor''s Responsibility
1. 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.
2. 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.
3. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our audit opinion.
Opinion
In our opinion, and to the best of our information and according to the
explanations given to us, the said accounts 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 Balance Sheet, of the state of affairs of the
Company as at March 31, 2014;
(b) In the case of Statement of Profit and Loss, of the Loss of the
Company for the year ended on that date; and
(c) In the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by ''the Companies (Auditor''s Report) Order, 2003, as
amended by ''the Companies (Auditor''s Report) (Amendment) Order, 2004''
issued by the Central Government of India in terms of sub-section (4A)
of Section 227 of the Act (hereinafter referred to as the "Order"), we
give in the Annexure, a statement on the matters specified in
paragraphs 4 and 5 of the Order.
2. As required by Section 227(3) of the Act, we report that :
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 it appears from our examination of
those books;
iii. The Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
iv. In our opinion, the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement dealt with by this report comply with the
Accounting Standards notified under the Act read with the General
Circular 15/2013 dated September 13, 2013 of the Ministry of Corporate
Affairs in respect of Section 133 of the Companies Act, 2013;
v. 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.
Annexure to the Independent Auditors'' Report
The Annexure referred to in paragraph 1 under the heading of "Report on
other Legal and Regulatory Requirements" of even date to the members of
Impex Ferro Tech Limited on the accounts of the Company for the year
ended 31st March 2014.
On the basis of such checks as we considered appropriate and
accordingly to the information and explanations given to us during the
course of our audit, we report that :
(i) (a) The Company is maintaining proper records showing full
particulars, including quantitative details and situation, of fixed
assets.
(b) The fixed assets of the Company have been physically verified by
the management during the year and in our opinion, the frequency of
such verification is reasonable. No material discrepancies were noticed
on such verification.
(c) During the year, the Company has not disposed off substantial part
of fixed assets which would affect its going concern status.
(ii) (a) As explained to us, the stocks of finished goods and
work-in-progress have been physically verified by the management as at
the end of the financial year and for stocks of raw materials, for
which there is a perpetual inventory system, a substantial portion of
stocks has been verified during the year. In our opinion, the frequency
of verification is reasonable.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of stocks followed
by the management are reasonable and adequate in relation to the size
of the Company and the nature of its business.
(c) In our opinion and according to the information and explanations
given to us, the Company is maintaining proper records of inventory.
The discrepancies noticed on verification between the physical stocks
and the book records were not material having regard to the size of the
operations of the Company and the same have been properly dealt with in
the books of account.
(iii) (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. Therefore, the provisions
of Clause 4(iii)(b),(c) and (d) of the said Order are not applicable to
the Company.
(b) The Company has not taken any unsecured loan from companies covered
in the register maintained under Section 301 of the Companies Act,
1956. Therefore, the provisions of Clause 4(iii)(f) and (g) of the said
Order are not applicable to the Company.
(iv) In our opinion, and according to the information and explanations
given to us, there is an adequate Internal Control Procedures
commensurate with the size of the Company and the nature of its
business for the purchase of fixed assets and for the sale of goods and
services. Further, on the basis of our examination of the books and
records of the Company, and according to the information and
explanations given to us, we have neither come across, nor have been
informed of, any continuing failure to correct major weaknesses in the
aforesaid internal control system.
(v) (a) According to the information and explanations given to us, we
are of the opinion that the particulars of contracts or arrangements
referred to under section 301 of the Companies Act, 1956 have been
entered into a register that is required to be maintained under that
section.
(b) In our opinion, the transactions made in pursuance of such
contracts or arrangements and exceeding the value of five lacs rupees
in respect of any 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 and
consequently, the directives issued by Reserve Bank of India and
provisions of Section 58A and Section 58AA of the Companies Act, 1956
and the rules framed there under are not applicable.
(vii) In our opinion, the Company has an Internal Audit System
commensurate with its size and nature of its business.
(viii) We have broadly reviewed the books of account maintained by the
Company in respect of manufacture of Iron & Steel product & Power
Generation Unit pursuant to the Rules made by the Central Government
for the maintenance of cost records under Section 209(1) (d) of the
Companies Act, 1956, and we are of the opinion that prima facie, the
records have been maintained. We have not however made a detailed
examination for the records with a view to determining whether they are
accurate and complete.
(ix) (a) According to the information and explanations given to us and
on the basis of our examination of the books of account, the Company
has generally been regular in depositing undisputed statutory dues
including, Income Tax, and other statutory dues during the year with
appropriate authorities.
(b) According to information and explanations given to us, no
undisputed amounts payable in respect of Income Tax, etc. were in
arrears, as at 31.03.2014 for a period of more than six months from the
date they became payable.
