Mar 31, 2016
To
The Members of
ABC Bearings Limited
Report on the Financial Statements
We have audited the accompanying financial statements of ABC Bearings Limited (âthe Companyâ), which comprise the Balance Sheet as at 31st March, 2016, the Statement of Profit and Loss, the Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information.
Managementâs Responsibility for the Financial Statements
The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to 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 the Accounting Standards specified under Section 133 of the Act, read with the Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate Accounting records in accordance with the provision of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgment and estimates that are reasonable and prudent; and design; implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, 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.
Auditorâs Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit.
We have taken into account the provision of the Act , the accounting and auditing standards and matters which are required to be included in the audit report under the provision of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. 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 the disclosures in the financial statements. The procedures selected depend on the auditorâs 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 financial control relevant to the Companyâs preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Companyâs Directors, 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 on the financial statements.
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, of the state of affairs of the Company as at 31st March, 2016, and its profit and its cash flows for the year ended on that date.
Report on other Legal and Regulatory Requirements
1. As required by the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ) issued by the Central Government of India in terms of sub-section (11) of Section 143 of the Act, we give in the Annexure I a statement on the matters specified in the paragraph 3 and 4 of the Order.
2. As required by Section 143(3) of the Act, we report that:
a. We have sought and 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 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 aforesaid financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
e. On the basis of the written representations received from the directors as on 31st March, 2016 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2016, from being appointed as a director in terms of Section 164 (2) of the Act.
f. With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate report in âAnnexure II â; and
g. With respect to the other matters to be included in the Auditorâs Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
I. The Company has disclosed the impact of pending litigations on its financial position in the financial statements (refer note 26 (ii) & (iii) to the financial statements).
II. The Company did not have any long term contracts including derivative contracts for which there were any material foreseeable losses.
III. There has been no delay in transferring amounts required to be transferred to the Investor Education and Protection Fund by the Company.
ANNEXURE- I ABC Bearings Limited
ANNEXURE TO INDEPENDENT AUDITORSâ REPORT ON THE ACCOUNTS FOR THE YEAR ENDED 31ST MARCH, 2016
1. a) The Company has maintained proper records showing full particulars including quantitative details and situation of all its fixed assets.
b) We are informed that the Company has a regular programme of physical verification of its fixed assets in a phased manner over a period of three years. Accordingly, the physical verification of part of the fixed assets has been carried out by the Management during the year and no material discrepancies have been noticed on such verification.
c) According to the information and explanation given to us and on the basis of examination of the records, the title deeds of immovable properties are held in the name of the Company.
2. The inventory has been physically verified at reasonable intervals during the year by the Management except stocks with third parties for which confirmations are obtained. The discrepancies noticed on physical verification, between physical stocks and books records, were not material in relation to the operations of the Company and have been properly dealt with in the books of accounts.
3. The Company has not granted any loans, secured or unsecured to companies, firms or other parties covered in the register maintained under Section 189 of the Companies Act, 2013.
4. The Company has not advanced any loan or given guarantee and made any investment in terms of Section 185 and 186 respectively of the Companies Act, 2013, accordingly clause 3(iv) of the Order is not applicable to the Company.
5. In our opinion and according to the information and explanations given to us, the Company has not accepted any deposit during the year in terms of provision of Section 73 to 76 or any other relevant provision of the Companies Act, 2013 and the rules framed there under. According to the information and explanations given to us, no order has been passed by the Company Law Board or the National Company Law Tribunal or the Reserve Bank of India or any Court or any other Tribunal.
6. We have broadly reviewed the books of Accounts maintained by the Company pursuant to the Order made by the Central Government for the maintenance of cost records under Section 148(1) of the Companies Act, 2013 and are of the opinion that prima facie the prescribed accounts and records have been maintained. We have not, however, made a detailed examination of the records with a view to determining whether they are accurate or complete.
7. a) On the basis of our examination of the books of accounts and other relevant records, the Company has been generally
regular in depositing with appropriate authorities undisputed statutory dues including provident fund, income tax, sales tax, service tax, custom duty, value added tax, excise duty, cess and other material statutory dues applicable to it and no such dues were outstanding as at 31-03-2016 for a period of more than six months from the date they became payable.
b) According to information and explanation given to us the disputed dues in respect of Sales Tax, Excise Duty, Service Tax and Income Tax that have not been deposited by the Company are as follows:
Name of Statute |
Nature of Dues |
Amount (Rs. in lacs) |
Period to which it relates |
Forum where the dispute is pending |
Financial Year |
||||
State and Central Sales Tax Acts |
Sales Tax |
1.98 |
2000-01 |
Jt. Commissioner of Sales Tax (Appeal) Worli Division, Mumbai |
The Central Excise Act, 1944 |
Excise Duty |
3.08 6.56 |
1998-99 2011-12 |
CEGAT, Commissioner, Mumbai Commissioner (Appeal) Central Excise, Vadodara II |
The Finance Act, 1994 |
Service Tax |
1.74 0.43 5.23 2.89 0.56 1.36 184.49 34.62 |
2008-09 2010-11 2011-12 2012-13 2013-14 September, 2009 to May, 2014 June, 2014 to March, 2015 |
CESTAT - Ahmedabad Commissioner (Appeal), Vadodara-II CESTAT - Ahmedabad Commissioner (Appeal), Vadodara-II CESTAT - Ahmedabad Commissioner (Appeal), Vadodara-II |
Income Tax Act, 1961 |
Income Tax Income Tax Income Tax Income Tax Income Tax Income Tax Income Tax |
26.93 16.55 16.381 14.16 J 9.37 7.76 4.69 |
Assessment Year 2006-07 2006-07 2009-10 2011-12 2012-13 2013-14 |
High Court of Mumbai ITAT, Mumbai. ITAT, Mumbai CIT (Appeals), Mumbai. CIT (Appeals), Mumbai. CIT (Appeals), Mumbai. |
8. According to the records of the Company examined by us and on the basis of information and explanations given to us, the Company has not defaulted in repayment of dues to banks during the year. The Company has not taken any loans or borrowings from financial institution and government or by issue of debentures.
9. The term loans have been applied for the purpose for which they were obtained. No moneys are raised by way of initial public offer or further public offer (including debt instruments).
