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Sadhana Nitrochem Ltd.

BSE Live

Oct 21, 16:00
39.45 0.40 (1.02%)
Volume
AVERAGE VOLUME
5-Day
124,540
10-Day
293,109
30-Day
158,715
55,789
  • Prev. Close

    39.05

  • Open Price

    40.60

  • Bid Price (Qty.)

    39.05 (1)

  • Offer Price (Qty.)

    39.45 (89)

NSE Live

Dec 27, 11:22
NT* 0.00 (0.00%)
Volume
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  • Prev. Close

    -

  • Open Price

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  • Bid Price (Qty.)

    - (0)

  • Offer Price (Qty.)

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Sadhana Nitrochem is not listed on NSE

Annual Report

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

Auditor's Report

Report on the Financial Statements We have audited the accompanying financial statements of Sadhana Nitro Chem Limited (the Company), which comprise the Balance Sheet as at June 30, 2013, and the Statement of Profit and Loss and Cash Flow Statement for the period 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). 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. Auditor''s Responsibility 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. 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. 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 India: a) in the case of the Balance Sheet, of the state of affairs of the Company as at June 30, 2013; b) in the case of Statement of Profit and Loss, of the Loss for the period ended on that date; and c) in the case of the Cash Flow Statement, of the cash flows for the period ended on that date. Emphasis of Matter We draw your attention to Note 33 regarding going concern and deferred tax assets. Our opinion is not qualified in respect of this matter. Report on Other Legal and Regulatory Requirements 1. As required by the Companies (Auditor''s Report) Order, 2003 (the Order),as amended, 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 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, Statement of Profit and Loss, and Cash Flow Statement dealt with by this Report are in agreement with the books of account; d) In our opinion, the Balance Sheet, Statement of Profit and Loss, and Cash Flow Statement comply with the Accounting Standards referred to in subsection (3C) of section 211 of the Companies Act, 1956; e) On the basis of written representations received from the directors as on March 31, 2013, and taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2013, from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the Companies Act, 1956; ANNEXURE TO THE AUDITOR''S REPORT Annexure Referred in Independent Auditors Report of even date 1. In respect of its fixed assets: a. The company has maintained records showing particulars including quantitative details and situation of fixed assets on the basis of available information. b. As explained to us, the fixed assets have been physically verified by the management during the period in a phased periodical manner, which in our opinion is reasonable, having regard to the size of the company and nature of its assets. No material discrepancies were noticed on such physical verification. c. During the period, the company has disposed of some of its non core business assets which does not form substantial part of fixed assets. Accordingly, going concern status of the company is not affected. 2. In respect of its inventories: a. As explained to us, inventories have been physically verified by the management at regular intervals during the period. b. In our opinion and according to the information and explanation given to us, 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. No material discrepancies were noticed on such physical verification. c. The company has maintained proper records of inventories. As explained to us, there were no material discrepancies noticed on physical verification of inventory as compared to the book records. 3. In respect of loans, secured or unsecured, granted or taken by the company to/ from companies, firms or other parties covered in the register maintained under Section 301 of the Companies Act, 1956, we report that:- a. The company has not granted any loans, secured or unsecured during the period. b. During the period company had taken interest free and interest bearing loan from one company amounting to Rs. 6,10,54,474/-. This loan had maximum balance ofRs. 12,12,27,610/- and has been repaid during the period. c. In our opinion and according to information and explanations given to us, the rate of interest and other terms and conditions are not prima facie prejudicial to the interest of the Company. 4. In our opinion and according to the information and explanations given to us, having regard to the explanation that purchase''of certain items of inventory and fixed assets are for the Company''s specialized requirements, and similarly, certain goods sold are for the specialized requirements of the buyers and suitable alternate source are not available to obtain comparable quotations, there is generally adequate interna! control system commensurate with the size of the Company and the nature of its business for purchase of inventory and fixed assets and for the sale of goods and services. In our opinion, and according to the information and explanations given to us, we have not observed any major weakness during the course of audit. 