Report on the Financial Statements
We have audited the accompanying financial statements of Amtek India
Limited (the company) as at 30th September 2013, which comprise the
Balance Sheet as at September 30, 2013; the Statement of Profit and
Loss and the Cash Flow Statement for the 15 months period then ended;
and a summary of significant accounting policies and other explanatory
Management''s Responsibility for the financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956 (the Act). This responsibility includes
the design, implementation and maintenance of internal control relevant
to the preparation and presentation of the financial statements that
give a true and fair view and are free from material misstatement,
whether due to fraud or error.
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
We believe that the audit evidence, we have obtained, is sufficient and
appropriate to provide a basis for our audit opinion.
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India:
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at September 30, 2013;
b) in the case of Statement of Profit and Loss, of the profit for the
15 months period ended on that date; and
c) in the case of the Cash Flow Statement, of the cash flows for the 15
months period ended on that date. Report on Other Legal and Regulatory
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 specified in paragraphs 4 and 5 of the
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
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
c) the Balance Sheet, Statement of Profit and Loss and the Cash Flow
Statement dealt with by this Report are in agreement with the books of
d) in our opinion, the Balance Sheet, Statement of Profit and Loss and
the Cash Flow Statement comply with the Accounting Standards referred
to in sub section (3C) of section 211 of the Companies Act, 1956;
e) On the basis of written representations received from the directors
as on September 30, 2013, and taken on record by the Board of
Directors, none of the directors is disqualified as on September 30,
2013, from being appointed as a director in terms of clause (g) of
sub-section (1) of section 274 of the Companies Act, 1956.
f) Since the central Government has not issued any notification as to
the rate at which the cess is to be paid under section 441A of the
Companies Act, 1956 nor has it issued any rules under the said section,
prescribing the manner in which such cess is to be paid, no cess is due
and payable by the Company.
ANNEXURE TO INDEPENDENT AUDITOR''S REPORT REFERRED TO IN POINT 1 OF
PARAGRAPH 5 OF OUR REPORT OF EVEN DATE OF AMTEK INDIA LIMITED FOR THE
15 MONTHS PERIOD ENDED 30th SEPTEMBER 2013
(i) (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
(b) As explained to us, fixed assets, according to the practice of the
Company, have been physically verified by the management at reasonable
intervals. In our opinion, the frequency of physical verification of
fixed assets is reasonable having regard to the size of the company and
nature of its assets. According to the information and explanations
given to us, no material discrepancies were noticed on such physical
(c) During the period, the company has not disposed off substantial
part of the fixed assets, and the going concern status of the company
is not affected.
(ii) (a) The inventories have been physically verified during the
period by the management. In our opinion, the frequency of physical
verification is reasonable.
(b) The procedure for physical verification of inventories followed by
the management is reasonable and adequate in relation to the size of
the company and nature of its business.
(c) In our opinion, the company has maintained proper records of
inventories. The discrepancies noticed on verification between the
physical stocks and the book records were not material & the same have
been properly dealt with in the books of accounts.
(iii) The Company, during the period under report, has given loans &
advances to its Holding Subsidiary Companies, associates and joint
ventures, firms or other parties covered in the register maintained
under Section 301 of the Companies Act, 1956.
(a) The balance at the end of the period and the maximum amount
involved during the period was Rs. 367.98 lacs.
(b) In our opinion and according to the information and explanations
given to us, the rate of interest, wherever applicable and other terms
and conditions are not prima facie prejudicial to the interest of the
(c) In respect of the loan granted to its subsidiaries, the loan is
interest free and being repayable on demand are not overdue.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control systems commensurate
with the size of the Company and the nature of its business with regard
to purchase of inventories, consumable stores, fixed assets and with
regard to sale of goods and services. During the course of our audit,
we have not observed any continuing failure to correct major weaknesses
in internal controls Systems of the Company.
