CERA SANITARYWARE LIMITED
ANNUAL REPORT 2011-2012
AUDITORS` REPORT
To
The Members
We have audited the attached Balance Sheet of CERA SANITARYWARE LIMITED, as
at 31st March 2012 and also the Profit and Loss Account and the Cash Flow
Statement of the Company for the year ended on that date 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.
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 misstatement. 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 significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our audit
provides a reasonable basis for our opinion.
As required by the Companies (Auditor`s Report) Order, 2003 (as amended)
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.
Further to our comments in the Annexure referred to in the paragraph above,
we report that:
(1) 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;
(2) 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;
(3) The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report comply with the Accounting Standards referred to
in sub-section (3C) of section 211 of the Companies Act, 1956;
(4) The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account;
(5) As per the written representation made by the directors as on 31st
March 2012 and taken on record by the Board of Directors and the
information and explanations given to us, none of the Directors is, as at
31st March 2012, prima-facie disqualified from being appointed as a
Director in terms of clause (g) of sub-section (1) of Section 274 of the
Companies Act, 1956;
(6) In our opinion and to the best of our information and according to
explanations given to us, the said accounts read with significant
accounting policies and other notes to the Financial Statements, 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:
(a) In so far as it relates to the Balance Sheet, of the state of affairs
of the Company as at March 31, 2012, and
(b) In so far as it relates to the Profit and Loss Account, of the profit
of the Company for the year ended on that date.
(c) In case of Cash Flow Statement, of the cash flows for the year ended on
that date.
For and on Behalf of
H. V. Vasa & Co.
Firm Reg. No. 131054W
Chartered Accountants
Tushar H. Vasa
Place: Ahmedabad Proprietor
Date : 11th July 2012 Membership No. 16831
Annexure to the Auditors` Report:
As required by the Companies (Auditors` Report) Order, 2003 (as amended)
issued by the Central Government of India in terms of Section 227(4A) of
the Companies Act, 1956, we have annexed hereto a statement on the matters
specified in paragraphs 4 and 5 of the said Order.
1. In respect of its fixed assets:
a. The Company has maintained proper records, showing full particulars
including quantitative details and situation of its fixed assets on the
basis of available information, other than furniture and fixtures.
b. As explained to us, the fixed assets have been physically verified by
the management during the year in a phased periodical manner, which in our
opinion is reasonable, having regard to the size of the Company and the
nature of its assets. No material discrepancies between the book records
and the physical inventory have been noticed in respect of the assets
physically verified.
c. In our opinion, there was no substantial disposal of fixed assets during
the year, which would affect the going concern of the company.
2. In respect of its inventories:
a. As explained to us, inventories have been physically verified by the
management at reasonable intervals during the year.
b. In our opinion and according to the information and explanations given
to us, the procedures 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. The Company has maintained proper records of inventories. As explained
to us, there were no material discrepancies noticed on physical
verification of inventory as compared to the book records.
3. In respect of 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. (i) The Company had granted unsecured loan to a company, covered in the
register maintained under section 301 of the Companies Act 1956. In respect
of the said loan, the maximum amount outstanding at any time during the
year was Rs. 5.50 lacs and at year end Rs. Nil.
(ii) In our opinion and according to information and explanations give to
us, the rate of interest and other terms and conditions of the loan given
by the company are not prima facie prejudicial to the interest of the
company.
(iii) The receipts of principal amounts and interest have been regular/as
per stipulations.
(iv) There were no amounts outstanding at the year end.
b. The Company had taken loans aggregating to Rs. 19 lacs from the
companies covered in the register maintained under section 301 of the
Companies Act, 1956. The maximum amount during the year was Rs. 28 lacs and
the year end balance of loans taken from such companies was Rs. 27.35 lacs.
c. In our opinion and according to the information and explanations given
to us, the rate of interest and other terms and conditions on which the
loans have been taken from companies listed in the register maintained
under section 301 of the Companies Act, 1956 are not, prima facie,
prejudicial to the interest of the Company.
4. In our opinion and according to the information and explanations given
to us, there are adequate internal control systems commensurate with its
size of the Company and the nature of business for the purchase of
inventory, fixed assets and also for sale of goods and services. Further,
on the basis of our examination, and according to the information and
explanations given to us, we have neither come across nor have we been
informed of any instance of major weaknesses in the aforesaid internal
control systems.
