INDEPENDENT AUDITORS REPORT
To the MEMBERS OF zyden gentec limited
REPORT ON THE FINANCIAL STATEMENTS
We have audited the accompanying financial statements of ZYDEN GENTEC LIMITED which
comprise the Balance Sheet as at 31st March, 2013, and the Statement of Profit & Loss
and Cash Flow Statement for the year then ended, 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 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 required 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 auditors 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 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 &
Loss , of the Loss 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.
Emphasis of the matter
We draw your attention to the following paras stated in Note No.27- other explanatory
information:
- Paras No. 2 and 3 regarding not providing the interest payable in respect of Term
loans and other facilities taken by the company from banks and other financial
institutions who have recalled the Term loans and other facilities due to defaults by the
company; and
- Para No.18 regarding not providing depreciation in respect of building and plant and
machinery of Hyderabad unit due to its being not in operation .
Our opinion is not qualified in respect of these matters.
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 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, 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 31st
March, 2013 and 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 Companies Act, 1956.
For Anand Jain & Co.
Chartered Accountants
FRN: 001857C
Sd/-
Anand Prakash Jain
Proprietor
M. No.: 71045
Place: Jaipur
Dated: 30.05.2013
ANNEXURE TO THE AUDITORS REPORT
(Referred to in Auditors Report of even date on the accounts of Zyden Gentec Limited,
for the year ended 31st March, 2013)
i) a) The Company is maintaining proper records of fixed assets showing full
particulars including quantitative details and situations thereof. However, such records
showing full particulars including quantitative details and situations of certain fixed
assets is being updated.
b) As per information given to us the assets are physically verified by the management
once a year, which in our opinion is reasonable. No material discrepancies were noticed on
such verification carried out during the year.
c) No substantial part of fixed assets have been disposed off during the year.
ii) a) Inventory have been physically verified during the year by the management and in
our opinion the frequency of verification is reasonable.
b) As explained to us, the procedures for physical verification , followed by the
management are, in our opinion, reasonable and adequate in relation to the size of the
Company and the nature of its business.
c) The company is maintaining proper records of inventory and according to the
information and explanations given to us, material discrepancies noticed on physical
verification of the above items referred to in (a) above as compared to book records were
properly dealt with in the books of account.
iii) a) Company has granted unsecured loans to companies covered in the register
maintained under section 301 of the Companies Act, 1956. Number of parties and maximum
amount involved was ONE & Rs 97.19 Lacs respectively. Year end balance was Rs. 93.85
lacs.
b) Rates of interest and other terms and conditions of loans given by the Company,
secured or unsecured, are not prima facie prejudicial to the interest of company; and
c) Receipt of principal and interest is also regular wherever stipulated;
d) There was no over due amount and consequently question of taking reasonable steps
for recovery of principal and interest when overdue amount is more than Rs. One Lac does
not arise.
e) According to the information and explanations given to us, the Company has during
the year taken loan, secured or unsecured, from companies, firms, or other parties covered
in the register maintained under Section 301 of the Companies Act, 1956. Number of parties
and amount involved were THREE(Including parties with opening balance with no transactions
during the year or whose accounts were squared up during the year) and Rs. 56.04 lacs
respectively. Year end balance was Rs.39.43 lacs.
f) Rate of interest and other terms & conditions of loans taken by the Company,
secured or unsecured are not prima facie prejudicial to the interest of the Company and
payment of principal amount and interest is also regular wherever stipulated.
iv) There are generally adequate internal control system commensurate with the size of
the Company and the nature of its business for the purchase of inventory and fixed assets
and for the sale of goods and services. During the course of our audit, no continuing
failure to correct major weakness in internal control system has been noticed.
v) The company has entered particulars of contracts or arrangements referred to in
Section 301 of the Companies Act, 1956 in the register required to be maintained under
that section and for transactions, the value of which exceeds Rupees five lacs in respect
of any party during the period have been made at prices which are reasonable having regard
to the prevailing market prices at the relevant time.
