INDEPENDENT AUDITOR
To
The Members of ROSE ZINC LIMITED
Report on the Financial Statements
We have audited the accompanying financial statements of ROSE ZINC LIMITED (The
Company"),which comprise the Balance Sheet as at 31 st March, 2014, the Statement of
Profit and Loss 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
relevantto 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.
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, 2014;
(b) in the case of the Statement of Profit and Loss, of the Loss of the Company for the
year ended on that date.
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.
(d) In our opinion, the Balance Sheet and Statement of Profit and Loss, 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 31 st
March, 2014 taken on record by the Board of Directors, none of the directors is
disqualified as on 31 st March, 2014 from being appointed as a director in term s of
clause (g) of sub-section (1) of section 274 of the Act.
|
For DHAKAR & ASSOCIATES, |
|
Chartered Accountants |
|
NIRMAL DHAKAR |
|
PROPRIETOR |
| Place: UDAIPUR |
M.No.-072847 |
| Dated: 05,h SEP, 2014 |
Firm Reg. No- 007286C |
ANNEXURE
REFERRED TO IN PARAGRAPH 3 OF OUR REPORT OF EVEN DATE TO THE MEMBERS OF ROSE ZINC
LIMITED ON FINANCIAL STATEMENTS FOR THE YEAR ENDED ON 31st MARCH, 2014
(i) (a) The company has maintained proper records
Showing full particulars including quantitative details and situation of fixed assets.
(b) All the assets have not been physically verified by the management during the year
due to labour unrest.
(c) During the previous years, the company has disposed off substantial part of its
fixed assets. However as per information and explanations given to us, the company has
declared closure of unit U/S 25FFA of the Industrial Dispute Act from 07.01.2010. These
factors alongwith other matters as set-forth in Note No. 1-ll-K, raise substantial doubt
about the companys ability to continue as a going concern in the foreseeable future.
(ii) (a) The inventory has been physically verified by the management during the year.
In our opinion, the frequency of verification is reasonable.
(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 inventory records, and as per information
and explanation given to us, we are of the opinion that company is maintaining proper
records of inventory. The discrepancies noticed on physical verification of inventories as
compared to book records were not material.
(iii) (a) The company has not granted any loans secured or unsecured.
(b) Unsecured loans of Rs.95.75 lacs (Previous year Rs.126.24 lacs)as on 31.03.2014
taken from one party covered in the register maintained u/s 301 of the Companies Act,
1956.
(c) According to the information and explanation given to us, above loan taken is
interest bearing @3% p.a., terms and conditions on which loan have been taken are not
prejudicial to the interests of the company or its members.
(d) According to the information and explanation given to us, above loan taken are
repayable on demand, hence question of overdue am ount does not arise.
(iv) In our opinion and according to the information and explanations given to us,
there is an adequate internal control systems commensurate with the size of the company
and the nature of its business for the purchases of inventory, fixed assets and sale of
goods, services and Fixed Assets. Further, on the basis of our examination of the books
and records of the company, and according to the information and explanations given to us,
we have neither come across nor have been informed of any continuing failure to correct
major weaknesses in the afore said internal control system.
(v) (a) In our opinion and according to information and explanations given to us, the
particulars of contracts and arrangements referred to in section 301 of the Companies Act,
1956 have been entered in the register required to be maintained under that section.
(b) In our opinion and according to information and explanations given to us, the
transactions made in pursuance of such contracts or arrangements and exceeding the value
of Rs. 5.00 Lacs in respect of any parties during the year have been made at prices which
are reasonable having regard to the prevailing market prices at the relevant time. Each of
these transaction have been made at prices which are prima facie not prejudicial to the
interest of the company.
(vi) In our opinion and according to the information and explanations given to us, the
company has not accepted any deposits from the public, within the meaning of Section 58 A
and 58AAof the Companies Act, 1956 and Companies (Acceptance of Deposits) Rules, 1975.
(vii) In our opinion, the company has an internal audit system commensurate with the
size and nature of its business.
(viii) According to the information and explanations given to us, since company is not
in operation during the year, books of accounts are not required to be maintained by the
company pursuant to the Rules made by the Central Governmentfor the maintenance of Cost
Accounts under section 209(1 )(d) of the Companies Act, 1956.
(ix) (a) Undisputed statutory dues including provident fund, investor education &
protection fund, employees state insurance, income tax, wealth tax, customs duty, excise
duty, cess and other material statutory dues have been generally deposited with the
appropriate authority.
