MAX INDIA LIMITED
ANNUAL REPORT 2011-2012
AUDITORS` REPORT
TO
THE MEMBERS OF
MAX INDIA LIMITED
1. We have audited the attached Balance Sheet of Max India Limited (`the
Company`) as at March 31, 2012 and also the Statement of Profit and Loss
and the cash flow statement 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.
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 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.
3. 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.
4. 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, proper books of account as required by law have been
kept by the Company so far as appears from our examination of those books;
iii. The balance sheet, statement of profit and loss and cash flow
statement dealt with by this report are in agreement with the books of
account;
iv. In our opinion, the balance sheet, statement of profit and loss 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.
v. On the basis of the written representations received from the directors,
as on March 31, 2012, and taken on record by the Board of Directors, we
report that none of the directors is disqualified as on March 31, 2012 from
being appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
vi. 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;
a) in the case of the balance sheet, of the state of affairs of the Company
as at March 31, 2012;
b) in the case of the statement of profit and loss, of the loss for the
year ended on that date; and
c) in the case of cash flow statement, of the cash flows for the year ended
on that date.
For S.R. BATLIBOI & CO.
Firm registration number: 301003E
Chartered Accountants
per MANOJ GUPTA
Partner
Membership No.: 83906
Gurgaon
May 24, 2012
Annexure referred to in paragraph 3 of our report of even date Max India
Limited (`the Company`)
(i) (a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets.
(b) All fixed assets have not been physically verified by the management
during the year but there is a regular programme of verification which, in
our opinion, is reasonable having regard to the size of the Company and the
nature of its assets. No material discrepancies were noticed on such
verification.
(c) There was no disposal of a substantial part of fixed assets during the
year.
(ii) (a) The inventory has been physically verified by the management
during the year. In our opinion, the frequency of verification is
reasonable. Inventories lying with outside parties have been confirmed by
them as at the year end.
(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 records of inventory and no material
discrepancies were noticed on physical verification.
(iii) (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. Accordingly, the provisions of clause 4(iii) (a)
to (d) of the Order are not applicable to the Company and hence not
commented upon.
(e) According to information and explanations given to us, the Company has
not taken any loans, secured or unsecured, from companies, firms or other
parties covered in the register maintained under section 301 of the
Companies Act, 1956. Accordingly, the provisions of clause 4(iii) (e) to
(g) of the Order are not applicable to the Company and hence not commented
upon.
(iv) In our opinion and according to the information and explanations given
to us, there 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, we have not observed any major weakness or
continuing failure to correct any major weakness in the internal control
system of the company in respect of these areas.
(v) (a) According to the information and explanations provided by the
management, we are of the opinion that the particulars of contracts or
arrangements referred to in section 301 of the Companies Act, 1956 that
need to be entered into the register maintained under section 301 have been
so entered.
(b) In our opinion, there are no contracts or arrangements that need to be
entered in the register maintained under Section 301 of the Companies Act,
1956. Accordingly, the provisions of clause 4(v)(b) of the Order is not
applicable to the Company and hence not commented upon.
(vi) The Company has not accepted any deposits from the public.
(vii) In our opinion, the Company has an internal audit system commensurate
with the size and nature of its business.
(viii)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 manufacture of Polyester Film, and are of the opinion
that prima facie, the prescribed accounts and records have been made and
maintained.
(ix) (a) The Company is regular in depositing with appropriate authorities
undisputed statutory dues including provident fund, investor education and
protection fund, employees` state insurance, income-tax, salestax, wealth-
tax, service tax, customs duty, excise duty, cess and other material
statutory dues applicable to it.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of provident fund, investor education
and protection fund, income-tax, wealth-tax, service tax, sales-tax,
customs duty, excise duty cess and other material statutory dues were
outstanding, at the year end, for a period of more than six months from the
date they became payable.
(c) According to the records of the Company, there are no dues outstanding
of income-tax, sales tax, wealthtax, service tax, custom duty, excise duty
and cess on account of any dispute, other than the following:
A B C D
Central Excise
Act, 1944
Excise duty demand 1,209.81 2005-06 Commissioner,
on valuation of to Chandigarh
goods cleared for 2011-12
captive consumption.