10. On the basis of examination of books of accounts and other relevant records in the course of our audit and information and explanation given to us, no fraud by the Company or on the Company by its officers or employees has been noticed or reported during the year.
11. According to information and explanation given to us and based on our examination of the records of the Company, the managerial remuneration has been paid/provided in accordance with the requisite approval mandated by the provisions of Section 197 read with Schedule V of the Companies Act, 2013.
12. The Company is not a Nidhi Company, accordingly the requirement of Clause 3 (xii) of the Order is not applicable.
13. According to the records of the Company examined by us and on the basis of information and explanations given, the transaction with related parties during the year are in compliance with provision of Section 177 of the Companies Act, 2013 and requisite disclosure has been made in the Financial Statements as required by the applicable accounting standard. There are no transactions with related parties in terms of provisions of Section 188 of the Companies Act, 2013.
14. The Company has not raised any money by preferential allotment or private placement of Shares or by issue of fully or partly Convertible debentures during the year under review, accordingly Clause 3(xiv) of the Order is not applicable.
15. According to information and explanation given to us and based on our examination of the records of the company, the Company has not entered into non-cash transactions with directors or persons connected with them. Accordingly, Clause 3(xv) of the Order is not applicable.
16. The Company is not required to be registered under Section 45 - IA of the Reserve Bank of India Act, 1934.
ANNEXURE - II ABC Bearings Limited
Annexure to Independent Auditorsâ Report on the accounts for the year ended 31st March, 2016
Report on the Internal Financial Controls under Clause (i) of Sub-Section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
We have audited the internal financial controls over financial reporting of ABC Bearings Limited (âthe Companyâ) as of 31st March, 2016 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
The Companyâs management is responsible for ensuring that adequate internal financial controls systems is operational as stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India (âICAIâ). These responsibilities include implementation of policies and procedures adopted by the Company for ensuring the orderly and efficient conduct of its business, including adherence to companyâs policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditorsâ Responsibility
Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the âGuidance Noteâ) and the Standards on Auditing, issued by ICAI, to the extent applicable to an audit of internal financial controls. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Companyâs internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A company''s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company''s internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company''s assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31st March, 2016, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
For PARIKH & SHAH
Chartered Accountants
Firmâs Registration No. 107528W
Place : Mumbai
H.K. Desai
Date : 10th May, 2016. Partner
Membership No.13719
Mar 31, 2015
We have audited the accompanying financial statements of ABC Bearings
Limited ("the Company"), which comprise the Balance Sheet as at
31st March, 2015, the Statement of Profit and Loss, the Cash Flow
Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
The Company's Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 with respect to 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 the Accounting Standards specified under
Section 133 of the Act, read with the Rule 7 of the Companies
(Accounts) Rules, 2014. This responsibility also includes maintenance
of adequate Accounting records in accordance with the provision of the
Act for safeguarding of the assets of the Company and for preventing
and detecting frauds and other irregularities; selection and
application of appropriate accounting policies; making judgement and
estimates that are reasonable and prudent; and design, implementation
and maintenance of adequate internal financial controls, that were
operating effectively for ensuring the accuracy and completeness of the
accounting records, 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.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit.
We have taken into account the provision of the Act, the accounting and
auditing standards and matters which are required to be included in the
audit report under the provision of the Act and the Rules made
thereunder.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. 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 the disclosures in the financial statements. The
procedures selected depend on the auditor's 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 financial control relevant
to the Company's preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances but not for the purpose of expressing
an opinion on whether the Company has in place an adequate internal
financial controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company's Directors, 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 on the financial
statements.
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, of the state of affairs of the Company as
at 31st March, 2015, its profit and its cash flows for the year ended
on that date .
Report on other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2015
("the Order") issued by the Central Government of India in terms of
sub-section (11) of Section 143 of the Act, we give in the Annexure a
statement on the matters specified in the paragraph 3 and 4 of the
Order.
2. As required by Section 143(3) of the Act, we report that:
a. We have sought and 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 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 aforesaid financial statements comply with the
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014.
e. On the basis of the written representations received from the
directors as on 31st March, 2015 taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March,
2015, from being appointed as a director in terms of Section 164 (2) of
the Act.
f. With respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us:
i The company has disclosed the impact of pending litigations on its
financial position in the financial statements (refer note 26 (ii) &
(iii) to the financial statements).
ii The company did not have any long term contracts including
derivative contracts for which there were any material foreseeable
losses.
iii There has been no delay in transferring amounts required to be
transferred to the Investor Education and Protection Fund by the
Company.
ANNEXURE TO INDEPENDENT AUDITORS' REPORT ON THE ACCOUNTS FOR THE YEAR
ENDED 31ST MARCH, 2015
1. a) The Company has maintained proper records showing full
particulars including quantitative details and situation of all its
fixed assets.
b) We are informed that the Company has a regular programme of physical
verification of its fixed assets in a phased manner over a period of
three years. Accordingly, the physical verification of part of the
fixed assets has been carried out by the Management during the year and
no material discrepancies have been noticed on such verification.
2. a) The inventory has been physically verified at reasonable
intervals during the year by the Management except stocks with third
parties for which confirmations are obtained.
b) In our opinion the procedures of physical verification 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 inventory. The
discrepancies noticed on physical verification, between physical stocks
and books records, were not material in relation to the operations of
the company and have been properly dealt with in the books of account.
3. The Company has not granted any loans, secured or unsecured to
companies, firms or other parties covered in the register maintained
under Section 189 of the Companies Act, 2013.
4. According to the information and explanations given to us, there
are, in our opinion, adequate internal control systems commensurate
with the size of the Company and nature of the business for the
purchase of inventory, fixed assets and for sale of goods. No major
weaknesses are noticed in the course of our audit in this behalf.
5. In our opinion and according to the information and explanations
given to us, the Company has complied with the provisions of Section 74
of the Companies Act, 2013 and rules framed thereunder with regard to
the deposits accepted prior to the commencement of the Companies Act,
2013. According to the information and explanations given to us, no
order has been passed by the Company Law Board or the National Company
Law Tribunal or the Reserve Bank of India or any Court or any other
Tribunal.