vi) In our opinion and according to the information and explanations given to us, the
Company has not accepted deposits from public, hence question of complying with the
directions issued by the Reserve Bank of India and the provisions of Section 58A and 58AA
or any other relevant provisions of the Companies Act, 1956 and the rules framed there
under in respect of deposits accepted from public does not arise. No order was passed by
company law Board, or National Company Law Tribunal or Reserve Bank of India or under any
Court or any other tribunal and hence question of its compliance does not arise.
vii) The Company has an in-house internal audit system, which in our opinion is
commensurate with the size of the Company and the nature of its business.
viii) We have broadly reviewed the books of accounts maintained by the company pursuant
to the rules made by the Central Government of India, regarding maintenance of cost
records under clause (d) of Sub Section (1) of Section 209 of the Act and are of the
opinion that prima facie the prescribed accounts and records have been maintained. We have
however not made a detailed examination of the records with a view to determine whether
they are accurate or complete.
ix) On the basis of the records produced to us, the company is irregular in depositing
with appropriate authorities undisputed statutory dues of Provident Fund, Employees State
Insurance, TDS and Sales Tax(VAT). To the best of our knowledge and according to the
information and explanations given to us there were arrears of undisputed outstanding
statutory dues as at the last day of the financial year for a period of more than six
months from the date they become payable, of Rs. 284172/- towards PF, Rs. 223000/- towards
ESI, and Rs. 30874/- towards ITDS.
There were following unpaid disputed dues of Income Tax, Sales Tax, Service Tax, Wealth
Tax Custom Tax (Duty), excise duty, and Cess:-- Demand disputed for ESI Rs. 210000/-
Papers as regards authority with whom appeal was filed could not be produced.
x) The Company has brought forward accumulated losses and has incurred cash losses
during the year covered by our audit as well as in the immediately preceding financial
year.
xi) In our opinion the company has defaulted in repayment of dues to financial
institutions and banks .Please refer para 2 19 Annual Report, 2012-2013 and 3 of note
No.27- other explanatory information. Banks and financial institutions have recalled the
loans and facilities.
xii) On the basis of verification of the accounts and records maintained by the company
and as per explanations given to us, the company has not granted any loans and advances on
the basis of security by way of pledge of shares, debentures and other securities.
xiii) The company is not a chit fund company.
xiv) In respect of dealing in shares, securities, debentures & other investments
proper records have been maintained of the transactions and contracts and timely entries
have been made therein. Shares, securities, debentures & other investments as may be
applicable have been held by the Company in its own name.
xv) On the basis of information and explanations given, the Company has not given any
guarantee for loans taken by others from bank or financial institutions and hence question
of terms and conditions thereof being prima facie prejudicial to the interest of the
Company, does not arise.
xvi) In our opinion, the term loans have been applied for the purpose for which they
were raised.
xvii) According to various records examined by us, on an overall basis, funds raised on
short term basis have prima facie, not been used during the year for long term investment.
xviii) According to the information and explanations given to us, the company has not
during the year made any preferential allotment of shares .
xix) The Company has not issued any debentures during the year covered by our audit
report , hence question of creation of security or charge for the same does not arise.
xx) The company has not raised any money by public issue during the year covered by our
audit report, hence question of disclosure of end use of money raised does not arise.
However end use of money raised in previous year by issue of shares on preferential basis
to persons other than promoters has been disclosed and verified by us.
xxi) Based upon the audit procedures performed and information and explanations given
by the management, we report that no fraud on or by the Company has been noticed or
reported during the year ended 31st March 2013.
|
Sd/- |
|
For ANAND JAIN & CO. |
|
Chartered Accountants |
|
FRN: 001857C |
|
ANAND PRAKASH JAIN |
| Place : JAIPUR |
Proprietor |
| Dated : 30th May, 2013 |
M. No. 71045 |
+91-9892691696
