Mar 31, 2015
1. We have audited the accompanying financial statements of Khaitan
(India) Limited ("the Company"), which comprise the Balance Sheet as at
March 31, 2015, 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. 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 principle
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 judgements
and estimates that are reasonable and prudent and design,
implementation and maintenance of adequate internal financial controls,
that were operating effectively for insuring the accuracy and
completeness of the accounting records relevant to the preparation and
presentation of the financial statements , that give a true and fair
view and are free from material misstatement, whether due to fraud or
error.
Auditors' Responsibility:
3. 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.
4. 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 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 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 operating 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 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.
5. Basis of Qualified Opinion:
a. Attention is provided to Note no. 14 regarding deferred tax asset
which have not been written off amounting to Rs.32643751/- being
recognized in the Balance Sheet. If the Deferred tax asset had been
written off during the year, there would be a loss of Rs.8,85,15,565/-
as against the loss of Rs.5,58,71,814/- shown in these financial
statements. Deferred tax asset balance in the Balance sheet would
amount to 'NIL'as against Rs.3,26,43,751/- as disclosed in these
financial statements.
b. Closing balances of Debtors, Creditors, loans, deposits, advances,
old liabilities relating to gratuity, land rent & panchayat tax and
some bank balances are unconfirmed and fixed deposit receipts and
National Saving certificates are not available with the company, in
respect of which we are unable to express our opinion.
Qualified Opinion:
6. In our opinion and to the best of our information and according to
the explanations given to us, except for the matter referred to in
paragraph 5above, 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 Loss , for
the year ended on that date; and
c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Emphasis of Matter:
7. Without qualifying our opinion, we draw attention to the following
matters:
Attention is drawn to Note No. 2(f) regarding valuation of planted
trees on estimated realizable value being technical in nature, we are
unable to express our opinion.
Report on Other Legal and Regulatory Requirements:
8. As required by the Companies (Auditor's Report) Order, 2015 ("the
Order") issued by the Central Government of India in terms of sub-
section (11) of section 143 of the Companies Act , 2013 we give in the
Annexure a statement on the matters specified in paragraphs 3 and 4 of
the Order to the extent applicable .
9. As required by section 143(3) of the Act, we report that:
a) except for the matter referred to in paragraph 5 above, we have
sought and obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b) in our opinion, except for the matter referred to in paragraph 5
above, 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) except for the matter referred to in paragraph 5 above, 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, except for the matter referred to in paragraph 5
above, the aforesaid financial statements comply with the accounting
standards specified under section 133 of the Act read with Rule 7 of
the Companies (Accounts) Rules 2014.
e) on the basis of written representations received from the directors
as on March 31, 2015, and taken on record by the Board of Directors,
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 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 us :
The company has disclosed the impact of pending litigations on its
financial position in its financial statements 31 refer note 2 (M) to
the financial statements .
ANNEXURE TO THE INDEPENDENT AUDITORS REPORT REFERRED TO IN PARAGRAPH 8
WITH THE HEADING "REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS"
SECTION OF OUR REPORT OF EVEN DATE
1. i. The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
ii. The Fixed Assets have been physically verified in a phased manner
by the management and reconciliation of the quantities with the Fixed
Assets Register has been made. The differences, if any, have been
adjusted and no serious discrepancies between the Fixed Assets Register
and physical inventory have been noticed.
2. i. The management has conducted physical verification of inventory
at reasonable intervals during the year.
ii. In our opinion the procedure of physical verification of inventory
followed by the management is reasonable and adequate in relation to
the size of the Company and the nature of its business.
iii. On the basis of our examination of the records of Inventory, we
are of the opinion that company is maintaining proper records of
inventory. The discrepancies noticed on physical verification and the
books stock wherever ascertained were not significant and have been
properly dealt with in the books of accounts.
3. The Company has not granted loans, secured or unsecured to
companies, firms or other parties covered in the register maintained
under Section 189 of the Act. Accordingly the requirements of clauses
(iii) (a) to (b) of the paragraph 3 of the order are not applicable.
