SENSEX NIFTY
Decolight Ceramics | Auditor's Report > Ceramics & Granite > Auditor's Report from Decolight Ceramics - BSE: 532858, NSE: DECOLIGHT
YOU ARE HERE > MONEYCONTROL > MARKETS > CERAMICS & GRANITE > AUDITORS REPORT - Decolight Ceramics

Decolight Ceramics

BSE: 532858|NSE: DECOLIGHT|ISIN: INE172I01012|SECTOR: Ceramics & Granite
SET ALERT
|
ADD TO PORTFOLIO
|
WATCHLIST
Decolight Ceramics is not traded in the last 30 days
Decolight Ceramics is not traded in the last 30 days
« Mar 14
Auditor's Report (Decolight Ceramics) Year End : Mar '15
We have audited the accompanying financial statements of DECOLIGHT
 CERAMICS LIMITED (''the Company), which comprise the Balance Sheet as
 at March 31, 2015, and 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.
 
 Management''s Responsibility for the Financial Statements :
 
 The Company''s Board of Directors is responsible for the matters stated
 in Section 134(5) of the Companies Act, 2013 (the Act) with respect
 to the preparation of these financial statements that give a true and
 fair view of the financial position, financial performance and cash
 flows of the Company 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 the design, implementation and
 maintenance of adequate internal financial controls, that were
 operating effectively for ensuring the accuracy and completeness of the
 accounting records, relevant to the preparation and presentation of the
 financial statements that give a true and fair view and are free from
 material misstatement, whether due to fraud or error.
 
 Auditor''s Responsibility :
 
 Our responsibility is to express an opinion on these financial
 statements based on our audit. While conducting the 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 misstatements.
 
 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 an
 adequate internal financial controls system over financial reporting in
 place and the operating effectiveness of such controls. An audit also
 includes evaluating the appropriateness of the accounting policies used
 and the reasonableness of the accounting estimates made by the
 Company''s Board of Directors, as well as evaluating the overall
 presentation of the financial statements.
 
 We believe that the audit evidence we have obtained is sufficient and
 appropriate to provide a basis for our audit opinion on the financial
 statements.
 
 Opinion :
 
 In our opinion and to the best of our information and according to the
 explanations given to us, the financial statements read together with
 and subject to the notes thereon, give the information required by the
 Act in the manner so required and give a true and fair view in
 conformity with the accounting principles generally accepted in India,
 to the extent applicable; subject to-
 
 a) Unutilized fund of equity preferential issue privately placed lying
 in Inter Corporate Deposits to the tune of Rs. 27.57/- crores is
 pending for renewal / receipt from the respective parties. Refer Note
 27(10);
 
 b) The reasons pertaining to highly uncertainty about the Going Concern
 aspect of the company. Refer Notes 27(11).
 
 i.  In the case of the Balance Sheet, of the state of affairs of the
 Company as at 31st March, 2015;
 
 ii.  In the case of the Statement of Profit and Loss, of the loss of
 the Company 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.
 
 Report on Other Legal and Regulatory Requirements :
 
 1. 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 Act, we give in the Annexure a
 statement on the matters specified in paragraphs 3 and 4 of the Order,
 to the extent applicable.
 
 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, Statement of Profit and Loss and Cash Flow
 Statement dealt with by this report are in agreement with the books of
 account, as submitted to us;
 
 d) in our opinion, the aforesaid financial statements comply with the
 accounting standards specified under Section 133 of the Companies Act,
 read with Rule 7 of the Companies (Accounts) Rules, 2014, to the extent
 applicable;
 
 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;
 
 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
 Auditor''s) Rules, 2014, in our opinion and to the best of our
 information and according to the explanations given to us:
 
 i.  The company has disclosed the impact of pending litigations on its
 financial position in its financial statements as referred to in Note
 27(12) to financial statements, which may affect the financial position
 of the company.
 
 ii.  The Company has made provision, as required under the applicable
 law or accounting standards, for material foreseeable losses, if any,
 and as required on long-term contracts including derivative contracts,
 except as referred to in Note 27(13) to the financial statements.
 
 iii.  There were no amounts which were required to be transferred to
 the Investor Education and Protection Fund by the Company.
 
