INDEPENDENT AUDITOR
To,
The Members of TImbor Home Limited Ahmedabad
Report on the Financial Statements
We have audited the accompanying financial statements of TIMBOR HOME LIMITED,
AHMEDABAD. which comprise the Balance Sheet as at March 31,2014 and the statements of
Profit and Loss and cash flow 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 position, financial performance and cash flows of the
Company in accordance with accounting principles generally accepted in India, including
the Accounting Standards referred to in sub-section (3C) of section 211 of the Companies
Act, 1956 ("the Act"),read with the General Circular 15/2013 dated 13th
September, 2013 of the Ministry of Corporate Affairs in respect of Section 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
whetherthe 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
auditorsjudgment, 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, but not for the purpose of expressing an opinion on the
effectiveness of the Companys internal control. 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 subject to audit evidences, which
we have not been able to obtain due to companys disability and have relied on
Managements representation in that cases to form an audit opinion.
Opinion
In our opinion and to the best of our information and according to the explanations
given to us,read with the points stated in theEmphasis of Matter and Qualification and
Notes to accounts of the financial statements, 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 case of the Balance Sheet, of the state of affairs of the Company as at March
31,2014;
And
b) In case of the Statement of Profit and Loss, of the Loss for the year ended on that
date; and
c) In case of the Cash Flow Statement, of the cash flows for the year ended on that
date.
Emphasis of Matter and Qualifications
1. We draw attention to Note No. 32 of the accompanying financial statements in respect
of recovery cases and arbitration matters filed by Creditors and Banks/ NBFCs against the
company and the Note No. 33 of the accompanying financial statements in respect of
internal restructuring of the debts of the company and which may affect the going
concerns concept of the company upon final outcome of the said pending
petitions/arbitration/cases.
2. We draw attention to Note No. 21 of the accompanying financial statements in respect
of third party balance confirmations,grouping & classification, Disclosure of Gross
Amounts, and other related issues, resulting into effect on the results/affairs, as given
in the said Notes.
3. The company is in continuing default in respect of non compilance of provison sec.
383A of the companys act, 1956 in respect of appointment of whole time company secretary
Reporton Other Legal and Regulatory Requirements
1. 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 forthe 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 subsection (3C) of section
211 of the Companies Act, 1956read with the General Circular 15/2013 dated 13th September,
2013 of the Ministry of Corporate Affairs in respect of Section 133 of the Companies Act,
2013.;
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 term 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.
2. 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.
|
For, MOTWANI &AGARWAL |
|
CHARTERED ACCOUNTANTS |
|
KAPILR. TALREJA |
|
PARTNER |
| AHMEDABAD |
FIRMREG.NO. : 127781W |
| DATE :30/5/2014 |
MEMBERSHIPNO.: 146488 |
ANNEXURE TO THE AUDITORS REPORT
Annexure referred to in paragraph 2 of our Auditors Report of even date on the
financial statementsof Timbor Home Limited for the year ended 31st March, 2014
On the basis of such checks as we considered appropriate and in terms of the
information and explanation given to us, we state that:-
1. a) The company is in process of updating the records showing particulars of quantity
and situation of fixed assets.
b) As informed to us, the fixed assets of the company have been physically verified by
the Management at reasonable intervals and no materials discrepancies have been noticed on
such verification.
c) None of the substantial part of fixed assets has been disposed off during the year,
however as informed to us substantial part of Fixed Assets has been lost due to fire at
factory premises. It is informed to us that On 17th August 2013, on account of short
circuit, fire wedgedat Unit I of the Company situated at7, Shubhlaxmi Industrial Estate,
Sarkhej-Bavala Highway. Changodhar - 382213, Ahmedabad, Gujarat due to which a substantial
part of Fixed Assets got burnt and have no realisable value. As per management, estimated
Loss of Fixed Assets as reported by the Surveyor in his Survey / Valuation Report is Rs.
65.22 Lakhs (Net Construction Loss Value) & Rs. 286.84 Lakhs (Net Plant &
Machinary Loss Value). We have relied on the Management representations on the basis of
which we are of the opinion that the company shall be able to continue as a going concern
for the foreseeable future despite the lossof substantial part of fixed assets.
2. a) As informed to us, during the year the management has conducted physical
verification of the inventories, except of the inventories as stated in Note No. 43 and
further in our opinion the frequency of verification is reasonable.
b) In our opinion and according to the information and explanations given to us, the
procedures of physical verification of inventory followed by the management are broadly
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 and on
the basis of our examination of the records of inventory & subject to limited audit
evidences available, the Company seems to be maintaining proper records of inventory. As
informed by management,the 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 account.
3. a) According to the information and explanations given to us, the company has
granted secured or unsecured loans to
1 (ONE) parties covered in the register maintained under Section 301 of the Act. The
maximum amount outstanding during the year was Rs. 3.50 Lakhs and the year end balance of
loans was Rs. 3.50 Lakhs. The rate of interest and the terms of repayment are not
stipulated and other terms and conditions are not prima facie prejudicial to the interest
of the Company. b) According to the information and explanation given to us, the Company
had taken unsecured loan from the 8 (Eight) Parties listed in the register maintained
under Section 301 of the Companies Act, 1956. The maximum amount outstanding during the
year was Rs.795.07 Lacs and the year end balance of loans was Rs.534.09 Lacs. The rate of
interest and the terms of repayment are not stipulated and other terms and conditions are
not prima facie prejudicial to the interest of the Company.