4. In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business with regard
to purchase of inventory and fixed assets and for the sale of goods and
services. During the course of our audit no major weakness has been
noticed in the internal control system.
5. The Company has not accepted deposits from the public during the
year. The directives issued by the Reserve Bank of India and the
provisions of Section 73 to 76 of the Act and the rules framed there
under are not applicable
6. 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, 2013and are of the opinion primafacie, the prescribed accounts and
records have been made and maintained. We have not, however, made
detailed examination of the records with a view to determine whether
they are accurate or complete.
7. i. According to the information and explanations given to us and on
the basis of our examination of the books and account, the company has
generally been regular but with delays in depositing the Undisputed
statutory dues including Provident Fund, Employees State Insurance,
Income Tax, Sales Tax, Service Tax, Excise Duty, Cess, Value Added Tax,
T.D.S. and other statutory dues ,if any, with the appropriate
authorities. No undisputed statutory dues were outstanding, as at 31st
March 2015 for a period of more than six months from the date they
became payable except Panchayat tax amounting to Rs.15,448/-and Service
tax amounting to Rs.44,61,000/- .
ii. According to the information and explanations given to us and the
records of the company examined by us, the dues of Income Tax, Sales
Tax, Service Tax, Excise Duty, Value added Tax and Cess as at 31st
March 2015 which have not been deposited on account of dispute and the
forum where the disputes are pending are as follows :
Name of the Nature of Amount Period to which
Statute Class is relating
Maharastra Tax & Penalty 94,87,225
Sales Tax Act on higher turnover
on reassessment
Income Tax
Income Tax - Do - 39,80,580 2008 - 09
Act, 1961
- Do - 0 2007 - 08
- Do - 7372674 2006 - 07
- Do - 53,21,692 2005 - 06
- Do - 1362312 2004 - 05
48,83,986 2003 - 04
Name of the Forum where dispute
Statute is pending
Maharastra Joint Commissioner & Sales Tax
Sales Tax Act (Appellate) Mumbai.
Income Tax Appeal filed by Company against
Act, 1961 Assessment order before CIT(A)
Department filed appeal
before ITAT
Department filed appeal
before ITAT
Company filed appeal
before ITaT
Department filed appeal
before ITAT
Appeal filled before CIT(A)
8. The Company does not have accumulated losses more than fifty
percent of its net worth at the end of the financial year but it has
incurred cash losses during the financial year covered by our audit. It
had incurred cash losses in the immediately preceding financial year
also.
9. According to the information and explanations given to us by the
management the company has not defaulted in repayment of dues to
financial institutions/Banks .Refer note no 5 in Notes on Financial
Statements .
10. According to the informations and explanations given to us, the
company has given guarantee for loan taken by others, from bank or
financial institutions. Since such guarantees or counter guarantees
given are very old and records to this effect has not been provided to
us we are unable to comment upon whether the terms and conditions are
prejudicial to the interest of the company.
11. Based on information and explanations given to us and the records
of the company examined by us, in our opinion the term loan has been
applied for the purpose for which it was obtained .
12. To the best of our knowledge and belief and according to the
information and explanations given to us, no fraud on or by the company
has been noticed or reported during the course of our audit.
For O P Sharma and Associates
Chartered Accountants
9 Old China Bazar St Registration M° 500128 M
5th fl., Room No 80 Om Prakash Sharma
Kolkata-700001 Proprietor
The 29th May, 2015 Membership No070762
Mar 31, 2014
1. We have audited the accompanying financial statements of Khaitan
(India) 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 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. This responsibility includes the design,
implementation and maintenance of internal control relevant to the
preparation and presentation of the financial statements that give a
true and fair view and are free from material misstatement, whether due
to fraud or error.
Auditors'' Responsibilities:
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 entity''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. We
believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
5. Basis of Qualified Opinion:
A. Attention is provided to Note no. 14 regarding deferred tax asset
which have not been written off amounting to Rs.3,26,43,751/- being
recognized in the Balance Sheet. If the Deferred tax asset had been
written off during the year, there would be a loss of Rs.5,10,46,258/-
as against the loss of Rs.1,84,02,507/- shown in these financial
statements. Deferred tax asset balance in the Balance sheet would
amount to ''NIL'' as against Rs.3,26,43,751/- as disclosed in these
financial statements.
