| Report on the Financial Statements
We have audited the accompanying financial statements of Shree Narmada
Aluminium Industries Limited ("the Company"), which comprise the
Balance Sheet as at March 31, 2014, and the Statement of Profit and
Loss and Cash Flow Statement for the year then ended, and a summary of
significant accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
The 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 the General Circular
15/2013 dated 13th September 2013 issued by the Ministry of Corporate
Affairs with regard to 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 Company'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.
Basis of Qualified Opinion
a. The Company is a sick Company under Sick Industrial Companies Act,
1985. The order of the Honorable High Court of Gujarat dated 16.05.2008
for rehabilitation is under the process of implementation. Despite net
worth of the Company fully eroded, the Management is of the opinion
that the Going Concern Assumption is sustainable and accordingly the
accounts of the Company have been prepared on going concern basis.
b. The unsecured loan of Rs. 3,13,05,706/- and Trade payables of Rs.
89,73,203/- are subject to confirmation receivable from the party.
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 except in respect of consequential possible impacts of the
matters mentioned under Para 'Basis of Qualified Opinion:
(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
subsection (3C) of section 211 of the Companies Act, 1956 ; read with
the General Circular 15/2013 dated 13th September 2013 issued by the
Ministry of Corporate Affairs with regard to section 133 of the
Companies Act, 2014.
e. On the basis of written representations received from the Directors
as on March 31, 2014, and taken on record by the Board of Directors,
none of the Directors is disqualified as on March 31, 2014, from being
appointed as a Director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
ANNEXURE TO THE AUDITORS' REPORT REFERRED TO IN PARA 5 (1) OF OUR
REPORT OF EVEN DATE
1. (a) The Company is maintaining records showing full particulars,
including quantitative details and situations of all the fixed assets.
(b) According to the information and explanations given to us, the
fixed assets are being physically verified by the Management in a
phased manner at year end which in our opinion is reasonable having
regard to the size of the Company and nature of assets. According to
the information and explanations given to us, no material discrepancies
were noticed on such verification.
(c) The Company did not dispose off any substantial part of fixed
assets during the year and hence the going concern status is not
affected.
2. (a) The Company is trading for goods only by "sale-in-transit"
transactions hence Company did not carry any inventory throughout the
year. Considering the nature of activity, clause 4 (2) (a), (b) and (c)
of the Order are not applicable.
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.
As the Company has not granted any loans, secured or unsecured, to
parties listed in the Registers maintained under Section 301 of the
Companies Act, 1956, paragraphs (3) (a), (b),(c) & (d) of the Order are
not applicable.
(b) The Company has taken interest free unsecured loan from one party
covered in the register maintained under Section 301 of the Companies
Act, 1956. Maximum amount outstanding at any point of time during the
financial year in respect of said party is Rs 3,13,05,706/- and the
year end balance is Rs 3,13,05,706/-.
(c) In our opinion the rate of interest and the terms and conditions of
unsecured loans, are not prima facie prejudicial to the interest of the
Company
(d) In the absence of specific terms for repayment of the said loans
and according to the information and explanations given to us, the
management considers that the amount referred to clause 3(b) is paid as
and when demanded and no amount is overdue in this respect.
4. In our opinion, and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business, for the purchase of fixed assets and the sale of goods and
services. Further, during the course of our audit, we have neither come
across nor have been informed of any continuing failure to correct any
major weakness in such internal controls.
5. (a) In our opinion, and according to the information and
explanations given to us, the transactions that need to be entered into
a Register maintained under Section 301 ofthe Companies Act, 1956 have
been entered.
(b) In our opinion, and according to the information and explanations
given to us, as the transactions entered into a Register maintained
under Section 301 of the Companies Act, 1956, paragraph
(5) (b) of the Order which exceed Rupees five lacs have been made at
prices which are reasonable having regard to the prevailing market
prices at the relevant time.
6. In our opinion, and according to the information and explanations
given to us, the Company has not accepted any public deposits and hence
directives issued by the Reserve Bank of India and the provisions of
Sections 58A and 58AA or any other relevant provisions of the Companies
Act, 1956 and the rules framed there under are not applicable. As per
the information and explanations given to us, no order has been passed
by Company Law Board or National Company Law Tribunal or Reserve Bank
of India or any Court or any other Tribunal in this respect.