(b) According to the information and explanations given to us, no undisputed amounts
payable in respect of income tax, wealth tax, customs duty, and excise duty were in
arrears, as at 31.03.2014 fora period of more than six months from the date they became
payable except for Rs. 14.06 Lacs towards Entry Tax,
(c) According to the information and explanations given to us, following demand as
detailed hereunder have not been deposited on account of any dispute.
| Name of statute |
Nature of the dues |
Amount Rs. |
Period to which the amount relates |
Forum where dispute is pending |
| Custom Act, 196 2 |
Custom Duty |
2,03,40,594* |
June, 2002 Nov.,2006 |
The Custom & Central Excise Settlement Commission, Principal Bench, New Delhi. |
| Custom Act, 1962 |
Custom Duty |
2,02,12,531* |
April, 2002 Nov.,2006 |
The Custom & Central Excise Settlement Commission, Principal Bench, New Delhi. |
| Custom Act, 1962 |
Custom Duty |
4,87,848* |
Feb., 2002 Apr.,2002 |
The Custom & Central Excise Settlement Commission, Principal Bench, New Delhi. |
| Rajasthan Entry Tax Act,1999 |
Entry tax penalty and interest |
3,76,340 |
2004-05 |
The Dy. Commissioner (Appeals), Commercial Taxes, Udaipur |
|
|
46926 |
2005-06 |
The Assistant Commissioner Commercial Taxes, Udaipur. Hon hie High court of Rajasthan,
Jodhpur has granted stay on the validity of Entry Tax in Rajasthan |
|
|
703760 |
2006-07 |
The Assistant Commissioner Commercial Taxes, Udaipur. Hon hie High court of Rajasthan,
Jodhpur has granted stay on the validity of Entry Tax in Rajasthan |
|
|
1421600 |
2007-08 |
The Dy. Commissioner (Appeal), Commercial Taxes, Udaipur. Hon hie High court of
Rajasthan, Jodhpur has granted stay on the validity of Entry Tax in Rajasthan |
|
|
476890 |
2008-09 |
The Dy. Commissioner (Appeal), Commercial Taxes, Udaipur. Hon hie High court of
Rajasthan, Jodhpur has granted stay on the validity of Entry Tax in Rajasthan |
(x) In our opinion, the accumulated losses of the company as on 31.03.2014 is
Rs.8,18,89,974/- (Previous year Rs.8,09,34,354) are more than fifty percent of its net
worth. The company has generate cash loss of Rs.9,09,721/- during the year covered by our
audit and in immediately preceding year there was cash profit of Rs.61,76,972/-.
(xi) In our opinion and according to the information and explanations given to us, the
company has repaid the entire loans taken from Banks during the year, hence question of
default in respect of repayment of loans does not arises.
(xii) In our opinion, 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 our opinion, the company is not a chit fund or a nidhi mutual benefit
fund/society. Therefore, the provisions of clause 4(xiii) of the Companies (Auditors
Report) Order, 2003 is not applicable to the company.
(xiv) In our opinion, the company is not dealing in or trading in shares, securities,
debentures and other investments. Accordingly, the provisions of clause 4(xiv) of the
Companies (Auditors Report) Order, 2003 are not applicable to the company.
(xv) In our opinion, and according to the information and explanations given to us the
company has not given any guarantees for loans taken by others from banks or financial
institutions. Accordingly, the provisions of clause 4(xv) of the Companies (Auditors
Report) Order, 2003 are not applicable to the company.
(xvi) According to the information and explanations given to us, company has not
obtained term loan from anyfinancial institution or banks during the year.
(xvii) On the basis of an overall examination of the balance sheet of the company, in
our opinion and according to the information and explanations given to us, there are no
funds raised on a shortterm basis which have been used for long term investment.
(xviii) According to the information and explanations given to us, the company has not
made preferential allotment of shares to parties and companies during the year, covered in
the register maintained under section 301 of the Act.
(xix) According to the information and explanations given to us, the company has not
issued any secured debentures during the period covered by the report. Accordingly, the
provisions of Clause 4 (xix) of the companies (Auditors Report) Order, 2003 is not
applicable to the company.
(xx) During the period covered by our audit report, the company has not raised any
money by public issue accordingly, the provisions of Clause 4 (xx) of the companies
(Auditors Report) Order, 2003 are not applicable to the company.
(xxi) According to the information and explanations given to us, no fraud on or by the
company has been noticed or reported during the course of our audit.
|
For: Dhakar & Associates, |
|
Chartered Accountants |
|
Nirmal Dhakar |
|
Proprietor |
| Place : Udaipur |
Membership No. 72847 |
| Dated : 5th Sept., 2014 |
Firm Regn. No.07268C |
+91-9892691696