B. Closing balances of Debtors, Creditors, loans, deposits, advances,
capital advances taken against land, old liabilities relating to
gratuity, land rent & panchayat tax and some bank balances are
unconfirmed and fixed deposit receipts and National Saving certificates
are not available with the company, in respect of which we are unable
to express our opinion.
Qualified Opinion:
6. In our opinion and to the best of our information and according to
the explanations given to us, except for the matter referred to in
paragraph 5 above, 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.
Emphasis of Matter :
7. Without qualifying our opinion, we draw attention to the following
matters:
a. Attention is drawn to Note No. 2(f) regarding valuation of planted
trees, regarding valuation of planted trees on estimated realizable
value being technical in nature, we are unable to express our opinion.
Report on Other Legal and Regulatory Requirements :
8. 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.
9. As required by section 227(3) of the Act, we report that:
a) except for the matter referred to in paragraph 5 above, 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, except for the matter referred to in paragraph 5
above, 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) except for the matter referred to in paragraph 5 above, 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, except for the matter referred to in paragraph 5
above, the Balance Sheet, the Statement of Profit and Loss, and the
Cash Flow Statement comply 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
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.
1. i. The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
ii. On the basis of informetion and explanations given to us, we find
that Fixed Assets have been physically verified by the management
during the year, and there is a program of verification having regard
to the size of the Company and the nature of its fixed assets.
iii. There was no substantial disposal of fixed assets during the
year.
2. i. The management has conducted physical verification of inventory
at reasonable intervals during the year.
ii. The procedures of physical verification of inventory followed by
the management are, in our opinion, reasonable and adequate in relation
to the size of the Company and the nature of its business.
iii. The Company is maintaining proper records of inventory and no
material discrepancies were noticed on physical verification.
3. i. On the basis of examination of records and according to
information and explanations given to us, we report that the Company
has not granted any loans, secured or unsecured to/from companies/firms
or other parties covered in the register maintained under Section 301
of the Act.
ii. In view thereof, the provision of clause 3(b), (c) & (d) of
paragraph 4 of the Order are not applicable to the company. iii. The
Company has taken loan from three companies covered in the register
maintained under Section 301 of the Companies Act. The maximum amount
involved during the year was Rs.27,51,96,474/- and the year end balance
of loans taken is Rs.26,86,10,530 /- (including interest).
iv. In our opinion the rate of interest and other terms and conditions
on which above loans have been taken are not prima facie prejudicial to
the interest of the company.
v. According to the information and explanation given to us, the
Principal and interest amount where applicable are repayable on demand.
vi. In respect of the said Loans the same are repayable on demand and
therefore the question of overdue amounts does not arise.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business with regard to purchase of inventory and fixed assets and for
the sale of goods and services. Further during the course of our audit
no major weakness has been noticed in the internal control systems.
5. i. According to the information and explanations given to us, we
are of the opinion that the particulars of contracts or arrangements
referred in Section 301 of the Act have been entered into the register
required to be maintained under that Section. ii. In our opinion and
according to the information and explanations given to us, we report
that transactions made in pursuance of such contracts or arrangements
exceeding the value of Rupees five lacs during the year are reasonable.
6. The Company had not accepted deposits from the public during the
year. The directives issued by the Reserve Bank of India and the
provisions of Section 58 A and 58AA or any other relevant provisions of
the Companies Act, 1956 and the rules framed there under are not
applicable
7. In our opinion, the company''s internal audit needs to be
strengthened.
8. 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 209(1)(d) of the Companies
Act, 1956 and are of the opinion that prima facie, the prescribed
accounts and records have been made and maintained. We have not,
however, made detailed examination of the records with a view to
determine whether they are accurate or complete.