6. We have broadly reviewed the books of Accounts maintained by the
Company pursuant to the order made by the Central Government for the
maintenance of cost records under Section 148(1) of the Companies Act,
2013 and are of the opinion that prima facie the prescribed accounts
and records have been maintained. We have not, however, made a detailed
examination of the records with a view to determining whether they are
accurate or complete.
7. a) On the basis of our examination of the books of account and other
relevant records, the company has been generally regular in depositing
with appropriate authorities undisputed statutory dues including
provident fund, income tax, sales tax, wealth tax, service tax, custom
duty, value added tax, excise duty, cess and other material statutory
dues applicable to it and no such dues were outstanding as at 31-03-2015
for a period of more than six months from the date they become payable.
b) According to information and explanation given to us the disputed
dues in respect of Sales Tax, Excise duty, Service Tax and Income Tax
that have not been deposited by the company are as follows:
Name of Statute Nature of Dues Amount Period to which it relates
State and Central Sales Tax 1.98 2000-01
Sales Tax Acts
The Central Excise Excise Duty 3.08 1998-99
Act, 1944
6.56 2011-12
The Finance Act, Service Tax 1.74 2008-09
1994 0.43 2008-09
5.23 2010-11
2.89 2011-12
0.56 2012-13
1.36 2013-14
Assessment Year
Income Tax Act, Income Tax 26.93 2006-07
1961
Income Tax 16.55 2006-07
Income Tax 4.81 2008-09
Income Tax 16.38 2009-10
Income Tax 14.16 2009-10
Income Tax 9.37 2011-12
Income Tax 7.76 2012-13
Name of Statute Forum where the dispute is pending
State and Central Jt. Commissioner of Sales Tax (Appeal) Worli
Sales Tax Acts Division, Mumbai
The Central Excise CEGAT, Commissioner, Mumbai
Act, 1944 Commissioner (Appeal) Central Excise, Vadodara
The Finance Act,1994 Commissioner (Appeal), Central Excise, Vadodara
Income Tax Act, 1961 High Court of Mumbai
CIT (Appeals), Mumbai
ITAT, Mumbai
CIT (Appeals), Mumbai.
CIT (Appeals), Mumbai.
c) On the basis of our examination of the books of account and other
relevant records, the amounts which were required to be transferred to
the investor education and protection fund in accordance with the
relevant provisions of the Companies Act,1956 (1 of 1956) and rules
there under have been transferred to such fund within time.
8. The Company does not have any accumulated losses at the end of the
financial year and has not incurred cash losses in the financial year
covered by our audit and the immediately preceding financial year.
9. According to the records of the Company examined by us and on the
basis of information and explanations given to us, the Company has not
defaulted in repayment of dues to banks during the year. The company
has not taken any loans from financial institution and has not issued
debenture.
10. 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 institution.
11. The term loans have been applied for the purpose for which they
were obtained.
12. On the basis of examination of books of account and other relevant
records in the course of our audit and information and explanation
given to us no fraud on or by the company has been noticed or reported
during the year.
For PARIKH & SHAH
Chartered Accountants
Firm's Registration No. 107528W
Place : Mumbai H.K. Desai
Date : 5th May, 2015 Partner
Membership No.13719
Mar 31, 2014
We have audited the accompanying financial statements of ABC Bearings
Limited ("the Company"), which comprise the Balance Sheet as at 31st
March, 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''s 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") read with General Circular
15/2013 dated 13 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.
Auditor''s 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 procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The
procedures selected depend on the auditor''s 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
Company''s 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 entity''s 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.
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 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 (Auditor''s 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 read with
General Circular 15/2013 dated 13thSeptember, 2013, issued by 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 31st March, 2014, and taken on record by the Board of Directors,
none of the directors 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.
ANNEXURE TO AUDITORS'' REPORT ON THE ACCOUNTS FOR THE YEAR ENDED 31ST
MARCH 2014
1. a) The Company has maintained proper records showing full
particulars including quantitative details and location of all its fixed
assets.
b) We are informed that the Company has a regular programme of physical
verification of its fixed assets in a phased manner over a period of
three years. Accordingly, the physical verification of part of the fixed
assets has been carried out by the Management during the year and no
material discrepancies have been noticed on such verification.
c) Fixed assets disposed off during the year were not substantial and
therefore do not affect the going concern status of the Company.
2. a) The inventory has been physically verified at reasonable
intervals during the year by the Management except stocks with third
parties for which confirmations are obtained.
b) In our opinion the procedures of physical verification 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 inventory. The
discrepancies noticed on physical verification, between physical stocks
and books records, were not material in relation to the operations of
the Company and have been properly dealt with in the books of account.
3. a) The Company has not granted any loans, secured or unsecured to
companies, firms or other parties covered in the register maintained
under Section 301 of the Companies Act, 1956.
b) The Company has not taken any loans, secured or unsecured from
companies, firms or other parties covered in the register maintained
under Section 301 of the Companies Act, 1956.
4. According to the information and explanations given to us, there
are, in our opinion, adequate internal control systems commensurate
with the size of the Company and nature of the business for the
purchase of inventory, fixed assets and for sale of goods. No major
weaknesses are noticed in the course of our audit in this behalf.
5. In our opinion, and according to the information and explanations
given to us, there are no contracts and arrangements the particulars of
which need to be entered into the register maintained under Section 301
of the Companies Act, 1956.
6. In our opinion and according to the information and explanations
given to us, the Company has complied with the provisions of Sections
58A and 58AA or any other relevant provisions of the Companies Act,
1956 and the Companies (Acceptance of Deposits) Rules, 1975 with regard
to the deposits accepted from the public. According to the information
and explanations given to us, no order has been passed by the Company
Law Board or the National Company Law Tribunal or the Reserve Bank of
India or any Court or any other Tribunal.
7. In our opinion the Company has an internal audit system
commensurate with the size and nature of its business.
8. We have broadly reviewed the books of Accounts maintained by the
Company pursuant to the Order made by the Central Government for the
maintenance of cost records under Section 209(1)(d) of the Companies
Act, 1956 and are of the opinion that prima facie the prescribed
accounts and records have been maintained. We have not, however, made a
detailed examination of the records with a view to determining whether
they are accurate or complete.
