ALICON CASTALLOY LIMITED
ANNUAL REPORT 2011-2012
AUDITORS` REPORT
To,
The Members,
Alicon Castalloy Limited
1. We have audited the attached Balance Sheet of Alicon Castalloy Limited
(the Company) as at March 31, 2012, the Statement of Profit and 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 conducted our audit in accordance with the auditing standards
generally accepted in India. Those standards require that we plan and
perform audit to obtain reasonable assurance about whether the financial
statements are free from material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosure
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 statements 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
by DCA Notification G.S.R. 766(E), dated November 25, 2004) 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 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
unless stated otherwise;
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
unless stated otherwise;
c. 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;
d. In our opinion, the Balance Sheet, Statement of Profit and Loss and Cash
Flow Statement dealt with by this report comply in all material respects
with the Accounting Standards (AS) referred to in sub-section (3C) of
Section 211 of the Companies Act, 1956, unless stated otherwise in
statement of significant accounting policies and notes to accounts;
e. On the basis of 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.
f. In our opinion and to the best of our information and according to the
explanation given to us, the said accounts read together with and subject
to the significant accounting policies and 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 March 31, 2012;
ii. In the case of the Statement Profit and Loss, of the profit of the
Company 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 Asit Mehta & Associates
Chartered Accountants
Firm Regn No. 100733W
Sanjay S. Rane
Partner
Membership No. 100374
Place: Shikhrapur,
Date : May 30, 2012.
ANNEXURE TO THE AUDITOR`S REPORT:
(Referred to in paragraph 3 of our report of even date)
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 state that: (reference of the phrase `during the year`
hereinafter should be read and understood as `during the year ended March
31 2012`)
I. a. The Company has maintained records showing details and situation of
fixed assets. However, asset numbering exercise is stated to be under
completion.
b. As informed to us, the Company has a phased programme of verification of
its fixed assets by which all assets get physically verified by the
management over a period of three years, which, in our opinion, is
reasonable having regard to the size of the company and the nature of its
assets. We are informed that no material discrepancies were noticed on such
physical verification.
c. The Company has not disposed off any substantial part of its fixed
assets so as to affect its going concern status.
II. a. The inventories comprising semi-finished goods, raw materials,
stores and spares etc. have been physically verified by the management
during the year. 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 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 needs to improve its inventory records so as to contain all
details of each transaction and for each item of the stock. The closing
inventory is established on the basis of year-end physical verification.
III. a. In our opinion and according to the information and explanations
given to us, during the year, the Company has not granted any loan, secured
or unsecured, to companies,firms or other parties covered in the register
maintained under section 301 of the Companies Act, 1956.
b. In our opinion and according to the information and explanations given
to us, during the year, the Company has not taken any loan, secured or
unsecured, from companies, firms or other parties covered in the register
maintained under section 301 of the Companies Act, 1956.
IV. In our opinion and according to the information and explanations given
to us, there exists adequate internal control system commensurate with the
size of Company and the nature of its business with regard to purchase of
inventory, fixed assets and for the sale of goods. During the course of our
audit, we have not observed any continuing failure to correct major
weaknesses in internal control system of the Company.
V. a. In our opinion and according to information and explanations given to
us, the particulars of contracts or arrangements that need to be entered in
the register maintained under section 301 of the Companies Act, 1956 have
been entered.
According to the information and explanations given to us, the transactions
made in pursuance of such contracts or arrangements entered in the register
maintained under section 301 of the Companies Act, 1956 and exceeding the
value of rupees five lakhs in respect of any party during the year have
been made at prices which are prima facie reasonable having regard to the
prevailing market prices at the relevant time, to the extent that such
comparative prices are available and where items purchased/sold are of
special nature for which suitable alternative sources do not exist.
VI. 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. We are informed that no order has been passed by Company Law Board or
National Company Law Tribunal or Reserve Bank of India or any Court or any
other Tribunal in this regard.
VII. The Company has an internal audit system commensurate with its size
and nature of its business.
VII. In our opinion and according to the information and explanations given
to us, the cost records required to be maintained under section 209(1)(d)
of the Companies Act, 1956 have been made and maintained. We, however, have
not made detailed examination of the records.
IX. a. According to the records of the Company and information and
explanations given to us, the Company is generally regular in depositing
with appropriate authorities undisputed amount of statutory dues including
Provident Fund, Investor Education and Protection Fund, Workmen
Compensation, Income-tax, Wealth-tax Sales-tax, Value Added Tax, Custom
Duty, Excise Duty and any other statutory dues applicable to it.
b. According to the information and explanation given to us, no undisputed
amounts payable in respect of the aforesaid dues were outstanding as at
March 31, 2012 for a period more than six months from the date those became
payable.
According to the information and explanations given to us, there are no
dues, to the extent applicable, of Sales-tax/Income-tax/Customs Duty/Wealth
Tax/Excise Duty/Cess, which have not been deposited on account of any
dispute, except assessment dues of Rs.80,94,557/- for the year 2007-08
under MVAT Act against which, we are informed, the Company has preferred
the appeal with the Joint Commissioner of Sales Tax (Appeals-F-002), Pune
X. The Company does not have any accumulated losses as at the end of the
financial year under audit. The Company has not incurred cash losses during
the financial year covered by our audit and in the immediately preceding
financial year.
XI. Based on our audit procedures and according to the information and
explanations given to us, the Company has not defaulted in repayment of
dues to the banks and the financial institutions. The Company has not
borrowed money in the form of debentures.
XII. Based on our examination of records and according to the information
and explanations given 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. The Company is not a chit/nidhi/mutual benefit fund/society and
therefore provisions of clause 4(xiii) of the Order are not applicable to
the Company.
XIV. The Company is not dealing or trading in shares, securities,
debentures and other investments.
XV. 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.
XVI. In our opinion and according to the information and explanations given
to us and on overall examination of the Balance Sheet of the Company, we
report that, the term loans have prima-facie been applied for the purpose
for which they were obtained.
XVII. According to the information and explanations given to us and on
overall examination of the balance sheet of the Company read with notes
the upon, we are of the opinion that no funds raised on short-term basis
have prima facie been used for long-term investment.
XVIII. During the year under audit, 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.
XIX. The Company has not issued debentures during the year. The Company did
not have any outstanding debentures as at the end the year.
XX. The Company has not raised any money by way of public issues during the
year.
XXI. During the course of our examination of the books and records of the
Company, carried out in accordance with the generally accepted auditing
practices in India, and according to the information and explanations given
to us, we have neither come across any instance of material fraud on or by
the Company, noticed or reported during the year, nor have we been informed
of such case by the management.
For Asit Mehta & Associates
Chartered Accountants
Firm Regn No. 100733W
Sanjay Rane
Partner
Membership No 100374
Place: Shikrapur
Date : May 30, 2012. |