 ANNEXURE TO THE AUDITOR''S REPORT
 
 (Referred to in paragraph 1 of our Report of even date on the Statement
 of Accounts of DECOLIGHT CERAMICS LIMITED, for the year ended on 31st
 March, 2015)
 
 i.  FIXED ASSETS :
 
 a.  In our opinion, the company has generally maintained proper records
 showing full particulars including quantitative details and situation
 of fixed assets on the basis of available information.
 
 b.  As explained to us, the fixed assets have been physically verified
 by the management during the year in a phased periodical manner, which
 in our opinion is reasonable, having regard to size of the company and
 nature of its assets, however certain material discrepancies with
 respect to book records were noticed on such verification by bank / its
 authorized representatives as mentioned in Note 27(11 )(g) to the
 financial statements.
 
 ii.  INVENTORIES :
 
 a.  As explained to us, physical verification of inventory has been
 conducted by the management at reasonable intervals. In our opinion,
 the frequency of verification is reasonable in relation to its size and
 nature of business.
 
 b.  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 its
 size and nature of business.
 
 c.  In our opinion, the company is generally maintaining proper records
 of inventory in relation to its size and nature of business. However,
 as reported by the bank, there were certain material discrepancies
 noticed with respect to stock statements submitted to the bank by the
 company compared to its physical verification of inventory carried out
 by bank / its authorized representatives. As explained to us by
 management of the company, there were no material discrepancies on
 physical verification as compared to the book records. However, the
 year end inventory of the company was NIL.
 
 iii.  LOANS :
 
 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 not
 granted any loans, secured or unsecured to companies, firms or other
 parties covered in the register maintained under Section 189 of the
 Companies Act, 2013, during the year under review. Consequently, the
 provisions of clause (iii) of the order are not applicable to the
 company.
 
 iv.  INTERNAL CONTROL :
 
 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 nature of its business with regard to
 purchase of inventory and fixed assets and with regard to sale of goods
 and services. During the course of our audit, no major weakness has
 been noticed in the internal control system in these areas.
 
 v.  DEPOSITS :
 
 As explained to us, the company has not accepted any loans or deposits
 within meaning of Section 73 to 76 of the Companies Act, 2013 read with
 Rule 2(b) of the Companies (Acceptance of Deposit''s) Rules 2014, during
 the year under review.
 
 vi.  COST RECORDS :
 
 According to the information and explanations provided by the
 management to us and to the best of our knowledge, the Company is not
 engaged in production of any such goods or production of any such
 services for which the Central Government has prescribed particulars
 relating to utilization of material or labour or other items of cost.
 Hence the provisions of section 148(1) of the Act do not apply to the
 Company.
 
 vii.  STATUTORY DUES :
 
 a.  According to the records of the company and on the basis of
 information and explanation explained to us, undisputed statutory dues
 including provident fund, employee''s state insurance, income-tax,
 sales-tax, wealth tax, service tax, custom duty, excise duty, value
 added tax, cess to the extent applicable and any other statutory dues
 applicable to it, were being generally deposited delayed / not
 deposited with the appropriate authorities. Further according to
 information and explanation given to us, undisputed statutory dues
 accounted and applicable to the company as per the opinion of the
 management, outstanding as at 31st March, 2015 for a period of more
 than 6 months from the date they become payable are Central Excise Duty
 Rs. 0.64 Lacs, Value Added Tax & Central Sales Tax of Rs. 6.59 lacs,
 TDS of Rs. 0.89 Lacs, Provident Fund Rs. 0.94 lacs, and Professional
 tax of Rs. 0.11 lacs.
 
 b.  According to the information and explanation available to us,
 details of dues of Excise Duty, VAT and Cess which have not been
 deposited on account of any dispute with appellate authority, are given
 below :
 
