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Arrow Coated Products
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« Mar 12
Auditor's Report (Arrow Coated Products) Year End : Mar '13
Report on the Financial Statements : We have audited the accompanying
 financial statements of Arrow Coated Products Limited (the Company),
 which comprise the Balance Sheet as at March 31, 2013, and Statement of
 Profit and Loss and Cash Flow for the year then ended, and a summary of
 significant accounting policies and other explanatory information.
 
 Management''s Responsibility for the Financial Statements : The
 Company''s management is responsible for the preparation of these
 financial statements that give a true and fair view of the financial
 position, financial performance and cash flows of the Company in
 accordance with the Accounting Standards referred to in sub-section
 (3C) of section 211 of the Companies Act, 1956 (the Act). This
 responsibility includes the design, implementation and maintenance of
 internal control relevant to the preparation and presentation of the
 financial statements that give a true and fair view and are free from
 material misstatement, whether due to fraud or error.
 
 Auditors'' 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 sufficient and appropriate to
 provide a basis for our audit opinion.
 
 Basis for Qualified Opinion : a) The company has not made provisions
 for overdue debts aggregating to Rs. 13720.57 (''000) and advances
 aggregating to Rs 31500.92(''000).Had this observation made by us been
 considered Loss after Tax would have been Rs. 28459.05(''000) ( as
 against the reported figure of Profit of Rs.16322.44 (''000)); reserves
 and surplus would have been surplus of Rs. 1316.90(''00 0) ( as against
 the reported figure of surplus of Rs. 46098.40 (''000)):trade receivable
 would have been Rs. 17755.23 (''000) ( as against the reported figure of
 Rs. 31475.80 (''000)): long term loans and advances would have been
 Rs.28449.01 (''000) (as against reported figure of Rs 59949.93 (''000)),
 b) As more fully explained in note 41 to the financial statements the
 Company has not complied with Accounting Standard 24 Discontinuing
 Operations.
 
 Qualified Opinion : In our opinion and to the best of our information
 and according to the explanations given to us, except for the effects
 of the matter described in the Basis for Qualified Opinion paragraph
 ,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 referred to in
 sub-section (3C) of section 211 of the Companies Act, 1956;
 
 a) In the case of the Balance Sheet, of the state of affairs of the
 Company as at March 31, 2013;
 
 b) In the case of the Statement Profit and Loss, of the profit for the
 year ended on that date; and
 
 c) In the case of the Cash Flow Statement, of the cash flows for the
 year ended on that date.
 
 Report on Other Legal and Regulatory Requirements
 
 1.  As required by the Companies (Auditor''s Report) Order, 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.
 
 2.  As required by section 227(3) of the Act, we report that:
 
 a) We have obtained all the information and explanations which to the
 best of our knowledge and belief were necessary for the purpose of our
 audit;
 
 b) In our opinion proper books of account as required by law have been
 kept by the Company so far as appears from our examination of those
 books
 
 c) The Balance Sheet, Statement of Profit and Loss, and Cash Flow
 Statement dealt with by this Report are in agreement with the books of
 account.
 
 d) except for the effects of the matter described in the Basis for
 Qualified Opinion paragraph, in our opinion, the Balance Sheet,
 Statement of Profit and Loss, and Cash Flow Statement comply with the
 Accounting Standards referred to in subsection (3C) of section 211 of
 the Companies Act, 1956;
 
 e) On the basis of written representations received from the directors
 as on March 31, 2013, and taken on record by the Board of Directors,
 none of the directors is disqualified as on March 31, 2013, from being
 appointed as a director in terms of clause (g) of sub-section.(1) of
 section 274 of the Companies Act, 1956.
 
 ANNEXURE REFERRED TO IN PARAGRAPH 1 OF OUR REPORT OF EVEN DATE TO THE
 MEMBERS OF ARROW COATED PRODUCTS LIMITED ON THE FINANCIAL STATEMENTS OF
 THE COMPANY FOR THE YEAR ENDED 31ST MARCH 2013
 
 i) In respect of its Fixed Assets.
 
 The Company is maintaining proper records showing full particulars,
 including quantitative details and situation of fixed assets.
 
 Some of the fixed Assets were physically verified during the period by
 the management in accordance with a program of verification, which in
 our opinion provides for physical verification of all the fixed assets
 at reasonable intervals. The reconciliation work with the available
 records is in progress and necessary entries will be passed in the
 accounts to give to material discrepancies if any, observed on such
 reconciliation. In our opinion and according to the information and
 explanations given to us, the company has not made any substantial
 disposal of Fixed Assets during the period.
 
 ii) In respect of its Inventories.
 
