AUDITORS
To
The Members of
PIL Industries Limited
Report on the Financial Statements
We have audited the a Companying financial statements of PIL Industries Limited
("the Company"), which comprise the Balance Sheet as at 31st March , 2013, the
Statement of Profit and Loss and the Cash Flow Statement for the year then ended, and a
summary of the significant accounting policies and other explanatory information.
Managements Responsibility for the Financial Statements
The Companys 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
Auditors 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
the 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
the 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 the 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 the
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 31st
March, 2013,
(b) in the case of the Statement of Profit and Loss, of the Loss of the Company for the
year ended on that date, and
(c) in the case of the Cash Flow Statement, of the cash flows of the Company for the
year ended on that date.
Emphasis of Matter
We draw attention that:
During the year, the Company has capitalized interest of Rs. 54,79,34.016/- to the cost
of investment in shares. Since investment in shares is not a qualifying asset,
capitalization of interest does not meet the criteria as laid down in AS 16 Borrowing
cost. Had the Company not capitalized the interest, the loss for the year and accumulated
loss 2013 would have been higher by Rs. 54,79,34,016/-and cost of investment would have
been be lower by the same amount. Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors 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 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 it appears from our examination of those books.
(c) The Balance Sheet, Statement of Profit and Loss, and the Cash Flow Statement dealt
with by this Report are in agreement with the books of account.
(a) in our opinion, the Balance Sheet. Statement of Profit and Loss, and the Cash Flow
Statement 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 31st
March, 2013 taken on record by the Board of Directors none of the directors is
disqualified as on 31st March, 2013 from being appointed as a director in terms of clause
(g) of sub-Section (1) of Section 274 of the Act.
|
For R. S. Ajwani & Co. |
|
Chartered Accountant |
|
Firm Registration No.:131853W |
|
Ravi Ajwani |
| Place : Mumbai |
Proprietor |
| Dated 19th July, 2013 |
M.No. 035574 |
The Annexure referred to in paragraph 1 of the Our Report of even date to the members
of PIL Industries Limited (the Company) on the financial statements for the year ended
31st March, 2013.
1. (a) The Company has maintained proper records showing full particulars including
quantitative details and situation of its fixed assets
(b) A substantial portion of the fixed assets have been physically verified by the
management at reasonable intervals; no material discrepancies were noticed on such
verification.
(c) In our opinion and according to the information and explanations given to us, no
fixed asset has been disposed during the year and therefore does not affect the going
concern assumption
2. (a) The inventories have been physically verified during the year by the management
at reasonable intervals.
(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) The Company is generally maintaining proper records of its inventories. No material
discrepancy was noticed on physical verification of stocks by the management as compared
to book records
3. (a) The Company has not granted any loans, secured or unsecured, to companies, firms
or other parties listed in the register maintained under Section 301 of the Companies Act,
1956. Consequently, the provisions of clauses iii (b), iii (c) and iii (d) of the order
are not applicable to the Company.
(e) The Company has not taken loans from companies, firms or other parties listed in
the register maintained under Section 301 of the Companies Act, 1956. Thus sub clauses (f)
& (g) are not applicable to the Company.
4 In our opinion and according to the information and explanations given to us, there
is generally an adequate internal control procedure commensurate with the size of the
Company and the nature of its business, for the purchase of inventories & fixed assets
and payment for expenses & for sale of goods. During the course of our audit, no major
instance of continuing failure to correct any weaknesses in the internal controls has been
noticed.
5. (a) Based on the audit procedures applied by us and according to the information and
explanations provided by the management, 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) As per information & explanations given to us and in our opinion, the
transaction entered into by the Company with parties covered u/s 301 of the Act does not
exceeds five lacs rupees in a financial year therefore requirement of reasonableness of
transactions does not arises.
6 The Company has not accepted any deposits from the public covered under Section 58A
and 58AA of the Companies Act, 1956.
7.As per information & explanations given by the management, the Company has an
internal audit system commensurate with its size and the nature of its business.
8. As per information & explanation given by the management, maintenance of cost
records has been prescribed by the Central Government under clause (d) of sub-section (1)
of Section 209 of the Act and we are of the opinion that prima facie the prescribed
accounts and records nave been made and maintained.
9. (a) According to the records of the Company, undisputed statutory dues including
Provident Fund, Investor Education and Protection Fund, Employees State Insurance,
Income-tax, Sales-tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess to the
extent applicable and any other statutory dues have generally been regularly deposited
with the appropriate authorities. According to the information and explanations given to
us there were no outstanding statutory dues as on 31st of March, 2013 for a
period of more than six months from the date they became payable.
(b) According to the information and explanations given to us, there is no amounts
payable in respect of income tax, wealth tax. service tax sales tax, customs duty and
excise duty which have not been deposited on account of any disputes.
10. The Company nave accumulated loss and has incurred cash loss during the financial
year covered by our audit and in the immediately preceding financial year.
11. 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.
12. 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.
13. The Company is not a chit fund or a nidhi /mutual benefit fund/society. Therefore,
the provision of this clause of the Companies (Auditors Report) Order, 2003 (as amended)
is not applicable to the Company.
14. According to information and explanations given to us, the Company is trading in
Shares & other Investments. Proper records & timely entries have been maintained
in this regard & further investments specified are held in their own name.
15. In our opinion, the terms and conditions on which the Company has given guarantees
for loans taken by others from banks or financial institution are not prejudical to the
interest of the Company.
16. In our opinion 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, we report that no funds raised on short-term basis
have been used for long-term investment by the Company.
18. Based on the audit procedures performed and the information and explanations given
to us by the management, we report that the Company has not made any preferential
allotment of shares during the year.
19. The Company has no outstanding debentures during the period under audit.
20. The Company has not raised any money by public issue during the year.
21. Based on the audit procedures performed and the information and explanations given
to us, we report that no fraud on or by the Company has been noticed or reported during
the year, nor have we been informed of such case by the management
|
For R. S. Ajwani & Co. |
|
Chartered /Accountant |
|
Firm Registration No.:131853W |
|
Ravi Ajwani |
| Place: Mumbai |
Proprietor |
| Dated: 19th July 2013 |
M.No. 035574 |
+91-9892691696