(c) According to the information and explanations given to us, there
are no dues of Sales Tax, Custom Duty, Wealth Tax, Excise Duty and Cess
which have not been deposited as on 31st March, 2014 with the
appropriate authorities on account of any dispute except the following
cases which are tabled below:
x) The Company does not have accumulated losses at the end of the
financial year but has incurred cash losses during the financial year
ended on that date but not in the immediately preceding financial year.
(xi) The Company has not defaulted in repayment of dues to any bank or
financial institution, except for delay of upto sixty days in respect
of repayment of term loan of Rs. 204.64 lacs and payment of interest of
Rs. 53.46, paid subsequent to the balance sheet date.
(xii) The Company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
Therefore, the provisions of Clause 4(xii) of the Order are not
applicable to the Company.
(xiii) In our opinion, the Company is not a chit fund or a Nidhi /
Mutual Benefit Fund / Society. Therefore, the provisions of Clause 4
(xiii) of the Order are not applicable to the Company.
(xiv) The Company is not dealing or trading in shares, securities and
other investments. Therefore, the provisions of Clause 4 (xiv) of the
Companies (Auditor''s Report) Order, 2003 are not applicable to the
Company.
(xv) The Company has not given any guarantee for loans taken by others
from banks or financial institutions during the year. Therefore, the
provisions of Clause 4 (xv) of the Companies (Auditor''s Report) Order,
2003 are not applicable to the Company.
(xvi) In our opinion and according to the information and explanation
given to us, the term loans have been applied for the purpose for which
they were raised.
(xvii) According to the information and explanations given to us, we
report that no funds raised on short-term basis have been used for
long-term investment.
(xviii) According to the information and explanations given to us, the
Company has made preferential allotment of shares to parties and
companies covered in the register maintained under Section 301 of the
Act and the price at which shares have been issued is not prejudicial
to the interest of the Company.
(xix) According to the information and explanations given to us, during
the period covered by our audit report, the Company has not issued any
debentures and does not have any debentures outstanding as at the
beginning of the year and at the year end. Accordingly, the provisions
of Clause 4(xix) of the Order are not applicable to the Company.
(xx) The Company has not raised any money by public issue hence the
provisions under Clause 4 (xx) of the Order are not applicable to the
Company.
(xxi) According to the information and explanations given to us, no
fraud on or by the Company has been noticed or reported during the
year.
For R. Kothari & Company
Chartered Accountants
FRN : 307069E
CA Kailash Chandra Soni
Partner
Kolkata, 30th May, 2014 Membership No. 057620
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying Financial Statements of Impex Ferro
Tech Limited which comprise the Balance Sheet as at 31st March, 2013,
the Statement of Profi t and Loss and the Cash Flow Statement for the
year then ended and a summary of signifi cant accounting policies and
other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these Financial
Statements that give a true and fair view of the fi nancial position,
fi nancial performance and cash fl ows of the Company in accordance
with the Accounting Standards referred to in sub-section (3C) of
Section 211 of the Companies Act, 1956 ("the Act" ). This
responsibility includes the design, implementation and maintenance of
internal control relevant to the preparation and presentation of the
Financial Statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these Financial
Statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the Financial Statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the Financial Statements. The
procedures selected depend on the auditor''s judgment, including
the assessment of the risks of material misstatement of the Financial
Statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the
Company''s preparation and fair presentation of the Financial
Statements in order to design audit procedures that are appropriate in
the circumstances. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of
the accounting estimates made by management, as well as evaluating the
overall presentation of the Financial Statements.
We believe that the audit evidence we have obtained is suffi cient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the Financial Statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India :
i. in the case of the Balance Sheet, of the state of aff airs of the
Company as at 31st March, 2013;
ii. in the case of the Statement of Profi t and Loss, of the profi t
for the year ended on that date; and
iii. in the case of the Cash Flow Statement, of the cash fl ows for
the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003
("the Order" ), as amended, issued by the Central Government
of India in terms of sub-section (4A) of Section 227 of the Act, we
give in the Annexure a statement on the matters specifi ed in
paragraphs 4 and 5 of the Order.
2. As required by Section 227(3) of the Act, we report that:
a. We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b. In our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books;
c. The Balance Sheet, Statement of Profi t 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 Profi t and Loss
and Cash Flow Statement comply with the Accounting Standards referred
to in sub-section (3C) of Section 211 of the Companies Act, 1956; and
e. On the basis of written representations received from the Directors
as on 31st March, 2013, and taken on record by the Board of Directors,
none of the directors is disqualifi ed as on 31st March, 2013, from
being appointed as a Director in terms of clause (g) of sub-section (1)
of Section 274 of the Companies Act, 1956.