9. a) On the basis of our examination of the books of account and
other relevant records, the Company has been generally regular in
depositing with appropriate authorities undisputed statutory dues
including provident fund, investor education and protection fund,
income-tax, sales-tax, wealth-tax, service tax, custom duty,
excise-duty, cess and other material statutory dues applicable to it
and no such dues were outstanding as at 31-03-2014 for a period of more
than six months from the date they become payable.
b) According to information and explanation given to us the disputed
dues in respect of Sales Tax, Excise duty, Service Tax and Income tax
that have not been deposited by the Company are as follows:
Name of Statute Nature of Amount Period to which
Dues (Rs. in lacs) it relates
Financial Year
State and Central Sales Tax 1.98 2000-01
Sales Tax Acts
14.13 2001-02
The Central Excise Excise Duty 3.08 1998-99
Act, 1944
6.56 2011-12
The Finance Act,
1994 Service Tax 1.74 2008-09
0.43 2008-09
5.23 2010-11
2.89 2011-12
0.56 2013-14
1.36 2013-14
Assessment
Year
Income Tax Act,
1961 Income Tax 8.74 2005-06
Fringe
Benefit 0.58 2006-07
Tax
Income
Tax 26.93 2006-07
Income
Tax 16.55 2006-07
Income
Tax 4.81 2008-09
Income
Tax 16.38 2009-10
14.16 2009-10
Income
Tax 9.37 2011-12
Name of Statue Forum where the dispute is pending
State and Central Jt. Commissioner of Sales Tax (Appeal)
Sales Tax Acts World Division, Mumbai
Jt. Commissioner of Sales Tax Appeal,
World Division, Mumbai.
The Central Excise CEGAT, Commissioner, Mumbai
Act, 1944
Commissioner (Appeal) Central Excise, Vadodara
The Finance Act,1994 Commissioner (Appeal),Central Excise, Vadodara.
Commissioner (Appeal),Central Excise, Vadodara
Commissioner (Appeal),Central Excise, Vadodara
Commissioner (Appeal),Central Excise, Vadodara.
Commissioner (Appeal),Central Excise, Vadodara.
Commissioner (Appeal),Central Excise, Vadodara.
Income Tax Act,1961 Appeal order effects of CIT (A)/ITAT
are pending.
Appeal order effects of CIT (A)/ITAT
are pending.
High Court of Mumbai
CIT (Appeals), Mumbai
ITAT, Mumbai.
CIT (Appeals), Mumbai.
ITAT, Mumbai
CIT (Appeals), Mumbai.
10. The Company does not have any accumulated losses at the end of the
financial year and has not incurred cash losses in the financial year
covered by our audit and the immediately preceding financial year.
11. According to the records of the Company examined by us and on the
basis of information and explanations given to us, the Company has not
defaulted in repayment of dues to banks during the year. The Company
has not taken any loans from financial institutions and has not issued
debentures during the year.
12. As the Company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities
clause 4(xii) of the Order is not applicable.
13. The Company is not a chit fund/nidhi/mutual benefit fund/society.
Accordingly, the provisions of the clause 4(xiii) of the Order are not
applicable.
14. As the Company is not dealing or trading in shares, securities,
debentures and other investments, Paragraph 4(xiv) of the Order is not
applicable.
15. 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.
16. The term loans have been applied for the purpose for which they
were obtained.
17. On the basis of examination of the Accounts and as per information
and explanation given in our opinion the funds raised on short term
basis have prima facie not been used for long term investments.
18. The Company has not made any preferential allotment of shares to
any parties and companies covered under the register maintained u/s.301
of the Companies Act, 1956 during the year.
19. No security or charge is required to be created since the company
has not issued any Debentures.
20. The Company has not raised any money by public issue during the
year.
21. On the basis of examination of books of account and other relevant
records in the course of our audit and information and explanation
given to us no fraud on or by the Company has been noticed or reported
during the year.
For PARIKH & SHAH
Chartered Accountants
Firm''s Registration No. 107528W
Place : Mumbai H.K. Desai
Date : 9th May, 2014 Partner
Membership No.13719
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying fi nancial statements of ABC Bearings
Limited ("the Company"), which comprise the Balance Sheet as at 31st
March, 2013, and the Statement of Profi t and Loss and Cash Flow
Statement for the year then ended, and a summary of signifi cant
accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these fi nancial
statements that give a true and fair view of the fi nancial position,
fi nancial performance and cash fl ows 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 fi nancial
statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these fi nancial
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 fi nancial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the fi nancial statements. The
procedures selected depend on the auditor''s judgment, including the
assessment of the risks of material misstatement of the fi nancial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the
Company''s preparation and fair presentation of the fi nancial
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 fi nancial statements.
We believe that the audit evidence we have obtained is suffi cient 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 fi nancial 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, 2013;
(b) in the case of the Statement of Profi t and Loss, of the profi t
for the year ended on that date; and
(c) in the case of the Cash Flow Statement, of the cash fl ows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s 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 specifi ed 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 Profi t 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 Profi t and Loss,
and Cash Flow Statement comply with the Accounting Standards referred
to in subsection (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 disqualifi ed 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.
ANNEXURE TO AUDITORS'' REPORT ON THE ACCOUNTS FOR THE YEAR ENDED 31ST
MARCH 2013
1. a) The Company has maintained proper records showing full
particulars including quantitative details and location of all its fi
xed assets.
b) We are informed that the Company has a regular programme of physical
verifi cation of all the fi xed assets in a phased manner over a period
of three years. Accordingly, the physical verifi cation of part of the
fi xed assets has been carried out by the Management during the year
and no material discrepancies have been noticed on such verifi cation.
c) Fixed assets disposed off during the year were not substantial and
therefore do not affect the going concern status of the Company.
2 a) The inventory has been physically verifi ed at reasonable
intervals during the year by the Management except stocks with third
parties for which confi rmations are obtained.
b) In our opinion the procedures of physical verifi cation 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 inventory. The
discrepancies noticed on physical verifi cation, between physical
stocks and books records, were not material in relation to the
operations of the company and have been properly dealt with in the
books of account.
