| We have audited the accompanying financial statements of PH TRADING
LIMITED, 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. 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. Basis of
qualified opinion
Basis of qualified opinion
a) The company has granted unsecured loan to one of the company where
two directors of the company are interested. However, the company has
charged interest more than rate prescribed as bank rate by RBI and it
is informed to us that the refund of loan is being mode {Refer Note
26(12)(F)}.
Qualified opinion
In our opinion and to the best of our information and according to the
explanations given to us, except for possible effect of the matters
stated in para (a) above, 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, issued
by the Cenrtral 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 Sec 227(3) of the Act, we report that:
(i) 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;
(ii) The report on the accountsof the branch offices audited under
section 228 by a person other than the company's auditor has been
forwarded to us as required by clause ( c) of sub-section (3) of sec-
tion 228 and have been dealt with in preparing our report in the manner
considered necessary by us.
(iii) 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;
(iv) In our opinion, the Balance Sheet, the 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;
(v) 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.
ANNEXXURE TO THE AUDITOR'S REPORT
1. (a) The Company has generally maintained proper records showing
particulars, including quantitative details and situation of fixed
assets.
(b) As explained to us, fixed assets, according to the practice of the
Company,are physically verified by the management at reasonable
intervals, in a phased verification programe, which, in our opinion, is
reasonable, looking to the size of the Company and the nature of its
business.According to the information and explanations given to us, no
material discrepancies were noticed on such verification.
(c) As explained to us, the Company has not disposed off any
substantial pari of its fixed assets so as to affect its Going Concern.
2. (a) As explained to us, Inventories have been physically verified
during the year at reasonable intervals by the management.
(b) The procedures explained to us, which are followed by the
management for physical verification of inventories are in our opinion
reasonable and adequate in relation to the size of the Company and the
nature of its business.
(c) On the basis of our examination of the Inventory records of the
Company, we are of the opinion that the Company is maintaining proper
records of its Inventory. Discrepancies, which were noticed on physical
verification of-inventory as compared to book records, have been
properly dealt with-in the books of account However, it is not material
in nature.
3. (a) The Company has granted unsecured loan to one Company, covered
in the register maintained U/s.301 of the Company Act 1956, the maximum
balance outstanding at any time during the year and closing balance of
such loan as on 31.03.2014 were Rs.5035137 and 5035137 respectively.
(b) In our opiniion, the rates of interest and terms and conditions on
which loan have been given to the company listed in Register
maintainned U/s. 301 of the Companies Act 1956 are not prima fade
prejudicial to the interest of the company.
(c) The refund of principal amount of the loan and interest thereon as
per the terms and conditions.
(d) There was no overdue amount of more than Rs. 1 Lakhs in respect of
the above loan granted by the Company.
(e) The company has taken unsecured loans from Companies or Other
Parties covered under the register maintained under Section 301 of the
Act, viz.
Name of the Party Closing Maximum Balance
Balance Outstanding
as at 31.03.2014 during the year
Rs. Rs.
Abhishek Chemicals Pvt. Ltd. 15,706,538 15,891,500
Abhishek Himatsingka 2,679,990 2,679,990
Himatsingka Chemicals Pvt. Ltd. 3,991,610 16,611,622
Prakash Himatsingka 13,879,315 13,879,315
Swan Silverwares Pvt. Ltd. 4,272,969 11,201,682
Variable Plaza Pvt. Ltd. 11,758,401 19,663,300
AH Chemicals Pvt. Ltd. 292,541 3,000,000
Welcome Suppliers Pvt. Ltd. 7,558,703 9,787,000
Jamuna Commodities Pvt. Ltd. 11,524,117 13,589,797
Davesh Developers Pvt. Ltd. 0 494,092
Devashree Himatsingka 0 4,925
Vikram Himatsingka (HUF) 0 15,493
Binayak Prasad Prakash Chandra 0 14,868
Nirmal Himatsingka Rice & Saw Mills 0 4,520
Avisek Himatsingka (HUF) 0 6,201
(f) In our opinion, the rates of interest and terms and conditions on
which loan have been taken are not prima facie prejudicial to the
interest of the company.