 Sr.  Name of the        Nature of dues                   Amount
 No.  statue                                           under dispute
                                                       Rs. In lacs
 
 1.   The Central         Excise duty including            4.65
      Excise Act          interest and penalty
      1944*               as applicable   ;
 
 2.   The GVAT Act,       Central Sales Tax               146.90
      2003                (excluding applicable
                           interest and penalty
 
 3    The GVAT Act,       Central Sales Tax               1631.29
      2003               (excluding applicable
                          interest and penalty)
 
 Sr.  Name of the             Period to            Forum where
 No.  statue                  which amount         dispute is
                              relates              pending
 
 1.   The Central               2004-05             Tribunal
      Excise Act
      1944*
 
 2.   The GVAT Act,             2009-10            Commissioner
      2003                                          (Appeals)
 
 
 3    The GVAT Act,             2010-11            Commissioner
      2003                                          (Appeals)
 
 The excise department had issued certain show cause notices amounting
 to tax liability of Rs. 493.96 lacs, which are pending at adjudication
 level and amount paid under protest for the same amounting to Rs.
 408.79 lacs.
 
 * However the company has paid under protest Rs. 2.60 lacs for the
 above.
 
 c.  As per the information and explanation available to us and to the
 best of our knowledge, there were no amounts which were required to be
 transferred to the Investor Education and Protection Fund by the
 Company.
 
 viii. CASH LOSSES AND ACCUMULATED LOSSES :
 
 The company has accumulated losses of Rs. 6066.84 Lacs which have
 exceeded fifty percent of its net worth as at the end of the financial
 year under review. The company has incurred cash loss in the year under
 review to the tune of Rs. 2329.80 Lacs and it has incurred cash loss of
 Rs. 3045.16 Lacs in the immediately preceding financial year.
 
 ix.  DUES TO FINANCIAL INSTITUTION, BANKS OR DEBENTURE HOLDER :
 
 Based on our audit procedures and as per information and explanation
 given to us by the management of the company, we are of the opinion
 that company has defaulted in repayment of dues to banks during the
 year under review. The short term borrowings from the banks by the
 company have been classified as Non Performing Assets (NPA) w.e.f. 28th
 October, 2013. Details of default at year end are as follows:
 
 Period of Default                                  Amount (Rs. In lacs)
 
 Less than 30 days                                          0.21
 
 30 to 90 days                                              0.41
 
 More than 90 days
 (Excluding uncharged interest of Rs. 791.21 Lacs)          3434.85
 
 x.  GUARANTEE FOR LOANS TAKEN BY OTHERS :
 
 According to the information and explanations given to us, the company
 has not given any guarantee for loans taken by others from any bank or
 financial institutions.
 
 xi.  TERM LOANS :
 
 Based on our audit procedures and according to information and
 explanations given to us, the existing term loans have been applied for
 the purpose for which they were obtained.
 
 xii.  FRAUD :
 
 Based upon the audit procedures performed and as per the information
 and explanation given to us by the management, we report that no fraud
 on or by the company has been noticed or reported during the course of
 our audit, except plant & machineries not in use having book value of
 Rs. 159.53/- Lacs have been sold at Rs. 40.96/- Lacs without taking
 prior permission of the bankers to whom such plant & machineries were
 hypothecated. As explained by the management, they have satisfactorily
 replied to the bankers in this aspect.
 
                                                 For, SVK & ASSOCIATES
                                                 Chartered Accountants
 
                                                     Shilpang V. Karia
                                                               Partner
 Place : Morbi                                          M. No.: 102114
 Date : 30th May, 2015                               Firm No.: 118564W
 
 
Source : Dion Global Solutions Limited
Quick Links for decolightceramics
Explore Moneycontrol
Stocks     A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z | Others
Mutual Funds     A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z
Copyright © e-Eighteen.com Ltd. All rights reserved. Reproduction of news articles, photos, videos or any other content in whole or in part in any form or medium without express written permission of moneycontrol.com is prohibited.