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Apar Industries Ltd.

BSE: 532259 | NSE: APARINDS |

Represents Equity.Intra - day transactions are permissible and normal trading is done in this category
Series: EQ | ISIN: INE372A01015 | SECTOR: Electric Equipment

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BSE Live

Feb 19, 16:00
392.00 0.65 (0.17%)
Volume
AVERAGE VOLUME
5-Day
589
10-Day
13,393
30-Day
7,610
742
  • Prev. Close

    391.35

  • Open Price

    393.00

  • Bid Price (Qty.)

    0.00 (0)

  • Offer Price (Qty.)

    0.00 (0)

NSE Live

Feb 19, 15:46
390.45 -0.35 (-0.09%)
Volume
AVERAGE VOLUME
5-Day
12,461
10-Day
19,079
30-Day
42,715
6,251
  • Prev. Close

    390.80

  • Open Price

    390.25

  • Bid Price (Qty.)

    390.45 (10)

  • Offer Price (Qty.)

    0.00 (0)

Annual Report

For Year :
2018 2017 2016 2015 2014 2013 2012 2011 2010

Auditor's Report

1. We have audited the attached Balance Sheet of Apar Industries Limited (Mrhe Company) as at March 31, 2009 and the related Profit and Loss Account and the Cash Flow Statement for the year ended on that date, annexed thereto, which we have signed under reference to this report. These financial statements are the responsibility of the Companys management. Our responsibility is to express an opinion on these financial statements based on our audit. 2. 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 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 our opinion. 3. As required by the Companies (Auditors Report) Order, 2003 as amended by the Companies (Auditors Report) (Amendment) Order, 2004 (together the Order) issued by the Central Government of India in terms of sub-section (4A) of Section 227 of the Companies Act, 1956 of India Cthe Acf), 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, we give in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the said Order. 4. The Company has an equity investment of Rs. 8,454.22 lacs in Uniflex Cables Limited (UCL), a subsidiary company, and loans and advances due from UCL aggregate Rs.1,294.67 lacs as at March 31, 2009. UCL has accumulated losses of Rs 4,623.64 lacs as at March 31, 2009 and its net worth has substantially eroded as per its audited financial statements for the year ended March 31, 2009 (Refer Note 8(d), Schedule 22). Based on the available information and in view of the uncertainties involved, we are unable to comment on the extent of the diminution other than temporary, if any, in the value of the Companys investment in UCL, the recoverability of amounts advanced, as stated above, and the consequential effect on the financial statements for the year ended March 31, 2009. 5. The Company has not provided for a mark-to-market loss on commodity forward contracts aggregating Rs. 171,32.36 lacs as at March 31, 2009 (Refer Note 7(a), Schedule 22), for the reasons stated by the management in the said note. Consequently, without considering the tax effect, the profit for the year and reserves and surplus are overstated by Rs.171,32.36 lacs, and current liabilities are understated by Rs.171,32.36 lacs. Had the effect of the observation made by us been considered, the profit would turn into a loss for the year of Rs.166,01.61 lacs (as against the reported profit after tax of Rs.530.75 lacs), the reserves and surplus would have been Rs.77,59.49 lacs (as against the reported figure of Rs.248,91.85 lacs) and the current liabilities would have been Rs.1554,82.52 lacs (as against the reported figure of Rs. 1383,50.16 lacs). 6. Further to our comments in the Annexure referred to in paragraph 3 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 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 books; c. The Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by this report are in agreement with the books of account; d. In our opinion, subject to our comments in paragraph 5above, the Balance Sheet, Profit and 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 Act; e. On the basis of the written representations received from the directors, as on March 31, 2009 and taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2009 from being appointed as a Director in terms of clause (g) of sub-section (1) of Section 274 of the Act; f. in our opinion, and to the best of our information and according to the explanations given to us, the said financial statements, subject to our comments in paragraph 4 and paragraph 5 above, read with the reasons given for non accounting of Mark to Market losses as stated in Note no. 7(a), Schedule 22, 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: i. in the case of the Balance Sheet, of the state of affairs of the Company as at March 31, 2009; ii. in the case of the Profit and Loss Account, of the reported 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 for the year ended on that date. Annexure to Auditors Report [Referred to in paragraph 3 of the Auditors Report of even date to the members