INDEPENDENT AUDITOR
To the members of The Kailas Rubber Company Limited
Report on the Financial Statement
I have audited the annexed Balance Sheet of The Kailas Rubber Company Limited as at
March 31, 2014, the Profit and Loss Account and the Cash Flow Statement for the year ended
on that date annexed thereto and a summary of significant accounting policies and other
explanatory information.
Managements 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. 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.
Auditiors Responsibility
My responsibility is to express an opinion on these financial statements based on my
audit. I conducted my audit in accordance with Standards on Auditing issued by the
Institute of Chartered Accountants of India. Those Standards require that I 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 amount and
disclosures in the financial statements. The procedures selected depend on the auditors
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 Companys 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.
I believe that the audit evidence I have obtained is sufficient and appropriate to
provide a basis for my audit opinion.
Opinion
In my opinion and to the best of my information and according to the explanations given
to me, the financial statements give the information required by the Companies Act,1956,
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 the Companys affairs as at March
31, 2014;
ii. in the case of the Profit and Loss Account, of the proit for the year ended on that
date; and
iii. 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 Requirements
1. 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, I enclose in the Annexure hereto a statement on the matters specified in paragraph 4
and 5 of the said order.
2. Further to my comments in the Annexure reffered to above , as required by
Section 227(3) of the Companies Act, I report that:
a. I have obtained all the information and explanations which to the best of my
knowledge and belief were necessary for the purposes of my audit.
b. In my opinion, proper books of account as required by law have been kept by the
Company so far as it appears from my examinations of those books of account.
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 my opinion the Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report comply with the mandatory Accounting Standards referred in
Section 211 (3C) of the Companies Act, 1956.
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 March 31, 2014from being appointed as a director in terms of clause (g) of
sub-section (1) of section 274 of the Companies Act, 1956.
|
T.K. KURUVILLA |
|
Chartered Accountant |
| Kottayam, May30,2014 |
Membership No.020174 |
Annexure to Independent Auditors Report of The Kailas Rubber Company Limited As of and
for the year ended March 31,2014
Referred to Paragraph 1 of my Report of even date
(i) In respect of fixed assets : -
a. The, company has maintained proper records of fixed assets showing full particulars
of quantitative details and location on the basis of available information.
b. As explained to me the fixed assets have been physically verified by the management
during the year in a phased periodical manner and no material discrepancies were
identified on such verification.
c. In my opinion no substantial part of the fixed assets have been disposed off during
the year and the going concern status of the Company is not affected.
(ii) In respect of Inventory : -
a. As explained to me physical verification of inventory has been conducted at
reasonable intervals by the management.
b. In my opinion and according to the information and explanations given to me the
procedure for physical verification of inventory followed by the management are reasonable
and adequate considering the size of the company and the nature of its business.
c. The company is maintaining proper records of inventory. As explained to me there
were no material discrepancies noticed on such physical verification of inventory as
compared to book records .
(iii) 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 : -
a. The Company has not granted or taken any loan, secured or unsecured, to companies,
firms, or other parties covered in the register maintained under section 301 of the
Companies Act 1956.
(iv) In my opinion and according to the information and explanations given to me there
are adequate internal control system commensurate with the size of the company and the
nature of its business, for the purchase of inventory, fixed assets, for the sale of goods
and rendering of services. During the course of my audit I have not observed any major
weaknesses in internal control system.
(v) In respect of contracts or arrangements covered under section 301 of the Companies
Act, 1956 : -
a. In my opinion and according to the information and explanations given to me the
contracts or arrangements that needed to be entered into a register in pursuance of
section 301 of the Companies Act have been so entered.
b. In my opinion and according to the information and explanations given to me each of
these transactions made in Pursuance of such contracts or arrangements and exceeding the
value of Rupees Five Lakhs in respect of any party during the year 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 deposit from the public.
(vii) In my opinion the company has an internal audit system commensurate with its size
and nature of its business.
(viii) The Central Government has prescribed maintenance of Cost Records under Section
209(1 )(d) of The CompaniesAct,1956 in respect of rubber manufacturing activities of the
Company. I have broadly reviewed the accounts and records of the Company in this
connection and I am of the opinion that, prima facie, the prescribed accounts and records
have been made and maintained. I have not, however, made a detailed examination of the
same.