Annexure to the Independent Auditors'' Report
(Annexure referred to in our report of even date to the members of
Impex Ferro Tech Limited on the Financial Statements for the year ended
31st March, 2013)
i) (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of its fi xed
assets.
(b) We are informed that fi xed assets of signifi cant value have been
physically verifi ed by the management at reasonable intervals, in a
phased programme and no material discrepancies were noticed in respect
of the assets verifi ed.
(c) The Company has not disposed off any substantial/major part of fi
xed assets during the year.
ii) (a) As explained to us, the inventories have been physically verifi
ed by the management at reasonable intervals during the year.
(b) In our opinion, the procedures of physical verifi cation of the
inventories followed by the management are reasonable and adequate in
relation to the size of the Company and nature of its business.
(c) The Company has maintained proper records of inventories and no
material discrepancies have been noticed on physical verifi cation as
compared to book records.
iii) (a) The Company has not granted any loans, secured or unsecured,
to Companies, fi rms or other parties covered in the register
maintained under Section 301 of the Companies Act, 1956.
(b) Since the Company has not granted any loans as aforesaid,
sub-clauses (b), (c) & (d) of this clause are not applicable.
(e) The Company has taken interest-free Unsecured Loans from three
Companies covered in the register maintained u/s. 301 of the Companies
Act, 1956. The maximum amount involved during the year is D 1,435 Lacs
and the year-end balance of such loans aggregate to D 1,280 Lacs.
(f) In our opinion, the terms and conditions of such loans taken by the
Company are prima facie not prejudicial to the interest of the Company.
(g) In respect of the above loans there are no stipulations as to
repayment thereof.
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, for the purchase of inventory and fi xed assets and for the
sale of goods. Further, on the basis of our examination of the books
and records of the Company, we have neither come across nor have we
been informed of any continuing failure to correct major weaknesses in
the aforesaid internal control system.
v) (a) To the best of our knowledge and belief and according to the
information and explanation given to us, we are of the opinion that the
particulars of the contracts or arrangements that need to be entered in
the register maintained under Section 301 of the Companies Act, 1956,
have been so entered.
(b) In our opinion, the transactions made in pursuance of such
contracts or arrangements and exceeding the value of fi ve lacs rupees
in respect of any 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 deposit during the year from the
public within the meaning of the provisions of Sections 58A and 58AA of
the Companies Act, 1956 and the rules framed there under.
vii) In our opinion, the Company has an internal audit system
commensurate with its size and nature of its business.
viii) We have broadly reviewed the books of account and records
maintained by the Company pursuant to the Order made by the Central
Government for maintenance of cost records u/s 209(1)(d) of Companies
Act, 1956 and are of the opinion that prima facie the prescribed
accounts and records have been made and maintained. The contents of
these accounts and records have not been examined by us.
ix) (a) According to the books and records as produced to us, the
Company is generally regular in depositing with appropriate authorities
undisputed statutory dues including Provident Fund, Income Tax, Sales
Tax, Wealth Tax, Excise Duty, Custom Duty and any other statutory dues.
According to the information and explanations given to us there are, no
undisputed outstanding statutory dues as at the end of the year
exceeding six months from the date they became payable.
(b) According to the records of the Company and the information and
explanations given to us & upon our enquiries in this regard, disputed
statutory dues unpaid as at the last day of the fi nancial year, are as
follows:
Nature of
Dues Year D in Lacs Forum where Dispute is Pending
Excise Duty 2005-06 12.36 Commissioner of Central Excise
(Appeals)(III)
2005-06
and
2006-07 8.26 CESTAT, Calcutta Bench
2006-07 0.50 Commissioner of Central Excise
(Appeals)(IV)
2007-08 15.55 CESTAT, Calcutta Bench
Total 36.67 D 18.62 Lacs paid under Protest
VAT 2005-06 304.13 WBCT, Appellate and Revisional Board
2006-07 479.91 WBCT, Appellate and Revisional Board
2008-09 748.45 WBCT, Appellate and Revisional Board
2009-10 1,487.27 Sr. Joint Commissioner of Commercial
Taxes
Total 3,019.76 D 88.62 Lacs paid under Protest
Entry Tax 2012-13 146.99 Hon''ble High Court of
Calcutta
Total 146.99 D Nil paid under Protest
x) The Company neither has accumulated losses at the end of the fi
nancial year nor has it incurred cash losses in the fi nancial year
under report or in the immediately preceding fi nancial year.
