1. We have audited the accompanying Standalone financial statements of
TECHNOCRAFT INDUSTRIES (INDIA) LIMITED, (the company), which comprise
the Balance Sheet as at March 31, 2015, the Statement of Profit and
Loss and Cash Flow Statement for the year then ended, and a summary of
significant accounting policies and other explanatory information.
Management''s Responsibility for the Standalone Financial Statements
2. 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 Standalone 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 principles generally accepted in India, 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 of the assets of the
company and for preventing and detecting frauds and other
irregularities; selection and application of appropriate accounting and
detecting frauds and other irregularities, selection and application of
appropriate accounting policies; making judgments and estimates that
are reasonable and prudent, and 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 statement that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
3. Our responsibility is to express an opinion on these Standalone
financial statements based on our audit.
4. 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 thereunder.
5. 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 misstatement.
6. 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. An audit also includes evaluating the
appropriateness of the accounting policies used and reasonableness of
the accounting estimates made by the Company''s Directors, as well as
evaluating the overall presentation of the financial statements.
7. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our audit opinion on the
Standalone financial statements.
8. In our opinion and to the best of our information and according to
the explanations given to us, the aforesaid Standalone 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, of the state of
affairs of the Company as at 31st March, 2015, and its Profit and its
cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
9. 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 Companies Act, 2013, we give in
the Annexure a statement on the matters specified in paragraphs 3 and 4
of the Order to the extent applicable.
10 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
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
(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 aforesaid Standalone financial statements
comply with the Accounting Standards specified under section 133 of the
Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
(e) On the basis of the Written representations received from the
directors as on 31st March, 2015 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
(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 Auditors)
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. Refer note no. 2 (A)
of note no. 28 of the notes to the Financial Statements in respect of
ii. The Company did not have any long term contracts including
derivative contracts for which there were any material foreseeable
iii. There has been no delay in transferring amounts required to be
transferred, to the investor Education and Protection Fund by the
ANNEXURE TO THE INDEPENDENT AUDITORS REPORT
The Annexure referred to in our Report of even date to the Members of
TECHNOCRAFT INDUSTRIES (INDIA) LIMITED for the year ended March 31,
2015. We report that:
1 a The Company is maintaining proper records showing full particulars,
including quantitative details and situation, of fixed assets.
1 b As explained to us, the fixed assets of the company have been
physically verified by the Management in a phased
manner as per regular program of verification, which in our opinion is
reasonable having regard to the size of the Company and nature of its
assets. Pursuant to this program, some of the fixed assets have been
physically verified by the management during the year, and no material
discrepancies have been noticed on such verification.
2 a The stock of Finished Goods, Goods-in-Process, Raw Materials and
Stores & Spares parts have been physically verified during the year by the Management. In our opinion the
frequency of verification is reasonable. In respect of inventories lying with the third parties, these have
substantially been confirmed by them.
2 b In our opinion, the procedure of physical verification of the above
Inventories followed by the Management are reasonable and adequate in
relation to the size of the Company and nature of its business.
2 c On the basis of our examination of the Inventory records, in our
opinion, the Company is maintaining proper records of the inventories.
The discrepancies noticed between the physical stock and book stocks
were not material and the same have been properly dealt with in the
Books of Account.
3 a In our opinion and according to the information and explanations
given to us, the company has granted unsecured loans to covered in the
Register maintained under Section 189 of the Companies Act, 2013. The
year ended balance of Loan granted to such parties was Rs. 757.01 Lakhs.
3 b Payment of Principal amount and interest are regular wherever
3 c there is no overdue amount of loans granted to Companies, Firms or
other parties listed in the register maintained under section 189 of
the Companies Act, 2013.
4. 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 the nature of its business, for the
purchase of Inventory and Fixed Assets and for the sale of goods and
services. Further on the basis of our examination of the Books and
records of the Company and according to the information and explanation
given to us, we have neither come across, nor have been informed of,
any continuing failure to correct major weaknesses in the aforesaid
Internal control System.
5. The Company has not accepted any deposits from the public to which
the directives issued by the Reserve Bank of India and the provisions
of section 73 to 76 and any other relevant provision of the Companies
Act, 2013 and the rules framed there under apply.
