INDEPENDENT AUDITOR
To the Members of
VHCL Industries Limited.
We have audited the accompanying financial statements of VHCL Industries Limited
("the Company"), which comprise the Balance Sheet as at March 31, 2014, and the
Statement of Profit and Loss and Cash Flow Statement for the year then ended, and a
summary of significant accounting policies and other explanatory information.
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.
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 misstatement.
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
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.
We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit 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:
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 Section227 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 Section227(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, subject to Note No: 10 of
the Notes to Accounts.
c) the Balance Sheet, 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, Statement of Profit and Loss and Cash Flow
Statement comply with the Accounting Standards referred to in sub-section(3C) of Section
211 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, 2014, from being appointed as a director in terms of clause (g) of
sub-Section(1) of Section274 of the Companies Act, 1956.
f) Since the Central Government has not issued any notification as to the rate at which
the cess is to be paid under Section 441A of the Companies Act, 1956 nor has it issued any
Rules under the said section, prescribing the manner in which such cess is to be paid, no
cess is due and payable by the Company.
|
For RAKESH R.AGARWAL & ASSOCIATES |
|
Chartered Accountants |
|
FRN 119168W |
|
Sd/- |
|
(RAKESH R.AGARWAL) |
|
Partner |
|
M.NO: 100223 |
| Place : Mumbai |
|
| Date : May 30, 2014 |
|
The Annexure referred to in paragraph 1 of the Our Report of even date to the members
of VHCL Industries Limited on the accounts of the Company for the year ended 31st March,
2014.
On the basis of such checks as we considered appropriate and according to the
information and explanation given to us during the course of our audit, we report that:
1. (a) The Company has maintained proper records showing full particulars including
quantitative details and situation of its fixed assets.
(b) As explained to us, 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) As explained to us, inventories have been physically verified during the year by
the management at reasonable intervals.
(b) In our opinion and according to the information and explanations 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) In our opinion and on the basis of our examination of the records, 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) According to the information and explanations given to us and on the basis of
our examination of the books of account, 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.
(b) According to the information and explanations given to us and on the basis of our
examination of the books of account, the Company has taken loans secured or unsecured from
companies, firms or other parties listed in the register maintained under Section 301 of
the Companies Act, 1956.
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 and
aggregating during the year to Rs. 5,00,000/- (Rs. Five Lacs) or more in respect of each
party has been made at prices which are reasonable having regard to the prevailing market
prices at the relevant time.
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 have 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 not been regularly deposited with the
appropriate authorities. According to the information and explanations given to us there
were outstanding statutory dues as on 31st of March, 2014 for a period of more than six
months from the date they became payable as per detail given below :
| Name of the Statute |
Nature of dues |
Amount (Rs. In Lacs) |
| Income Tax Act, 1961 |
Income Tax (A.Y. 2013-14) |
253.98 |
| Service Tax Act |
Service Tax |
12.11 |
| Central Sales Tax |
CST 2% |
53.29 |
| Income Tax Act, 1961 |
Dividend Tax |
11.99 |
| Income tax Act, 1961 |
Tax Deducted at Source |
8.73 |
(b) According to the information and explanations given to us, there are 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 does not have any accumulated loss and has not 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, the Company has defaulted in repayment of dues to a financial institution,
bank or debenture holders. The Company has defaulted in its obligation for repayment of LC
on maturity to Banks and Financial Institutions.
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 has invested in
shares and proper records & timely entries have been made therein. The Investments
specified are held in their own name.
15. According to the information and explanations given to us, the Company has not
given any guarantees for loan taken by others from a bank or financial institution.
16. Based on our audit procedures and on the information given by the management, we
report that the Company has raised any term loans during the year.
17. Based on the information and explanations given to us and on an overall examination
of the Balance Sheet of the Company as at 31st March, 2014, 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 RAKESH R.AGARWAL & ASSOCIATES |
|
Chartered Accountants |
|
FRN 119168W |
|
Sd/- |
|
(RAKESH R.AGARWAL) |
|
Partner |
|
M.NO:100223 |
| Place : Mumbai |
|
| Date : May 30, 2014 |
|
+91-9892691696