3 a) The Company has not granted any loans, secured or unsecured to
companies, fi rms or other parties covered in the register maintained
under Section 301 of the Companies Act, 1956.
b) The Company has not taken any loans, secured or unsecured from
companies, fi rms or other parties covered in the register maintained
under Section 301 of the Companies Act, 1956.
4 According to the information and explanations given to us, there are,
in our opinion, adequate internal control systems commensurate with the
size of the Company and nature of the business for the purchase of
inventory, fi xed assets and for sale of goods. No major weaknesses are
noticed in the course of our audit in this behalf.
5 In our opinion, and according to the information and explanations
given to us, there are no contracts and arrangements the particulars of
which need to be entered into the register maintained under Section 301
of the Companies Act, 1956.
6 In our opinion and according to the information and explanations
given to us, the Company has complied with the provisions of Sections
58A and 58AA or any other relevant provisions of the Companies Act,
1956 and the Companies (Acceptance of Deposits) Rules, 1975 with regard
to the deposits accepted from the public. According to the information
and explanations given to us, no order has been passed by the Company
Law Board or the National Company Law Tribunal or the Reserve Bank of
India or any Court or any other Tribunal.
7 In our opinion the Company has an internal audit system commensurate
with the size and nature of its business.
8 We have broadly reviewed the books of Accounts maintained by the
Company pursuant to the order made by the Central Government for the
maintenance of cost records under Section 209(1)(d) of the Companies
Act, 1956 and are of the opinion that prima facie the prescribed
accounts and records have been maintained. We have not, however, made a
detailed examination of the records with a view to determining whether
they are accurate or complete.
9 a) On the basis of our examination of the books of account and other
relevant records, the Company has been generally regular in depositing
with appropriate authorities undisputed statutory dues including
provident fund, investor education and protection fund, income-tax,
sales-tax, wealth-tax, service tax, custom duty, excise-duty, cess and
other material statutory dues applicable to it and no such dues were
outstanding as at 31-03-2013 for a period of more than six months from
the date they become payable.
11. According to the records of the Company examined by us and on the
basis of information and explanations given to us, the Company has not
defaulted in repayment of dues to banks during the year. The Company
has not taken any loans from fi nancial institutions and has not issued
debentures during the year.
12. As the Company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities
clause 4(xii) of the Order is not applicable.
13. The Company is not a chit fund/nidhi/mutual benefi t fund/society.
Accordingly the provisions of the clause 4(xiii) of the Order are not
applicable.
14. As the Company is not dealing or trading in shares, securities,
debentures and other investments, paragraph 4(xiv) of the Order is not
applicable.
15. According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks or fi nancial institutions.
16. The term loans have been applied for the purpose for which they
were obtained.
17. On the basis of examination of the Accounts and as per information
and explanation given in our opinion the funds raised on short term
basis have prima facie not been used for long term investments.
18. The Company has not made any preferential allotment of shares to
any parties and companies covered under the register maintained u/s.301
of the Companies Act, 1956 during the year.
19. No security or charge is required to be created since the company
has not issued any Debentures.
20. The Company has not raised any money by public issue during the
year.
21. On the basis of examination of books of account and other relevant
records in the course of our audit and information and explanation
given to us no fraud on or by the Company has been noticed or reported
during the year.
For PARIKH & SHAH
Chartered Accountants
Firm''s Registration No. 107528W
H.K. Desai
Place: Mumbai, Partner
Date: 14th May, 2013 Membership No.13719
Mar 31, 2012
We have audited the attached Balance Sheet of ABC Bearings Limited as
at 31st March, 2012 and the Statement of Profit and Loss and the Cash
Flow Statement for the year ended on that date annexed thereto. These
financial statements are the responsibility of the Company's
management. Our responsibility is to express an opinion on these
financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally
accepted in India, which requires that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are
free of material misstatement. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the financial
statements, and also includes assessing the accounting principles used
and significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our audit
provides a reasonable basis for our opinion.
As required by the Companies (Auditor's Report) Order, 2003 issued by
the Central Government of India in terms of Sub- section (4A) of
section 227 of the Companies Act, 1956 and on the basis of such checks
of books and records of the Company as considered appropriate and as
per the information and explanations given to us, we enclose in the
Annexure a statement on the matters specified in paragraphs 4 and 5 of
the said Order.
Further to our comments in the Annexure referred to above, we report
that:
1. 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;
2. 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;
3. 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 of the Company;
4. 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;
5. In our opinion and to the best of our information and according to
the explanations given to us, they said accounts read with the notes
thereon give the information required by the Companies Act, 1956 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, 2012;
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 Cash Flow Statement, of the cash flows for the year
ended on that date.
6. on the basis of written representations received from the Directors
and taken on record by the Board of Directors, we report that none of
the Directors is disqualified as on 31st March, 2012 from being
appointed as a Director in terms of Section 274(1)(g) of the Companies
Act, 1956;
Re: ABC Bearings Limited
ANNEXURE TO AUDITORS REPORT ON THE ACCOUNTS FOR THE YEAR ENDED 31st
MARCH 2012
1. a) The Company has maintained proper records showing full
particulars including quantitative details and location of all its
fixed assets.
b) We are informed that the Company has programme of physical
verification of all the fixed assets over a period of two years.
Accordingly, the physical verification of part of the fixed assets has
been carried out by the Management during the year and no material
discrepancies have been noticed on such verification.
c) Fixed assets disposed off during the year were not substantial and
therefore do not affect the going concern status of the Company.
2 a) The inventory has been physically verified at reasonable intervals
during the year by the Management except stocks with third parties for
which confirmations are obtained.
b) In our opinion the procedures of physical verification 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 inventory. The
discrepancies noticed on physical verification, between physical stocks
and books records, were not material in relation to the operations of
the company and have been properly dealt with in the books of account.
3 a) The Company has not granted any loans, secured or unsecured to
companies, firms or other parties covered in the register maintained
under Section 301 of the Companies Act, 1956.
b) The Company has not taken unsecured loans secured or unsecured from
companies, firms or other parties covered in the register maintained
under Section 301 of the Companies Act, 1956.
4 According to the information and explanations given to us, there are,
in our opinion, adequate internal control systems commensurate with the
size of the Company and nature of the business for the purchase of
inventory, fixed assets and for sale of goods. No major weaknesses are
noticed in the course of our audit in this behalf.