xi) The Company has not defaulted in repayment of dues to any bank or
fi nancial institution, except for delay of upto sixty days in respect
of repayment of term loan of D 205.94 Lacs and payment of interest of D
55.27 Lacs, paid subsequent to the Balance Sheet date.
xii) As explained to us, the Company has not granted any loans or
advances on the basis of security by way of pledge of shares,
debentures and other securities.
xiii) Clause (xiii) of the Order is not applicable to the Company, as
the Company is not a chit fund Company or Nidhi / Mutual Benefi t Fund
/ Society.
xiv) Clause (xiv) of the Order is not applicable, as the Company has
not dealt or traded in shares, securities, debentures or other
investments during the year.
xv) According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks and fi nancial institutions.
xvi) The Company has not obtained any term loans during the year.
xvii) In our opinion and according to the information and explanations
given to us, the funds raised on short-term basis have not been used
for long-term investment.
xviii)The Company has not made any fresh Preferential allotment of
shares during the year to Companies covered in the register maintained
u/s 301 of the Companies Act, 1956.
xix) No debentures have been issued by the Company and hence, the
question of creating security or charge in respect thereof does not
arise.
xx) The Company has not made any allotment of shares during the year to
Companies and other parties covered in the register maintained under
Section 301 of the Companies Act, 1956.
xxi) According to the information and explanations given to us, no
fraud on or by the Company has been noticed or reported during the
year.
For S. Jaykishan
Chartered Accountants
FRN : 309005E
Vivek Newatia
Partner
Kolkata, 30th May, 2013 Membership No. 062636
Mar 31, 2012
1. We have audited the attached Balance Sheet of IMPEX FERRO TECH
LIMITED as at 31st March, 2012 and also the Statement of Profit & Loss
and the Cash Flow Statement for the year ended as on that date, annexed
thereto. These Financial Statements are the responsibility of the
Company's management. Our responsibility is to express an opinion on
these Financial Statements based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
Financial Statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the Financial Statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditor's Report) Order, 2003 (As
Amended) issued by the Central Government in terms of sub-section (4A)
of Section 227 of the Companies Act, 1956 and on the basis of such
checks as we considered appropriate, and according to the information
and explanations given to us, we annex hereto 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 that:
a) We have obtained all the information and explanations, which to the
best of our knowledge and belief, were necessary for the purposes of
our audit;
b) In our opinion, proper books of accounts as required by law have
been kept by the Company so far as appears from our examination of
those books;
c) The Balance Sheet, Statement of Profit & Loss and Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
d) In our opinion, the said Balance Sheet, Statement of Profit & Loss
and Cash Flow Statement dealt with by this report comply with the
mandatory 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,
and taken on record by the Board of Directors, we report that none of
the Directors is disqualified as on 31st March, 2012 from being
appointed as a Director in terms of Clause (g) of Sub-section (1) of
Section 274 of the Companies Act, 1956.
f) In our opinion and to the best of our information and according to
the explanations given to us, the said Financial Statements, read
together with the Notes thereon and attached thereto, 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 Balance Sheet, of the state of affairs of the Company
as at 31st March, 2012;
ii) in the case of the Statement of Profit & Loss, of the profit for
the year ended on that date; and
iii) in the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
(Annexure referred to in paragraph (3) of our report of even date to
the shareholders of Impex Ferro Tech Limited on the Financial
Statements for the year ended 31st March, 2012)
i) (a) The Company has maintained proper records showing full
particulars including quantitative details and Situation of its fixed
assets.
(b) We are informed that fixed assets of Significant value have been
physically verified by the management at reasonable intervals, in a
phased programme and no material discrepancies were noticed in respect
of the assets verified.
(c) The Company has not disposed off any substantial/major part of
fixed assets during the year.
ii) (a) As explained to us, the inventories have been physically
verified by the management at reasonable intervals during the year.
(b) In our opinion, the procedures of physical verification of the
inventories followed by the management are reasonable and adequate in
relation to the size of the Company and nature of its business.
(c) The Company has maintained proper records of inventories and no
material discrepances have been noticed on physical verification as
compared to book records.
iii) (a) The Company has not granted any loans, secured or unsecured, to
companies, firms or other parties covered in the register maintained
under Section 301 of the Companies Act, 1956.
(b) Since the Company has not granted any loans as aforesaid,
sub-clauses (b), (c) & (d) of this clause are not applicable.
(e) The Company has taken unsecured loans from three companies covered
in the register maintained under Section 301 of the Companies Act,
1956. The maximum amount involved during the year is Rs. 2,211.17 Lacs
and the year-end balance of such loans aggregate to Rs. Nil.
(f) In our opinion, the terms and conditions of such loans taken by the
Company are prima facie not prejudicial to the interest of the Company.
