We have audited the accompanying financial statements of MARVEL VINYLS
LIMITED, 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
Management is responsible for the presentation 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 1S56, 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 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
risks of material misstatements of financial statements, whether due to
fraud or error. In making those risk assessments, the auditor considers
the 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, out 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 provxfe a basis for our opinion.
Opinion
In our opinion and to the best of our information end 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 end fair view in conformity with the accounting principles
generally accepted in India.
[a] In case of the Balance Sheet, of the state of affairs of the
Company as at March 31,2014;
[b] In case of the Statement Profit and Loss Account, of the profii,
for the year ended on that date:
[c] In case of the Cash Row Statement, of the cesh 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 Central Government of India in terms of sub -section [4A] of
section 227 of the Companies Act. 1956. we give in Annexure a
statement on the matters specified in paragraph 4 and 5 of the said
order
2. As required by section 227(3] of the Act. we report that:
[e] We have obtained all the infcrmation and explanations, which to the
best of our knowledge and betief were necessary for the purpose of our
audit;
[b] in our opinion proper books of accounts 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 arrangement with the books
of accounts;
[d] in our opinion, the Balance Sheet, Statement of Profit and Loss,
and Cash Row Statement comply with the Accounting Standards referred to
in Sub-section [3C] of section 211 of the Companies Act, 1956;
[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,
rone of the director is dsqualified as on March 31, 2014. from being
appointed as a director m terms of clause (g] of sub-section [1] of
section 274 of the Companies Act, 1956,
[f] Since the Centra) Government has not issued any notification as to
the rate at which the cess is to be paid under sect¯on 441A of the
Companies Act 1956 nor has it issued any Rules under the said section,
prescribing the manner in which cess Is to be paid. no cess is due and
payable by the Company.
ANNEXURE REFERRED TO IM PARAGRAPH 1 OF OUR REPORT OF EVEN DATE
1. In respect of its fixed assets:
a] The Company has maintained proper records showing full particulars
including Quantitative details and situation of fixed assets.
b] As explained to us, the management during the year has physically
verified all the fixed assets and we are informed that no material
discrepancies were noticed on such verification.
c} In our opinion, the Company has not disposed off any substantial
part of its fixed assets during the year and the going concern status
of the Company is not affected.
2. In respect of its inventories:
a] As explained to us, the Inventory has been physicaHy verified during
the year by the management. In our opinion, the frequency of
verification is reasonable.
b] The procedure of physical verification of inventory fallowed by the
management is reasonable and adequate in relation to the size of the
company and the nature of its business.
c] The company is maintaining proper records of inventory. As explained
co us, there were no material discrepancies noticed on physical
verification of inventories as compared to the book record.
3. In respect of the loans, secured or unsecured, granted or taken by
the Company to / from companies, firms or other parties covered in the
register maintained under Section 301 of the Companies Act. 1956:
a) The company has not granted any fresh unsecured advance to any
person covered in the registers maintained under Section 301 of the
Companies Act. 1956.
b) Since the company has granted any loan to parties listed in the
register maintained under section 301 of the Companies Act. 1956, so
clause 5 [iii] [b), [c], and [d) of CARO 2003 are not applicable on the
Company
e) The company has taken unsecured loans from two directors, two
relative of directors, three HUF concerns and one associate company
covered in the register maintained under section 301 of the Companies
Act. 1956. The maximum amount involved during the year was Fte. 1043.83
lakhs and the year-end balance of loan taken from such parties was Rs.
1043.83 lakhs.
f) The company has taken these loans free of interest. In our opinion,
other terms and conditions on which loans have been taken from the
parties listed in the register maintained under section 301 of the
Companies Act, 1956 are not prima facie, prejudicial to the interest of
the company.
g) The principal amounts are recoverable on demand and there is no
repayment schedule. The parties are regular in repaying the principal
amounts as stipulated and have been regular in payment of interest
wherever applicable.