5 In our opinion, and according to the information and explanations
given to us, there are no contracts and arrangements the particulars of
which need to be entered into the register maintained under Section 301
of the Companies Act, 1956.
6 In our opinion and according to the information and explanations
given to us, the Company has complied with the provisions of Sections
58A and 58AA or any other relevant provisions of the Companies Act,
1956 and the Companies (Acceptance of Deposits) Rules, 1975 with regard
to the deposits accepted from the public. According to the information
and explanations given to us, no order has been passed by the Company
Law Board or the National Company Law Tribunal or the Reserve Bank of
India or any Court or any other Tribunal.
7 In our opinion the Company has an internal audit system commensurate
with the size and nature of its business.
8 We have broadly reviewed the books of Accounts maintained by the
Company pursuant to the order made by the Central Government for the
maintenance of cost records under Section 209(1)(d) of the Companies
Act, 1956 and are of the opinion that prima facie the prescribed
accounts and records have been maintained. We have not, however, made a
detailed examination of the records with a view to determining whether
they are accurate or complete.
9 a) On the basis of our examination of the books of account and other
relevant records, the Company has been generally regular in depositing
with appropriate authorities undisputed statutory dues including
provident fund, investor education and protection fund, income-tax,
sales-tax, wealth-tax, service tax, custom duty, excise-duty, cess and
other material statutory dues applicable to it and no such dues were
outstanding as at 31-03-2012 for a period of more than six months from
the date they became payable.
b) According to information and explanation given to us the disputed
dues in respect of Sales Tax, Excise duty, Service Tax and Income tax
that have not been deposited by the Company are as follows:
Name of Nature of Amount Period to which Forum where the
dispute is
Statute Dues (Rs.in
lacs) it relates pending
State and
Central Sales Tax 1.98 2000-01 Jt. Commissioner
of Sales Tax
(Appeal)
Sales
Tax Acts Worli Division,
Mumbai
14.13 2001-02 Jt. Commissioner
of Sales Tax
Appeal, Worli
Division, Mumbai.
8.80 2010-11 Jt. Commissioner
of (Appeal)
Commercial Tax,
Meerut, UP.
The Central Excise Duty 3.08 1998-99 CEGAT, Commis
sioner, Mumbai
Excise Act,
1944
6.56 2011-12 Commissioner
(Appeal) Central
Excise Vadodara.
The Finance
Act, Service Tax 1.74 2008-09 Commissioner
(Appeal),
1994 Central Excise,
Vadodara.
0.43 2008-09 Commissioner
(Appeal), Central
Excise, Vadodara.
2.89 2011-12 Commissioner
(Appeal), Central
Excise, Vadodara.
Income Tax
Act, Income Tax 8.74 2004-05 Appeal order
effects of CIT
1961 (A)/ITAT are
pending.
Fringe 0.58 2005-06 Appeal order
effects of CIT
Benefit Tax (A)/ITAT are
pending.
Income Tax 43.48 2006-07 CIT(A) ITAT,
Mumbai.
Income Tax 4.81 2007-08 ITAT, Mumbai.
Income Tax 73.92 2008-09 CIT (Appeals)
Mumbai.
10. The Company does not have any accumulated losses at the end of the
financial year and has not incurred cash losses in the financial year
covered by our audit and the immediately preceding financial year.
11. According to the records of the Company examined by us and on the
basis of information and explanations given to us, the Company has not
defaulted in repayment of dues to banks during the year. The Company
has not taken any loans from financial institutions and has not issued
debentures during the year.
12. As the Company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities
clause 4(xii) of the Order is not applicable.
13. The Company is not a chit fund/nidhi/mutual benefit fund/society.
Accordingly the provisions of the clause 4(xiii) of the Order are not
applicable.
14. As the Company is not dealing or trading in shares, securities,
debentures and other investments, paragraph 4(xiv) of the Order is not
applicable.
15. 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.
16. The term loans have been applied for the purpose for which they
were obtained.
17. On the basis of examination of the Accounts and as per information
and explanation given in our opinion the funds raised on short term
basis have prima facie not been used for long term investments.
18. The Company has not made any preferential allotment of shares to
any parties and companies covered under the register maintained u/s.
301 of the Companies Act, 1956 during the year.
19. No security or charge is required to be created since the company
has not issued any Debentures.
20. The Company has not raised any money by public issue during the
year.
21. On the basis of examination of books of account and other relevant
records in the course of our audit and information and explanation
given to us no fraud on or by the Company has been noticed or reported
during the year.
For PARIKH & SHAH
Chartered Accountants
Firm's Registration No. 107528W
H.K. Desai
Place: Mumbai Partner
Date: 12th May, 2012. Membership No.13719
Mar 31, 2011
We have audited the attached Balance Sheet of ABC Bearings Limited as
at 31st March, 2011 and also the Profit and Loss Account and the Cash
Flow Statement for the year ended on that date annexed thereto. These
financial statements are the responsibility of the Companys
management. Our responsibility is to express an opinion on these
financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally
accepted in India, which requires that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are
free of material misstatement. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the financial
statements, and also includes assessing the accounting principles used
and significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our audit
provides a reasonable basis for our opinion.
As required by the Companies (Auditors Report) Order, 2003 issued by
the Central Government of India in terms of Sub- section (4A) of
section 227 of the Companies Act, 1956 and on the basis of such checks
of books and records of the Company as considered appropriate and as
per the information and explanations given to us, we enclose in the
Annexure a statement on the matters specified in paragraphs 4 and 5 of
the said Order.
Further to our comments in the Annexure referred to above, we report
that:
1. 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;
2. 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;
3. the Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account of
the Company;
4. in our opinion, the Balance Sheet, Profit and Loss Account 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;
5. on the basis of written representations received from the Directors
and taken on record by the Board of Directors, we report that none of
the Directors is disqualified as on 31st March, 2011 from being
appointed as a Director in terms of Section 274(1)(g) of the Companies
Act, 1956;
6. In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read with the notes
thereon give the information required by the Companies Act, 1956 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, 2011;
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 Cash Flow Statement, of the cash flows for the year
ended on that date.