7. In our opinion, the internal audit function carried out during the
year by a firm of Chartered Accountants appointed by the Company have
been commensurate with its size of the Company and nature of its
business.
8. According to the information and explanations given and to the best
of our knowledge, the provisions of 'The Companies (Cost Accounting
Records) Rules, 2011' published by the Central Government under Clause
(d) of Sub-Section (1) of Section 209 of the Companies Act, 1956 for
maintenance of cost records are not applicable to the Company as the
Company is not engaged in the production, processing, manufacturing, or
mining activities. Hence clause 4 (8) of the Order is not applicable,
9. (a) According to the information and explanations given to us and
on the basis of our examination of the books of account, the Company
has been generally regular in depositing undisputed statutory dues
including Provident Fund, Investor Education and Protection Fund,
ncome- Tax, Sales-Tax, Wealth Tax, Service Tax, Custom Duty, Cess and
other material statutory dues, as applicable, with the appropriate
authorities. There are no arrears of outstanding statutory dues as at
31st March 2014 for a period of more than 6 months from the date they
became payable except for the following
Nature of statutory Due Unpaid overdue
as on 31st March 2014
Amount in Rupees
Sales tax(deferment) 17,020,866
Electricity duty (deferment) including
interest 6,05,778
(b) As at 31st March 2014, according to the records of the Company and
the information and explanations given to us, the following are the
particulars of dues on account of Income Tax/ Sales Tax/ Wealth Tax/
Service Tax/ Custom Duty / Excise Duty that have not been deposited on
account of disputes:-
Name of the Nature of the Amount Period to Forum where dispute
Statute Dues (Rupees) which pending
Amount
relates
The Bombay Sales Tax,
Sales Tax Act, Interest 114,000 1991-92 Before Honorable
And Penalty Tribunal Filed by
Company
The Bombay Sales Tax, Before Honorable
Sales Tax Act, Interest 2,217,000 1992-93 Tribuna Filed by
And Penalty Company
The Bombay Sales Tax, Before Honorable
Sales Tax Act, Interest 2,618,000 1993-94 Tribunal Filed by
And Penalty Company
The Bombay Sales Tax, Before Honorable
Sales Tax Act, Interest Tribunal
And Penalty 918,000 1994-95 Filed by Company
The Bombay Sales Tax, Before Honorable
Sales Tax Act, Interest Tribunal
And Penalty 200,000 1995-96 Filed by Company
The Bombay Sales Tax, Before Honorable
Sales Tax Act, Interest Tribunal
And Penalty 8,000 1999-00 Filed by Company
10. The accumulated losses of the Company are more than it's paid up
capital and free reserves. The Company has not incurred any cash losses
during the current year.
11. According to the information and explanations given to us and on
the basis of our examination of the books of account, in our opinion,
the Company has not defaulted in repayment of dues to any financial
institution or banks or debenture holders.
12. According to the information and explanations given to us and on
the basis of our examination of the books of account, the Company has
not granted any loans and advances on the basis of security by way of
pledge of shares, debentures and other securities.
13. The Company is not a chit fund, nidhi, mutual benefit or a
society. Accordingly, provisions of Clause 4(xiii) of the Order are not
applicable to the Company.
14. The Company has not entered into any trading in shares,
securities, debentures and other investments during the year.
Accordingly, provisions of Clause 4(14) of the Order are not applicable
to the Company.
15. According to the information and explanations given to us and the
representations made by the management, the Company has not given any
Guarantee for loans taken by others from any bank or financial
institutions.
16. In our opinion and according to the information and explanations
given to us, During the year the
Company has not raised any term loans.
17. According to the information and explanations given to us and
based on the overall examination of the Balance Sheet of the Company,
funds raised on short term basis have prima- facie not been used for
long term investment. -
18. During the year, Company has not made any preferential allotment
of shares to parties and companies covered in the Register maintained
under Section 301 of the Companies Act, 1956.
19. The Company has not issued any secured debentures during the year.
20. The Company has not raised any money by way of public issues
during the year.
21. To the best of our knowledge and belief and according to the
information and explanations given to us, no fraud on or by the Company
has been noticed or reported during the year.
For CHOKSHI & CHOKSHI
Chartered Accountants
(Firm Registration No.: 101872W)
R. S. Chokshi
Partner
Membership No. 07498
Place: Mumbai
Date: 29th May 2014
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