| We have audited the accompanying financial statements of MAHARAJA SHREE
UMAID MILLS LIMITED ("the company"), which comprise the Balance Sheet
as at March 31 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 in
section 134(5) of the Companies Act, 2013 ("the Act") 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 Rule 7 of the Companies (Accounts)
Rules, 2014. This responsibility also includes the 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 the frauds and other irregularities; selection and
application of appropriate accounting policies; making judgments and
estimates that are reasonable and prudent; and design, implementation
and maintenance of internal financial control, 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
provisions of the Act, the accounting and auditing standards and
matters which are required to be included in the audit report under the
provisions 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 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 true and fair view 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 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;
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2015;
b) in the case of the Statement of Profit and Loss, of the loss 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, 2015 issued
by the Central Government Of India in terms of sub-section (11) of
section 143 of the act (hereinafter referred to as the "order"), and on
the basis of such checks of the books and records of the company as we
considered appropriate and according to the information and explanation
given to us, we give in the annexure a statement on the matters
specified in paragraphs 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
purposes 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 (and proper returns adequate for the purposes of our audit have
been received from the branches not visited by us)
c) The Balance Sheet, the Statement of Profit and Loss and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account and the returns received from the branches not visited by us
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) There are no financial transactions or matters, in our opinion, may
have an adverse effect on the functioning of the Company.
f) On the basis of 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.
g) With respect to the other matters included in the Auditor's Report
and to our 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 its financial statements - Refer Note 30(i) to
the financial statements.
ii.) The Company has made provision, as required under the applicable
law or accounting standards, for material foreseeable losses, if any,
on long term contracts including derivative contracts - Refer Note
30(ii)(c) to the financial statements.
iii.) There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company
THE ANNEXURE REFERRED TO IN PARAGRAPH 1 OF THE OUR REPORT OF EVEN DATE
TO THE MEMBERS OF MAHARAJA SHREE UMAID MILLS LIMITED ON THE ACCOUNTS OF
THE COMPANY FOR THE YEAR ENDED ON 31st MARCH, 2015.
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) The fixed assets have been physically verified wherever practicable
on a phased manner by the management, which in our opinion is
reasonable having regard to the size of the company and the nature of
its fixed assets. As informed to us, no material discrepancies between
book records and physical inventory were noticed.
2. In respect of its Inventories:
a) As explained to us, the management has conducted physical
verification of inventory at reasonable intervals during the year.
b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventory
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 is maintaining proper records of inventory and as
explained to us no material discrepancies were noticed on physical
verification of inventory as compared to book records.
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 during the year.
4. In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the company and the nature of its business with regard
to purchase of inventory and fixed assets and for the sale of goods and
service. During the course of our audit, no major weakness has been
noticed in internal control system.
5. According to the information and explanations given to us, the
Company has not accepted any deposit from the public. Therefore, the
provisions of clause (v) of paragraph 3 of the Order are not applicable
to the Company.
6. We have broadly reviewed the books of account maintained by the
company pursuant to the rules 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 made and maintained. We have, however, not made a
detailed examination of the same with a view to determine whether they
are accurate or complete.
7. In respect of statutory dues:
a) According to the records of company, undisputed statutory dues
including Provident Fund, Investor Education and Protection Fund,
Employees' State Insurance, Income Tax, Sales Tax, Wealth Tax, Service
Tax, Custom Duty, Excise Duty, Cess and other statutory dues have been
generally regularly deposited with the appropriate authorities.
According to the information and explanations given to us, no
undisputed amounts payable in respect of aforesaid dues were
outstanding at the year end for a period of more than six months from
the date they became payable.
b) The disputed statutory dues aggregating Rs. 2559.49 Lacs that have
not been deposited on account of disputed matters pending before
appropriate authorities are given hereunder :
S. Name of the Nature Forum Amount
No. statute of the where (Rs. in
Dues dispute Lacs)
is pending
Taxation :
i. Income Tax Income- High 161.32
Act, 1961 Tax Court
ii. Income Tax Income- CIT(App- 1175.98
Act, 1961 Tax eals)
iii. Central Excise Excise High 89.79
Act, 1944 Duty Court
iv. Finance Act, Service High 68.09
1994 Tax Court
v. The Rajasthan Entry High 53.32
Tax on Entry of Tax Court
Goods into Local
Areas Act, 1999
vi. RVAT, 2003 VAT Raj. 16.30
Tax Board
vii. RVAT, 2003 VAT D.C. 228.11
(Apeeal)
(To be
Field)
Others :
i. Payment of Wages Relevant 0.05
Wages Act, 1936 Authority
ii. Payment of Gratuity Relevant 1.48
Gratuity Act, 1972 Authority
iii. ESI Act, 1948 ESI High 1.29
Court
iv. Payment of Bonus Bonus Relevant 0.06
Act, 1965 Authority
v. Industrial Dispute Wages High 7.78
Act, 1947 Court
vi. The Rajasthan Electricity High 755.92
Electricity Duty Duty Court
Act, 2003 & Other
cess
TOTAL : 2559.49
c) The amount of Rs. 41,981/- is required to be transferred to Investor
Education and Protection Fund in accordance with the relevant
provisions of the Companies Act, 2013 and rules, made thereunder, has
been transferred to such fund within time.
8. Based on our audit procedures and according to the information and
explanations given to us, we are of the opinion that the Company has
not defaulted in repayment of dues to financial institutions, banks.
There are no debenture holders.
9. In our opinion and according to the information and explanations
given to us, the Company has not given any guarantees for loans taken
by others from banks and financial Institutions.
10. Based on information and explanations given to us by the
management, the term loans were applied for the purpose for which the
loans were obtained.
11. In our opinion 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 BD Gargieya & Co.
Chartered Accountants
(FRN : 001072C)
Naresh Kumar Gupta
Kolkata Partner
May 16, 2015 Membership No. 72326 |