ANNEXURE TO AUDITORS REPORT ON THE ACCOUNTS FOR THE YEAR ENDED 31ST
MARCH 2011
1. a) The Company has maintained proper records showing full
particulars including quantitative details and location of all its
fixed assets.
b) We are informed that the Company has programme of physical
verification of all the fixed assets over a period of two years.
Accordingly, the physical verification of part of the fixed assets has
been carried out by the Management during the year and no material
discrepancies have been noticed on such verification.
c) Fixed assets disposed off during the year were not substantial and
therefore do not affect the going concern status of the Company.
2 a) The inventory has been physically verified at reasonable intervals
during the year by the Management except stocks
with third parties for which confirmations are obtained.
b) In our opinion the procedures of physical verification 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 inventory. The
discrepancies noticed on physical verification, between physical stocks
and books records, were not material in relation to the operations of
the company and have been properly dealt with in the books of account.
3 a) The Company has not granted any loans, secured or unsecured to
companies, firms or other parties covered in the register maintained
under Section 301 of the Companies Act, 1956.
b) The Company has not taken any loans, secured or unsecured from
companies, firms or other parties covered in the register maintained
under Section 301 of the Companies Act, 1956.
4 According to the information and explanations given to us, there are,
in our opinion, adequate internal control systems commensurate with the
size of the Company and nature of the business for the purchase of
inventory, fixed assets and for sale of goods. No major weaknesses are
noticed in the course of our audit in this behalf.
5 In our opinion, and according to the information and explanations
given to us, there are no contracts and arrangements the particulars of
which need to be entered into the register maintained under Section 301
of the Companies Act, 1956.
6 The Company has not accepted any deposits from the public,
consequently the provisions of Section 58A and 58AA of the Companies
Act, 1956 and the rules framed there under are not applicable.
7 In our opinion the Company has an internal audit system commensurate
with the size and nature of its business.
8 We have broadly reviewed the books of Accounts maintained by the
Company pursuant to the order made by the Central Government for the
maintenance of cost records under Section 209(1)(d) of the Companies
Act, 1956 and are of the opinion that prima facie the prescribed
accounts and records have been maintained. We have not, however, made a
detailed examination of the records with a view to determining whether
they are accurate or complete.
9 a) On the basis of our examination of the books of account and other
relevant records, the Company has been generally regular in depositing
with appropriate authorities undisputed statutory dues including
provident fund, investor education and protection fund, income-tax,
sales-tax, wealth-tax, service tax, custom duty, excise-duty, cess and
other material statutory dues applicable to it and no such dues were
outstanding as at 31-03-2011 for a period of more than six months from
the date they become payable.
b) According to information and explanation given to us the disputed
dues in respect of Sales Tax, Excise duty and Income tax that have not
been deposited by the Company are as follows:
Name Nature of Amount Period to
which Forum where the dispute is
Statute Dues (Rs. in
lacs) it relates pending
State and
Central Sales Tax 2.29 1999-00 Deputy Commissioner of
Sales Tax,
Sales Tax
Acts Appeals, Worli Division,
Mumbai.
1.98 2000-01 Jt. Commissioner of Sales
Tax (Appeal)
Worli Division, Mumbai
14.13 2001-02 Dy. Commissioner of Sales
Tax Appeal,
Worli Division, Mumbai.
The Central
Excise Excise Duty 3.08 1998-99 CEGAT, MumbaiCommissioner
Act, 1944 1.74 2008-09 Central Excise Vadodara.
Income Tax
Act, Income Tax 8.74 2004-05 Appeal order effects of CIT
(A)/ITAT are
1961 pending.
Income Tax 70.23 2005-06 Appeal order effects of CIT
(A)/ITAT are Pending.
Fringe 0.78 2005-06 Appeal order effects of CIT
(A)/ITAT are
Benefit Tax pending.
Income Tax 18.62 2007-08 CIT (Appeals) Mumbai.
10. The Company does not have any accumulated losses at the end of the
financial year and has not incurred cash losses in the financial year
covered by our audit and the immediately preceding financial year.
11. According to the records of the Company examined by us and on the
basis of information and explanations given to us, the Company has not
defaulted in repayment of dues to banks during the year. The Company
has not taken any loans from financial institutions and has not issued
debentures during the year.
12. As the company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities
clause 4(xii) of the order is not applicable.
13. The company is not a chit fund/nidhi/mutual benefit fund/society.
Accordingly the provisions of the clause 4(xiii) of the Order are not
applicable.
14. As the Company is not dealing or trading in shares, securities,
debentures and other investments, paragraph 4(xiv) of the Order is not
applicable.
15. 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.
16. The term loans have been applied for the purpose for which they
were obtained.
17. On the basis of examination of the Accounts and as per information
and explanation given in our opinion the funds raised on short term
basis have prima facie not been used for long term investments.
18. The Company has not made any preferential allotment of shares to
any parties and companies covered under the register maintained u/s.301
of the Companies Act, 1956 during the year.
19. No security or charge is required to be created since the company
has not issued any Debentures.
20. The Company has not raised any money by public issue during the
year.
21. On the basis of examination of books of account and other relevant
records in the course of our audit and information and explanation
given to us no fraud on or by the Company has been noticed or reported
during the year.
For PARIKH & SHAH
Chartered Accountants
H.K. Desai
Partner
Place: Mumbai Membership No.13719
Date: 3rd May, 2011. Firms Registration No. 107528W
Mar 31, 2010
We have audited the attached Balance Sheet of ABC Bearings Limited as
at 31st March, 2010 and also the Profit and Loss Account and the Cash
Flow Statement for the year ended on that date annexed thereto. These
financial statements are the responsibility of the Companys
management. Our responsibility is to express an opinion on these
financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally
accepted in India, which requires that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are
free of material misstatement. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the financial
statements, and also includes assessing the accounting principles used
and significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our audit
provides a reasonable basis for our opinion.
As required by the Companies (Auditors Report) Order, 2003 issued by
the Central Government of India in terms of Sub-section (4A) of section
227 of the Companies Act, 1956 and on the basis of such checks of books
and records of the Company as considered appropriate and as per the
information and explanations given to us, we enclose in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the said
Order.
