| We have audited the accompanying financial statements of Chemteeh
Industrial Valves Ltd ("the Company"), which comprise the Balance Sheet
as at 31st March, 2015, the Statement of Profit and Loss, the Cash Flow
Statement, and a summary of the significant accounting policies and
other explanatory information for the year then ended.
Management's Responsibility for the Financial Statements
The management and the Company's Board of Directors are responsible for
the matters stated in Section 134(o} 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 Sows of the Company m accordance with the
accounting principles genera% accepted in India, including the
Accounting Standards specified under Section-33 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility
also iodides maintenance of adequate accounting records in accordance
with the preparation of the Act for safeguarding the assets of the
Comply and for preventing and detecting frauds and other
irregularities; selection and unction of appropriate accounting
policies; making judgments and estimates feat tire reasonable and
prudent; and 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 fortitude or error.
Auditor's' Responsibility
Our responsibility is to express aci opinion on these financial
statements based on our audit. We have taken mm account the provisions
of the Act, the accounting arid 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
tire free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the 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
for 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 m place an adequate internal
financial control system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of the 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, We believe that the audit evidence we have
obtained 13 sufficient and appropriate to provide a basis For our audit
opinion on the financial statements.
Opinion
In our option and. to the best of our information and according to the
explanations given to U3, 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 at the Company as
at 31st March, 2015, and its profit/loss and its cash flows for the
year ended an that date.
Report an Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2015 ("the
Order") issued by the Central Government of India in terms of Section
143(11} of the Act, we give in the Annexure a statement on the matters
specified in paragraphs 3 and 4 of the Order.
2. As required by section 143 (3)of the Act, we report that:
(a) We have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary fur 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 it appears from our examination of
those books.
(c) The Balance Sheet, the Statement of Profit 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 aforesaid financial statements comply with the
Accounting Standards specified under Section 133 of the Act, read
wirier Kate 7 of the Companies (Accounts Rules, 2014.
(e) On the basis of the written representations received from the
directors as on 31st March, 2015 taken on record by the Hoard of
Directors, none of the directors is disqualified as on 31st March, 2015
from being appointed as a director in terms of Section 164 (2) of the
Act.
(f) with respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and Auditors
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us:
i. The Company leas disclosed this impact of pending litigations on its
financial position in its financial statements-refer Notes 31 to the
financial statements
ii. The Company did not have any long term contracts including
derivative contracts for which there were material foreseeable kisses.
iii. There were no amounts which were required to be transfer, to the
Investor Education and Protection Fund by the Company daring rhe year
ended 31.03.2015.
Referred to in Paragraph 1 under the heading "Report on other legal and
regulatory requirements" of our Independent Auditor's Report of even
dale to the members of Chemteeh Industrial Valves Ltd. On the financial
statements as of and for the year ended 31.03.2015,
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
(l) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(h) A explain to us fixed assets have been physically verified by the
management in a phased manner and no material discrepancies were
noticed on such verification during the year. In our opinion, the
frequency of verification of the fixed assets is reasonable having
regard to the size of the Company and the nature of its assets.
(P) (a) The management has conducted physical verification of inventory,
excluding stocks with third parties, at reasonable intervals during the
year. In respect of inventory lying with Third parties, these have
substantially been confirmed by them. In our opinion, the frequency of
verification is reasonable.
(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 rewords of inventory and no
material discrepancies between physical inventory and book records were
noticed on physical verification.
[ii) The Company has not granted any loan, secured or unsecured to
companies, firms or other parties covered in the register maintained
under Section 139 of the Act. Accordingly, the provisions of clauses
3(iii] fa) and 3(iii) (b) of the Order are not applicable.
(iv) In our opinion, and according to information's & explanations
given to us, tiered is an adequate internal control system commensurate
with the size of the Company and the nature of its business for the
purchase of inventory and fixed assets and for the sale of goods and
services. During the course of our audit, no major weakness has been
noticed nor reported in the internal control System in respect of these
areas.
(v) The Company has not accepted any deposits from the public within
the meaning of Sections 73 to 76 of the Act or any other relevant
provisions of the Act and rules framed there under.
(vi) We haw broadly reviewed the accounts and records maintained by
the Company in respect of products where, pursuant to the rules made by
the Central Government of India, the maintenance of cost records has
been prescribed 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 made and maintained. We have not, however, made a
detailed examination of the same.
(vii) a The Company is generally regular in depositing with appropriate
authorities undisputed statutory dues including Provident Fund,
Employees' State Insurance, Income Tax, Wealth Tax, Sales Tax, Service
Tax, Duty of Custom, Duty of Excise, Value added tax, Cess and other
material statutory dues, as applicable to it. According to the
information and explanations given to us, no undisputed amounts payable
in respect of outstanding statutory dues were in arrears as at March
31, 2015 for a period of more than six months from the date they became
payable except as below:
STATUTES NATURE OF AMOUNT PERIOD DUE DATE DATE OF
DUES (Rs) PAYMENT
Seres-tax Deferment 1,263,966 1999-OOto Annual
Installment 2001-02 install-
ments
Income tax TDS 2,68,388 2007-08 to Various as
per
2013-14 Default
notice
With respect to income tax TDS dues, we are being informed that the
company is in the process of compiling data / information In respect of
default notices from Tax database (TRACES) and accordingly the demands
would be either paid or necessary rectification applications would be
filed.
b) There are no dues In respect of wealth-tax, duty of excise, duty of
customs, sales tax, service tax .value added tax and cess that have not
been deposited with the appropriate authority on account of any
dispute. The particular of dues outstanding in respect of income tax,
on account of any dispute are as follows:
Sr. Name of Statute Nature Forum where Financial Amount
No. of Dispute
is pending Year in Rs.
Dues
1 Central Sales
tax CST Comm..of
sales Tax 2008-09 1109445
2 Central Sales
tax CST Comm..of
sales Tax 2006-07 270979
3 Central Sales
tax CST Comm..
Sales Tax 2000-10 4259202
4 Income Tax IT Income tax
officer 2011-12 3,989,780
C) There were no amounts which were required to be transfer, to the
Investor Education and Protection Fund by the Company during the year
ended 31.03,2015.
(viii] The Company has accumulated losses of Rs.5,11,20,964/-(P. Y. Rs.
1.34,10,416/-) at the end of the financial year which is not more than
the 50% of its Net worth. It has incurred cash loss during the current
year is Rs,2,19,39,099/- and Rs.SS,80,222/- in the immediately previous
year.
(ix) Based on our audit procedures and according to the information and
explanation given to us, we arc of the opinion that the Company has not
defaulted m repayment of dues to banks.
x) According to information and explanation given to ua and to the best
of knowledge, the Company has not given guarantees for loans taken by
others from banks or financial institutions.
(xi) In our opinion and according to intonation and explanation given
to ua, a company has not received any Term Lahti during the year.
(xii) During the course of our examination of books and records of the
company, carried out in accordance with generally accepted auditing
practices in India, we have neither" come across any instance of fraud
on or by the Company noticed or reported during the year, nor have we
been informed of any such case by the management.
For S. P. JAIN & ASSOCIATES,
CHARTERED ACCOUNTANTS
Firm Reg. No. 103969W
KAPIL K. JAIN
(PARTNER)
Membership No. 108521
Place : Mumbai,
Date : 30 MAY 2015
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