9. i. Undisputed statutory dues including Provident Fund, Employees
State Insurance, Income Tax, Sales Tax, Excise Duty, Cess,
TDS and other material statutory dues have been deposited with the
appropriate authorities with delays. No undisputed statutory dues were
outstanding, as at 31st March 2014 for a period of more than six months
from the date they became payable except Panchayat tax amounting to
Rs.65,461/-. Further Service tax amounting to Rs.5,35,568/- has not
been paid by the company. ii. According to the information and
explanations given to us, there are no dues of Custom Duty, Wealth Tax,
Service Tax, Excise Duty and Cess which have not been deposited on
account of any dispute except dues outstanding of Sales Tax and Income
Tax on account of any dispute are as follows :
Name of Nature of Class Amount Period to which
Status Class Rs. is relating
Maharastra Tax & Penalty 94,87,225
Sales on higher turnover on
reassessment
Income Tax Act, Income Tax 39,80,580 2008 - 09
1961
- Do - 28,018 2007 - 08
- Do - 50,42,790 2006 - 07
- Do - 53,21,692 2005 - 06
- Do - 23,29,884 2004 - 05
- Do - 48,83,986 2003 - 04
NAme pf Status Forum where dispute is pending
Maharastra Sales Joint Commissioner & Sales Ta x (Appellate) Mumbai.
Income Tax Act Appeal filed by Company against Assessment order
1961 before CIT(A)
Department filed appeal before ITAT
Department filed appeal before ITAT
Company filed appeal before ITAT
Department filed appeal before ITAT
Appeal filed before CIT(A)
10. The Company does not have accumulated losses more than fifty
percent of its net worth at the end of the financial year but it has
incurred cash losses during the financial year covered by our audit. It
had incurred cash losses in the immediately preceding financial year
also.
11. Based on our audit procedures and as per the information and
explanations given by the management the company has delayed in
repayment of dues to financial institutions for term loan of all twelve
installments of Rs.10 lakhs each pertaining to the period April''13 to
March,14.
12. According to the information and explanations given to us and
based on the documents and records produced before us we report that
the Company has not granted loans and advances on the basis of security
by way of pledge of share, debentures and other securities.
13. In our opinion, the Company is not a chit fund or a nidhi / mutual
fund/society. Therefore, the provision of clause 4 (xiii) of paragraph
4 of the Order are not applicable to the company.
14. In our opinion the company is not dealing in or trading in share,
securities, debentures and other investment. Accordingly the provision
of clause 4 (xiv) of Paragraph 4 of the order are not applicable to the
company.
15. According to the information and explanation to us, the company
has given guarantee for loan taken by others, from bank or financial
institutions. Since such guarantees or counter guarantees given are
very old and records to this effect have not been provided to us we are
unable to comment upon whether the term and conditions are prejudicial
to the interest of the company.
16. Based on information and explanation given to us by the
management, we report that the Company has not taken further term loan
during the year.
17. According to the information and explanation given to us and on an
overall examination of the balance sheet and the cash flow statement of
the company, we report that no funds raised on short term basis have
been used for long term investment.
18. The Company has not made any preferential allotment of share to
the parties or companies covered in the register maintained u/s 301 of
the Companies Act, 1956.
19. According to the information and explanations given to us during
the period covered by our audit report, we report that no debentures
have been issued by the company.
20. The company has not raised any money through a public issue during
the year.
21. Based upon the audit procedures performed for the purpose of
reporting true and fair view of the financial statement and as per the
information and explanation given by the management, we report that no
fraud on or by the company has been noticed or reported during the
course of our audit.
For CHATURVEDI & CO.
Chartered Accountants
Registration No. 302137E
60 Bentinck Street CANilima Joshi
Kolkata-700069 Partner
the 30th May, 2014 (Membership No. 52122)
Mar 31, 2013
Report on the Financial Statement
1. We have audited the accompanying financial statements of Khaitan
(india) Limited ("the Company"), which comprise the Balance Sheet as at
March 31, 2013, 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.
Managements'' Responsibilities for the Financial Statement
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 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 mis-statement,
whether due to fraud or error.
Auditors'' Responsibilities
3. Our responsibility is to express an opinion on these financial
statements based on our audit. We conduct our audit in accordance with
the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards required 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 mis-statement.
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 judgement, including the
assessment of the risks of material mis-statement 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 the 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.
5. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our audit opinion.
6. Basis of Qualified Opinion
a. Attention is provided to Note no. 13 regarding deferred tax asset
which have not been written off amounting to Rs. 3,26,43,751/- being
recognised in the Balance Sheet. If the Deferred tax asset had been
written off during the year, there would be a loss of Rs 5,14,90,655/-
as against the loss of Rs 1,88,46,894/- shown in these financial
statements. Deferred tax asset balance in the Balance sheet would
amount to ''NIL'' as against Rs 3,26,43,751/- as disclosed in these
financial statements.
b. Closing balances of Debtors, Creditors, loans, deposits, advances,
demat accounts, and some bank balances are unconfirmed and fixed
deposit receipts and National Saving certificates are not available
with the company, in respect of which we are unable to express our
opinion.
Opinion
7. Attention is drawn to Note No. 2(f) regarding valuation f planted
trees, regarding valuation of planted trees on estimated realisable
value being technical in nature, we are unable to express our opinion.
8. In our opinion and to the best of our information and according to
the explanations given to us, the financial statements subject to the
effects of the matters described in the Basis for Qualified Opinion
paragraph and emphasis mentioned in para 7 above, give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India :
a) in the case of the balance sheet, of the state of affairs of the
company as at 31st March, 2013.
b) in the case of the Statement of Profit & Loss, of the Loss for the
year ended on that date, and
c) in the case of cash flow statement, of the cash flow for the year
ended on that date. Report on Other Legal and Regulatory Requirements
9. 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.
10. 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 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 aqreement with the books of
account.
iv. in our opinion, the Balance Sheet, Statement of Profit and Loss,
and the Cash Flow Statement comply with the Accounting Standards
refered to the sub-section (3C) of section 211 of the Companies Act,
1956;
v. on the basis of written representations received from the directors,
as on 31st March, 2013 and taken on records by the Board of Directors,
none of the Directors are disqualified as on 31st March, 2013, from
being appointed as a director in terms of clause (g) of Sub section (1)
of Section 274 of the Companies Act, 1956. - vi. Since the Central
Government has not issued any notification as to the rate at which the
cess is to be paid under section 441A of the Companies Act, 1956 nor
has it issued any rules under the said section, prescribing the manner
in which such cess is to be paid, no cess is due and payable by the
company.
ANNEXURE TO THE INDEPENDENT AUDITORS REPORT REFERRED TO IN PARAGRAPH 9
"UNDER REPORT AND OTHER LEGAL ON REGULATORY REQUIREMENTS" SECTION OF
OUR REPORT OF EVEN DATE
1. i) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets..
ii) On the basis of information and explanations given to us, we find
that Fixed Assets have been physically verified by the management
during the year, and there is a programme of verification having regard
to the size of the Company and the nature of its fixed assets.
iii) There was no substantial disposal of fixed assets during the year.
2. i) The management has conducted physical verification of inventory
at reasonable intervals during the year
ii) The procedures of physical verification of inventory followed by
the management are, in our opinion, reasonable and adequate in relation
to the size of the Company and the nature of its business.
iii) The Company is maintaining proper records of inventory and no
material discrepancies were noticed on physical verification.
3. i) On the basis of examination of records and according to
information and explanations given to us, we report that the Company
has not granted any loans, secured or unsecured to/from companies/firms
or other parties covered in the register maintained under Section 301
of the Act.
ii) In view thereof, the provision of clause 3(b), (c) & (d) of
paragraph 4 of the Order are not applicable to the company.
iii) The Company has taken loan from a company covered in the register
maintained under Section 301 of the Companies Act. The maximum amount
involved during the year was Rs. 16,95,35,328/- from two parties and
the year end balance of loans taken is Rs. 13,08,89,148/- (including
interest).
iv) In our opinion the rate of interest and other terms and conditions
on which above loans have been taken are not prima facie prejudicial to
the interest of the company.
v) According to the information and explanation given to us, the
Principal and interest amount where applicable are repayable on demand.
vi) In respect of the said Loans the same are repayable on demand and,
therefore, the question of overdue amounts does not arise.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business with regard to purchase of inventory and fixed assets and for
the sale of goods and services. Further, during the course of our audit
no major weakness has been noticed in the internal control systems.