4. In our opinion and according to the information and explanation given to us, there
are generally adequate internal control procedures commensurate with the size of the
Company and the nature of its business with regard to the purchase of inventories and
fixed assets, and with regard to the sale of goods. In our opinion and according to
information and explanation given to us, there is no
continuingfailuretocorrectmajorweakness of such internal control system.
5. a) According to the information and explanations given to us, we are of the opinion
that the particulars of contracts or
arrangements referred to in Section 301 of the Companies Act, 1956, that need to be
entered into the register maintained under Section 301 of the Companies Act, 1956, have
been so entered. b) In respect of transactions with parties with whom transactions
exceeding value of 5 Lacs have been entered into during the financial year, are at the
prices which are reasonable having regard to the prevailing market prices at the relevant
time, except in case of transactions where we are unable to comment owing to the unique
and specialized nature of the items and absence of any comparable prices, whether the
transactions are made at the prevailing market prices at the relevant time or not.
6. In our opinion and according to the information and explanation given to us, the
company has not accepted deposits from the public.
7. The Company does not have proper Internal Audit System. Looking to the size and
nature of its business, we recommend to Audit Committee to strengthen the Internal Audit
system.
8. We have been informed that the Central Government has prescribed maintenance of cost
records under Clause (d) of Subsection (1) of Section 209 of the Companies Act, 1956, and
according to the information and explanation given to us, maintenance of Cost Records of
FY 2013-14 are still in process and Compliance Report will be submitted with in prescribed
time limit. However the Compliance Report for FY 2012-13 has not been submitted yet due to
unavoidable circumstances as informed by the management.
9. a) According to the records of the company and information and explanations given to
us the company is regular in depositing undisputed statutory dues including Provident
Fund, Income Tax, Custom Duty and any other statutory dues wherever applicable with the
appropriate authorities during the year. However at times, the company gets irregular in
depositing the aforesaid undisputed statutory dues. Details of Outstanding Undisputed dues
for over six months as at year end is asunder :- TDS Payable :-Rs. 3.99 Lacs Professional
Tax :-Rs. 3.08 Lacs VAT/CST/Excise Duty:- Rs. 160 Lacs (Approx.) IncomeTax:-Rs. 248.99
Lacs
b) According to the records of the company and information and explanations given to us
there is no disputed statutory dues payable by the company.However, the company has filed
theIncome Tax Returns for Financial Year 2011-12 on 28-032014 and the income tax payable
for the same is Rs. 21813470. It is to be noted that the company has not filed the Income
tax return for the financial year 2012-13.
10. The company has incurred losses during the current year. Accumulated Cash losses
stand to be Rs. 1773.84 Lakhs and Net worth of the company as on the end of financial year
stands to be Rs. 3530.49 Lakhs. So the accumulated losses at the end of the financial year
are more than 50% of thecompanys net worth.
In the current year, thecompany has incurred a cash loss of Rs. 1773.84 Lakhs. While in
the immediately preceeding previous year, company had earned an average profits.
11. Based on our audit procedures and on the information and explanations given by the
management, we are of the opinion that the company has defaulted in repayment of dues
(including interest) to financial institution and banks and as informed to us, details
relating to extent of defaults is not readily available with the company.
12. According to the information and explanation 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.
13. The Company is not achit fun do ranidhi /mutual benefit fundor society.
Thereforeclause4 (xiii) is not applicable to the company.
14. The Company is not dealing or trading in shares or securities, debentures and other
investments. Therefore clause 4(xiv) is not applicable to the Company.
15. According to the information & explanations given to us the Company has not
given guarantee for loans taken by others from banks or financial institutions.
16. According to the Cash Flow Statement and other records examined by us as well as
information and explanations given to us, during theyear under consideration nonewtermloan
has been taken by the company.
17. According to the Cash Flow Statement and other records examined by us as well as
information and explanations given to us on an overall basis, we report that funds raised
on short term basis have not prima-facie been used for long term investment.
18. The Company has not made any preferential allotment of shares to parties or
companies covered in the register maintained under Section 301 of the Companies Act, 1956.
19. The company has not issued any debentures and accordingly, the provisions of clause
4(xix) of the Companies (Auditors Report) Order, 2003 are not applicable to the company.
20. During theyear, the company has not raised any money through a public issue.
21. During the course of our examination of the books of account and records of the
company carried out in accordance with the generally accepted auditing practices in India,
and according to the information and explanation given to us, we have neither come across
any instance of material fraud on or by the Company, noticed or reported during the year,
nor have we been informed of such case by the management.
|
For, MOTWANI & AGARWAL |
|
CHARTERED ACCOUNTANTS |
|
KAPIL R. TALREJA |
|
PARTNER |
| AHMEDABAD |
FIRM REG. NO. : 127781W |
| DATE : 30/5/2014 |
MEMBERSHIP NO. : 146488 |
+91-9892691696