(g) There is no closing balance in respect of such loan. Hence,
clause(g) is not applicable to the Company.
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, for the purchase of inventory and fixed assets and for the
sale of goods. Further, on the basis of our examination of the books
and records of the Company, we have neither come across nor have we
been informed of any continuing failure to correct major weaknesses in
the aforesaid internal control system.
v) (a) To the best of our knowledge and belief and according to the
information and explanation given to us, we are of the opinion that the
particulars of the contracts or arrangements that need to be entered in
the register maintained under Section 301 of the Companies Act, 1956
have been so entered.
(b) In our opinion, the transactions made in pursuance of such
contracts or arrangements and exceeding the value of five lac rupees in
respect of any 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 deposit during the year from the
public within the meaning of the provisions of Sections 58A and 58AA of
the Companies Act, 1956 and the rules framed there under.
Vii) In our opinion, the Company has an internal audit system
commensurate with its size and nature of its business.
viii) We have broadly reviewed the books of account and records
maintained by the Company pursuant to the Order made by the Central
Government for maintenance of cost records under Section 209(1)(d) of
Companies Act, 1956 and are of the opinion that prima facie the
prescribed accounts and records have been made and maintained. The
contents of these accounts and records have not been examined by us.
ix) (a) According to the books and records as produced to us, the
Company is generally regular in depositing with appropriate authorities
undisputed statutory dues including Provident Fund, Income Tax, Sales
Tax, Wealth Tax, Excise Duty, Custom Duty and any other statutory dues.
According to the information and explanations given to us there are no
undisputed outstanding statutory dues as at the end of the year
exceeding six months from the date they became payable.
(b) According to the records of the Company and the information and
explanations given to us & upon our enquiries in this regard, disputed
statutory dues unpaid as at the last day of the financial year, are as
follows:
Nature of Dues Year Rs. in Lacs Forum where Dispute
is pending
Excise Duty 2006-07 and 0.50 Commissioner of
2006-07 Central Excise
(Appeals)
2006-07 0.50 Commissioner of
Central Excise
(Appeals)
2007-08 15.55 CESTAT, Calcutta
Bench
2005-06 4.56 Joint Commissioner of
Central Excise
(Bolpur)
Total 28.87 Rs. 5.00 Lacs paid
under Protest
VAT 2005-06 304.13 Sr. Joint Commissioner
of Commercial Taxes
2006-07 479.91 Sr. Joint Commissioner
of Commercial Taxes
2008-09 748.45 Sales Tax Officer,
Central Audit Under
Commercial Taxes
2009-10 867.80 Joint Commissioner of
Commercial Taxes
Total 2,400.29 Rs. 88.62 Lacs paid
under Protest
x) The Company neither has accumulated losses at the end of the
financial year nor has it incurred cash losses in the financial year
under report or in the immediately preceding financial year.
xi) The Company has not defaulted in repayment of dues to any bank or
financial institution, except in respect of repayment of Rs. 164.16
lacs due since September, 2011 out of bridge loan taken from WBIDC Ltd.
against interest subsidy. However, the Company has applied for linking
the repayments with receipt of subsidy amount.
xii) As explained to us, the Company has not granted any loans or
advances on the basis of security by way of pledge of shares,
debentures and other secunt.es.
xiii) Clause (xiii) of the Order is not applicable to the Company, as
the Company is not a Chit Fund Company or Nidhi/Mutual Benefit
Fund/Society.
xiv) Clause (xiv) of the Order is not applicable, as the Company has
not dealt or traded in shares, securities, debentures or other
investments during the year.
xv) According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
Banks and Financial Institutions.
xvi)The Company has not obtained any term loans during the year.
xvii) In our opinion and according to the information and explanations
given to us, the funds raised on short-term basis have not been used
for long-term investment.
xviii)The Company has made fresh Preferential Allotment of shares
during the year to Companies covered in the register maintained under
Section 301 of the Companies Act, 1956 and such allotment is not prima
facie prejudicial to the interest of the Company.
xix) No debentures have been issued by the Company and hence, the
question of creating security or charge in respect thereof does
not arise.
xx) The Company has raised funds by way of Preferential Allotment and
according to the information and explanations given to us, the proceeds
of the same have been utilised for the objects of the issue.
xxi) According to the information and explanations given to us, no
fraud on or by the Company has been noticed or reported during the
year.