(g) The Company is regular in the payment of principal and interestas
stipulated and there are no overdue amounts of loans taken from parties
listed in the registers maintained under section301 of the Companies
Act 1956.
4. In our opinion and according to the information and explanatios
given to us, there is generally an adequate internal control system
commensurate with the size of the Company and the nature of its
business, for the purchase of Inventory and Fixed Assets and for the
sale of goods and services. During the course of our previous
assessment, no weakness in internal contrl system had come to our
notice.
5. ( a) On the basis of the audit procedures performed by us
andaccording to the information, explanations and representations given
to us,we are of the opinion that the particulars of contracts or
arrangements which were required to be entered in the register
maintained under Section 301 of the Said Act,have been so entered.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under Section 301 of
the Companies Act, 1956 exceeding the value of rupees five lacs in
respect of any party during the year have been made at prices which are
reasonable having regard to prevailing market prices at that time.
6. According to the information and explanations given to us, the
Company has not accepted any deposits from public.
7. On the basis of the internal audit Reports broadly reviewed by us,
we are of the opinion that, the coverage of internal audit functions
carried out by firms of Chartered Accountants appointed by the
management is commensurate with the size of the Company and the nature
of its business.
8. The clause (viii) of paragraphs 4 of order is not applicable in
respect of cost records.
9. ( a) The Company is regular in depositing undisputed statutory dues
including Income Tax, Sales Tax,Wealth Tax,Custom Duty, Excise Duty,
Cess and any other statutory dues,except slight delay noticed in
payment of service tax liability.
(b) No undisputed amounts payable in respect of the aforesaid dues were
outstanding as at 31.03.2014 for a period pf more than six months.
(c) According .to the information and explanation given to us, there
are no dues of Income Tax,Sales Tax, wealth Tax,Service Tax. Custom
Duty,Excise Duty and Cess which have not been deposited on account of
any dispute.
10. The company does not have accumulated losses at the end of the
financial year.The company has not incurred cash losses during the
financial year covered by the audit and in the immediately preceeding
financial year.
11. On the basis of records examined by us and the information and
explanations given to us, the Company has not defaulted in repayment of
dues to Banks or to a Financial Institution.
12. The company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities
and hence, the question of maintainance of adequate documents and
records does not arise.
13. The company is not Chit Fund, Nidhi / Mutual Benefit Fund or
Societies. Therefore, the provisions of Clause (xiii) of Paragraph 4 of
the order are not applicable to the company.
14. The company is dealing in shares, securities, debentures and other
investments and proper records have been maintained of the transactions
and timely entries have been made therein and the company in its own
name has held such shares, securities debentures and other investments
but certain shares held as stock in trade subject to physical
verification .
15 As per management, the company has not given any guarantee for loans
taken by others from banks or financial institutions.
16. The company has not taken any term loan, so the question about its
applicability for the required purpose does not arise.
17. There are no funds raised on Short Term basis that have been used
for Long Term investment.
18. No Share issues have been made during the year, so there could not
have been any preferential allotment of shares to parties covered in
the register maintained u/s. 301 of the Act.
19. The company did not have any outstanding Debentures during the
Year.
20. No Public issues were made in this period, so end use of money
utilization relating to the same does not arise.
21. Based upon the audit procedures performed for the purpose of
reporting the true and fair view of the financial statements and as per
the informations given by the management, we report that no fraud on or
by the Company has been noticed or reported during the year.
7, Chittaranjan Avenue, FOR SALARPURIA& PARTNERS
Kolkata - 700 072 Chartered Accountants
The 30th day of May, 2014 SARVESH KUMAR SINGH
MEMBERSHIP NO. : 069367
Partner
ICAIReg. No. 302113E |