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-0.3 (-4.92%) | Auditor's Report (Decolight Ceramics) | Year End : Mar '12 |
1. We have audited the attached Balance Sheet of DECOLIGHT CERAMICS
LIMITED, as at March 31, 2012, and also the Profit and Loss Account and
the Cash Flow Statement for the year ended on that date annexed
thereto. These financial statements are the responsibility of the
Company''s management. Our responsibility is to express an opinion on
these financial statements based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosure in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditor''s Report) Order, 2003 and the
Companies (Auditor''s Report) (Amendment) Order, 2004 issued by the
Central Government of India in terms of sub- section (4A) of Section
227 of the Companies Act, 1956 and on the basis of such checks and
according to the information and explanations given to us, we enclose
in the Annexure, a statement on the matters specified in paragraph 4
and 5 of the said Order.
4. 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 purposes of our
audit;
ii. In our opinion, proper books of account as required by law have
been kept by the Company, so far as it appears from our examination of
those books;
iii. The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account;
iv. In our opinion, the Balance Sheet, Profit & Loss 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, to the extent applicable;
v. On the basis of written representations received from the
directors, as on March 31, 2012, and taken on record by the Board of
Directors, we report that none of the directors is disqualified as on
31st March, 2012 from being appointed as a director in terms of clause
(g) of sub-section (1) of Section 274 of the Companies Act, 1956;
vi. In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read together with and
subject to the notes thereon, give the information required by the
Companies Act, 1956, in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India;
Subject to unutilized fund of equity preferential issue privately
placed lying in Inter- Corporate Deposits to the tune of Rs. 28.47/-
crore is pending for renewal / receipt from the respective parties.
Refer Note 26(11)
a) In the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2012;
b) In the case of the Profit and Loss Account, of the loss of the
Company for the year ended on that date; and
c) In the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
Annexure To The Auditor''s Report (Referred to in paragraph 3 of our
Report of even date on the Statement of Accounts of DECOLIGHT CERAMICS
LIMITED, for the year ended on 31st March, 2012)
i. FIXED ASSETS:
a. In our opinion, the company has 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. No material discrepancies with respect to book
records were noticed on such verification.
c. In our opinion, the company has not disposed of substantial part of
fixed assets during the year and the going concern status of the
company is not affected.
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. On the basis of our examination of the records of inventory, we are
of the opinion that the company is maintaining proper records of
inventory in relation to its size and nature of business. As explained
to us, there were no material discrepancies noticed on physical
verification of inventory as compared to the book records.
iii. LOANS:
a. As explained to us, the company has granted unsecured loans to
three parties being directors covered in the register maintained under
Section 301 of the Companies Act, 1956. Maximum amount involved was Rs.
45.88 lacs and the year end balance was Rs. NIL.
b. According to information and explanation given to us and in our
opinion, the rate of interest and other terms and conditions of the
loans granted to above parties were not prima facie prejudicial to the
interest of the company.
c. In our opinion and according to information and explanation given
to us, the company has received the principal amount and interest
amount on demand.
d. According to information and explanation given to us, there was no
overdue for the loans granted by the company.
e. As explained to us, the company has taken unsecured loans from
three parties being directors of the company covered in the register
maintained under section 301 of the Companies Act, 1956. The maximum
amount involved during the year from all such parties was Rs. 83.61 lacs
and the year end balance of loans taken from such parties is Rs. 2.12
lacs.
f. According to information and explanation given to us and in our
opinion the rate of interest and other terms and conditions, wherever
stipulated were not prima facie prejudicial to the interest of the
company.
g. According to the information and explanations given to us said
loans were repayable on demand and the repayment was within dates
demanded.
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 for the purchase of
inventory, fixed assets and for the sale of goods and services. During
the course of our audit, n o major weakness has been noticed in the
internal control system in these areas.
v. TRANSACTIONS IN PURSUANCE OF SECTION 301:
a. According to information and explanations given to us, we are of
the opinion that the particulars of contracts or arrangements referred
to in section 301 of the Act that need to be entered into the register
maintained under Section 301 have been so entered.
b. In our opinion and according to the information and explanations
given to us, transactions made in pursuance of such contracts or
arrangements have been made at prices which are reasonable having
regard to the prevailing market prices available at the relevant time.
vi. DEPOSITS:
As explained to us, the company has not accepted any deposits from the
public within meaning of Section 58A and 58AA of the Companies Act,
1956, during the year under review.