For S. Jaykishan
Chartered Accountants
FRN : 309005E
Vivek Newatia
Partner
Membership No. 062636
Place : Kolkata
Dated: The 21st day of May, 2012
Mar 31, 2011
1. We have audited the attached Balance Sheet of IMPEX FERRO TECH
LIMITED as at 31 st March, 2011 and also the Profit & Loss Account and
the Cash Flow Statement for the year ended as on that date, annexed
thereto. These financial statements are the responsibility of the
Company's management. Our responsibility is to express an opinion on
these financial statements based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditors' Report) Order, 2003 (as
amended) issued by the Central Government in terms of sub-section (4A)
of Section 227 of the Companies Act, 1956 and on the basis of such
checks as we considered appropriate, and according to the information
and explanations given to us, we annex hereto 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 that:
a) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
b) In our opinion, proper books of accounts as required by law have
been kept by the Company so far as appears from our examination of
those books;
c) The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account;
d) In our opinion, the said Balance Sheet, Profit and Loss Account and
Cash Flow Statement dealt with by this report comply with the mandatory
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,
and taken on record by the Board of Directors, we report that none of
the directors is disqualified as on 31 st March, 2011 from being
appointed as a director in terms of Clause (g) of sub-section (I) of
Section 274 of the Companies Act, 1956;
f) In our opinion and to the best of our information and according to
the explanations given to us, the said statements of accounts, read
with the Significant Accounting Polices and 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 Balance Sheet, of the state of affairs of the Company
as at 31 st March, 2011;
ii) In the case of the Profit & Loss Account, of the profit for the year
ended on that date; and
iii) In the case of Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
Annexure referred to in our report of even date
i) (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of its fixed
assets.
(b) We are informed that fixed assets of significant value have been
physically verified by the management at reasonable intervals, in a
phased programme and no material discrepances were noticed in respect
of the assets verified.
(c) The Company has not disposed off any substantial/major part of
fixed assets during the year.
ii) (a) As explained to us, the inventories have been physically
verified by the management at reasonable intervals during the year.
(b) In our opinion, the procedures of physical verification of the
inventories followed by the management are reasonable and adequate in
relation to the size of the Company and nature of its business.
(c) The Company has maintained proper records of inventories and no
material discrepances have been noticed on physical verification as
compared to book records.
iii) (a) The Company has not granted any loans, secured or unsecured, to
companies, firms or other parties covered in the register maintained
under Section 301 of the Companies Act, 1956.
(b) Since the Company has not granted any loans as aforesaid,
sub-clauses (b), (c) & (d) of this clause are not applicable.
(c) The Company has taken interest free unsecured loans from ten
companies covered in the register maintained under Section 301 of the
Companies Act, 1956. The maximum amount involved during the year is Rs.
4,714.44 lacs and the year-end balance of such loans aggregate to Rs.
4,612.36 lacs.
(d) In our opinion, the terms and conditions of such loans taken by the
Company are prima facie not prejudicial to the interest of the Company.
(e) In respect of the aforesaid loans, there are no stipulations as to
repayment thereof.
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, for the purchase of inventory and fixed assets and for the
sale of goods. Further, on the basis of our examination of the books
and records of the Company, we have neither come across nor have we
been informed of any continuing failure to correct major weaknesses in
the aforesaid internal control system.
v) (a) To the best of our knowledge and belief and according to the
information and explanation given to us, we are of the opinion that the
particulars of the contracts or arrangements that need to be entered in
the register maintained under Section 301 of the Companies Act, 1956,
have been so entered.
(b) In our opinion, the transactions made in pursuance of such
contracts or arrangements and exceeding the value of five lac rupees in
respect of any 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 deposit during the year from the
public within the meaning of the provisions of Section 58A and 58AA of
the Companies Act, 1956, and the rules framed there under.
vii) In our opinion, the Company has an internal audit system
commensurate with its size and nature of its business.
viii) The maintenance of cost records under Section 209( I )(d) of the
Companies Act, 1956, has not been prescribed by the Central Government
in respect of the products of the Company.
ix) (a) According to the books and records as produced to us, the
Company is generally regular in depositing with appropriate authorities
undisputed statutory dues including Provident Fund, Income Tax, Sales
Tax, Wealth Tax, Excise Duty, Custom Duty and any other statutory dues.
According to the information and explanations given to us, there are no
undisputed outstanding statutory dues as at the end of the year
exceeding six months from the date they became payable.
