PRAKASH INDUSTRIES LIMITED
ANNUAL REPORT 2011-2012
AUDITORS` REPORT
To,
The Members of
PRAKASH INDUSTRIES LIMITED
1. We have audited the attached Balance Sheet of Prakash Industries Ltd. as
at 31st March, 2012 and the Statement of Profit & Loss 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.
2. We have conducted audit in accordance with Auditing standards generally
accepted in India. Those Standards require that we plan and perform the
audit to obtain reasonable assurance 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 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 (Auditors` Report) Order, 2003, issued by
the Government of India in terms of section 227(4A) of the Companies Act,
1956 and on the basis of such checks of the books and records of the
Company as we considered appropriate and according to the information and
explanations given to us, we annex here to a statement on the matters
specified in paragraphs 4 & 5 of the said order.
4. As stated in Note No.28, in terms of a Court order, the deferred tax
liability for the year has been adjusted against Securities Premium
account. Had the deferred tax liabilities for the year been accounted for
pursuant to Accounting Standard-22 `Accounting for Taxes on Income`, profit
after tax for the year would have been lower by Rs. 42 lacs;
5. As stated in Note No. 1(m), the provision of tax made by the Company is
subject to assessment by the tax authorities and set off of MAT credit
entitlement is subject to availability of taxable income to the Company in
future, as per the provisions of the Income Tax Act, 1961.
6. 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 appears from our examination of those books;
c) The Balance Sheet, the Statement of Profit & Loss and Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
d) Subject to our comments in para 4 above, in our opinion, the Balance
Sheet, the Statement of Profit & Loss and Cash Flow Statement dealt with by
this report, comply with the mandatory Accounting Standards, referred to in
sub-section (3C) of Section 211 of the Companies Act, 1956, to the extent
applicable.
e) On the basis of written representations received from the Directors as
on 31st March, 2012 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 Companies Act, 1956.
Subject to our comments in para 4 above and their consequential impact on
the profit for the year, in our opinion and to the best of our information
and according to the explanations given to us, the said accounts read
together with the significant accounting policies and the notes thereon
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 & Loss, of the profit for the
year ended on that date; and
(iii) In the case of the Cash Flow Statement, of the Cash Flows for the
year ended on that date.
For CHATURVEDI & PARTNERS
Chartered Accountants
(Registration No. 307068E)
Place: New Delhi (L.N. Jain)
Date : 29th May, 2012 Partner
M. No. 72579
ANNEXURE REFERRED TO IN PARAGRAPH 3 OF THE AUDITORS` REPORT OF EVEN DATE TO
THE MEMBERS OF PRAKASH INDUSTRIES LIMITED ON THE ACCOUNTS FOR THE YEAR
ENDED 31ST MARCH, 2012.
1. (a) The Company has maintained proper records showing all
particulars including quantitative details and situation of fixed assets on
the basis of available information.
(b) As explained to us, the fixed assets have been physically verified by
the management in accordance with a phased programme, which in our opinion
is reasonable having regard to the size of the company and the nature of
its assets. During the year, no material discrepancies were noticed by the
management on such verification.
(c) Fixed assets disposed off during the year, in our opinion, do not
constitute a substantial part of the fixed assets of the Company and going
concern status of the Company is not affected.
2. (a) The inventory, except stock in transit or lying with the third
parties has been physically verified by the management during the year. For
stocks lying with the third parties at the year end, written confirmations
have been obtained. In our opinion, the frequency of verification is
reasonable.
(b) In our opinion and according to the information and explanations given
to us, 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) In our opinion, the Company is maintaining proper records of inventory.
As explained to us, the discrepancies noticed on physical verification of
inventory as compared to the book records were not material and have been
properly dealt with in the books of account.
3. The Company has neither granted nor taken any loan, secured or
unsecured, to/from companies, firms or other parties covered in the
register maintained under section 301 of the Companies Act, 1956.
