GOA CARBON LIMITED
ANNUAL REPORT 2011-2012
AUDITOR`S REPORT
TO
THE MEMBERS OF
GOA CARBON LIMITED
1. We have audited the attached Balance Sheet of GOA CARBON LIMITED ("the
Company") as at 31st March, 2012, the Statement of Profit and Loss and the
Cash Flow Statement of the Company for the year ended on that date, both
annexed thereto. 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.
2. 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 misstatements. 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 the significant estimates made by the Management, as well as evaluating
the overall financial statement presentation. We believe that our audit
provides a reasonable basis for our opinion.
3. As required by the Companies(Auditor`s Report)Order, 2003, (CARO) issued
by the Central Government of India in terms of Section 227 (4A) 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.
4. Further to our comments in the Annexure referred to in paragraph 3
above, 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 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 Balance Sheet, the Statement of Profit and Loss and
the Cash Flow Statement dealt with by this report are in compliance with
the Accounting Standards referred to in Section 211(3C) of the Companies
Act,1956;
(e) In our opinion and to the best of our information and according to the
explanations given to us, the said 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:
(i) In the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2012;
(ii) In the case of the Statement of Profit and Loss, of the profit of the
Company for the year ended on 31st March, 2012; and
(iii) In the case of the Cash Flow Statement, of the cash flows for the
year ended on 31st March, 2012.
5. On the basis of written representations received from the directors as
on 31st March, 2012, and taken on record by the Board of Directors, none of
the directors is disqualified as on 31st March, 2012 from being appointed
as a director in terms of section 274(1)(g) of the Companies Act, 1956.
For DELOITTE HASKINS & SELLS
Chartered Accountants
(Registration No.: 008072S)
B. Ramaratnam
Partner
Member ship No.: 21209
Place: PANAJI
Date : April 17, 2012.
Annexure to the Auditors` Report:
(Referred to in paragraph 3 of our report of even date):
(i) Having regard to the nature of the Company`s business/activities/
result, clauses vii, xi, xii, xiii, xiv, xv, xvi, xvii, xix, xx and xxi of
CARO are not applicable.
(ii) In respect of Company`s fixed assets:
(a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets.
(b) The fixed assets were physically verified during the year by the
Management in accordance with a regular program of verification which, in
our opinion, provides for physical verification of all the fixed assets at
reasonable intervals. According to the information and explanation given to
us, no material discrepancies were noticed on such verification.
(c) The fixed assets disposed off during the year, in our opinion, do not
constitute a substantial part of the fixed assets of the Company and such
disposal has, in our opinion, not affected the going concern status of the
Company.
(iii) In respect of Company`s inventories:
(a) The inventories were physically verified during the year by the
Management at reasonable intervals.
(b) In our opinion and according to the information and explanation given
to us, the procedures of physical verification of inventories followed by
the Management were reasonable and adequate in relation to the size of the
Company and the nature of its business.
(c) In our opinion and according to the information and explanations given
to us, the Company has maintained proper records of its inventories and no
material discrepancies were noticed on physical verification.
(iv) (a) According to the information and explanations given to us, the
Company has not granted any loans secured or unsecured, to companies, firms
or other parties covered in the Register maintained under section 301 of
the Companies Act, 1956.
(b) In respect of loans, secured or unsecured, taken by the Company from
companies, firms or other parties covered in the Register maintained under
Section 301 of the Companies Act, 1956, according to the information and
explanations given to us:
The Company has taken an unsecured loan amounting to Rs. 400 lacs from one
party covered in the register maintained under section 301 of the Companies
Act, 1956. At the year end, the outstanding balance of such loan amounted
to Rs. Nil and the maximum amount involved during the year was Rs. 400
lacs.
In our opinion the rate of interest and other terms and conditions of the
said loan are not, prima facie, prejudicial to the interest of the Company.
The loan was repayable on demand and has been since paid. The payment of
interest was regular as stipulated.
(v) In our opinion and according to the information and explanations given
to us, and having regard to the explanations that some of the items
purchased are of special nature and suitable alternative sources are not
readily available for obtaining comparable quotations, there is an adequate
internal control system commensurate with the size of the Company and the
nature of its business with regard to purchases of inventory and fixed
assets and the sale of goods. During the course of our audit, we have not
observed any major weakness in such internal control system.
(vi) In respect of contracts or arrangements entered in the Register
maintained in pursuance of Section 301 of the Companies Act, 1956, in our
opinion and to the best of our knowledge and belief and according to the
information and explanations given to us:
(a) The particulars of contracts or arrangements referred to in the said
Section 301 that needed to be entered in the Register maintained under the
said Section have been so entered; and
(b) where each of such transaction is in excess of Rs. 5 lacs in respect
of any party, the transactions have been made at prices which are prima
facie reasonable having regard to the prevailing market prices at the
relevant time except in respect of certain purchases for which comparable
quotations are not available and in respect of which we are unable to
comment.
(vii) In our opinion, the Company has an adequate internal audit system
commensurate with the size and the nature of its business.
(viii) We have broadly reviewed the cost records maintained by the Company
pursuant to the Companies (Cost Accounting Records) Rules, 2011 prescribed
by the Central Government under Section 209(1)(d) of the Companies Act,
1956 and are of the opinion that prima facie the prescribed cost records
have been maintained. We have, however, not made a detailed examination of
the cost records with a view to determine whether they are accurate or
complete.
(ix) According to the information and explanations given to us in respect
of statutory and other dues:
(a) The Company has been regular in depositing undisputed dues including
Provident Fund, Investor Education and Protection Fund, Employees` State
Insurance, Excise duty, Cess, Custom`s duty, Central Sales tax, State Value
Added tax, Service tax, Income-tax, Wealth tax, and other material
statutory dues applicable to it with the appropriate authorities.
(b) According to the information and explanations given to us, no
undisputed statutory dues payable in respect of Provident fund, Investor
Education and Protection Fund, Employees` State Insurance Excise duty,
Cess, Custom`s duty, Central Sales tax, State Value Added tax, Service tax,
Income-tax, Wealth tax, and other material statutory dues applicable to it
were in arrears as at 31st March 2012 for a period of more than six months
from the date they became payable.
(c) According to the information and explanations given to us, there are no
dues of Income-tax, Central Sales Tax, State Value Added Tax, Service Tax,
Customs Duty, Wealth Tax, Excise Duty and Cess which have not been
deposited as on 31st March, 2012, on account of any dispute except for the
following:
Period
Forum to which Amount
Statute Nature of where the involved
Dues Dispute is amount (Rs. in
pending relates lacs)
The Customs,
Central Excise and
Excise Excise duty Service Tax 2005-06 90.09
Act, 1944 Appellate
Tribunal
Income Commissioner
Tax Act, Income tax of Income tax AY 37.67
1961 (Appeals), 1994-95
Panaji
Income Commissioner
Tax Act, Income tax of Income tax AY 976.69
1961 (Appeals), 2009-10
Panaji
(x) In our opinion and according to the information and explanations given
to us and on an overall examination of the Balance Sheet, we report that
funds raised on short-term basis have not been used during the year for
long- term investment.
(xi) To the best of our knowledge and belief and according to the
information and explanations given to us, no fraud by or on the Company has
been noticed or reported during the year.
For Deloitte Haskins & Sells
Chartered Accountants
(Registration No.: 008072S)
B. Ramaratnam
Partner
Member ship No.: 21209
Place: Panaji
Date : April 17, 2012. |