Auditors Report
on the Financial Statements
We have audited the accompanying financial statements of U.P. Twiga Fiberglass Limited
("the Company") which comprise of the Balance Sheetasat31 March, 2014, the
Statement of Profit and Loss and Cash Flow statement for the year ended and 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 principles generally accepted in India including
Accounting Standards referred to in Section 211 (3C) of the Companies read with General
Circular No. 15/2013 dated 13 September, 2013, Ministry of Corporate Affairs in respect of
Sector 133 of the Companies Act, 2013. 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
ethical requirements and plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free from material misstatements.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements. The procedures selected depend on the Auditors
judgement, 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 evaluation the appropriateness of 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 aforesaid 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 31
March, 2014.
(b) In the case of the Statement of Profit and Loss, of the profit for the year ended
on that date, and
(c) 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 (the Order")
issued the Central Government of India in terms of Section 227(4A) 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, the 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, the Statement of Profit and Loss, and the
Cash Flow Statement comply with the Accounting
Standards referred to in section 211(3C) of the Act; e. On the basis of the written
representations received from the directors as on 31 March, 2014, taken on record by the
Board of Directors, none of the directors is disqualified as on 31 March, 2014, from being
appointed as a director in terms of Section 274 (1)(g) of the Act.
|
For KUMAR GROVER & COMPANY |
|
Chartered Accountants |
|
Registration No. 001240N |
| 255, Kailash Hills |
Jyoti Kumar F.C.A. |
| New Delhi 110 065. |
Partner |
| Dated : 23 June, 2014 |
M.No 83720 |
ANNEXURE TO THE AUDITORS REPORT OF EVEN DATE
(Referred to in Paragraph II of our report of even date)
1. In respect of its fixed assets:
a. The Company has maintained proper records showing full 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 year 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. In our
opinion, the Company has not disposed of substantial part of fixed assets during the year
and the 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 year.
Stocks lying with parties and in transit have been verified by the management with
reference to the confirmation/goods subsequently received.
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.
c. The Company has maintained proper records of inventories.
As explained to us discrepancies noticed on physical verification of inventory as
compared to book records were not material and have been properly dealt with in the books
of accounts.
3 In respect of loans, secured or unsecured, granted or taken by the Company to/from
Companies, firms and other parties covered in the register maintained under section 301 of
the Companies Act, 1956.
a. According to the information and explanation given to us the Company has not granted
any loan, secured or unsecured, to any Company, firm, or other party covered in the
register maintained under section 301 of the Act.
b. The Company had not taken any loan during the year. Loan outstanding at close is
Rs.20.00 Lacs, which was the same as at commencement.
c. In our opinion and according to the information and explanation given to us, the
rate of interest and other terms and conditions wherever applicable were not prima facie
prejudicial to the interest of the Company.
d. In respect of loans taken by the Company, the interest payments were regular and the
principal amounts repayable on demand.
e. In respect of loan taken by the Company, the same is repayable on demand and
question of overdue amount does not arise.
4. In our opinion and according to the information and explanation given to us, there
are adequate internal control procedures commensurate with the size of the Company and the
nature of its business for the purchase of inventory, fixed assets and also for the sale
of goods and services. During the course of our audit, we have not observed any major
weaknesses in internal controls.
5. In respect of transactions covered under section 301 of the Companies Act, 1956: a.
In our opinion and according to the information and explanation 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. According to the information and explanation given to us and as certified by
the management, the transaction in pursuance of contracts or arrangement entered in the
register maintained under section 301 of the Companies Act, 1956 aggregating during the
year to Rs.5,00,000/-(Rupees five lacs only) or more in respect of one party have been
made on market prices prevailing at the relevant time. However no verification of such
prices has been made by us.
6. The Company has not accepted any deposits from the public.
7. The Company does not have any separate internal audit department and nor have they
entrusted the work of internal audit to an outside agency.
8. We are of the opinion that prima-facie the cost records as prescribed by the Central
Government under section 209(1)(d) of the Companies Act, 1956 have been maintained. We
have, however, not made a detailed examination of the cost records with a view to
determine whether they are accurate or complete.
9. In respect of statutory dues: a. According to the records of the Company, undisputed
statutory dues including Provident Fund, Investors Education and Protection Fund,
Employees State Insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty,
Excise Duty, Cess and other statutory dues have been generally regularly deposited with
the appropriate authorities. According to the information and explanation given to us,
there were no undisputed amounts in respect of the aforesaid dues which were outstanding
as at 31 March, 2014for a period of more than six months from the date of becoming
payable. b. The disputed statutory dues aggregating to Rs. 55.32 lacs that have not been
deposited on account of matters pending before appropriate authorities are as under:
| Statute |
Tax |
Forum |
Amount |
| Central Excise Act, 1944 |
Excise Duty (Various years) |
Deputy Commissioner of Custom & Excise Noida |
Rs. 28,11,532 |
| Central Excise Act, 1944 |
Excise Duty (Various years) |
High Court, Allahabad |
Rs. 49,376 |
| UP Trade Tax Act 1948 |
Sales Tax Allahabad (2000-01) |
High Court, |
Rs.13,20,000 |
10. The Company has no accumulated losses and has not incurred any cash losses during
the financial year covered by our audit or in the preceding financial year.
11. Based on our audit procedures and according to the information and explanation
given to us, we are of the opinion that the Company has not defaulted in repayment of dues
to financial institutions or banks.
12. In our opinion and according to the information and explanations 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 is not trading in securities, debentures and other investments. Shares
held by the Company are in the nature of Investment. All shares, debentures and
investments have been held by the Company in its own name and proper records are
maintained in respect thereof.
15. The Company has not given guarantees for loans taken by the others from banks or
financial institutions.
16. No term loan was raised during the year. Loans outstanding at commencement were
applied for the purposes for which raised.
17. According to the information and explanations given to us and on an overall
examination of the Balance Sheet of the Company, we are of the opinion that the funds
raised by the Company on short term basis have not been used for long term investment.
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.
20. The Company has not raised any money by way of public issue during the year. Clause
4(xix) of the Companies (Auditors Report) Order 2003 is therefore not applicable to the
Company. .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 KUMAR GROVER & COMPANY |
|
Chartered Accountants |
|
Registration No. 001240N |
| 255, Kailash Hills |
Jyoti Kumar F.C.A. |
| New Delhi 110 065 |
Partner |
| Dated : 23 June, 2014 |
M.No 83720 |
+91-9892691696