4. 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 purchases of
inventory and fixed assets and for the sale of goods. During the course of
our audit, we have not come across any continuing failure to correct major
weaknesses in the internal control system.
5. Based upon the audit procedures applied by us and according to the
information and explanations given to us, there are no transactions which
are required to be entered in the register maintained under Section 301 of
the Companies Act, 1956.
6. In our opinion and according to the information and explanations given
to us, the Company has not accepted any deposit from the public during the
year within the meaning of the provisions of Section 58A and 58AA of the
Companies Act, 1956 and the Companies (Acceptance of Deposits) Rules, 1975.
7. In our opinion, the Company has an internal audit system commensurate
with the size and nature of its business.
8. The Central Government has prescribed maintenance of cost records under
Section 209(1)(d) of the Companies Act,1956 in respect of certain
manufacturing activities of the Company. We have been informed that such
accounts and records have been maintained by the Company.
9. (a) As per records of the Company and according to the information and
explanations given to us, in our opinion, the Company is generally regular
in depositing the undisputed statutory dues including Provident Fund,
Investor Education and Protection Fund, Employees` State Insurance, Income
Tax, Sales Tax, Entry Tax, Wealth Tax, Service Tax, Custom Duty, Excise
Duty, Cess or any other material statutory dues applicable to it with the
appropriate authorities. According to the information and explanations
given to us, there are no undisputed statutory dues at the year end
outstanding for a period of more than six months from the date of becoming
payable.
(b) According to the information and explanations given by the management
and relied upon by us, there are following statutory dues which have not
been deposited by the Company on account of some dispute and same are
pending before appropriate authorities:-
Nature of Amount Forum where the dispute is pending
the dues (Rs. in lacs)
Excise Duty 223.88 CESTAT, New Delhi
6.29 Appellate Authority - Dy. Commissioner
0.11 Appellate Authority - Asst.
Commissioner
5.09 Appellate Authority - Jt. Commissioner
32.45 Appellate Authority - Addl.
Commissioner
Energy Cess 639.00 Supreme Court of India
10. The Company has no accumulated losses as at 31st March, 2012. The
Company has not incurred cash losses during the financial year covered by
the audit and in the immediately preceding financial year.
11. Based on our audit procedures and according to the information and
explanations given to us, we are of the opinion that the Company has not
defaulted in repayment of dues to any financial institution or bank during
the year.
12. According to the information and explanations given to us, the Company
has not granted any loans and advances on the basis of security by way of
pledge of shares, debentures and other securities.
13. In our opinion and according to the information and explanations given
to us, the provisions of any special statute applicable to chit fund/nidhi/
mutual benefit fund/society are not applicable to the Company.
14. 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 been made in respect of Company`s
dealings in its investments. The investments held by the Company as at 31st
March, 2012 are in its own name.
15. According to the information and explanations given to us, the Company
has not given any guarantee for loans taken by others from banks or
financial institutions during the year.
16. In our opinion and according to the information and explanations given
to us, on an overall basis, the term loans taken by the Company during the
year have been applied for the purpose for which they were obtained, other
than temporary deployment pending application.
17. According to the information and explanations given to us and on an
overall examination of Balance Sheet of the Company, we are of the opinion
that the Company has not raised any funds on short-term basis, which have
been used for long-term investments.
18. The Company has not made any preferential allotment of shares during
the year to the parties and companies covered in the Register maintained
under Section 301 of the Company Act,1956.
19. The Company has not issued any debentures during the year under review.
20. The Company has not raised any money by way of public issue during the
year under review.
21. In our opinion and according to the information and explanations given
to us, no material fraud on or by the Company has been noticed or reported
during the year under review.
For CHATURVEDI & PARTNERS
Chartered Accountants
(Registration No. 307068E)
Place: New Delhi (L.N. Jain)
Date : 29th May, 2012 Partner
M. No. 72579 |