We have audited the attached Balance Sheet of ELANTAS Beck India
Limited (''the Company'') as at 31 December 2012, the related Statement
of Profit and Loss and the Cash Flow statement of the Company 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
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
disclosures 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
1. As required by the Companies (Auditor''s 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 to the extent applicable to the Company.
2. Further to our comments in the Annexure referred to above, we
a) we have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of the
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
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
d) in our opinion, the Balance Sheet, the Statement of Profit and Loss
and the 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;
e) on the basis of written representations received from the directors
of the Company, as on 31 December 2012 and taken on record by the Board
of Directors, we report that none of the Directors are disqualified as
on 31 December 2012 from being appointed as a director in terms of
clause (g) of sub-section (1) of Section 274 of the Companies Act,
f) in our opinion, and to the best of our information and according to
the explanations given to us, the said financial statements 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:
i) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31 December 2012;
ii) in the case of the Statement of Profit and Loss, of the profit 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 fortheyear ended on that date.
1. (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
(b) The Company has a regular programme of physical verification of its
fixed assets by which all fixed assets are verified in a phased manner
over a period of two years. In our opinion, this periodicity of
physical verification is reasonable having regard to the size of the
Company and the nature of its assets. No material discrepancies were
noticed on such verification.
(c) Fixed assets disposed off during the year were not substantial, and
therefore, do not affect the going concern assumption.
2. (a) The inventory, except goods-in-transit and stocks lying with
third parties, has been physically verified by the management during
the year. In our opinion, the frequency of such verification is
reasonable. For stocks lying with third parties at the year-end,
written confirmations have been obtained.
(b) The procedures for physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
(c) The Company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stocks and
the book records were not material.
3. The Company has neither granted nor taken any loans, secured or
unsecured, to or from companies, firms or other parties covered in the
register maintained under Section 301 of the Companies Act, 1956.
4. In our opinion and according to the information and explanations
given to us, and having regard to the explanation that purchases of
certain items of inventories are for the Company''s specialised
requirements and suitable alternative sources are not available to
obtain comparable quotations, 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 inventories and fixed assets and
with regard to the sale of goods and services. We have not observed any
major weakness in the internal control system during the course of the
5. In our opinion, and according to the information and explanations
given to us, there are no contracts or arrangements the particulars of
which need to be entered into the register maintained under section 301
of the Companies Act, 1956.
6. The Company has not accepted any deposits from the public.
7. In our opinion, the Company has an internal audit system
commensurate with its size and nature of its business.
8. We have broadly reviewed the books of account maintained by the
Company pursuant to the rules prescribed by the Central Government for
maintenance of cost records under Section 209(1 )(d) of the Companies
Act, 1956 in respect of resins (excluding natural resins) and varnishes
and are of the opinion that prima facie, the prescribed accounts and
records have been made and maintained. However, we have not made a
detailed examination of the records.
9. (a) According to the information and explanations given to us and
on the basis of our examination of the records of the Company, amounts
deducted / accrued in the books of account in respect of undisputed
statutory dues including Provident Fund, Employees'' State Insurance,
Income-tax, Wealth tax. Sales-tax, Service tax. Customs duty. Excise
duty. Investor Education and Protection Fund and other material
statutory dues have been regularly deposited by the Company with the
According to the information and explanations given to us, no
undisputed amounts payable in respect of Provident Fund, Employees''
State Insurance, Income tax. Sales tax. Wealth tax. Service tax.
Customs duty. Excise duty, Investor Education and Protection Fund and
other material statutory dues were in arrears as at 31 December 2012
for a period of more than six months from the date they became payable.
(b) According to the information and explanations given to us, there
are no dues of Income-tax, Sales tax, Wealth tax, Service tax. Customs
Duty and Excise duty other than the dues listed in Appendix I, which
have not been deposited by the Company on account of disputes.
10. The Company does not have any accumulated losses at the end of the
financial year and has not incurred cash losses in the financial year
and in the immediately preceding financial year.
11. The Company did not have any outstanding dues to any financial
institution, banks or debenture holders during the year.
12. The Company has not granted any loans or advances on the basis of
security by way of pledge of shares, debentures and other securities.
13. In our opinion and according to the information and explanations
given to us, the Company is not a chit fund or a nidhi / mutual benefit
14. According to the information and explanations given to us, the
Company is not dealing or trading in shares, securities, debentures and
15. According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks or financial institutions.
16. The Company did not have any term loans outstanding during the
17. According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the Company, we are of
the opinion that the funds raised on short-term basis have not been
used for long-term investment.
18. The Company has not made any preferential allotment of shares to
companies, firms or other parties covered in the register maintained
under Section 301 oftheCompaniesAct1956.
19. The Company did not have any outstanding debentures during the
20. The Company has not raised any money by public issues during the
21. 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 B S R & Co.
Firm Registration No. 101248W
Pune Juzer Miyajiwala
27 February 2013 Partner
Membership No.: 047483