6. We have broadly reviewed the books of account and records
maintained by the company in respect of the products where, pursuant to
the Rules made by the Central Government of India, the maintenance of
cost records has been specified under section 148 (1) of the Companies
Act, 2013 is applicable to the company and are of opinion that prima
facie the prescribed accounts and records have been made and
maintained. We have however not made detailed examination of the
records with view to determining whether they are accurate or complete.
7 a According to the information and explanation given to us and the
records of the Company examined by us, the Company is generally regular
in depositing provident fund dues, employees state insurance, income
tax, sales tax, wealth tax, service tax, custom duty, excise duty, cess
and any other statutory dues with the appropriate authorities and there
are no undisputed amounts payable for the same were outstanding as at
31st March, 2015 for a period exceeding six months from the date they
7 b According to the information and explanation given to us and the
records of the Company examined by us, the Particulars of disputed
statutory dues under various Act, as at 31st March, 2015 which have not
been deposited with the appropriate authorities are as under:-
Name of the
Statute Nature of dues Amount Forum where dispute is
1944 Excise Duty &
For F.Y 2005-06 38.73 Case pending with CESTAT
For period Aug 06
- Feb 07. 3.67 Case pending with CESTAT
For F.Y 1999-02
to Sept 2008 1115.67 Case pending with CESTAT
For Period before
29-9-2008 195.61 Cases pending with CESTAT
For Period before
29-1-2009 266.77 Cases pending with CESTAT
For FY 2007-08 15.65 Case pending With High Court,
For period Oct 11
- Jan 12. 9.94 Case pending with CESTAT
For period Oct 09
- Dec 10 6.08 Case pending with Additional
For period Jan to
Sept 12 1.04 Case pending with Asst.
Commissioner (Central Excise)
Service Tax & Penalty
For period Apr 05
- Jun 09. 59.48 Case pending with CESTAT
For F.Y. 2006-07
& F.Y. 2008- 10.94 Case pending with Additional
09 Commissioner (ST)
For F.Y. 2006-07
& 2007-08 3.03 Case pending with Commissioner
For period Apr 09
- Mar 13 43.31 Case pending with Additional
For F.Y. 2013-14 24.55 Case pending with Additional
For period Oct 08
- Oct 12 68.09 Case pending with Commissioner
For period Oct 09
- Mar 13 38.06 Case pending with Commissioner
For period Apr 13
- Dec 13 7.12 Case pending with Commissioner
For Period Jan 2014
to June 4.61 Case pending with Commissioner
2014 (Central Excise)
Land For Payment of
Royalty on 82.48 Tahasildar, Tal.
Murbad, Dist. Thane
1966 extraction &
of mud, stones
& sand issued
The MRTU &
PULP Act, For payment of
Variable 35.65 The Industrial
Court, Maharashtra at
7 c According to the information and explanation given to us and the
records of the Company examined by us, The amount, which were required
to be transferred, to the investor Education and Protection Fund by the
Company has been transferred on time as per the provision of section
125 of the companies Act, 2013 and rules made thereunder.
8. The Company has not incurred any cash losses during the current
Financial Year as well as in the immediately preceding Financial Year
and its accumulated losses are Nil at the end of the Current Financial
9. According to information & explanations given to us and the books
and records examined by us, the Company has not defaulted in repayment
of dues to Banks as at the Balance sheet date. The company does not
have any outstanding debentures.
10. In our opinion and according to the information and explanations
given to us, the terms and conditions on which the company has given
guarantee for cash credit & loan taken by its Subsidiaries (including
step down Subsidiaries) from banks are not prima facial prejudicial to
the interest of the company.
11. In our opinion and according to the information and explanations
given to us, the term loans taken by the company have been applied for
the purpose for which the term loans were obtained.
12. According to the information and explanations given to us by the
management which has been relied upon by us, there were no frauds on or
by the company were noticed or reported during the year.
For M. L. SHARMA & CO.
FIRM REG. NO. 109963W
Place: Mumbai (C. H. BANDI) PARTNER
Date : May 27, 2015 Membership No.5385