| We have audited the accompanying financial statements of SEN PET
(INDIA) LIMITED (" the Company ") which comprise the Balance Sheet as
at March 31, 2014, the Statement of Profit and Loss and Cash Flow
Statement for the year then ended and 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 Company Act, 1956 (the Act)
read with the general circular 15/2013 dated 13th September, 2013 of
the Ministry of the 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 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 whetherthe financial statements arefree 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
auditorconsiders internal control relevant to theCompany'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 wellas evaluating the overallpresentationof 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 Statement of 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 issued
by the Central Government of India in terms of sub-section (4A) of
Section 227 of the Companies Act, 1956, we enclose in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the said
Order.
2. As required by section 227(3) of the Act, we report that:
a) We have obtained all the informationandexplanations 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;
c) The Balance Sheet, Statement ofProfit and Loss and the 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 accounting standared notified under the
Act read with the general circular 15/2013 dated 13th September, 2013
of the Ministry of Corporate Affairs in respect of section133 of the
Company Act, 2013.
(i) Non revaluation of Foreign Currency Liability as per Accounting
Standard 11,Accounting for the effect in changes of Foreign Currency
Rates,
(ii) Determination of Employee Benefits on accrual basis as per
Accounting Standard 15, Employee Benefits and consequential disclosure
thereof in the Notes of Accounts
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, we
report that 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;
Further to our comments in para. d supra we draw reference to
(a) Point No. 5 of Note no. 22, regarding interest, further interest on
interest and liquidated damages on Term Loans/ Working Capital Loans
advanced by various Banks and Financial Institutions for the current
year, the quantum of which is unascertainable. (b) Subject to point
no.3, 4, 6, 14, 16 and 17 of Note no.22, we reserve our comments on the
going concern assumption adopted by the company.
ANNEXURE - 1
Annexure to Independent Auditors' Report referred to in Paragraph 1
under the heading of "Report on Other Legal and Regulatory
Requirements" of our report of even date On the basis of the
information and explanations furnished to us and the books and records
examined by us in the normal course of audit and to the best of our
knowledge and belief, in our opinion we further report that:
1. In respect of its Fixed Assets:
a) The Company is maintaining proper records showing full particulars
including quantitative details and situation of fixed assets.
b) The fixed assets of the Company have been physically verified at
reasonable intervals during the year, which in our opinion is
reasonable having regard to the size of the Company and nature of its
assets. No material discrepancies were noticed on such physical
verification.
c) The company has not disposed of a substantial part of the fixed
assets during the year so as to affect its going concern status.
2. In respect of its Inventories:
a) The inventories have been physically verified during the year by the
management. In our opinion, the frequency of such verification is
reasonable.
b) In our opinion, the procedure of physical verification of
inventories as followed by the management is 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 inventories.
3. In respect of the loans, secured or unsecured, granted or taken by
the Company to/from companies, firms or other parties covered in the
register maintained under section 301 of the Companies Act, 1956:
a) The Company has not granted any loan during the year to companies,
firms or other parties covered in the Register maintained under Section
301 of the Companies Act, 1956. Consequently, the requirements of
clause (iii)b ,(iii)c and (iii)d of paragraph 4 of the Order are not
applicable.
b) The Company has not taken any loan during the years from the
companies, firms or other parties covered in the register maintained
under section 301 of the Companies Act, 1956. Consequently, the
requirements of clause (iii)f and (iii)g of paragraph 4 of the Order
are not applicable.
4. In our opinion and according to the information and explanations
given to us, adequate internal control procedures commensurate with the
size of the company and the nature of its business for the purchase of
inventory and fixedassets and for the sale ofgoods are in vogue.
Further, on the basis of our examination and according to the
information and explanations made available to us, we have neither come
across nor have been informed of the continuing failure to correct
major weaknesses in the aforesaid internal control system.
5. In respect of the contracts or arrangements referred to in section
301 of the Companies Act, 1956:
a) In our opinion, particulars of contracts or arrangements referred to
in Section 301 of the Companies Act, 1956 have been entered in the
register, required to be maintained under that section.
b) In our opinion, the transactions made in pursuance to such contracts
or arrangements have been made at prices which are reasonable having
regard to the prevailing market prices at the relevant time.
6. The Company has not accepted any deposits from the public pursuant
to the provisions envisaged under the Companies (Acceptance of
Deposits) Rules, 1975, consequently, compliance under the directives
issued by the Reserve Bank of India and the provisions of Section 58A
and 58AA of the Companies Act, 1956 does not arise. Therefore, the
provision of clause (vi) of paragraph 4 of the order are not applicable
to the Company
7. In our opinion, the Company has an internal audit system
commensurate with the size of the company and the nature of its
business.
8. The Central Government has not prescribed maintenance of cost
recordsby the Company under section 209(1)(d) of the Companies Act,
1956 for any of its services.
9. The company is generally regular in depositing undisputed statutory
dues including Provident Fund, Income Tax, Central Sales Tax, West
Bengal Value Added Tax, Wealth Tax, Customs Duty and other material
statutory dues with the appropriate authorities during the period under
review, except ~ 9.64 lacs is outstanding against Excise Duty, Custom
Duty including its Education Cess and Ý 10.21 lacs against Sales Tax.