5. In respect of transactions covered under Section 301 of the Companies
Act, 1956:
a. In our opinion and according to the information and explanations given
to us, the particulars of contracts or arrangements referred to in Section
301 of the Companies Act, 1956 have been entered into in the register
maintained under that section.
b. In our opinion and according to the information and explanations given
to us, the transactions made in pursuance of contacts or arrangements
entered in the Register maintained under section 301 of the Companies Act,
1956 and exceeding the value of Rs. Five lacs in respect of each party have
been made at prices which appear 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 complied with the provisions of Sections 58A, 58AA
or any other relevant provisions of the Companies Act, 1956 and Companies
(Acceptance of Deposit) Rules, 1975 with regard to the deposits accepted
from the public. According to the information and explanations given to us,
in this regard, no order under the aforesaid sections has been passed by
the Company Law Board or National Company Law Tribunal or Reserve Bank of
India or any Court or any other Tribunal on the company.
7. In our opinion, the internal audit system of the Company is commensurate
with its size and the nature of its business.
8. We have broadly reviewed the books of account maintained by the company
pursuant to the rules made by the Central Government for the maintenance of
cost records under section 209(1)(d) of the Companies Act, 1956, related to
the maintenance of manufacture of certain products, and are of the opinion
that prima facie, the prescribed accounts and records have been made and
maintained.
9. In respect of statutory dues:
a. According to the records of the Company, undisputed statutory dues
including Provident Fund, Investors Education and Protection Fund,
Employees` State Insurance, Income-Tax, Sales-tax, Wealth Tax, Service Tax,
Custom Duty, Excise Duty, Cess and other statutory dues have been generally
regularly deposited with the appropriate authorities. According to the
information and explanations given to us, no undisputed amounts payable in
respect of the aforesaid dues were outstanding as at 31st March, 2012 for a
period of more than six months from the date of becoming payable.
b. According to the information and explanations given to us, following
disputed statutory dues have not been deposited on account of disputed
matters pending before appropriate authorities are as under:
Sr. Name of Nature of Amount Period to Forum where
No. Statute Dues Rs. which the dispute is
(Lacs) amount Pending
relates
1. Income-tax Penalty 7.61 2004-05 Income-tax
Act, 1961 Appellate
Tribunal
2. Income-tax Penalty 11.35 2006-07 Commissioner
Act, 1961 of Income-tax
(Appeals)
3. Income-tax Income-tax 16.82 2008-09 Commissioner
Act, 1961 of Income-tax
(Appeals)
10. The Company does not have accumulated losses at the end of the
financial year and has not incurred any cash losses during the financial
year covered by our audit or in the immediately preceding financial year.
11. As per the books and records maintained by the company and according to
the information and explanation given to us, we are of the opinion that the
Company has not defaulted in repayment of dues to bank.
12. In our opinion and according to the information and explanation given
to us, no loans and advances have been granted by the Company on the basis
of security by way of pledge of shares, debentures and other securities.
13. In our opinion, the Company is not a chit fund or a nidhi/mutual
benefit fund/society. Therefore, clause 4(xiii) of the Companies (Auditor`s
Report) Order 2003 is not applicable to the Company.
14. In our opinion and according to the information and explanations given
to us, the Company has not dealt in or is trading in shares, securities,
debentures and other investments. The company has invested surplus funds in
marketable securities and mutual funds. According to the information and
explanation given to us, proper records have been maintained of the
transactions and contracts and timely entries have been made therein. The
investments in marketable securities and mutual funds have been held by the
company in its own name.
15. According to the information and explanations given to us, the Company
has not given guarantee for loans taken by others from bank or financial
institutions.
16. In our opinion and according to the information and explanations given
to us, the term loans have been applied for the purpose for which they were
raised.
17. According to the cash flow statement and other records examined by us
and the information and explanations given to us, on an overall examination
of the Balance Sheet of the Company, we report that no funds raised on
short term basis have been used for long term investment (fixed assets,
etc.).
18. During the year, the Company has not made any preferential allotment of
shares to parties and companies covered in the Register maintained under
Section 301 of the Companies Act, 1956.
19. As the Company has not issued any debentures, clause (xix) of the order
is not applicable to the company.
20. The Company has not raised any money by way of public issue during the
year.
21. In our opinion and according to the information and explanations given
to us, no fraud on or by the Company has been noticed or reported during
the year, that causes the financial statements to be materially misstated.
For and on Behalf of
H. V. Vasa & Co.
Firm Reg. No. 131054W
Chartered Accountants
Tushar H. Vasa
Place: Ahmedabad Proprietor
Date : 11th July, 2012 Membership No. 16831 |