| We have audited the accompanying financial statements of SAND PLAst
India up. ("the Company"), which comprise the Balance Sheet as at March
31, 2 014, and the Statement of Profit and loss ants 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 213
of the Companies Act, 1956 ("the Act") read with the General circular
15/2013 dated September 13, 2013 of the Ministry of Corporate Affairs
in respect of Section 133 of the Companies Act, 2013 and in accordance
with the accounting principles generally accepted in India. 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
materia! misstatement, whether due to fraud or error.
Auditors' Responsibility
Our responsibility Is to express an opinion oti these financial
statements based on our audit. We conducted our audit ip accordance
with the Standards on Auditing issued by the institute of Chartered
Accountants of India, Those Standards require that we comply w-th
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 interna! 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
(he reasonableness of the accounting estimates made by management, as
well as evaluating the overall presentation of tire financial
statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit op in,on.
Opinion
In OUT opinion and to the best of OUT information and according to the
explanations g;vqn 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:
a) in the case of the Balance Sheet, of the state of affairs of
the Company as at March 31, 201 ;
b) in the case of the Profit and Loss Account, 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, 2003 (' the
Order1') 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 A and S of the Order.
2. As required by section 227(3) of the Act, we report that:
a) we have obtained ali 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
sub-section (3C) of section 211. of the Companies Act, 1966 read with
the General Circular 15/2013 dated September 13, 2013 of the Ministry
of Corporate Affairs in respectof Section 133 of the Compai es Act,
2013; and
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, 20W, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 2V&- of the Companies Act, 1956.
f) in our opinion and to the best of our information and according to
the explanation given to us, we further report that the said accounts
subject to matters mentioned herein below, read with significant
accounting policies and other rotes thereon give the information
required by the Companies Act, 1956 in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted:-
1) Attention Is invited to Note. No. 5 of the Balance sheet of the
company for the year, which state that the company has filed Modified
Draft Rehabilitation Scheme to Hon'ble BIFR dated 27th April, 2010 and
Secured Creditors i.e. PIMB and HUDCO. The Company has not provided any
interest, as a result of the same Secured liabilities and accumulated
losses of the company are understated. Approval of Modified Draft
Rehabilitation Scheme is rejected by BIFR'S Order dated 02.08.2011 and
appeal against this order is filed in the AAIFR. The Status of Appeal
is pending.
2) As Informed by the management, neither any books nor any audited
accounts of Sand Lime products (India) Ltd & 5PIL machines
Manufacturers Ltd subsidiary of SAND PLAST INDIA LTD.available hence
consolidation under A5-21 not complied by us and there Is no effect of
consolidation in balance sheet. As Informed by the management the said
investments are made by previous management of company and in this
regard no records are available with present management.
3) As informed by the management that, the WJDCO/PNB has taken physical
possesion of behror land in December 2012 has sold during F.Y 2013-14
but no communication in this regard received by the company from the
lenders in respect of sale consideration & Its treatment hence we have
not considered the same while preparing above accounts.
ANKQURE TO INDEPENDENT AUDITORS'REPORT
Annexure referred to in Paragraph 1 under the heading of "report on
other legal and regulatory requirtments" of our report of even date
(i) (a) The Company has generally maintained proper records showing
toll particulars including quantitative details and situation of fixed
assets.
(b) The Company has phased programme of physical verification of its
fixed assets at reasonable intervals, which, in our opinion, is
reasonable having regard to the site of the Company and nature of its
assets. During the year, the management has physically verified fixed
assets and no material discrepancies were noticed on such physical
verfication.
(c) The Company has not disposed off a substantial part of the fixed
assets during the year subject to Point no. (f) (3) under (Report on
Other Legal and Regulatory Requirements) and going concern Status of
tile company is not affected.
(ii) (a) We are informed that the physical verification of inventory
has been conducted during the year by the management at reasonable
Intervals.
(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 has maintained proper records of inventory, as
explained to us, no material discrepancies noticed on physical
verification of inventory as compared to book records.
(iii) According to the information and explanation given to us, the
company has not granted any loan, secured or unsecured, to companies,
firms or other parties covered in the register maintained under section
301 of the companies Act, 1956.
