| We have audited the attached Balance Sheet of KUMAKA INDUSTRIES LIMITED
(FORMERLY KNOWN AS ASHOK ORGANIC INDUSTREIES LIMITED), as at 31st
March, 2014 and also the Profit and Loss Account for the year ended on
that date annexed thereto and Cash Flow Statement for the year ended on
that date. These financial statements are the responsibility of the
Company's Management. Our responsibility is to express an opinion on
these financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally
accepted in India. Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statements
presentation. We believe that our audit provides a reasonable basis for
our opinion.
The information required by Companies (Auditors Report) Order, 2003
issued by the Central Government of India in terms of sub-section (4A)
of section 227 of the Companies Act, 1956, are given in the annexure
forming part of this report, as specified in Paragraphs 4 & 5 of the
said Order.
Further to our comments as above, we report that;
1) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
2) In our opinion, proper books of account as required bylaw have been
kept by the company so far as appears from our examination of those
books;
3) The Balance Sheet and Profit and Loss Account dealt with by this
report are in agreement with the books account;
4) In our opinion, the Balance Sheet and Profit and loss Account dealt
with by this report comply with the accounting standards referred to in
sub-section (3C) of section 211 of the Companies Act 1956 & Subject to
Notes Forming Part of the Accounts;
5) On the basis of written representations received from the directors,
as on 31st March,2014, and taken on record by the Board of Directors,
we report that None of the Directors are Not Disqualified as on 31st
March, 2014 from being appointed as a director in terms of clause (g)
of sub-section (1) of section 274 of the Companies Act, 1956;
6) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts subject to Additional
Note 1(iv) payment of liability under protest and amount
unascertainable and note regarding non provision of impairment loss
which is not quantifiable and read along with other notes to accounts
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 in India. Also Refer Notes to
Accounts on the Basis of same Accounts Prepared and True and Fair View
is Ascertained.
i. In the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2014; and
ii. In the case of Profit and Loss Account, of the loss for the year
ended on that date, and
iii. In case of Cash Flow Statement, cash flow for the period ended on
that date.
Annexure referred to in the Audit Report
(i) (a) The Fixed Assets Register for Addition in Fixed assets from
Financial Year : 2012-2013 is available for our verification during the
Year under Audit.
(b) These fixed assets are physically verified by the management.
(c) The Company has disposed of a substantial part of fixed assets
during the year.
(ii) There is No stock of Finished Goods, Raw Materials, Stores and
consumables and Trading material during the Year. Hence there is No
Verification.
(iii) (a) The Company has granted loans, secured or unsecured to
companies or parties except to the wholly owned subsidiary of the
company. The subsidiary is incurring continuous losses. Company has
made necessary provision, as the loan has become doubtful of recovery.
The amount involved is Rs. 2966.80 lacs. However, deposits given for
use of the assets by the companies to parties listed under section 301,
as per the legal advice received by the company, amounting to Rs.624.48
Lacs are in the ordinary course of business of the company. The
Company has granted Loan/Deposit to Director of Rs.10 Lacs During the
Year.
(b) The Company has accepted loan or advances in nature of loan from
companies or parties listed in the register maintained under section
301 of Companies Act, 1956.
(iv) The Company doesn't have any operational activity. Hence there is
no comment as regards internal control procedures.
(v) (a) According to the information & explanation provided by the
management, we are of the opinion that the particulars of contract or
arrangements referred to in Section 301 of the Act that need to be
entered into the Register maintained Under Section 301 have been so
entered.
(b) In our Opinion and according to the information & explanation given
to us, the transaction made in pursuance of such contracts or
arrangements exceeding value of Rupees Five Lacs have been entered into
during the Financial Year at Prices which are reasonable having regard
to the prevailing market prices at the relevant time.
(vi) In respect of Deposits accepted, In our Opinion and according to
the information & explanation given to us, the company has not accepted
deposits from the public and provisions of section 58A and 58AA of the
Act and the rules framed there under are not applicable, We are
informed by the Management that no order has been passed by the Company
Law Board , National Company Law Tribunal or Reserve Bank of India or
any Court or any other Tribunal ;
(vii) The company does not have an internal audit system commensurate
with its size and nature of its business;
(viii) Maintenance of cost records has been prescribed by the Central
Government under clause (d) of sub-section (1) of section 209 of the
Act in respect of the Past Production Items , However the Company is
Non Operational at Present and thereby No Cost Records are required to
be maintained as per the provisions of section 209(1)(d);
(ix) According to the records of the company and subject to method of
accounts consistently followed by it, no undisputed amount except as
listed below were outstanding as on 31.03.2014 for the period of six
months from the date they become payable.
PARTICULARS AMOUNT
Employees State Insurance Cont
Sept 99 to July 2002 6,14,961
Sales Tax Payable 12,63,968
Sales Tax - 2010-11 (CST) AOIL-CAD 12,20,000
GIDC Dues For NAA, Notified Area,
Water Chgs. Etc. 77,36,749
Ukai Water Charges 7,00,000
During the Current Financial Year Providend Fund Demand is Paid AS Per
the Notice Dated 20/02/2013. As regards Sales Tax Liability, GIDC Dues,
Ukai Water Charges-Principle Liability is continued tobe Shown in
Provisions as Company is Registered with GBIFR For Waiver in State
Government Dues in Interest & Penalty. However, no legal compliance/no
due was Not obtained from respective authorities.
(x) The Company is Not a Sick Industrial Company.
(xi) According to the information & Explanation given to us & as per
the Books and Records examined by us , as on the Balance Sheet Date No
Amount is Outstanding to the Bank or Financial Institution.
(xii) According to the Information & Explanation given to us , the
Company has not granted Loans and Advances on the basis of security by
way of pledge of Shares , Debentures And other Securities.
(xiii) According to the Information & Explanation given to us , the
Company is not a Chit Fund or a nidhi / Mutual benefits Fund / Society.
Therefore the Provisions of Clause 4 (xiii) of the Companies (Auditors
Report) Order , 2003 are not applicable to the Company.
(xiv) According to the Information & Explanation given to us , the
Company is not dealing or Trading in Shares , Securities , Debentures &
other investments. Accordingly , the Provisions of Clause 4 (xiv) of
the Companies (Auditors Report) Order , 2003 are not applicable to the
Company. All the Investments are held by the Company in its own Name.
(xv) According to the Information & Explanation given to us , The
Company has not given any guarantee for loans taken by others from Bank
or Financial Institutions.
(xvi) According to the Information & Explanation given to us by the
management, The Company has not taken any term loans during the year
and as such the information required by this para is not applicable.
Except Advance Received from Parties to Whom the Fixed Assets are Sold.
(xvii) According to the Information & Explanation given to us , The
Company has not taken any term loans on short term basis during the
year.
(xviii) The Company has not made any preferential allotment of shares
to parties and companies covered in the Register maintained under
section 301 of the Act;
(xix) The Company has not issued any Debentures during the Year under
Audit.
(xx) The Company has not raised any Monies by way of Public Issue
during the Year.
(xxi) Based upon the audit procedures performed for the purpose of
reporting the true and fair view of the financial statements and as per
the information and explanation given by the management, we report that
no fraud on or by the Company has been noticed or reported during the
course of our Audit.
for BHATT THAKKER & CO.
CHARTERED ACCOUNTANTS
M.L. THAKKER
PARTNER
PLACE : VADODARA (MN 044517)
DATE : 12/07/2014 Firm Reg. No. 124010W | 