| 1 We have audited the accompanying financial statements of ADITYA BIRLA
CHEMICALS (INDIA) LIMITED("the Company"), which comprise the Balance
Sheet as at March 31, 2015, 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
2 The management and Board of Directors of the Company are responsible
for the matters stated 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 Companies (Accounts) Rules, 2014. This responsibility also
includes maintenance of adequate accounting records in accordance with
the provisions of the Act for safeguarding the assets of the Company
and for preventing and detecting frauds and other irregularities;
selection and application of appropriate accounting policies; making
judgments and estimates that are reasonable and prudent; design,
implementation and maintenance of adequate internal financial controls,
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
3 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
4 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 a
true and fair view, in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing
an opinion on whether the Company has in place an adequate internal
financial controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of
the accounting estimates made by the Company's management and Board of
Directors, as well as evaluating the overall presentation of the
financial statements.
5 We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion
Opinion
6. 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 of the state of affairs of the Company as
at 31st March 2015, its profit and its cash flows for the year ended on
that date. Report on Other Legal and Regulatory Requirements
7 As required by the Companies (Auditor's Report) Order, 2015 ("the
Order") issued by the Central Government of India in terms of
sub-section (11) of sectionl43 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 3 and 4 of the Order.
8 As required by section 143(3) of the Act, we further 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
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 aforesaid financial statements comply with the
applicable Accounting Standards specified under Section 133 of the Act,
read with Rule 7 of the Companies (Accounts) Rules 2014;
e. on the basis of written representations received from the directors
as on March 31, 2015, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2015, from being
appointed as a director in terms of Section 164(2) of the Act
f In our opinion and to the best of our information and according to
the explanations given to us, we report as under with respect to other
matters to be included in the Auditor's Report in accordance with Rule
11 of the Companies (Audit and Auditors) Rules, 2014:
(i) The Company has disclosed the impact of pending litigations on its
financial position in its financial statements. Refer Note B-36 of the
financial statements
(ii) The Company assesses periodically the foreseeable losses on all
its long term contracts. As at end of the year under report there were
no such foreseeable losses. The company did not have any derivative
contracts as at the date of Balance Sheet
(iii) There has been no delay in transferring sums, required to be
transferred, to the Investor Education and Protection Fund by the
Company
Annexure referred to in paragraph 7 Our Report of even date to the
members of ADITYA BIRLA CHEMICALS (INDIA) LIMITED on the accounts of
the company for the year ended 31st March, 2015
On the basis of such checks as we considered appropriate and according
to the information and explanations given to us during the course of
our audit, we report that:
(i) (a) The Company has generally maintained proper records showing
full particulars, including quantitative details and situation of fixed
assets;
(b) As explained to us, fixed assets have been physically verified by
the management at periodic intervals which in our opinion is reasonable
having regard to the size of the company and the nature of its assets.
As informed to us no material discrepancies were noticed on such
verification;
(ii) (a) The physical verification of inventories has been conducted at
periodic intervals by the management;
(b) 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 no
material discrepancies were noticed on physical verification
(iii) The company has not granted any loans, secured or unsecured
to/from companies, firms or other parties covered in the register
maintained under section 189 of the Act. Hence the requirement of
clause (iii) (a) and (iii)(b) of paragraph 3 of the Order are not
applicable to it
(iv) In our opinion and according to the information and explanations
given to us, there is adequate internal control system commensurate
with the size of the Company and the nature of its business, for the
purchase of inventories, fixed assets and for the sales of
goods/services. Further, on the basis of our examination of the books
and records of the Company and according to the information and
explanations given to us, no major weakness in the internal control
system pertaining to these areas has been noticed or reported
(v) The Company has not accepted any deposits from the public. Hence
clause (v) of paragraph 3 of the Order is not applicable to it
(vi) We have broadly reviewed the accounts and records maintained by
the Company pursuant to the rules made by the Central Government for
the maintenance of cost records under sub-section (1) of Section 148 of
the Act and are of the opinion that, prima facie, the prescribed
accounts and records have been maintained
(vii) (a) According to the information and explanations given to us and
based on the records of the company examined by us, the company is
regular in depositing with the appropriate authorities the undisputed
statutory dues, including Provident Fund, Employees' State Insurance,
Income-tax, Sales-tax, Wealth Tax, Service Tax, Value Added Tax, Duty
of Custom, Duty of Excise, Cess and other statutory dues as applicable
to the Company;
(b) According to the information and explanations given to us and based
on the records of the company examined by us, the following dues of
Income Tax, Wealth Tax, Service Tax,Value Added Tax, Sales Tax, Duty of
Customs,Duty of Excise, Cess which have not been deposited on account
of disputes:
Name of the Nature Period
Statute of dues
Income Tax Act 1961 Income AY 2007-08 , AY 2008-09,
Tax and AY 2010-11
Interest
AY 2002-03 AY 2006-07 &
AY 2009-10
Sales Tax / Trade Tax Sales Tax AY 2010-11
FY 2009-10, FY 2010-11
UP Tax on Entry of
Goods Entry Tax FY 2006-07 to FY 2011-12
into Local Area Tax,
2007
Central Excise
Act 1944 Cenvat and FY 2000-01 to 2006-07,
Penalty FY 2008-09 to FY 2012-13
(FY 1998-1999,1996-2000,
2007-2008)
FY 2004-2008
FY 2006-07
Sec 94 of Finance Service Tax FY 2005-06 & FY 11-12
act 1994 and Penalty FY 2006-2007
FY 2005-07
Name of the Statute Amount Forum where dispute is
(Rs in pending
Lac)
Income Tax Act 1961 696.12 CIT (Appeals) and Petition u/s 154
8.44 CIT (Appeals)
Sales Tax/ Trade Tax 7.03 Office of the Additional
Commissioner(A), Mirzapur
40.61 The Joint Commissioner of
Commercial Taxes (Appeal), Ranchi
UP Tax on Entry of Goods
into Local Area Tax, 2007 212.75 Supreme court Delhi
Central Excise Act, 1944 869.23 CESTAT, New Delhi
8.13 CESTAT High Court
525.70 CESTAT, Kolkata
12.78 AC, Central Excise, Mirzapur
Sec 94 of Finance
act 1994 159.11 CESTAT, New Delhi
25.11 CESTAT, New Delhi
105.02 CESTAT, Kolkata
(c) The Company has transferred the required sums to the Investor
Education and Protection Fund during the year within time as prescribed
by the relevant provisions of the Companies Act, 1956 and rules made
there under
(viii) The Company has no accumulated losses at the end of the
financial year and it has not incurred any cash losses in the current
and immediately preceding financial year
(ix) Based on our audit procedures and as per the information and
explanations given, we are of the opinion that the Company has not
defaulted in repayment of dues to a financial institution or bank
(x) In our opinion, and according to the information and explanations
given to us, the company has given guarantee to a bank favoring its
overseas subsidiary which has not yet availed credit facilities against
the said guarantee; in our opinion, terms of such guarantee are not,
prima facie, prejudicial to the interest of the company
(xi) Based on information and explanations given to us, the term loans
were applied by the Company during the year for the purposes for which
the loans were obtained
(xii) During the course of our examination of the books and records of
the company, carried in accordance with the auditing standards
generally accepted in India, we have neither come across any instance
of fraud on or by the Company noticed or reported during the course of
our audit nor have we been informed of any such instance by the
Management of the Company
For Khimji Kunverji & Co
Chartered Accountants
Firm Registration No 105146W
Place: Mumbai Hasmukh B Dedhia
Date: May 13, 2015 (Partner) F-033494 | 