5. i) According to the information and explanations given to us, we
are of the opinion that the particulars of contracts or arrangements
referred in Section 301 of the Act have been entered into the register
required to be maintained under that Section.
ii) In our opinion and according to the information and explanations
given to us, we report that transactions made in pursuance of such
contracts or arrangements exceeding the value of Rupees five lacs
during the year are reasonable.
6. The Company had not accepted deposits from the public during the
year. The directives issued by the Reserve Bank of India and the
provisions of Section 58 A and 58AA or any other relevant provisions of
the Companies Act, 1956 and the rules framed thereunder are not
applicable.
7. In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
8. 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 209(1 )(d) of the Companies
Act, 1956 and are of the opinion that prima facie, the prescribed
accounts and records have been made and maintained. We have not,
however, made detailed examination of the records with a view to
determine whether they are accurate or complete.
9. i) Undisputed statutory dues including Provident Fund, Employees
State Insurance, Income Tax, Sales Tax, Excise Duty, Cess, TDS and
other material statutory dues have generally been regularly deposited
with the appropriate authorities except Service Tax and TDS payment
which has been delayed.
ii) According to the information and explanations given to us, no
undisputed amounts payable in respect of Income Tax, Sales Tax, Wealth
Tax, Service Tax, Custom Duty, Excise Duty and Cess which were
outstanding at the year end for a period of more than six months from
the date they became payable.
10. Company has accumulated losses at the end of the financial year and
it has incurred cash losses during the financial year covered by our
audit. It had incurred cash losses in the immediately preceding
financial year also.
11. Based on our audit procedures and as per the information and
explanations given by the management the company has delayed in
repayment of dues to financial institutions for term loan of all twelve
instalments of Rs. 10 lacs each pertaining to the period April 12 to
March, 13.
12. According to the information and explanations given to us and
based on the documents and records produced before us we report that
the Company has not granted loans and advances on the basis of security
by way of pledge of share, debentures and other securities.
13. In our opinion, the Company is not a chit fund or a nidhi/mutual
fund/society. Therefore, the provision of clause 4 (xiii) of paragraph
4 of the Order are not applicable to the company.
14. In our opinion the company is not dealing in or trading in share,
securities, debentures and other investment. Accordingly, the provision
of clause 4 (xiv) of Paragraph 4 of the order are not applicable to the
company.
15. According to the information and explanation given to us, the
company has given guarantee for loan taken by others, from bank or
financial institutions. Since such guarantees or counter guarantees
given are very old and records to this effect have not been provided to
us, we are unable to comment upon whether the terms and conditions are
prejudicial to the interest of the company.
16. Based on information and explanation given to us by the
management, we report that the Company has not taken further term loan
during the year.
17. According to the information and explanation given to us and on
and overall examination of the balance sheet and the cash flow
statement of the company, we report that no funds raised on short term
basis have been used for long term investment.
18. The Company has not made any preferential allotment of shares to
the parties or companies covered in the register maintained u/s 301 of
the Companies Act, 1956.
19. According to the information and explanations given to us during
the period covered by our audit report, we report that no debentures
have been issued by thj company.
20. The company has not raised any money through a public issue during
the year.
21. Based upon the audit procedures performed for the purpose of
reporting true and fair view of the financial statement and as per the
information and explanation given by the management, we report that no
fraud on or by the company has been noticed or reported during the
course of our audit.
For CHATURVEDI & CO.
Registration No. 302137E
Chartered Accountants 60,
Bentinck Street
Kolkata-700069 CA NILiMA JOSHI
the 7th June, 2013 Partner
(Membership No. 52122)
Mar 31, 2010
1. We have audited the attached Balance Sheet of Khaitan (India)
Limited as at 31st March 2010, and also the Profit & Loss Account and
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 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 mis-statement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosure in the financial statement. 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 issued
by the Central Government of India in terms of Sub-section (4A) of
Section 227 of the Companies Act, 1956, we enclose in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the said
Order.
