We have audited the attached Balance Sheet of JK Tyre & Industries
Limited, as at 31st March 2012, the Statement of Profit and Loss
Account and also 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 audit.
We conducted our audit in accordance with the 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 misstatements. 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 (as
amended) (The Order) issued by the Central Government of India in terms
of Section 227 (4A) of the Companies Act, 1956 (The Act), and on the
basis of such checks of the books and records of the company as we
considered appropriate and according to the information and
explanations given to us during the course of audit, we enclose in the
Annexure, a statement on the matters specified in the paragraphs 4 and
5 of the said Order.
2. Further to our comments in the Annexure referred to in Paragraph 1
above, 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 purposes of our
(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
(c) The Balance Sheet, Statement of Profit & Loss Account and Cash Flow
Statement dealt with by this report are in agreement with the books of
(d) In our opinion, Balance Sheet, Profit & Loss Account and Cash Flow
Statement dealt with by this report comply with the Accounting
Standards referred to in Section 211 (3C) of the Companies Act, 1956;
(e) As per the information and explanations given to us, none of the
directors of the Company is disqualified from being appointed as a
director under clause (g) of sub-section (1) of section 274 of the
Companies Act, 1956.
In our opinion and to the best of our information and according to the
explanations given to us, the said accounts read together with
Significant Accounting Policies and 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
i) In the case of Balance Sheet, of the state of affairs of the Company
as at 31st March, 2012;
ii) In the case of Statement of Profit & Loss Account, of the Profit
for the year ended on that date; and
iii) In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
ANNEXURE TO THE AUDITORS'' REPORT
Referred to in paragraph (1) of our Report of even date of JK TYRE &
INDUSTRIES LIMITED for the year ended 31st March, 2012
1. (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
(b) The fixed assets have been physically verified by the Management
according to the programme of periodical verification in phased manner
which in our opinion is reasonable having regard to the size of the
Company and the nature of its fixed assets. The discrepancies noticed
on such physical verification were not material.
(c) As per the records and information and explanations given to us,
fixed assets disposed off during the year were not substantial.
2. (a) The Inventory of the Company (except stock lying with third
parties and in transit, for which confirmations have been received /
materials received) has been verified by the Management at reasonable
(b) The procedures of physical verification of inventory followed by
the Management are reasonable and adequate in relation to the size of
the Company and nature of its business.
(c) The Company is maintaining proper records of inventory. The
discrepancies noticed on such physical verification of inventory as
compared to book records were not material.
3. The Company has neither granted nor taken any loan, secured or
unsecured to and from companies, firms or other parties as covered in
the register maintained under section 301 of the Companies Act, 1956.
Accordingly, the provisions of clause 4 (iii) (b) to (d), (f) & (g) of
the Order are not applicable.
4. In our opinion and according to the information and explanations
given to us, there is adequate internal control system commensurate
with the size of the Company and the nature of its business for the
purchase of inventory and fixed assets and for the sale of goods and
services. Based on the audit procedure performed and on the basis of
information and explanations provided by the Management, during the
course of our audit we have not observed any continuing failure to
correct major weaknesses in internal control system.
5. According to the information and explanations provided by the
Management and based upon audit procedures performed, we are of the
opinion that the particulars of contracts or arrangements referred to
in section 301 of the Act have been entered in the register required to
be maintained under that section and the transactions made in pursuance
of such contracts or arrangements (exceeding the value of five lacs
rupees in respect of each party during the financial year) have been
made at prices which are generally reasonable having regard to the
prevailing market prices at the relevant time.
6. In our opinion and according to the information and explanations
given to us, the Company has complied with the directives issued by the
Reserve Bank of India and the provisions of Sections 58A and 58AA or
any other relevant provisions of the Act and the rules framed
thereunder with regard to deposits accepted from the public. According
to the information and explanations given to us, no order has been
passed by the Company Law Board or National Company Law Tribunal or
Reserve Bank of India or any Court or any other Tribunal in this
7. In our opinion, the Company has an internal audit system
commensurate with the size of the Company and nature of its business.
8. We have broadly reviewed the books of account maintained by the
Company pursuant to the Rules made by the Central Government for the
maintenance of cost records under Section 209(1) (d) of the Act in
respect of the Company''s products to which the said rules are made
applicable and are of the opinion that prima facie, the prescribed
records have been made and maintained. We have, however, not made a
detailed examination of the said records with a view to determine
whether they are accurate or complete.
9. (a) According to the records of the Company, the Company is
generally regular in depositing undisputed statutory dues including
Provident Fund, Investor Education and Protection Fund, Employees''
State Insurance, Income tax, Sales tax, Wealth tax, Service tax, Custom
duty, Excise duty, Cess and other material statutory dues with the
appropriate authorities to the extent applicable and there are no
undisputed statutory dues payable for a period of more than six months
from the date they became payable as at 31st March, 2012.
(b) According to the records and information & explanations given to
us, there are no dues in respect of Income tax, Wealth tax and Cess
that have not been deposited with the appropriate authorities on
account of any dispute and the dues in respect of, Sales tax, Excise
duty, Custom duty and Service tax that have not been deposited with the
appropriate authorities on account of dispute and the forum where the
dispute is pending are given below:
Name of the Nature of Amount Forum where dispute
Statute the dues (Rs. in Lacs) is pending
Sales Tax Act Sales Tax 283.53 Deputy Commissioner/
0.96 Joint Commissioner
1.80 High Court
Central Excise Excise Duty 56.53 Commissioner(Appeals)
99.81 Additional Commissioner
19.68 Supreme Court
Custom Act Custom Duty 241.15 Supreme Court
Finance Act Service Tax 28.71 Commissioner (Appeals)
75.62 Deputy Commissioner
The Rajasthan Entry Tax 49.00 High Court
Tax on Entry
of Goods into
Local Area Act,
10. The Company does not have accumulated losses at the end of the
financial year and has not incurred cash losses in the current
financial year and in the immediately preceding financial year.
11. In our opinion, on the basis of audit procedures and according to
the information and explanations given to us, the company has not
defaulted in repayment of dues to financial institutions or banks or
12. According to the information and explanations given to us, the
company has not granted any loans and advances on the basis of security
by way of pledge of shares, debentures and other securities.
13. The Company is not a chit fund or a nidhi / mutual benefit fund /
society, therefore, the provisions of clause 4 (xiii) of the said Order
are not applicable to the Company.
14. In our opinion, the Company is not dealing in or trading in
shares, securities, debentures and other investments.
15. According to the information and explanations given to us, the
Company does not have any guarantee outstanding for loans taken by
others from bank and financial institutions.
16. In our opinion, on the basis of information and explanations given
to us, the term loans were applied for the purposes for which the loans
17. On the basis of information and explanations given to us and on an
overall examination of the financial statements of the Company, no
funds raised on short-term basis have been used for long-term
18. According to the information and explanations given to us, the
Company has not made any preferential allotment of shares during the
year to any parties or companies covered in the Register maintained
under section 301 of the Companies Act 1956.
19. On the basis of records made available to us and according to the
information and explanations given to us, the Company has created
securities for debentures as stated in item no. 1 of Note 4. The
Company has no outstanding debentures as at the year end.
20. The company has not raised any money by way of public issue during
21. Based on the audit procedure performed and on the basis of
information and explanations provided by the Management, no fraud on or
by the Company has been noticed or reported during the course of the
For LODHA & CO.
Firm Registration No. 301051E
Membership No. 85155
New Delhi, the 15th May, 2012