of Apar Industries Limited on the Financial Statements for the year ended on March 31, 2009] (i) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets. (b) The Company has a regular programme of physical verification of its fixed assets over a period of three years, which in our opinion is reasonable having regard to the size of the Company and the nature of its assets. In accordance with this programme, the management conducted physical verification of certain fixed assets during the current year and no material discrepancies between the book records and physical inventory have been noticed. (c) In our opinion and according to the information and explanations given to us, a substantial part of fixed assets has not been disposed off by the Company during the year. (ii) (a) The management has conducted physical verification of inventory (excluding inventory with third parties) at reasonable intervals during the year, and also as at the balance sheet date. In respect of inventory lying with third parties as at the balance sheet date, these have substantially been confirmed by them. In our opinion, the frequency of verification is reasonable. (b) In our opinion, and according to the information and explanations given to us, the procedures for 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) On the basis of our examination of the inventory records, in our opinion, the Company has maintained proper records of its inventory, and the discrepancies noticed on physical verification of inventory as compared to the book records were not material and have been properly dealt with in the books of account. (iii) (a) The Company has not granted loans, secured or unsecured, to Companies, firms or other parties covered in the register maintained under Section 301 of the Act. Accordingly, the provisions of sub clause (b) to (d) of clause (iii) of paragraph 4 of the Order are not applicable. (b) The Company has taken unsecured loans from twelve parties covered in the register maintained under Section 301 of the Act. The aggregate of the maximum amount of the loans outstanding during the year, and the aggregate of the year-end balances of such loans was Rs. 379,526,909 and Rs. 330,392,882 respectively. (c) In our opinion, and according to the information and explanations given to us, the rate of interest and other terms and conditions of the loans taken by the Company are, prima facie, not prejudicial to the interests of the Company. (d) In our opinion, and according to the information and explanations given to us, the Company is regular in repayment of principal and interest, where stipulations have been made. In cases where there are no stipulations and repayment of both principal and interest are stated at call, the Company is regular in the payment of principal and interest as and when demanded. (iv) In our opinion, and according to the information and explanations given to us, the Company has an adequate internal control system commensurate with the size of the Company and 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 carried out in accordance with the auditing standards generally accepted in India, and according to the information and explanations given to us, we have neither come across nor have been informed of any continuing failure to correct major weakness in the aforesaid internal control system. (v) (a) In our opinion, and according to the information and explanations given to us, 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. (b) In our opinion and according to the information and explanations given to us, there are no transactions made in pursuance of such contracts or arrangements and exceeding Rupees five lacs in respect of any party during the year, which have been made at prices which are not reasonable having regard to the prevailing market prices at the relevant time. (vi) 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, 58AA and any other relevant provisions of the Act and the Companies (Acceptance of Deposits) Rules, 1975 with regard to the 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 on the Company in respect of the aforesaid deposits. (vii) In our opinion, the Company has an internal audit system commensurate with the size and nature of its business. (viii) We have broadly reviewed the books of account maintained by the Company in respect of its Oil, and Conductor businesses, where pursuant to the Rules made by the Central Government of India, the maintenance of cost records has been prescribed under clause (d) of sub-section (1) of Section 209 of the Act, and are of the opinion that, prima facie, the prescribed accounts and records have been made and maintained. We have not, however, made a detailed examination of the records with a view to determine whether they are accurate or complete. (ix) (a) According to the information and explanations given to us, and the records of the Company examined by us, in our opinion, the Company was