5. In respect of transactions covered under Section 301 of the Company Act, 1956: a. In our opinion and according to the information and explanations given to us, the transactions made in pursuance of contracts or arrangements, that needed to be entered into in the register maintained under Section 301 of the Companies Act, 1956 have been so entered. b. In our opinion and according to the information and explanations given to us, the transactions made in pursuance of contracts or arrangements entered in the register maintained under Section 301 of the Companies Act, 1956 exceeding value ofRs. 5,00,000/- in respect of any party during the period have been made at prices which are reasonable having regard to prevailing market prices at the relevant time. 6. The company has repaid all existing deposits accepted from public and has not accepted new deposits. Accordingly, clause 4(xiii) of the Companies (Auditor''s Report) Order 2003 is not applicable to the company. 7. On the basis of the internal audit reports broadly reviewed by us. we are of the opinion that, the internal audit functions carried out by a firm of chartered accountants appointed by the management is commensurate with the size of the company and the nature of its business. 8. The Central Government has prescribed maintenance of cost records under Section 209(1) (d) of the Companies Act, 1956 in respect of products, manufactured by the company. We have broadly reviewed the accounts and records of the company 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 same. 9. In respect of statutory dues: a. There have generally been delays by the company in depositing undisputed statutory dues including provident fund, investor education and protection fund employees'' state insurance income-tax, Sales Tax, Wealth tax, Customs duty, Excise duty, cess, Service tax and other statutory dues with the appropriate authorities. There are no undisputed amounts payable in respect of the aforesaid dues as at 30th June, 2013 for a period of more than six months from the date of becoming payable; b. According to the records of the company, there are no disputed statutory dues on account of Income Tax, Sales Tax, Wealth Tax, Service Tax, Customs Duty, Excise Duty, and cess remaining unpaid as on 30lh June, 2013. 10. The company has accumulated losses of Rs. 22,14,88,874/- at the end of the financial period, which is more than fifty percent of its net worth. The company has not incurred any cash loss during the period and in the Immediately preceding financial period. 11. Based on our audit procedures and according to the information and explanation given to us, there have been delays in repayment of dues to banks and financial institutions. Details of default in repayment of dues to banks existing at the balance sheet date are as under; Name of Bank Amount due Due date Date of payment State Bank of Patiala Rs. 56,25,000 June 30, 2013 Not yet paid (USD 1,03,500) 12. In our opinion and according to the information and explanation given to us, no loans and advances have been granted by the company on the basis of security by way of pledge of shares, debentures and other securities. 13. In our opinion, the company is not a chit fund or nidhi/mutual benefit fund/ society. Accordingly, clause 4(xiii) of the Companies (Auditor''s Report) Order 2003 is not applicable to the company. 14. The Company has not traded in securities, debentures and other investments. All the investments are held in the name of the company. Accordingly, clause 4(xiv) of the Companies (Auditor''s Report) Order 2003 is not applicable to the company. 15. The company has not given any guarantee for loans taken by others from bank or financial institutions. Accordingly, clause 4(xv) of the Companies (Auditor''s Report) Order 2003 is not applicable to the company. 16. In our opinion and according to the information and explanation given to us, the term loans have been applied for the purpose for which they were raised. 17. Based on the information and explanations given to us and on an overall examination of the balance sheet of the Company as on 30th June, 2013, in our opinion, there are no funds raised on a short term basis which have been used for long term investment 18. During the period, the company has made preferential allotment of Preference Shares to its Holding Company. In our opinion and according to information and explanations given to us, the price at which these Preference Shares have been issued is not prejudicial to the interest of the company. 19. In our opinion and according to the information and explanation given to us, the company has not issued any secured debentures during the period covered by our report. 20. The Company has not raised any money by public issue during the period. Accordingly, clause 4(xx) of Companies (Auditor''s Report) Order 2003 is not applicable to the company. 21. In our opinion and according to the information and explanation given to us, no material fraud on or by the company has been noticed or reported during the course of our audit. For V. SankarAiyar&Co. Chartered Accountants Firm Regn No. 109208W Arvind Mohan Place Mumbai Partner Dated : 28th August, 2013 Membership No. 124082