Central Excise
Act, 1944
Excise duty demand 2.77 2005-06 Supreme Court
on valuation of to
goods cleared for 2011-12
captive consumption.
Central Excise
Act, 1944
Excise duty demand 145.27 2002-03 Central Excise and
on valuation of Service Tax Appellate
goods cleared for Tribunal
captive consumption.
Central Excise
Act, 1944
Excise duty demand 4.50 2004-05 Central Excise and
on valuation of to Service Tax Appellate
goods cleared for 2009-10 Tribunal
captive consumption.
Central Excise
Act, 1944
Reversal of Cenvat 505.51 2001-02 Commissioner,
credit on various to Chandigarh
grounds. 2011-12
Finance Act, 1994
(Service Tax)
Service tax demands 313.80 2003-04 Commissioner, (Appeals)
on various matters to
2005-06
Finance Act, 1994
(Service Tax)
Service tax demands 1.95 2011-12 Assistant Commissioner,
on various matters Ropar
Finance Act, 1994
(Service Tax)
Service tax demands 8.00 2009-10 Commissoner (Appeals)
on various matters To and Central Excise and
2011-12 Service Tax Appellate
tribunal
Punjab Value Added
Tax
Entry Tax Demands 20.19 2011-12 High Court
Customs Act, 1962
Custom duty demands 362.54 1994-95 Directorate General of
Foreign Trade
Income Tax
Act, 1961
Income tax demands 209.21 2000-01 Income Tax Appellate
on various to Tribunal, Amritsar
disallowances 2007-08
Income Tax
Act, 1961
Income tax demands 30.86 2000-01 High Court
on various
disallowances
A = Name of the Statute
B = Nature of the Dues
C = Amount (Rs. in lacs)
D = Period to which the amount relates
E = Forum where dispute is pending
(x) The Company has no accumulated losses at the end of the financial year.
The Company has not incurred cash losses in the current year. In the
immediately preceding financial year, the Company had incurred cash losses.
(xi) Based on our audit procedures and as per the information and
explanations given by the management, we are of the opinion that the
Company has not defaulted in repayment of dues to a financial institution,
bank or debenture holders.
(xii) According to the information and explanations given to us and based
on the documents and records produced to us, the Company has not granted
loans and advances on the basis of security by way of pledge of shares,
debentures and other securities.
(xiii) In our opinion, the Company is not a chit fund or a nidhi / mutual
benefit fund / society. Therefore, the provisions of clause 4(xiii) of the
Companies (Auditor`s Report) Order, 2003 (as amended) are not applicable to
the Company.
(xiv) In respect of dealing/ trading in shares, securities, debentures and
other investments, in our opinion and according to the information and
explanations given to us, proper records have been maintained of the
transactions and contracts and timely entries have beenmade therein. The
shares, securities, debentures and other investments have been held by the
Company, in its own name.
(xv) According to the information and explanations given to us, the Company
has given guarantee for loans taken by others from banks and financial
institutions, the terms and conditions whereof, in our opinion, are not
prima- facie prejudicial to the interest of the Company. (xvi) Based on
information and explanations given to us by the management, term loans were
applied for the purpose for which the loans were obtained.
(xvii) According to the information and explanations given to us and 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.
(xviii) The Company has made preferential allotment of shares to a company
covered in the register maintained under section 301 of the Companies Act,
1956. In our opinion, the price at which shares have been issued is not
prejudicial to the interest of the Company.
(xix) The Company has unsecured debentures outstanding during the year, on
which no security or charge is required to be created.
(xx) The Company has not raised any money by public issue during the year.
(xxi) Based upon the audit procedures performed for the purpose of
reporting the true and fair view of the financial statements and as per the
information and explanations given by the management, we report that no
fraud on or by the Company has been noticed or reported during the year.
For S.R. BATLIBOI & CO.
Firm registration number: 301003E
Chartered Accountants
per MANOJ GUPTA
Partner
Membership No.: 83906
Gurgaon
May 24, 2012. |