(b) According to the records of the Company and the information and
explanations given to us & upon our enquiries in this regard, disputed
statutory dues unpaid as at the last day of the financial year, are as
follows :
Nature of Dues Year (Rs. in lacs) Forum where dispute
is pending
Excise Duty 2005-06 3.10 Commissioner of Central
Excise (Appeals)
2005-06 & 8.26 Commissioner of Central
2006-07 Excise (Appeals)
2007-08 15.55 CESTAT, Calcutta Bench
2005-06 9.21 Joint Commissioner of
Central Excise (Bolpur)
36.12 Rs. 5.00 lacs paid
under protest
VAT 2005-06 278.70 W.B.Commercal Taxes,
Appellate & Revisional
Board
2006-07 460.50 W.B.Commercial Taxes,
Appellate & Revisional
Board
2009-10 867.80 Calcutta High Court
2007-08 96.79 Sr. Joint Commissioner
of Commercial Taxes
1,703.79 Rs. 139.66 lacs paid
under protest
x) The Company has neither accumulated losses at the end of the
financial year nor has it incurred cash losses in the financial year
under report or in the immediately preceding financial year.
xi) According to the information and explanations given to us, and
based on documents and records produced to us, there are no defaults in
repayment of dues to banks and financial institutions.
xii) As explained to us, the Company has not granted any loans or
advances on the basis of security by way of pledge of shares,
debentures and other securities.
xiii) Clause (xiii) of the Order is not applicable to the Company, as
the Company is not a chit fund company or nidhi/mutual benefit
fund/society.
xiv) Clause (xiv) of the Order is not applicable, as the Company has
not dealt or traded in shares, securities, debentures or other
investments during the year.
xv) According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks and financial institutions.
xvi) The Company has not obtained any term loans during the year.
xvii) In our opinion and according to the information and explanations
given to us, the funds raised on short-term basis have not been used
for long-term investment.
xviii) The Company has made no fresh allotment of shares during the year
to parties and companies covered in the register maintained under
Section 301 of the Companies Act, 1956.
xix) No debentures have been issued by the Company and hence, the
question of creating security or charge in respect thereof does
notarise.
xx) The Company has not raised any money by way of Public Issue during
the year.
xxi) According to the information and explanations given to us, no
fraud on or by the Company has been noticed or reported during the
year.
For S.jaykishan
Chartered Accountants
FRN:309005E
(B.K. Newatia)
Partner
Membership No. 050251
Dated: The 30th day of May, 2011
Place : Kolkata
Mar 31, 2010
1. We have audited the attached Balance Sheet of IMPEX FERRO TECH
LIMITED as at 31st March, 2010 and also the Profit & Loss Account and
the Cash Flow Statement for the year ended as on that date, annexed
thereto. These financial statements are the responsibility of the
Companys management. Our responsibility is to express an opinion on
these financial statements based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditors Report) Order,
2003 (As Amended) issued by the Central Government in terms of
sub-section (4A) of Section 227 of the Companies Act, 1956, and on the
basis of such checks as we considered appropriate, and according to the
information and explanations given to us, we annex hereto 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 that:
a) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
b) In our opinion, proper Books of Accounts as required by law have
been kept by the Company so far as appears from our examination of
those books;
c) The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account;
d) In our opinion, the said Balance Sheet, Profit and Loss Account and
Cash Flow Statement dealt with by this report comply with the mandatory
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,
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 274of the Companies Act. 1956.
f) In our opinion and to the best of our information and according to
the explanations given to us, the said statements of account, read with
the Significant Accounting Policies and 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 Balance Sheet,of the state of affairs of the Company
as at 31st March, 2010;
ii) In the case of the Profit & Loss Account, of the profit for the
year ended on that date; and
iii) In the case of Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
ANNEXURE REFERRED TO IN OUR REPORT OF EVEN DATE
i) (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of its fixed
assets.
(b) We are informed that fixed assets of significant value have been
physically verified by the management at reasonable intervals, in a
phased programme and no material discrepancies were noticed in respect
of the assets verified.
(c) The Company has not made any disposal of Fixed Assets during the
year.
ii) (a) As explained to us, the inventories have been physically
verified by the management at reasonable intervals during the year.
(b) In our opinion, the procedures of physical verification of the
inventories followed by the management are reasonable and adequate in
relation to the size of the Company and nature of its business.
(c) The Company has maintained proper records of inventories and no
material discrepancies have been noticed on physical verification as
compared to book records.
iii) (a) The Company has not granted any loans, secured or unsecured,
to companies, firms or other parties covered in the register maintained
under Section 301 of the Companies Act, 1956.
(b) Since the Company has not granted any Loans as aforesaid,
sub-clauses (b), (c) & (d) of this clause are not applicable.
(c) The Company has taken Interest Free Unsecured Loans from nine
Companies covered in the register maintained under Section 301 of the
Companies Act, 1956. The maximum amount involved during the year is Rs.
2803.09 lacs and the year-end balance of such loans aggregate to Rs.
2454.44 lacs.
(d) In our opinion, the terms and conditions of such loans taken by the
Company are prima facie not prejudicial to the interest of the Company.
