Report on the Financial Statements
We have audited the accompanying financial statements of CCL Products
(India) Limited (the Company), which comprise the Balance Sheet as at
31st March, 2014, 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 Financial Statements
Management is responsible for the preparation of these 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 Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956 (the Act) read with General Circular
8/2014 dated 4th April, 2014 issued by Ministry of Corporate Affairs.
This responsibility includes the design, implementation and maintenance
of internal control relevant to the preparation and presentation of the
financial statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. 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.
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 control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the effectiveness of the Company''s
internal control. An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of the accounting
estimates made by management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
In our opinion and to the best of our information and according to the
explanations given to us, the 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
a) In the case of the Balance Sheet, of the state of affairs of the
Company as at 31stMarch, 2014;
b) In the case of the Statement of Profit and Loss, of the profit for
the year ended on that date; and
c) In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date. Report on Other Legal and Regulatory
1. As required by the Companies (Auditor''s Report) Order, 2003 (the
Order) issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, 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 purpose 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 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, Statement of Profit and Loss and
Cash Flow Statement comply with the Accounting Standards referred to in
sub-section (3C) of section 211 of the Companies Act, 1956 read with
General Circular 8/2014 dated 4th April, 2014 issued by Ministry of
e) On the basis of written representations received from the directors
as on March 31, 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on 31st March, 2014, from
being appointed as a director in terms of clause (g) of sub-section (1)
of section 274 of the Companies Act, 1956.
Re: CCL Products (India) Limited
Referred to in Paragraph 1 under the heading of Report on Other Legal
Requirements of our report of even date
i. (a) The company has maintained proper records showing full
particulars including quantitative details and situation of fixed
(b) As explained to us, the fixed assets have been physically verified
by the management in a phased periodical manner, which in our opinion
is reasonable, having regard to the size of the company and the nature
of its business. No material discrepancies were noticed on such
(c) As per information and explanation given by management during the
year the company has not disposed of major part of fixed assets having
effect on going concern.
ii. (a) The inventory has been physically verified during the year by
the management. In our opinion, the frequency of verification is
(b) The procedures of 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) 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. The discrepancies noticed on verification between the
physical stocks and the book records were not material.
iii. (a) The company has not granted any loans to companies, firms or
other parties listed in the register maintained under Section 301 of
the Companies Act, 1956.
(b) The company has not taken any loans, secured or unsecured from
companies, firms or other parties listed in the register maintained
under Section 301, of the Companies Act, 1956. As the company has not
taken any loans, secured or unsecured from companies, firms or other
parties listed in the register maintained under Section 301, of the
Companies Act, 1956, paragraphs (iii) (f) and (g) of the Order are not
iv In our opinion and according to the information and explanations
given to us, there are adequate internal control systems commensurate
with the size of the company and the nature of its business with regard
to purchases of inventory, fixed assets and with regard to the sale of
goods. During the course of our audit, no major weakness has been
noticed in the internal control systems.
v. (a) Based on the audit procedures applied by us and according to the
information and explanations provided by the management, we are of the
opinion that the transactions 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, the transactions made in pursuance of such contracts or
arrangements have been made at prices which are reasonable having
regard to the prevailing market prices at the relevant time.
vi. The Company has not accepted any deposits from the public.
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 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 record have been maintained.
ix. (a) According to the records of the company, the company is regular
in depositing with appropriate authorities undisputed statutory dues
including provident fund, investor education and protection fund,
employees'' state insurance, income-tax, sales-tax, wealth-tax, service
tax, custom duty, excised-duty, cess and other statutory dues
applicable to it. No undisputed amount was outstanding as at 31st
March, 2014 for a period more than six months from the date they become
(b) According to the information and explanations given to us and
records of the company examined by us, the particulars are of sales
tax, income tax, customs duty, excised duty, service tax and wealth
tax, as on 31st March,2014 which have not been deposited on account of
dispute pending, are as under:
Name of the Nature of Relevant Amount Forum where dispute is
Statute dues Financial
Year (^ in
1944 Customs Duty 1996-97 31.76 CESTAT, Bangalore
1944 Service Tax 2007-08 550.66 CESTAT, Bangalore
x. The company has no accumulated losses and it has not incurred any
cash losses during the financial year covered by our audit and the
immediately preceding financial year.
xi. Based on our audit procedures and on the information and
explanations given by the management, we are of the opinion that the
company has not defaulted in repayment of dues to a financial
institution, bank or debenture holders.
xii. According to the information and explanations given to us the
company has not granted loans and advances on the basis of security by
way of pledge of shares, debentures and other securities.
xiii. The provisions of any special statute as specified under
paragraph (xiii) of the Order 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. According to the information and explanations given to us the
company has given corporate guarantee to its subsidiaries for loans
taken from banks, the terms and conditions whereof are not prejudicial
to the interest of the company.
xvi. In our opinion and according to the information and explanations
given to us the term loans have been applied for the purpose for which
they were raised.
xvii. According to the cash flow statement and other records examined
by us and information and explanations given to us, on an overall
basis, funds raised on short term basis have prima facie not been used
during the year for long term investment.
xviii. The company has not made any preferential allotment of shares to
the parties and companies covered in the register maintained under
Section 301 of the Companies Act, 1956.
xix. As the company has not issued any debentures during the year,
paragraph (xix) of the Order is not applicable.
xx. The company has not raised any money through public issues during
xxi. Based upon the audit procedures performed and information and
explanations given by the management, we report that no fraud on or by
the company has been noticed or reported during the course of our
For M.ANANDAM & CO.,
(Firm Regn No: 000125S)
Place: Hyderabad Partner
Date : 23rd May, 2014 M.No.028031