INDEPENDENT AUDITOR
TO,
The Members of
CTR MANUFACTURING INDUSTRIES LIMITED
REPORT ON THE FINANCIAL STATEMENTS
We have audited the accompanying financial statements of CTR MANUFACTURING
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
ended on that date, 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 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
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 procedure 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
consider 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 polices
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. .
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 March
31, 2014
(b) in the case of the Profit and Loss Account 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 by
the Central Government of India in terms of sub-section (4A) of section 227 of the
Companies Act, 1956, 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 it appears from our examination of the books and proper returns adequate
for the purposes of our audit have been received from branches not visited by us ;
c. The balance sheet, profit and loss account dealt with by this report are in
agreement with the books of account and with the returns received from branches not
visited by us;
d. In our opinion, the Balance Sheet, statement of Profit and Loss and Cash Flow
statement dealt with by this report 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 201 4 and taken on record by the Board of Directors, none of the director is
disqualified as on 31st March 2014 from being appointed as a director in terms of clause
(g) of sub-section (1) of section 274 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 and on behalf of
A. A. BHAT&CO
Chartered Accountants
(Firm Reg. No. 101282W)
N.V. BADWE
Partner
Membership No. 31637
Pune, 14 May 2014
ANNEXURE TO THE AUDITORS REPORT
(Referred to in paragraph "Report on other legal and regulatory requirement"
of our report of even date)
(i) In respect of its fixed assets:
(a) The Company has maintained proper records showing full particulars, including
quantitative details and situation of fixed assets.
(b) As explained to us the fixed assets were physically verified during the year by the
management in accordance with a program of verification, covering all fixed assets, which
in our opinion provides for physical verification of all the fixed assets at reasonable
intervals. According to the information and explanations given to us, no material
discrepancies were noticed on such verification.
(ii) In respect of its inventories:
(a) As explained to us, inventories were 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 were
reasonable and adequate in relation to the size of the Company and the nature of its
business.
(c) In our opinion and according to the information and explanations given to us, the
Company has maintained proper records of its inventories and no material discrepancies
were noticed on physical verification.
(iii) The Company has not granted or taken any loans, secured or unsecured to/from
Companies, firms or other parties covered in the register maintained under Section 301 of
the Companies Act, 1956. Sub Clause (b), (c), (d) are not applicable.
(iv) In our opinion and according to the information and explanations 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 and fixed assets and for the
sale of goods and services.
(v) In respect of transactions entered in the register maintained in pursuance of
section 301 of the Companies Act, 1956:
(a) To the best of our knowledge and belief and according to the information and
explanations given to us, transactions that needed to be entered into the register have
been so entered.
(b) According to the information and explanations given to us, where each of such
transactions is in excess of Rs 5.00 Lakhs in respect of any party, the transactions have
been made at prices which are prima facie reasonable having regard to the prevailing
market prices at the relevant time.
(vi) According to the information and explanations given to us the Company has not
accepted any deposits from public.
(vii) In our opinion, the company has an internal audit system, which is commensurate
with its size and nature of its business.
(viii) Central Government has prescribed maintenance of cost records by the Company
under section 209(1) (d) of the Companies Act, 1956 for the products of the Company. Cost
Audit has been made mandatory for the Company w.e.f. 1.4.2012 and the same is under
progress.
(ix) According to the records and information and explanations given to us in respect
of the Statutory and other dues:
(a) The Company is regular in depositing undisputed statutory dues, including Provident
Fund, Employees State Insurance, Income Tax, Sales Tax, Customs Duty, Excise Duty, Cess,
Service Tax, Wealth Tax and any other statutory dues with the appropriate authorities
during the year. According to the information and explanation given to us, there are no
arrears of Statutory dues outstanding as on 31st March 2014 for a period more than six
months from the date they became payable.
(b) According to the records of the Company, the net dues outstanding of Income Tax,
Sales Tax, Wealth Tax, Service Tax, Customs duty, Excise Duty and cess on account of any
dispute are as follows:
| Sr Nr. Name of Statute |
Financial Period for which the amount relates |
Forum where dispute is pending |
Amount |
| 1 Income Tax |
2006-07 |
High Court |
4.50 |
| 2 Sales Tax |
2002-03 |
Appellate Authority |
6.34 |
| 3 Sales Tax |
2008-09 |
Appellate Authority |
277.60 |
(x) The company does not have accumulated losses as at the end of the year and the
Company has not incurred cash losses during the current and the immediately preceding
financial year.
(xi) Based on our audit procedures and on the basis of information and explanations
given by the management, we are of the opinion that the Company has not defaulted in the
repayment of dues to financial institutions and banks.
(xii) The Company is not a chit / nidhi / mutual benefit fund / society and as such
this clause of order is not applicable.
(xiii) The Company is not trading in shares, securities, debentures and other
investments; as such this clause is not applicable.
(xiv) According to the information and explanations given to us, the Company has not
granted loans or advances on the basis of security by way of pledge of shares, debentures
and other securities.
(xv) According to the information and explanations given to us, the Company has not
given any guarantee for loans taken by others from banks or financial institutions.
(xvi) The term loans are utilized for the purposes for which the loans were obtained.
(xvii) According to the information and explanations given to us, funds raised on
short-term basis have, prima facie, not been used during the year for long-term
investment.
(xviii) 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,
during the year and hence the question of whether the price at which shares have been
issued is prejudicial to the interest of the Company does not arise.
(xix) According to the information and explanations given to us and the records
examined by us, the Company has not made any debenture issue.
(xx) The Company has not raised monies by public issues during the year and hence the
question of disclosure and verification of end use of such monies does not arise.
(xxi) To the best of our knowledge and belief and according to the information and
explanations given to us, no fraud on or by the Company was noticed or reported during the
year.
For and on behalf of
A. A. BHAT & CO.
Chartered Accountants
(Firm Reg. No. 101282W)
N. V. BADWE
Partner
Membership No. 31637
Pune, 14 May 2014
+91-9892691696