(b) According to the nformation and explanations given Eo us, the
details of secured or unsecured loan taken from individual fit
corporate covered in the register maintained under section 301 of the
Companies Act, 1956 are as under:
Name Amount (Rs. In lacs)
Rajesh Gupta (Managing Director) 381.19
(c) in our opin on the terms of these loans are, prima facie, not
prejudicial to the interest of the company;
(d) The rate of interest being prima facie precudicial to the interest
of the company does not arise.
{iv) In our opinon and according to the information and explanations
given to us, there are adequate internal control procedures com m
ensure re with the sire of the Company and the nature of its business
with regard to purchase of inventory, fixed assets and also for the
sale of goods. During the course of our audit, we have not ooserved any
continuing failure to correct major weaknesses in internal control.
(v) (a) According to the information and explanation given to us, we are
of the opinon that the transactions that reed to be entered into the
register maintained under Section 301 of the Companies Act, 1956 for the
year 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 into the register maintained under Section 501 of
the Companies Act. 1956 in excess of Rs. 5, 00,000/- in respect of each
party during the year have been made at prices which are reasonable
having regard to prevailing market pirce at the relevant time.
(v) The Company has not accepted any deposits from the public within the
meaning or provisions of Section SEA and 58AA of the Companies Act, 1956
and rules made thereunder.
(vii) In our opinion, the Company has an internal audit system
commensurate with the site of the Company and nature of its business.
(viii) We have been informed that the Central Government has not
prescribed maintenance of cost records under section 209{1| id) of the
Companies Act, 1956, for the products manufactured by the Company.
(ix) (a) According to the information and explanations given to us end
on the basis of records produced before us, the Company is generally
regular in depositing with appropriate authorities undisputed statutory
dues including provident fund, investor education protection fund,
employees' state insurance. Income tax. sales tax. wealth tax, custom
duty, excise duty, cess and other material statutory dues applicable to
it.
(b) As per Pr formation and explanations furnished to us and on
verification of records produced, there are disputed statutory dues
outstanding aggregating to Rs. 22,86,776.65 as at 31st March. 2014,
which have not been deposited with the respect of Sales Tax which are
as follows:
NAME OF STATUTE DUE NATURE OF THE AMOUNT (RS.)
DUES
CST Rajasthan Sales Tax 4819.73
Rajasthan Sales Tax Sales Tax 2199174,90
Excise Duty Excise IS ability 327S2.00
lx) The Company has accumulated losses of Rs. 16, 25, 63,899-OO after
adjusting current year Loss.
(xi) in Our opinion and according to the information and explanations
given to US, the dues of the financial Institutlons/banks were
rescheduled under rehabilitation package pending in the honorable BIFR
so in this reference as per point no. (vi) (a) however there are
defaults in repayment there against.
(xi ) In our opinion and according to the information and explanationss
given to os, the Company has not grained any loans or advances on the
basis of security by way of pledge of shares, debentures and other
securities.
(xiii) in our opinion, the Company is not a chit fund, nidhi, mutual
benefit fund or a society. Therefore, clause 4(xiii) of the Companies
(Auditor's Report) Order 2003 is not applicable to the Company.
(xiv) According to the information and explanations given to us, the
Company is not dealing or trading in shares, securities, debentures and
other investments, Accordingly clause 4|xiv) of the Companies
(Auditor's Report) Order 2003 is not applicable
(xv) According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks or financial institutions. Therefore clause 4(xv) of the
Companies (Auditor's Report) Order 2003 is not applicable to the
Company.
(xvi) The company has not obtained any fresh term loan during the
financial year.
(xvii) According to the cash flow statement and other records examined
by us and the information and explanations given to us, on an overall
basis, fund raised on short term basis have, prime facie, not been used
during the year for long term investments and vice versa.
(xviii) The company has neither Issued any fresh share capital nor made
any preferential allotment during the year,
(xix) The Company has not issued debentures during the financial year
and hence, the question of creating securities in respect thereof does
not arise.
(xviii) The Company has not raised any money by public issue.
(xix) As informed by Management the company, no case of any fraud on or
by the company has been noticed or reported during the year
(xxii) As informed by the Management of the company, The Company is a
sick industrial Company, as per BIFR Reg. No. 333/2001 within the
meaning of clauses (O) of Section 3(1) of the sick Industrial Companies
(Special Provision) Act, 1985.
For D. Khanna & Associates
Chartered Accountants
(Firm's Registration Number: 012917N)
s/d
Rahul Khandelwal
Partner
Jaipur, May 25, 2014 Membership No. 415372 |