4. The closing balances of debtors, some creditors, loans, advances,
demat account and some bank balances are unconfirmed.
5. Further to our comments in the Annexure referred to above, we
report that:
i. We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit.
ii. The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account.
iii. In our opinion, the said Balance Sheet, Profit & Los 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 except AS-15 where accruing gratuity/leave
encashment is treated on cash basis in Sugar & Agriculture Divisions
and AS-22 wherein Deferred Tax Assets have not been written off.
iv. In our opinion and to the best of our information and according to
the explanations given to us, the said accounts subject to Note 1(f)
regarding valuation of planted trees, Note- 9 regarding unprovided
gratuity and leave encashment liability of Rs.69,79,202 and
Rs.2,61,796, Note-16 regarding Deferred Tax Assets amounting to
Rs.3,26,43,751/- has been recognised in Balance Sheet resulting in over
statement of profit and understatement of liabilities to such extent of
the notes to Accounts in Schedule N and read together with other Notes
give the information required by the Companies Act, 1956 in the manner
so required and give a true and fair view in conformity with the
accounting principles generally accepted in India.
a) In the case of the Balance Sheet, of the state of affairs of the
company as at 31st March, 2010.
b) In the case of the Profit & Loss Account, of the Loss for the year
ended on that date, and
c) In the Case of Cash Flow Statement of the cash flow for the year
ended on that date.
v. Subject to4& 5(iv) above in our opinion, the Company has kept proper
books of account as required by law so far as appears from our
examination of those books.
vi. On the basis of written representations received from the
Directors, as on 31st March, 2010 and taken on records by the Board of
Directors, we report that none of the Directors are 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.
ANNEXURE REFERRED TO IN PARAGRAPH 3 OF OUR REPORT OF EVEN DATE TO THE
MEMBERS OF KHAITAN (INDIA) LIMITED ON THE ACCOUNTS AS AT AND FOR THE
YEAR ENDED 31 ST MARCH, 2010
1.i) The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
ii) On the basis of information and explanations given to us, we find
that Fixed Assets have been physically verified by the management
during the year, and there is a regular programme of verification
having regard to the size of the Company and the nature of its fixed
assets.
iii) There was no substantial disposal of fixed assets during the year.
2. i) The management has conducted physical verification of inventory
at reasonable intervals during the year. ii) The procedures of
physical verification of inventory followed by the management are, in
our opinion, reasonable and adequate in relation to the size of the
Company and the nature of its business. iii) The Company is
maintaining proper records of inventory and no material discrepancies
were noticed on physical verification.
3. i) On the basis of examination of records and according to
information and explanations given to us, we report that the Company
has not granted any loans, secured or unsecured to/from companies/firms
or other parties covered in the register maintained under Section 301
of the Act.
ii) In view thereof, the provisions of clause 3(b), (c) & (d) of
paragraph 4 of the Order are not applicable to the company.
iii) The Company has taken loan from a company covered in the register
maintained under Section 301 of the Companies Act. The maximum amount
involved during the year was Rs.7,02,97,022 (including interest) from
two parties and the year end balance of loans taken is Rs.43,47,022.
iv) In our opinion, the rate of interest and other terms and conditions
on which above loans have been taken are not prima facie prejudicial to
the interest of the company.
v) According to the information and explanation given to us, the
Principal and interest amount where applicable are repayable on demand.
vi) In respect of the said Loans, the same are repayable on demand and,
therefore, the question of overdue amounts does not arise.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business with regard to purchase of inventory and fixed assets and for
the sale of goods and services. Further during the course of our audit
no major weakness has been noticed in the internal control systems.
5. i) According to the information and explanations given to us, we
are of the opinion that the particulars of contracts or arrangements
referred in Section 301 of the Act have been entered into the register
required to be maintained under that Section.
ii) In our opinion and according to the information and explanations
given to us, we report that there are transactions made in persuasion
of such contracts or arrangements exceeding the value of Rupees five
lacs during the year are reasonable.