vii. INTERNAL AUDIT:
In our opinion and according to information and explanations given to
us, the internal audit system of the company is commensurate with size
and nature of its business.
viii. COST RECORDS:
We have broadly reviewed the cost records maintained by the Company
pursuant to the Companies (Cost Accounting Records) Rules, 2011
prescribed by the central government under section 209(1 )(d) of the
Companies Act, 1956 and are of the opinion, that prima facie, the
prescribed cost records have been made and maintained. We have not,
however, made a detailed examination of the records with a view to
determining whether they are accurate or complete.
ix. STATUTORY DUES:
a. As per information and explanation available to us, undisputed
statutory dues including provident fund, investor education and
protection fund, employee''s state insurance, income- tax, sales-tax,
wealth tax, service tax, custom duty, excise duty, cess and other
statutory dues applicable to it, were being generally deposited delayed
with the appropriate authorities. Further according to information
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, 2012 for a period of more than 6 months
from the date they become payable are Value Added Tax & Central Sales
Tax of Rs.80.99 lacs, Income tax of Rs. 3.74 lacs, Service Tax Rs. 12.44
lacs, Professional tax of Rs.0.84 lacs and Provident Fund of Rs. 2.95.
lacs.
b. According to the information and explanation available to us,
details of dues of Excise Duty, Service Tax, Cess which have not been
deposited on account of any dispute with appellate authority, are given
below:
Sr. Name of Nature of
dues Amount Period to Forum where
No. the Statue under
dispute which dispute is
pending
Rs.in
Lacs amount
relates
1. The Central Excise
duty
including 4.65 2004-05 Tribunal
Excise Act interest
and penalty
1944 * as applicable
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.
x. CASH LOSSES AND ACCUMULATED LOSSES:
The company has no accumulated losses at the end of the year under
review, however it has incurred cash loss in the year under review to
the tune of Rs. 983.60 lacs, but it has not incurred any cash loss in the
immediately preceding financial year.
xi. 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 details of default at year end are as follows:
Period of Default Amount (Rs. In lacs)
Less than 30 days 80.89
30 to 90 days 156.60
However as per further information and explanations received, most
overdue as of balance sheet date has been paid after balance sheet
date.
xii. LOANS & ADVANCES ON PLEDGE OF SHARES DEBENTURES & OTHER SECURITIES:
In our opinion and according to information and explanation given to
us, no loans and advances have been granted by the company on the basis
of security by way of pledge of shares, debentures and other
securities.
xiii. CHIT FUND/ NIDHI / MUTUAL BENEFIT FUND / SOCIETY:
In our opinion, the company is not a chit fund or a nidhi / mutual
benefit fund / society. Therefore, clauses 4(xiii) of the Companies
(Auditor''s Report) Order, 2003 (as amended) is not applicable to the
company.
xiv. TRADING IN SHARES, SECURITIES, DEBENTURES & OTHER INVESTMENTS:
The company is not dealing or trading in shares, securities, debentures
and other investments.
xv. 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. Accordingly clauses 4(xv) is not applicable.
xvi. TERM LOANS:
In our opinion and according to the information and explanations given
to us, on an overall basis, the term loans have been applied for the
purpose for which they were obtained.
xvii. SHORT TERM FUNDS USED FOR LONG TERM INVESTMENTS:
According to the information and explanations given to us, and on
overall examination of the year end balance sheet of the company, we
are of the opinion that prima facie, no funds raised on short-term
basis have been used for long-term investments.
xviii. PREFERENTIAL ALLOTMENT OF SHARES:
According to the information and explanations given to us, during the
year under review, the company has not made any preferential allotment
of shares to parties or companies covered in the register maintained
under Section 301 of the Companies Act, 1956.
xix. DEBENTURES:
The company has not issued any debentures during the year under review.
xx. PUBLIC ISSUE:
The company has not raised any money through a public issue during the
year under review.
xxi. FRAUD:
Based upon the audit procedures performed for the purpose of reporting
the true and fair view of the financial statements and as per the
information and explanation given by the management, we report that no
significant fraud on or by the company has been noticed or reported
during the course of our audit.
For, SVK & ASSOCIATES
Chartered Accountants
Shilpang V. Karia
Partner
M. No. - 102114 Place: Morbi
Firm No. - 118564W Date: 30th May, 2012 |
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| Source : Dion Global Solutions Limited | |
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