 As explained to us, major inventories were physically verified during
 the year by the management at reasonable intervals. In our opinion and
 according to the information and explanations given to us, the
 procedures of physical verification of inventories followed by the
 management are reasonable and adequate in relation to size of the
 company and the nature of its business. In our opinion and according to
 the information and explanations given to us, the company has
 maintained proper records of its inventories and no material
 discrepancies were noticed on physical verification.
 
 iii) According to the information and explanation given to us:
 
 The company has not granted any loans, secured or unsecured to
 companies, firms or other parties covered in register maintained u/s
 301 of the Companies Act 1956. During the period company has taken loan
 from five party aggregating to Rs 1818.48 (''000) and the balance of
 loan taken from such two parties was Rs 21446.12 (''000). In our
 opinion, the rate of interest and other terms and condition on which
 loan has been taken from companies, firms or other parties listed in
 the register maintained under section 301 of the Companies Act, 1956
 are not, prima facie, prejudicial to the interest of the company. The
 company has taken loans from parties covered under section 301 of the
 Companies Act, 1956 that are interest free and no due date for
 repayment are stipulated. Hence, commenting on regularity of repayment
 of principal / interest does not arise.
 
 iv) In our opinion and according to the information and explanation
 given to us the company has internal control system commensurate with
 the size of the company and the nature of its business with regards to
 purchase of inventories, fixed assets and with regards to the sale of
 the goods and services. During the course of our audit, we have neither
 come across nor have been informed of any continuing failure to correct
 major weaknesses in internal controls system.
 
 v) To the best of our knowledge and belief and according to the
 information and explanation given to us particulars of contracts or
 arrangements referred to in section 301 that need to be entered in the
 register have been so entered. In our opinion and according to the
 information and explanation given to us, the transaction made in
 pursuance of contracts or arrangements entered in the register
 maintained under section 301 of the Companies Act, 1956 and exceeding
 the value of rupees five lakhs 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) In our opinion and according to the information and explanation
 given to us, the company has accepted deposits from the public as such
 within the meaning of Section 58A of the Act from relatives of director
 during the year .In respect of which the provisions of sections 58A and
 58AA of the Act and rules framed there under have not been complied
 with. We have been informed that no order has been passed by the
 Company Law Board or National Company Law Board Tribunal or Reserve
 Bank of India or any other Tribunal in India.
 
 vii) In our opinion, there is scope of strengthening internal audit
 system, commensurate with the size and nature of its business.
 
 viii) We have broadly reviewed the books of accounts maintained by the
 company in respect of products where , pursuant to the rules made by
 the central government of India , the maintenance of Cost records 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 a detailed examination of
 the records with a view to determine whether they are accurate or
 complete.
 
 ix) According to the record of the company, the company is generally
 regular in depositing undisputed statutory dues including Provident
 Fund, Investor Education Protection Fund, Employees'' State Insurance,
 Income Tax, Wealth Tax, Custom Duty, Excise Duty, Cess and other
 statutory dues applicable to it with appropriate authorities expect for
 serious delays in depositing tax deducted at source and service tax .
 According to the information and explanations given to us, there are no
 undisputed amount payable in respect of income tax, wealth tax, custom
 duty, excise duty and cess which were outstanding, at the end for the
 period of more than six months from the date they became payable except
 
 xi) In our opinion and according to the information and explanations
 given to us, the company has not defaulted in repayment of dues to the
 financial institution, bank or debenture holders.
 
 xii) According to information and explanation given to us company has
 not granted loans and 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 chit fund Company or Nidhi / Mutual benefit fund /
 Society.
 
 xiv) The company has, in our opinion, maintained proper records and
 contracts with respect to its investment where timely entries are made
 in the former. All investment at the end are generally held in the name
 of the company.
 
 xv) According to information and explanation given to us the company
 has not given guarantees for loan taken by others from banks or
 financial institutions.
 
 xvi) According to information and explanation given to us the company
 has not taken term loan during the year.
 
 xvii) According to the information and explanations given to us and on
 an overall examination of the Balance Sheet of the company, we report
 that no funds raised on short-term basis have been used for long-term
 investment.
 
 xviii) According to the information and explanations given to us, the
 company has not made preferential allotment of shares to parties and
 companies covered in the register maintained under section 301 of the
 Companies Act 1956.
 
 xix) According to information and explanation given to us Debentures
 have not been issued by the company during the year.
 
 xx) During the year the company has raised money by public issue and we
 have verified the disclosure made in note 48 to the financial
 statements .
 
 xxi) According to the information and explanation given to us, no fraud
 on or by the company has been noticed or reported during the course of
 our audit.
 
                                     For J. A. Rajani & Co.
 
                                     Chartered Accountants
 
                                     P. J. Rajani
 
                                     Proprietor 
 
 Place: Mumbai                       Membership No. 116740
 
 Date: 28th May, 2013.               Firm Reg. No. 108331W
Source : Dion Global Solutions Limited
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