6. The Company had accepted deposits from the public. The directives
issued by the Reserve Bank of India and the provisions of Section 58 A
and 58AA or any other relevant provisions of the Companies Act, 1956
and the rules framed thereunder, wherever applicable have been complied
with. Deposits amounting to Rs 166,000 have been paid but cheques has
not cleared till date.
7. In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
8. 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 209(1 )(d) of the Companies
Act, 1956 and are of the opinion that prima facie, the prescribed
accounts and records have been made and maintained. We have not,
however, made detailed examination of the records with a view to
determine whether they are accurate or complete.
9. i) Undisputed statutory dues including Provident Fund, Employees
State Insurance,
Income Tax, Sales Tax, Excise Duty, Cess, TDS and other material
statutory dues have generally been regularly deposited with the
appropriate authorities except Service Tax payment which has been
delayed.
ii) According to the information and explanations given to us, no
undisputed amounts payable in respect of Income Tax, Sales Tax, Wealth
Tax, Service Tax, Custom Duty, Excise Duty and Cess which were
outstanding at the year end for a period of more than six months from
the date they became payable.
iii) According to the information and explanations given to us, there
are no dues of Custom Duty, Wealth Tax, Service Tax, Excise Duty and
Cess which have not been deposited on account of any dispute. According
to the records of the Company and as per the information and
explanations given to us, the dues outstanding of Sales Tax and Income
Tax on account of any dispute are as follows :
Name of the Statute Nature of Class Amount Forum where
Rs. dispute is
pending
Maharastra Sales Tax & penalty on 94,87,225 Joint Commi-
ssioner
Tax Act higher turnover on & Sales Tax
reassessment (Appellate)
Mumbai
Income tax Act. 1961 Applicability of
Rule 4,80,42,913 Commissioner of
8D on Agriculture Income Tax and
Income Income Tax
Tribunal
10. The Company does not have accumulated losses at the end of the
financial year and it has incurred cash losses amounting to Rs.
1,58,75,206 during the financial year covered by our audit. It had
incurred cash losses amounting to Rs.1,27,66,540 in the immediately
preceding financial year.
11. Based on our audit procedures and as per the information and
explanations given by the management, the company had applied for
reschedulement of dues last year and the same have been accepted by the
Bank and repayment falls due w.e.f. 01-04-2009. Company has defaulted
in repayment of dues to financial institutions, amounting to Rs.
30,00,000 on loan taken from IDBI Bank.
12. According to the information and explanations given to us and based
on the documents and records produced before us, we report that the
Company has not granted loans and advances on the basis of security by
way of pledge of shares, debentures and other securities.
13. In our opinion, the Company is not a chit fund or a nidhi/mutual
fund/society. Therefore, the provisions of clause 4 (xiii) of paragraph
4 of the Order are not applicable to the company.
14. In our opinion, the company is not dealing in or trading in
shares, securities, debentures and other investment. Accordingly the
provision of clause 4 (xiv) of Paragraph 4 of the order are not
applicable to the company.
15. According to the information and explanation to us, the company
has given guarantee for loan taken by others, from bank or financial
institutions. Since such guarantees or counter guarantees given are
very old and records to this effect have not been provided to us, we
are unable to comment upon whether the terms and conditions are
prejudicial to the interest of the company.
16. Based on information and explanation given to us by the
management, we report that the Company has not taken any term loan
during the year.
17. According to the information and explanation given to us and on and
overall examination of the balance sheet and the cash flow statement of
the company, we report that no funds raised on short term basis have
been used for long term investment.
18. The Company has not made any preferential allotment of share to the
parties or companies covered in the register maintained u/s 301 of the
Companies Act, 1956.
19. According to the information and explanations given to us during
the period covered by our audit report, we report that no debentures
have been issued by the company.
20. The company has not raised any money through a public issue during
the year.
21. Based upon the audit procedures performed for the purpose of
reporting true and fair view of the financial statement and as per the
information and explanation given by the management, we report that no
fraud on or by the company has been noticed or reported during the
course of our audit.
For CHATURVEDI & CO.
Chartered Accountants
60, Bentinck Street Nilima Joshi
Kolkata 700 069 Partner
The 23rd July, 2010 (Membership No. 52122)
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