| We have audited the accompanying financial statements of OXIDESAND
SPECIALITIES 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 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 notified under the Companies Act,1956 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. 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 the 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 misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosure 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 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
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 provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and 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 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, 2014.
(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 as
amended by the Companies(Auditors' Report )(Amendment )Order
2004,issued by the Central Government of India in terms of sub-section
(4A) of section 227 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
explanations given to us we give in the Annexure a statement on the
matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227 (3) of the Act, we report that:
a. We have 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 the 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 notified under
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.
e. On the basis of written representative 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, 2014, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
ANNEXURE REFERRED TO IN PARAGRAPH 3 OF AUDITORS' REPORT OF EVEN DATE ON
THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st MARCH, 2014 OF M/S
OXIDES AND SPECIALITIES LIMITED
On the basis of such checks as we considered appropriate and according
to the information and explanations given to us during the course of
audit, we state that.
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) During the year, no physical verification of the fixed assets has
been conducted by the management. As explained, discrepancy, if any,
will be adjusted in the year of physical verification.
c) No substantial part of fixed assets has been disposed off by the
company during the year.
2) In respect of its Inventories:
a) The inventory has been physically verified by the management at
reasonable intervals during the year.
b) In our opinion the procedure of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
c) On the basis of examination of the records of inventory, we are of
the opinion that the Company is maintaining proper records of inventory
and no material discrepancies were noticed on physical verification.
3) In respect of loans, Secured or Unsecured, granted or taken by the
company to/from Companies, firms or other parties listed in the
register maintained under section 301 of the companies act, 1956.
a) Based on the audit procedure applied by us and according to the
information and explanation provided by the management, Company has not
granted any loans or advances to Companies, firms or other parties
listed in the register maintained under section 301 of the companies
act, 1956.
b) During the financial year covered under audit, the Company has taken
interest free unsecured loans of Rs. 26066/ (including opening balance)
from one party listed in the register maintained under section 301 of
the act. In respect of the said loan, maximum amount outstanding at any
time during the period covered under audit was Rs. 26066/- and the year
end balance of the said loan is Rs.26066/- which are payable whenever
demanded by lenders.
c) In our opinion, other terms and conditions on which loans have been
taken are prima facie not prejudicial to the interest of the company.
d) Loans taken by the company were re-payable on demand. As informed,
repayment have been made during the year whenever demanded by the
lender, thus there has been no default on the part of the Company.
4. In our opinion, and according to information and explanations given
to us, there is adequate internal control commensurate with the size of
the company and the nature of the business for the purchase of
inventory and fixed assets and for the sale of goods. During the course
of our audit, no major weakness has been noticed in the internal
control system.
5. (a) According to the information and explanations given to us, the
transactions that need to be entered into the register maintained under
section 301 of the Companies Act, 1956, have been so entered where ever
applicable.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register in pursuance of Section 301 of the
Companies Act, 1956 and exceeding the value of Rs. 5 lakhs in respect
of any party during the year, have been made at prices which are
reasonable having regard to the prevailing market prices at the
relevant time.
6. In our opinion and according to the information and explanations
given to us the company has not accepted any deposits from public
during the year as stated in the provisions of section 58A, 58AA or any
other relevant provisions of the companies act, 1956 or the rules
framed there under.
7. In our opinion, the Company has an adequate internal audit system
commensurate with the size of the Company and nature of its business.
8. The Company is maintaining the cost records which has been
prescribed by the Central Government under Section 209 (1) (d) of the
Companies Act, for the products manufactured by the Company.
9. (a) The company is generally regular in depositing undisputed
statutory dues including provident Fund, Investor Education and
Protection Fund, Income Tax, Wealth Tax, Sales Tax, Customs Duty,
Excise Duty, Service Tax, Cess and other statutory dues applicable to
the Company with the appropriate authorities. No undisputed amount
payable in respect of the aforesaid statutory dues were outstanding as
at the last day of the financial year for a period of more than six
months from the date they become payable except Rs.902044/- towards
Provident Fund Rs. 1,72,952/- towards Sales Tax, Rs. 5,22217/-
towards Professional Tax, Rs. 39,956/- towards MVAT, Rs. 34,173.78
towards Excise Duty and Rs. 6,11,631/- towards Chiplun Gram Panchayat
Tax. The Company is under BIFR perview and proposes to pay the
statutory dues as mentioned in the draft rehabilitation scheme.
(b) According to the records of the Company, there are no dues of
Income Tax, Sales Tax, Customs Duty, Wealth Tax, Excise Duty, Service
Tax, Cess which have not been deposited on account of any dispute
10 The accumulated losses as at 31st March, 2014 of the Company are
more than hundred percent of its net worth. The Company has incurred
cash losses during the current financial year and in the immediately
preceding financial year. On account of this the company has approached
BIFR for restructuring and the application and Draft Rehabilitation
Scheme is under consideration.
11. Based on our audit procedures and according to the information and
explanations given to us, we are of the opinion that Company has not
defaulted in repayment of dues to financial institutions / bank.
12. According to the information and explanations 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.
13. The company is not a chit fund or a nidhi / mutual benefit
fund/society. Therefore, the provisions of clause 4 (xiii) of the Order
are not applicable to the company.
14. In our opinion, the Company is not dealing in or trading in shares,
securities, debentures and other investments. Accordingly the
provisions of this clause are not applicable on the Company.
15. According to the records of the company and on the basis of
information and explanations given to us, the Company has not given any
guarantee during the year for loans taken by others from banks or
financial institutions.
16. According to the information and explanations given to us and on an
overall examination of the Balance Sheet of the Company, in our
opinion, clause 4 (xvi) is not applicable to the company as the company
has not raised any term loan during the year.
17. According to the information and explanations given to us and on an
overall examination of the Balance Sheet of the Company, in our
opinion, the funds raised on short-term basis have not been used for
long term investment.
18. The Company has not made any preferential allotment of shares to
parties and companies covered in the register maintained u/s.301 of the
Act.
19. According to the information and explanations given to us and on an
overall examination of the Balance Sheet of the Company, in our
opinion, the company has not issued any debentures.
20. According to the information and explanations given to us and on an
overall examination of the Balance Sheet of the Company, in our
opinion, the company has not raised any fund by way of public issue.
21. According to the information and explanations given to us and on an
overall examination of the Balance Sheet of the Company, in our
opinion, no fraud on or by the Company was noticed or reported during
the year.
For BKG & ASSOCIATES
CHARTERED ACCOUNTANTS
CA. B.K. Gupta
Partner
Place : Mumbai Membership No. 040889
Date : 12th May, 2014. Firm Reg. No.:114852W | 