Apart from that no undisputed amount payable in respect of the
aforesaid statutory liability were outstanding as at 31st March, 2014
for a period of more than six months from the date they became payable.
The matter relating to exemption on payment of E.S.I. is pending with
the Hon'ble High Court at Kolkata. (Vide point no. 6 of Note no. 22).
Estimated liability as decided by the management is amounting to ~
38.02 lacs (approximately).
10. According to the information and explanations given to us, details
of disputed statutory dues have not been deposited as on 31st March,
2014 on account of disputed matters pending before appropriate
authorities are as under:
Name of the Nature of Due Amount Period for
Statute ( in Lacs) Which the
matter relates
The Central Excise Excise Duty 2734.79 1996 to 2005
Act, 1944
Name of the Statute Forum where the dispute is pending
The Central Excise Act, 1944 With Commissioner of Customs and CESTAT
Name of the Nature of Due Amount Period for
Statute ( in Lacs) Which the
matter relates
The West Bengal Sales Tax 839.01 2001-2003
Sales Tax Act,
1944 and Central
Sales Tax Act,
1956
The West Bengal Sales Tax 620.00 2002-2003
Sales Tax Act,
1994 and Central
Sales Tax Act,
1956
The West Bengal Sales Tax 939.61 2003-04
Sales Tax Act,
1994 and Central
Sales Tax Act,
1956
The West Bengal Sales Tax 18.63 2004-05
Sales Tax Act,
1994 and Central
Sales Tax Act,
1956
VAT Act, 2003 & Sales Tax 58.80 2005-06
&CSTAct,1956
VAT Act, 2003 & Sales Tax 65.76 2009-10
&CSTAct,1956
VAT Act, 2003 & Sales Tax 7.47 2010-2011
CST Act, 1956
Name of the Statute Forum where the dispute is pending
The West Bengal Sales Tax Act, Application to be filed, High Court,
1994 and Central Sales Tax Act Calcutta
1956
The West Bengal Sales Tax Act, Asst. Commissioner, Commercial Taxes,
1994 and Central Sales Tax Act South Circle Kolkata.
1956
The West Bengal Sales Tax Act, Asst. Commissioner, Commercial Taxes,
1994 and Central Sales Tax Act South Circle Kolkata.
1956
The West Bengal Sales Tax Act, West Bengal Commercial Taxes Appellate &
1994 and Central Sales Tax Act Revisional Board.
1956
VAT Act, 2003 & & CST Act,1956 West Bengal Commercial Taxes Appellate&
Revisional Board.
VAT Act, 2003 & & CST Act,1956 Asst. Commissioner, Commercial Taxes,
South Circle Kolkata.
VAT Act, 2003 & & CST Act,1956 Joint Commissioner, Commercial Taxes,
South Circle Kolkata.
The company has incurred cash losses in the currentfinancial year
amounting to ~ 146 Lacs (cash loss of ~ 107.92 lacs in the FY 2012-
13). The company had been referred to BIFR in the year 2000 as its net
worth had been eroded.
11. The company has made defaults in the repayment of dues to the
financial institutions and banks during the year under review, the
amount and period of default is not ascertainable at this stage.
12. Thecompany has not granted any loansand advances on thebasis of
security by way of pledge of shares, debentures and other securities
consequently the requirements of this provision are not applicable to
the company.
13. The company is not a chit fund company and as such the
requirements of clause (xiii) of paragraph 4 of the order are not
applicable to the Company.
14. The company does not deal in the trading of shares, securities,
debentures and other investments, consequently the requirements of
clause (xiv) of paragraph 4 of the order are not applicable to the
Company.
15. The company has not given any guarantees for loans taken by others
from bank or financial institutions, consequently the requirements of
clause (xv) of paragraph 4 of the order are not applicable to the
Company.
16. The company has not availed of any term loans during the year
under reference; consequently, utilization thereoffor the purposes for
which the loans were primarily obtained is not applicable to the
company.
17. The company has not raised any long term or short term funds
during the year under review consequently the requirement for
utilization thereof for the purposes specified for such funds does not
arise.
18. The company has not made any preferential allotment of shares to
parties and companies coveredin the Register maintained under section
301 of the Companies Act, 1956.
19. Thecompany hasnotissued any debenturesduring the year under
review; consequently the clause (xix) of paragraph 4 of the order is
not applicable to the Company.
20. Thecompanyhasnotmadeany public issuesduring theyear under review,
consequently the provisions of the clause (xx)of paragraph 4 of the
order is not applicable to the company.
21. According to the information and explanations made available to
us, based on the audit procedures performed and as certified by the
management it appears that no material frauds on or by the company have
been noticed or reported during the year under review.
For Basu Das & Basu
(Firm Registration No.311038E)
Chartered Accountants
Amal Kumar Das
Place:Kolkata Partner
Date:May 28, 2014 Membership No.050109
|