generally regular during the year in depositing undisputed statutory dues including provident fund, investor education and protection fund, employees state insurance, income tax, sales tax, wealth tax, service tax, customs duty, excise duty, cess and other material statutory dues, as applicable, with appropriate authorities. In respect of contrac- tors retained by the Company, the management has represented to us that the relevant dues have been regularly deducted and deposited by the contractors with appropriate authorities. (b) According to the information and explanations given to us, and the records of the Company examined by us, there are no dues of income tax, wealth tax or cess which have not been deposited on account of any dispute. The par- ticulars of excise duty, sales tax, custom duty, and service tax as at March 31, 2009, which have not been deposited by the Company on account of a dispute are as follows: Nature of the Nature of dues Amount under dispute Statute and unpaid (Rs.) The Central Excise Excise duty 44,507,841 Act, 1944 2,587,251 574,118 The Finance Act, 1994 Service tax 1,984,896 Service tax Customs Act, 1962 Customs duty 3,257,626 23,118,932 925,851 Central Sales Tax Act and Sales tax 1,205,837 Local Sales Tax Acts 60,204 919,612 54,492,862 Income Tax , Act 1961 Tax Deducted 201,742 At source_ Period to which Forum where dispute the amount relates is pending 2000 to 2002 Bombay High Court, against the Order of Settlement Commission 1995 to 2000 & 2004-05 Commissioner (Appeals) 2004-2008 Customs, Excise, Service Tax Appellate Tribunal 1997 to 1998 Customs, Excise, Service Tax Appellate Tribunal 1999 to 2006 Mumbai High Court 1999-2000,2001-02 Customs, Excise, Service Tax Appellate Tribunal 1993-1994_DGFT, Mumbai_ 1998-99, 2001-02 Assistant Commissioner and 2003-04 2003-04 and 2004-05 Commercial Tax Officer 1994-95, 1998-01 Tribunal 2002-03 , 2003-04 & 2004-05 Commissioner-VAT 2003-2004 to 2007-08 Commissioner Income Tax (Appeals) - including interest and penalty, as applicable (x) Attention is invited to our comments in paragraph 5 of our audit report of even date. Had the effect of the observation made by us been considered, the accumulated losses as at March 31, 2009 would have been Rs. 71,50.70 lacs. However it would not be more than fifty percent of the Companys net worth as at March 31st 2009. The Company has not incurred any cash losses in the financial year ended on that date, or in the immediately preceding financial year. (xi) According to the records of the Company examined by us and the information and explanations given to us, the Company has not defaulted in repayment of dues to any financial institutions, banks or its debenture holders as at the balance sheet date. (xii) The Company has not granted any loans or advances on the basis of security by way of pledge of shares, debentures and other securities. Accordingly, the provisions of clause (xii) of paragraph 4 of the Order are not applicable. (xiii) The provisions of any special statute applicable to chit fund / nidhi / mutual benefit fund / societies, are not applicable to the Company. (xiv) In our opinion and according to the information and explanations given to us, the Company is not a dealer or trader in shares, securities, debentures and other investments. (xv) In our opinion and according to the information and explanations given to us, the Company has given guarantees in respect of credit facilities availed by its subsidiary companies from a bank, the terms and conditions whereof, in our opinion, are, prima facie, not prejudicial to the interests of the Company. (xvi) 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 purposes for which they were obtained. (xvii) On the basis of an overall examination of the balance sheet of the Company, in our opinion and according to the information and explanations given to us, there are no funds raised on a short term basis which have been used for long-term investment. (xviii) The Company has not made any preferential allotment of shares to parties and companies covered in the Register maintained under Section 301 of the Act during the year. (xix) According to the information and explanations given to us, the Company has not issued any debentures during the year. (xx) The Company has not raised any money by public issue during the year. Accordingly, the provisions of clause (xx) of paragraph 4 of the Order are not applicable. (xxi) During the course of our examination of the books and records of the Company, carried out in accordance with the generally accepted auditing practices in India, and according to the information and explanations given to us, we have neither come across any instances of fraud on or by the Company, noticed or reported during the year, nor have we been informed of such case by the management. Vilas Y. Rane Partner Membership No. 33220 For and on behalf of Price Waterhouse Mumbai, 25th June, 2009 Chartered Accountants