(ix) In respect of statutory dues: -
a. According to the records of the company the company is generally regular in
depositing undisputed statutory dues including Provident Fund, Investor Education and
Protection Fund, Income Tax, Sales Tax, Cess, Excise Duty, Service Tax and any other
statutory dues with the appropriate authorities. According to the information and
explanations given to me the company has no liability to pay Employees State Insurance,
Wealth Tax and Customs Duty. According to the information and explanations given to me, no
undisputed amounts payable in respect of the aforesaid dues were outstanding as at 31st
March, 2014 for a period of more than six months from the date of becoming payable
b. An aggregate amount of Rs. 9,50,587 is due as disputed Tamil Nadu Agricultural
Income Tax for years prior to the year under audit. An appeal is pending before the Tamil
Nadu Agricultural Income Tax Appellate Tribunal for two years and another appeal is
pending before Assistant Commissioner Agricultural Income tax for two years. An amount of
Rs 7,28,941 has been demanded as Kerala Agricultural Income Tax for the Year 1996 -97 by
the Assistant Commissioner Kottayam. An appeal has been filed before Deputy Commissioner
(Appeals) Kollam. The D.C. (Appeals) Kollam has disposed the appeal directing the
Assessing Authority to fix the income after issuing a notice in the prescribed form 10 to
the company and giving the company an opportunity of being heard. However no action has
yet been taken by the Assessing Authority. An amount Rs 5,62,950/- and interest of Rs
2,83,110 /-has been demanded as Kerala Value Added Tax for the years 2005-06 to 2010-11 by
the Commercial Tax Officer ,Kottayam . An Appeal has been filed before Deputy Commissioner
(Appeals) Eranakulam..The DC Appeals Ernakulam confirmed the order of the assessing
authority .An Appeal has been filed for all the above years before the Appelate Tribunal
Ernakulam against the order of the DC Appeals Ernakulam., the tax and interest demanded by
the assessing authority for the above mentioned years has been paid under protest. A
demand notice has been received from the Asst Commissioner Income Tax Circle 1, Kottayam ,
demanding an amount of Rs 4,53,660/- for the Assessment Year 2007-08 and an amount of Rs
7,45,540/- for the assessment year 2011-12.An Appeal has been filed against the order of
the Asst Commissioner Income Tax Circle 1 Kottayam for the Assessment year 2007-08 and
2011-12 with Commissioner of Income Tax (Appeals) , Cochin. The Company has no disputed
dues of customs tax, wealth tax, excise duty, cess and service tax which have not been
deposited
(x) The company has no accumulated losses at the end of the financial year 2013-14. The
Company has not incurred cash loss during the years 2012-13 and 2013-14.
(xi) Based on my audit procedures and according to the information and explanations
given to me, I am of the opinion that the company has not defaulted in repayment of dues
to a financial institution or bank. The company has no debenture holder.
(xii) In my opinion and according to the information and explanation given to me the
company has not granted loans and advances on the basis of security by way of pledge of
shares, debentures and other securities.
(xiii) In my opinion the provisions of special statute applicable to Chit Fund, Nidhi /
Mutual Benefit Fund / Societies are not applicable to the company. The Company is not a
Chit Fund or a Nidhi/ Mutual Benefit Fund/ Society.
(xiv) The company is not dealing or trading in shares, securities, debentures and other
investments.
(xv) According to the information and explanations given to me the company has not
given any guarantee for loans taken by others from bank or financial institution.
(xvi) No term loans were obtained during the year under audit.
(xvii) According to the information and explanation given to me no funds raised on
short term basis have been used for long term investment.
(xviii) 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.
(xix) The company has not issued any debenture.
(xx) The company has not raised any money by public issue during the year.
(xii) In my opinion and according to the information and explanations given to me no
fraud on or by the company has been noticed or reported during the course of my audit.
|
T.K. KURUVILLA |
|
Chartered Accountant |
| Kottayam, May 30, 2014 |
Membership No.020174 |
+91-9892691696