(v) (a) According to the information and explanations given to us, we
are of the opinion that the particulars of contracts or arrangement
that need to be entered in the register required to be maintained under
section 301 of the Companies Act, 1956 have been so entered.
(b) In our opinion and according to the information & explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under section 301 of
the Companies act, 1956 in respect of any party during the period have
been made at prices which are reasonable having regard to prevailing
market prices at the relevant time.
(vi) The company has not accepted public deposits within the meaning
and provisions of section 58A and 58AA of the companies Act, 1956.
(vii) In our opinion, the company has an internal audit system
commensurate with the size and nature of its business.
(viii) The Central government has prescribed maintenance of cost
accounting records under section 209 (1) (d) of the Companies Act,
1956. We have broadly reviewed the accounts and records of the company
in this connection and are of the opinion that prima facie, the
prescribed accounts and records have been made and maintained.
(ix) (a) The company is regular in depositing with appropriate
authorities undisputed statutory dues including provident fund,
investor education protection fund, employees state insurance, income
tax, sales tax, wealth tax, service tax, custom duty, excise duty, cess
and other material statutory dues applicable to it.
(b) According to the information and explanation given to us, no
undisputed amounts payable in respect of income tax, wealth tax, sales
tax/VAT, custom duty, excise duty and cess were in arrears, as at 30th
September, 2013 for a period of more than six months from the date they
(c) The disputed statutory dues aggregating to Rs. 9,210.34 lacs not
deposited on account of matters being pending before appropriate
authorities are given here under:
Sr. Name of the
Statute Nature Year to
which Forum where Amount
No. of Dues the
amount dispute is (Rs.
relates pending in lacs)
Excise Act Excise 2007 Excise
2. Central Excise
Act Excise 2007 Service
Tax Deptt. 13.81
3. Income Tax
Act, 1961 Income Tax Block
Assessment Income Tax
(x) The company does not have accumulated losses for the period 15
months end 30th September, 2013. Further, it has not incurred any cash
loss in current financial period or in the immediately preceding
(xi) In our opinion and according to the information and explanations
given to us, the company has not defaulted in repayment of dues to
banks, financial institutions or debenture holders.
(xii) The company has not granted any loans and advances on the basis
of security by way of pledge of shares, debentures and other
(xiii) In our opinion, the Company is not a chit fund or a nidhi /
mutual benefit fund / society. Therefore, the provisions of clause of
4(xiii) of the Companies (Auditors'' Report) Order, 2003 are not
applicable to the company.
(xiv) In our opinion, the company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the Companies (Auditors'' Report) Order,
2003 (as amended) are not applicable to the company. The company,
however, is maintaining proper records of transactions and contracts in
respect of long term investment made by it and timely entries have been
made therein. Further, all the securities including shares, debentures
and other investments have been held by the company in its own name.
(xv) The company has not given guarantees for loans taken by others
from Banks or Financial Institutions.
(xvi) According to the information and explanation given to us, in our
opinion, term loan availed by the company were, prima facie, applied by
the company during the period under report for the purpose for which
the term loans were obtained, other than temporary deployment pending
(xvii) According to the information and explanation given to us and on
an overall examination of the balance sheet of the company, we report
that no funds raised on short term basis have been used for long term
investment and no long term funds have been used to finance short term
assets except permanent working capital.
(xviii) According to the information & explanation given to us, the
company, during the period under report, has not made any preferential
allotment, to parties and companies covered in the register maintained
under section 301 of the Companies Act, 1956.
(xix) The company has not issued any debentures during the period and
therefore the question of creating security/ charge does not arise.
(xx) According to information and explanation given to us and the
records of the company examined by us, the Company has not raised any
money by public issue during the period but FCCB are converted into
(xxi) 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 & on behalf of Manoj
Mohan & Associates
Firm Regn. No. 009195C
(Manoj Kumar Agarwal)
Place : New Delhi Partner
Dated : 29th November 2013