iccon oil specialities ltd Auditors report
ICCON OIL AND SPECIALITIES LIMITED
ANNUAL REPORT 2011-2012
AUDITORS REPORT
To the Members
ICCON OIL & SPECIALITIES LIMITED
We have audited the attached Balance Sheet of ICCON OIL & SPECIALITIES
LIMITED as at 31st March 2012 and the Statement of Profit and Loss for the
year ended on that date annexed thereto and Cash Flow Statement for the
year ended on that date. 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.
We conducted our audit in accordance with 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 financial
statements. An audit also includes t assessing the accounting principles
used and significant estimates made by the management, as well as
evaluating the overall financial statement presentation. We believe that
our audit provides a reasonable basis for our opinion.
As required by the Companies (Auditors Report) Order 2003 issued by the
Central Government of India in terms of sub-section (4A) of section 227 of
the Companies Act, 1956, we enclose in the Annexure hereto a statement on
the matters specified in paragraphs 4 and 5 of the said Order.
Further to our comments in the Annexure referred to in paragraph 2 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, the 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, the Statement of Profit and Loss and
Cash Flow Statement dealt with by this report comply with the mandatory
Accounting Standards referred in subsection (3C) of section 211 of the
Companies Act, 1956;
e) On the basis of written representations received from directors as on
31st March, 2012 and taken on record by the Board of Directors, we are of
the opinion that none of the directors are disqualified as on 31st March,
2012 from being appointed as directors in terms of Clause (g) of sub-
section (1) of section 274 of the Companies Act 1956;
I) Attention is Invited to Note No.24 regarding preparation of financial
statements on going concern basis a/though accumulated tosses of the
Company exceed its net worth. We are informed that the reference of the
Company is registered with the Board for Industrial and Financial
Reconstruction under Section 15 of that Act.
ii) Attention is also invited to Note No.5 regarding non-provision of
interest expense on term loans and cash credit, Subject to the above, in
our opinion and to the best of our information and according to the
explanations given to us, the said accounts read together with the
Significant Accounting Policies and other notes thereon give the
information required by the Companies Act, 1956, in the manner so required,
and present a true and fair view, in conformity with the accounting
principles generally accepted in India:
(i) in so far as it relates to Balance Sheet, of the state of affairs of
the Company as at 31st March, 2012; and
(ii) in so far as it relates to the Statement of Profit and Loss, of the
Loss of the Company for the year ended on that date.
(iii) in so far as it relates to the Cash Flow Statement, of the Cash flows
of the Company for the year ended on that date.
For RAJENDRA & CO.
Chartered Accountants
APURVA R. SHAH
Partner
Membership No. 47166
Mumbai
Dated: 31st August 2012
ANNEXURE TO AUDITORS REPORT
Referred to in Paragraph 2 of our report of even date
1. In respect of its fixed assets:
a. The Company has maintained records showing full particulars including
quantitative details and situation of its fixed assets and the same is
being updated.
b. As explained to us, the fixed assets have been physically verified by
the Management at the end of the accounting year, 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 as compared to the book records.
c. In our opinion, the Company has not disposed of substantial part of
fixed assets during the year.
2. In respect of its inventories:
Since there is no stock-in-trade of either raw materials or finished goods
during the year under review, above clause is not applicable to the
Company.
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:
Company has not taken any loan from parties covered in the register
maintained under section 301 of the Companies Act, 1956. Maximum Balance
outstanding during the year is Rs. 1,85,606/- and closing balance is
Rs.1,85,606/-. In our opinion and according to the information and
explanations given to us the interest and other terms and conditions of the
said loans 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, there are adequate internal control procedures commensurate with the
size of the Company and the nature of its business. During the course of
our audit, we have not observed any major weaknesses in internal controls.
5. In our opinion and according to the information and explanations given
to us, there are no transactions made in pursuance of contracts or
arrangements that need to be entered into the register maintained under
Section 301 of the Companies Act, 1956.
6. The Company has not accepted any deposits from the public.
7. The Company does not have any formal Internal audit system.
8. During the year Company has not carried out any Manufacturing or Trading
activity, and hence, maintenance of cost records under Section 209 (1) (d)
of the Companies Act, 1956 does not arise.
9. In respect of statutory dues:
a. According to the records of the Company, undisputed statutory dues
including Provident Fund, Employees State Insurance, Income Tax, Sales
tax, Wealth Tax, Customs Duty, Excise Duty, Service tax, Cess and other
statutory dues have been generally regularly deposited with the appropriate
authorities. According to the information and explanations given to us, no
undisputed amounts payable in respect of the aforesaid dues were
outstanding as at 31st March, 2012 for a period of more than six months
from the date of becoming payable, except Statutory Bonus Rs.65,551,
Gratuity payable Rs. 1,00,000/- and Leave Encashment Rs.1,63,131/-.
b. According to the information and explanations given to us, there are no
disputed statutory dues that have not been deposited on account of matters
pending before appropriate authorities.
10. The Company has accumulated losses exceeding its net worth and has
incurred cash losses during the year and has incurred cash loss in the
immediately preceding previous year.
11. The company has defaulted in repayment of dues to banks in respect of
term loans and cash credit amounting to Rs. 11,59,01,248/-. No repayment
has been made in respect of the same since March 2002. Further, no
provision / payment have been made in respect of interest accrued and due
on the same.
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 a nidhi/mutual
benefit fund/ society. Therefore, clause 4(xiii) of the Companies
(Auditors Report) Order 2003 is not applicable to the Company.
14. The Company has not entered into transactions and contracts in respect
of dealing and trading in shares, securities, debentures and other
investments.
15. The Company has not given guarantees for loans taken by others from
banks or financial Institutions.
16. The Company has not raised any new term loans during the year.
17. According to the information and explanations given to us and on an
overall examination of the Balance Sheet of the Company, we report that no
short-term funds have been utilized for the long-term purpose.
18. During the year, the Company has not made any preferential allotment of
shares to parties and companies covered in the Register maintained under
Section 301 of the Companies Act, 1956.
19. The Company has not issued any debentures during the year.
20. No new public issue was made by the Company during the year.
21. In our opinion and according to the information and explanations given
to us, no fraud on or by the company has been noticed or reported during
the year that causes the financial statements to be materially misstated.
For RAJENDRA & CO.
Chartered Accountants
APURVA R. SHAH
Partner
Membership No. 47166
Mumbai
Dated: 31st August 2012