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 with regard to purchase of inventory, fixed assets and with
regard to the sale Df goods. There is no continued lailure to correct
maior weaknesses rn internal contra) system,
5 a] According to the information and explanations given to us. we are
of the opinion that the particulars of contracts or arrangoments
referred to in section 301 of the Companies Act, 1956 have been entered
in the register required to be maintained under thet section.
b] In our opinion and according to information and explanations given
to us, the transactions made e\ pursuance of contracts or arrangements
entered in the register maintained under Section 301 of the Companies
Act. 1956 end exceeding the value of rupees five lakhs h respect of
each party during the year have been made at a price wtich appear
reasonable as per information available with the Company
6. In our opinion and according to the information and explanations
given to us. the provisions of Section 5GA, 59AA or any other relevant
provisions of the Companies Act, 1 956 and Companies (Acceptance of
Deposit) Rules, 1975 with regard to the deposits accepted from the
public are not applicable on the Company as the company hos not
accepted any deposits from public and only unsecured loans from the
directors, their relatives and associates have been accepted due to
condition imposed by the bai.xers of the company from whom loans have
been raised
7. In our opinion, the company has an interna! audit system
commensurate with the size and nature of its business.
8. The company has maintained cost records as prescribed by Central
Government under clause (d) of sub-section [1] of Section 909 of the
Companies Act, 1956.
9. In respect of statutory dues:
a] According to the records of the Company, it is regular in depositing
with appropriate authorities undispiJted statutory dues including
provident fund, investor education protection fund, employees state
insurance, income tax, sales tax, wealth tax. service tax .custom duty,
excise duty, cess and other material statutory dues applicable to it.
According to the information and explanations given to us, no
undisputed amount payable in respect of income tax. wealth tax. service
tax. sales tax, custom duty, excise duty and cess were in arrears, as
at 31 st March, 2014. for a penod of more than six months from the date
they become payable.
b] Triere is disputed excise duty demand of Rs, 322.49 lacs for the
earlier years, which is under appeal. According to the information and
explanations given to us, there is no other disputed amount in respect
of sales tax, income tax, custom duty, wealth tax, service tax. excise
duty or cess, which has not been deposited on account of any dispute.
10. The company has no accumulated losses at the end of the financial
year covered under audit. The company has not incurred cash losses
during the financial year covered by our audit and the immediately
preceding financial year.
11. In our opinion and according to the information and explanations
given to us. the company has not defaulted in repayment of dues to
banks
12. According to information and explanations given to us. the company
has not granted any loans and advances on the basis of security by way
of pledge of shares, debentures and other securities.
13. The company is not a chit fund or a nidhi / mutual benefit
fund/society. Therefore, the Provisions of clause 4[xiit) of the
Companies [Auditor's Report) Order. 2003 (as amended] are not
applicable to the Company.
14. In our opinion, the Company is not dealing in or trading in
snares, securities, debentures and other investments. Accordingly, the
provisions of clause 4[xtv) of the Companies [Auditor's Report] Order,
2003 [as amended] are not applicable to the company.
15. As informed to us. the Company has not given any guarantee for
loans taken by others from bank or financial institutions.
16. The company has availed fresh Term Loans of Rs. 179.24 lacs
[secured against the current assets and fixed assets of the company)
during the financial year covered by our audit.
17. According to the information and explanations given to us and on
an overall examination of the balance sheet Df the company, we report
that no funds raised on short-term basis have been used for long-term
investments. No long-term funds have been used to finance short- term
assets except permanent working capital.
18. The Company has not made any preferent>el allotment of shares
during the financial year covered by our audit.
19. The Company has not issued any debentures.
20. The Company has not raised any money by public issue during the
financial year covered by our audit.
21. According to che information and explanations given to us. no
fraud on or by the company has been noticed or reported during the
course of our audit.
For SHANTI PRASKAO & COMPANY
CHARTERED ACCOUNTANTS
Place New Delhi ASHISH KUMAR AGGARWAL
Dated : 30.05.2014 PARTNER
M.No. 522443 |