| We have audited the accompanying financial statements of Abhishek
Corporation Ltd. ("the Company"), which comprise the Balance Sheet as
at March 31, 2014, the Statement of Profit and Loss for the year then
ended and 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
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position and
financial performance of the Company in accordance with the accounting
principles generally accepted in India including Accounting Standards
referred to in Section 211 (3C) of the Companies Act, 1956 ("the Act").
This responsibility includes the design, implementation and maintenance
of internal control relevant to the preparation and presentation of the
financial statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
Auditors' Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatements.
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. 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 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:
(a) In the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2014; and
(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 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 and the Statement of Profit and Loss dealt with by
this Report are in agreement with the books of account.
d. In our opinion, the Balance Sheet, the Statement of Profit and Loss
comply with the Accounting Standards referred to in section 211 (3C) of
the Act;
e. On the basis of the written representations received from the
directors as on March 31, 2014, taken on record by the Board of
Directors, none of the directors is disqualified as on March 31, 2014,
from being appointed as a director in terms of Section 274(1)(g) of the
Act
Annexure as referred to in paragraph (3) of the Auditor's Report to the
members of Abhishek Corporation Ltd for the year ended on 31 March 2014
i a) The Company has maintained proper records showing full particulars
including quantitative details and situation
of fixed assets.
b) The fixed Assets have been physically verified by the management at
reasonable intervals. No material discrepancies were noticed on such
verification by the management.
c) During the year, the Company has not disposed off a substantial part
of fixed assets.
ii In respect of its inventories:
a) As explained to us, the management at the regular intervals and at
end of the year physically verified inventories.
b) In our opinion and according to the information and explanation
given to us, the procedure of physical verification of inventories
followed by the management is 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 explanation
given to us, the Company has maintained adequate stock record for stock
of stores and spares. As explained to us the discrepancies noticed on
physical verification of stock of raw material and finished goods were
not material.
iii a) During the year, Company has obtained a loan of Rs. 94,14,162/-
from Directors and their relatives including any
firms/companies in which they are substantially interested. The terms
and conditions of this loan are prima facie not prejudicial to the
interest of the Company.
b) It is seen that, during the year, repayment of Rs. 1,42,36,876/- is
made.
c) 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 Company Act 1956.
iv In our opinion and according to the information and explanation
given to us there is generally adequate internal control procedures,
commensurate with the size of the Company and nature of its business
with regard to purchase of inventories, fixed assets and with regard to
sale of goods. Further, during the course of audit, we have neither
come across nor have been informed of any continuing failure to correct
major weaknesses in the aforesaid internal control procedures.
v a) According to the information and explanation given to us, we are
of the opinion that the particulars of contracts and arrangement that
need to be entered into the register maintained under Sec. 301 of the
Companies Act, 1956 have been so entered.
b) In our opinion and according to the information and explanations
given to us, the contracts and arrangements entered in the register
maintained under Sec. 301 of the Companies Act, 1956 and exceeding the
value of Rupees Five Lacs in respect of any party during the year have
been made at prices which are reasonable having regards to prevailing
market prices at the relevant time.
vi During the year under review the Company has not accepted any amount
by way of Fixed Deposits pursuant to provisions of section 58A, 58AA,
rules there under and the directives issued by RBI.
vii In our opinion, the Company's present internal audit system is
commensurate with its size and nature of it's business.
viii We have broadly reviewed the books of account maintained by the
Company pursuant to the rules prescribed by the Central Government for
maintenance of cost records under section 209(1)(d) of the said Act in
respect of textile industry and are of the opinion that prima facie,
the prescribed accounts and records have been made and maintained.
However, we have not made a detailed examination of the records.
ix a) According to the information and explanation given to us, the
Company is regular in depositing with appropriate
authorities undisputed statutory dues including provident fund, Income
Tax, Wealth Tax, Sales Tax, Purchase Tax, Custom Duty, Excise Duty,
Cess, Entry Tax & Service Tax except following dues which are due since
more than six months but still not paid
i. Tax Deducted At Source Rs. 1,15,89,556/-
ii. Provident Fund Rs. 10,77,220/-
iii. Professional Tax Rs. 22,28,250/-
b) The disputed statutory dues have not been deposited on account of
disputed matters pending before appropriate authorities as on March 31,
2014, are as under:
? in lacs
Sr. No. Authority Item Amount
1 Additional Commissioner of Central Excise Central Excise 15.70
2 Commissioner of Central Excise Custom Duty 88.29
3 Commissioner of Central Excise Service Tax 73.51
4 Regional Provident Fund Commissioner Provident Fund 91.64
x During the year the Company has incurred cash loss of Rs.
66,74,20,371/-. Further during the previous year the Company has
incurred cash losses of Rs. 65,32,59,053/-. Thereby Company's net worth
has become negative and the Company has become a sick unit under the
provisions of the Sick Industrial Companies Act.
xi In our opinion and according to the explanations and Company given
to us, Corporate Debt Restructuring (CDR) Scheme has failed and
withdrawn by the bankers, due to non-compliances of the terms and
conditions of the CDR scheme, on the part of the Company. Interest on
these loans has been provided at the rates as per the original
sanctions. In the result Company is defaulted in repayment of the loans
as are mentioned in Note 4A and Note 6 of the Balance Sheet.
xii As Company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities,
paragraph 4(xii) of the Order is not applicable.
xiii As the Company is not chit fund/ nidhi / mutual benefit funds /
society to which the provisions of special statute relating to chit
fund are applicable, paragraph 4(xiii) of the Order is not applicable.
xiv As the Company is not dealing or trading in shares, securities,
debentures and other investments, paragraph 4(xiv) of the Order is not
applicable.
xv The Company has not given any guarantee for loans taken by others
from banks or financial institutions.
xvi During the year, the Company has not obtained any term loan from
banks or financial institutions.
xvii In our opinion and according to the explanations and information
given to us and on overall examination of the balance sheet of the
Company, we report that no funds raised on short-term basis have been
used for long-term investment and vice-versa. However, all the long
term loans are recalled and hence re-classified under "Other Current
Liabilities".
xviii During the year the Company has not made any preferential
allotment of shares.
xix The Company has not issued any debentures during the year.
xx During the year, since the Company has not raised money by way of
Public Issue, 4(xx) of the Order is not applicable.
xxi Based upon the audit procedure performed and information and
explanation given by the management we report that, no fraud on or by
the Company has been noticed or reported during the course of our audit
for the year ended on 31st March, 2014.
For Shrikant & CO.
Chartered Accountants FRN: 110186
Date : 14th August, 2014 Shrikant Shirdhonkar
Place : Kolhapur Proprietor M. No. 015703 |