(e) In respect of the aforesaid loans, there are no stipulations as to
repayment thereof.
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, for the purchase of inventory and fixed assets and for
the sale of goods. Further, on the basis of our examination of the
books and records of the Company, we have neither come across nor have
we been informed of any continuing failure to correct major weaknesses
in the aforesaid internal control system.
v) (a) To the best of our knowledge and belief and according to the
information and explanations given to us, we are of the opinion that
the particulars of the contracts or arrangements that need to be
entered in the register maintained under Section 301 of the Companies
Act 1956, have been so entered.
(b) In our opinion, the transactions made in pursuance of such
contracts or arrangements and exceeding the value of five lacs rupees
in respect of any 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 deposit during the year from the
public within the meaning of the provisions of Sections 58A and 58AA of
the Companies Act, 1956 and the rules framed there under.
vii) In our opinion, the Company has an internal audit system
commensurate with its size and nature of its business.
viii) The maintenance of cost records under Section 209(l)(d) of the
Companies Act, 1956, has not been prescribed by the Central Government
in respect of the products of the Company.
ix) (a) According to the records of the Company examined by us, except
for income-tax payments, the Company is generally regular in depositing
with appropriate authorities undisputed statutory dues including
Provident Fund, Sales Tax, Wealth Tax, Excise Duty, Custom Duty,
Service Tax, Cess and any other statutory dues. According to the
information and explanations given to us, except income-tax payment of
Rs.327.75 lacs (Since paid Rs. 60.72 lacs), there are no undisputed
outstanding statutory dues as at 31st March, 2010 for a period
exceeding six months from the date they became payable.
b) According to the record of the company and the information and
explanations given to us & upon our enquiries in this regard, disputed
statutory dues unpaid as at last day the finacial Yea, are as follows :
Nature of Year Amount forum where dispute
Due (Rs.in lacs) is pending
Excise Duty 2005-2006 3.10 Commissioner of Central
Excise (Appeals)
Excise Duty 2005-2006 8.26 Commissioner of Central
2006-2007 Exeise (Appeals)
Excise Duty 2006-2007 15.55 Commissioner of Central
Exeise (Appeals)
Excise Duty 2005-2006 9.10 Joint Commissioner Central
Central Excise (Bolpur)
VAT 2005-2006 643.35 Sr. JCCT,Dhamatala Cirde
2006-2006 1180.33 Sr. JCCT,Dharamtala Cirde
2009-2010 867.80 Colcutta High Court
x) The Company has neither accumulated losses at the end of the
financial year nor has it incurred cash losses in the financial year
under report or in the immediately preceding financial year.
xi) According to the information and explanations given to us, and
based on documents and records produced to us, there are no defaults in
repayment of dues to banks and financial institutions except for Term
Loan Instalment dues amounting to Rs. 84.69 lacs and Interest dues
amounting to Rs. 47.35 lacs not paid during the year. Out of the above,
term loan instalments amounting to Rs. 35.93 lacs and interest
outstanding amounting to Rs. 35.33 lacs have since been paid.
xii) As explained to us, the Company has not granted any loans or
advances on the basis of security by way of pledge of shares,
debentures and other securities.
xiii) Clause (xiii) of the Order is not applicable to the Company, as
the Company is not a chit fund company or nidhi/mutual benefit
fund/society.
xiv) Clause (xiv) of the Order is not applicable, as the Company has
not dealt or traded in shares, securities, debentures or other
investments during the year.
xv) According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
Banks and Financial Institutions.
xvi) On the basis of review of utilisation of funds pertaining to term
loans on an overall basis and related information as made available to
us, we are of the opinion that the Company has applied the term loans
for the purpose for which they were obtained during the year.
xvii) In our opinion and according to the information and explanations
given to us, the funds raised on short-term basis have not been used
for long-term investment.
xviiilThe Company has made allotment of shares during the year to
parties and companies covered in the register maintained under Section
301 of the Companies Act, 1956, on rights bais. The said allotment is
not considered to be in the nature of preferential allotment.
xix) No debentures have been issued by the Company and hence, the
question of creating security or charge in respect thereof does not
arise.
xx) We have verified the end use of money raised by rights issue of
equity share capital as disclosed in the notes to the financial
statements. (Note No. 7 in Schedule 19 to the accounts).
xxi) According to the information and explanations given to us, no
fraud on or by the Company has been noticed or reported during the
year.
For S.JAYKISHAN
Chartered Accountants
FRN: 309005E
B. K. Newatia
Partner
Membership No. 050251
Place :Kolkata
Dated: The 28th day of
May, 2010
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