APPLE FINANCE LIMITED
ANNUAL REPORT 2011-2012
AUDITORS` REPORT
To,
The Members of
Apple Finance Limited:
We have audited the attached Balance Sheet of Apple Finance Limited ("the
Company") as at 31st March 2012 and the Profit and Loss Account and also
the Cash Flow Statement for the year ended on that date annexed thereto
("the financial statements"). 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 the 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 the 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 the 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 ("the Order")
issued by the Central Government in terms of sub-section (4A) of Section
227 of the Companies Act, 1956 ("the Act"), we enclose in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order to
the extent applicable.
Further to our comments in the Annexure referred to above, we report that:-
(i) 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.
(ii) In our opinion, the Company has kept proper books of account as
required by law so far as it appears from our examination of those books.
(iii) The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account.
(iv) In our opinion, 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; except for the Accounting Standard 22 "Accounting for Taxes on
Income".
(v) On the basis of written representations received from the Directors and
taken on record by the Board of Directors, we report that none of the
Directors is disqualified as on 31st March 2012 from being appointed as a
Director in terms of clause (g) of sub-section (1) of Section 274 of the
Act.
(vi) In our opinion and to the best of our information and according to the
explanations given to us, the said accounts subject to:-
a) Point No. 1 of Note `20` regarding going concern assumption of the
Company.
b) Point No. 11 of Note `20` regarding non-consideration of Deferred Tax
Assets (Net) amounting to Rs. 200,576,804 and read with the other notes
thereon 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 the Balance Sheet, of the state of affairs of the
Company as at 31st March 2012.
b) In the case of the Profit and Loss Account, of the profit for the year
ended on that date.
c) In the case of the Cash Flow Statement, of cash flows for the year ended
on that date.
For Mahendra Kumbhat & Associates
Chartered Accountants
Firm Regn. No. 105770W
Amar Chand Bagrecha
Partner
Membership No. 56605
Place: Mumbai
Date : May 30, 2012.
Annexure to the Auditors` Report:
(Referred to in our Report of even date)
Matters required as per paragraphs 4 and 5 of the Companies (Auditor`s
Report) Order, 2003.
1. (a) The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
(b) The management has not verified all the assets during the year. We have
been informed that no material discrepancies have been noticed on the
assets physically verified by the management.
(c) The Company has not disposed of substantial part of fixed assets during
the year.
2. (a) The inventory has been physically verified during the year by the
management In our opinion, the frequency of verification is reasonable.
(b) 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 is maintaining proper records of inventory. We have been
informed that no material discrepancies between the physical stocks and the
book records were noticed on such verification.
3. a) The Company has not taken loans from companies, firms and other
parries listed in the Register maintained under Section 301 of the Act.
b) The Company has granted loan to one party required to be listed in the
Register to be maintained under Section 301 of the Companies Act, 1956, the
maximum amount outstanding at any time during the year for this loan is
Rs.47,45,500 and the year end balance is Rs. 47,45,500 which is interest
free.
c) In our opinion, the terms and conditions wherever applicable on which
loan is granted, are not prima facie prejudicial to the interest of the
Company, except interest free loan granted.
d) Loan granted by the Company is without stipulation of repayment term and
hence, we are unable to comment upon regularity of repayment or otherwise
and overdue amount.
4. In our opinion and according to the information and explanations given
to us, there are in general adequate internal control procedures
commensurate with the size of the Company and the nature of its business
with regard to purchase of fixed assets, and for sale of services and we
have not observed any major weaknesses in internal control.
5. According to the information and explanations given to us, the Company
has not entered into the transactions requiring to be entered in the
Register maintained under Section 301 of the Act.
6. The Company has not accepted deposits from public during the year and
hence, the provisions of Sections 58A and 58AA of the Act and the rules
thereunder are not applicable.
7. The Company does not have an Internal Audit system.
8. We have been informed that the Central Government has not prescribed the
maintenance of Cost records under Section 209(1)(d) of the Act.
9. a) We have been informed that during the year under review, the Company
has regularly deposited all undisputed statutory dues including the
Provident Fund, Investor Education and Protection Fund, Employees" State
Insurance Scheme, Income Tax, Sales Tax, Wealth Tax, Service Tax, Custom
Duty, Excise Duty, Cess and any other statutory dues, wherever applicable.
There were no arrears as at 31st March, 2012 for a period of more than six
months from the date they became payable.
b) According to the information and explanations given to us, disputed
statutory dues not deposited are nil.
10. The Company`s accumulated losses at the end of the financial year are
more than fifty per cent of its net worth and the Company has made cash
profit in the current financial year and also in the previous financial
year.
11. The Company has not defaulted in respect of payment of dues to banks,
financial institutions and debenture-holders.
12. The Company has not granted loans and advances on the basis of security
by way of pledge of shares, debentures and other securities.
13. As informed to us, the Company is not a chit fund or a nidhi j mutual
benefit fund/society and hence, clause (xiii) of paragraph 4 of the Order
is not applicable.
14. In our opinion, the Company has maintained proper records of the
transactions and contracts in respect of investments in shares, securities,
debentures and other investments and timely entries have been made therein.
Except shares of Spectrum Alkyd Resins Limited, all the investments are
held by the Company in its own name.
15. The Company has not given any guarantees for loans taken by other
companies and hence, clause (xv) of paragraph 4 of the Order is not
applicable to the Company.
16. The Company has not obtained term loans during the year and hence,
clause (xvi) of paragraph 4 of the Order is not applicable to the Company.
17. The Company has not raised fund on short term basis during the year and
hence, the question of same being used for any long term investments does
not arise.
18. During the year, no preferential allotment of shares has been made to
the parties and companies covered in the Register maintained under Section
301 of the Act.
19. According to the information and explanation given to us, during the
period covered by our audit report, the Company has not issued any
debentures and hence, the question of creation of security does not arise.
20. Since the Company has not come out with public issue during the year,
clause (xx) of paragraph 4 of the Order is not applicable.
21. According to the information and explanation given to us, no fraud on
or by the Company has been noticed or reported during the year.
For Mahendra Kumbhat & Associates
Chartered Accountants
Firm Regn. No. 105770W
Amar Chand Bagrecha
Partner
Membership No. 56605
Place: Mumbai
Date : May 30, 2012. |