Further to our comments in the Annexure referred to above, we report
that:
1. 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;
2. 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;
3. the Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account of
the Company;
4. in our opinion, the Balance Sheet, Profit and Loss Account 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;
5. on the basis of written representations received from the Directors
and taken on record by the Board of Directors, we report that none of
the Directors is disqualified as on 31st March, 2010 from being
appointed as a Director in terms of Section 274(1) (g) of the Companies
Act, 1956;
6. In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read with the notes
thereon give the information required by the Companies Act, 1956 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 st March, 2010;
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 Cash Flow Statement, of the cash flows for the year
ended on that date.
ANNEXURE TO AUDITORS REPORT ON THE ACCOUNTS FOR THE YEAR ENDED 31 ST
MARCH 2010
1. a) The Company has maintained proper records showing full
particulars including quantitative details and location of
all its fixed assets.
b) We are informed that the Company has programme of physical
verification of all the fixed assets over a period of two years.
Accordingly, the physical verification of part of the fixed assets has
been carried out by the Management during the year and no material
discrepancies have been noticed on such verification.
c) Fixed assets disposed off during the year were not substantial and
therefore do not affect the going concern status of the Company.
2. a) The inventory has been physically verified at reasonable
intervals during the year by the Management except
stocks with third parties for which confirmations are obtained.
b) In our opinion the procedures of physical verification 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 inventory. The
discrepancies noticed on physical verification, between physical stocks
and books records, were not material in relation to the operations of
the company and have been properly dealt with in the books of account.
3 a) The Company has not granted any loans, secured or unsecured to
companies, firms or other parties covered in the
register maintained under Section 301 of the Companies Act, 1956.
b) The Company has not taken any loans, secured or unsecured from
companies, firms or other parties covered in the register maintained
under Section 301 of the Companies Act, 1956.
4 According to the information and explanations given to us, there are,
in our opinion, adequate internal control systems commensurate with the
size of the Company and nature of the business for the purchase of
inventory, fixed assets and for sale of goods. No major weaknesses are
noticed in the course of our audit in this behalf.
5 In our opinion, and according to the information and explanations
given to us, there are no contracts and arrangements the particulars of
which need to be entered into the register maintained under Section 301
of the Companies Act, 1956.
6 The Company has not accepted any deposits from the public,
consequently the provisions of Section 58A and 58AA of the Companies
Act, 1956 and the rules framed there under are not applicable.
7 In our opinion the Company has an internal audit system commensurate
with the size and nature of its business.
8 We have broadly reviewed the books of Accounts maintained by the
Company pursuant to the order made by the Central Government for the
maintenance of cost records under Section 209(1 )(d) of the Companies
Act, 1956 and are of the opinion that prima facie the prescribed
accounts and records have been maintained. We have not, however, made a
detailed examination of the records with a view to determining whether
they are accurate or complete.
9 a) On the basis of our examination of the books of account and other
relevant records, the Company has been
generally regular in depositing with appropriate authorities undisputed
statutory dues including provident fund, investor education and
protection fund, income-tax, sales-tax, wealth-tax, service tax, custom
duty, excise-duty, cess and other material statutory dues applicable to
it and no such dues were outstanding as at 31-03-2010 for a period of
more than six months from the date they become payable.
b) According to information and explanation given to us the disputed
dues in respect of Sales Tax, Excise duty and Income tax that have not
been deposited by the Company are as follows:
Name of Nature of Amount Period to which Forum where the dispute is
Statute Dues (Rs. in
lacs) it relates pending
State
and
Central Sales
Tax 14.20 1992-93 Effect of Tribunal order
pending before
Sales Tax
Acts Senior AC (Assessment)
2.29 1999-00 Deputy Commissioner of Sales Tax,
Appeals, Worli Division, Mumbai.
1.98 2000-01 Jt. Commissioner of
Sales Tax (Appeal)
Worli Division, Mumbai
14.13 2001 -02 Dy. Commissioner of Sales
Tax Appeal,
Worli Division, Mumbai.
The
Central
Excise
Excise Duty 0.24 1983-84 CEGAT, Mumbai
Act, 1944 0.98 1990-91 Commissioner of Central Excise,
Vadodara.
3.08 1998-99 CEGAT, Mumbai
1.74 2008-09 Commissioner Central Excise
Vadodara.
Income
Tax Act,Income Tax 83.97 2003-04 Commissioner of Income Tax (Appeal),
1961 Mumbai.
Income Tax 76.97 2004-05 Appeal order effects of CIT
(A)/ITAT are
pending.
Income Tax 70.23 2005-06 Appeal order effects of CIT
(A)/ITAT are pending.
Fringe
Benefit Tax 8.45 2005-06 ITAT, Mumbai.
10. The Company does not have any accumulated losses at the end of the
financial year and has not incurred cash losses in the financial year
covered by our audit and the immediately preceding financial year.
11. According to the records of the Company examined by us and on the
basis of information and explanations given to us, the Company has not
defaulted in repayment of dues to banks during the year. The Company
has not taken any loans from financial institutions and has not issued
debentures during the year.
12. As the company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities
clause 4(xii) of the Order is not applicable.
13. The company is not a chit fund/nidhi/mutual benefit fund/society.
Accordingly the provisions of the clause 4(xiii) of the Order are not
applicable.
14. As the Company is not dealing or trading in shares, securities,
debentures and other investments, paragraph 4(xiv) of the Order is not
applicable.
15. 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.
16. The term loans have been applied for the purpose for which they
were obtained.
17. On the basis of examination of the Accounts and as per information
and explanation given in our opinion the funds raised on short term
basis have prima facie not been used for long term investments.
18. The Company has not made any preferential allotment of shares to
any parties and companies covered under the register maintained u/s.301
of the Companies Act, 1956 during the year.
19. No security or charge is required to be created since the company
has not issued any Debentures.
20. The Company has not raised any money by public issue during the
year.
21. On the basis of examination of books of account and other relevant
records in the course of our audit and information and explanation
given to us no fraud on or by the Company has been noticed or reported
during the year.
For PARIKH & SHAH
Chartered Accountants
H.K. Desai
Partner Place: Mumbai, Membership No. 13719
Date: 4th May, 2010. Firms Registration No. 107528W