INEOS ABS (INDIA) LIMITED
ANNUAL REPORT 2010-2011
AUDITORS` REPORT
To
The Members of
INEOS ABS (India) Limited
1. We have audited the attached Balance Sheet of INEOS ABS (India) Limited
(the "Company") as at December 31, 2011, and the related Profit and Loss
Account and Cash Flow Statement for the year ended on that date annexed
thereto, which we have signed under reference to this report. 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 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
by the Companies (Auditor`s Report) (Amendment) Order, 2004 (together the
"Order"), issued by the Central Government of India in terms of sub-section
(4A) of Section 227 of`The Companies Act, 1956` of India (the `Act`) 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 give in the Annexure a statement on the matters specified
in paragraphs 4 and 5 of the 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;
(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, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account;
(d) 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 Act;
(e) On the basis of written representations received from the directors, as
on December 31,2011 and taken on record by the Board of Directors, none of
the directors is disqualified as on December 31,2011 from being appointed
as a director in terms of clause (g) of sub-section (1) of Section 274 of
the Act;
(f) In our opinion and to the best of our information and according to the
explanations given to us, the said financial statements together with the
notes thereon and attached thereto give, in the prescribed manner, the
information required by the Act, 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 December 31,2011;
(ii) in the case of the Profit and Loss Account, 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 and on behalf of Price Waterhouse
Firm Registration Number: 301112E
Chartered Accountants
Uday Shah
Mumbai Partner
February 14, 2012 Membership Number F-46061
ANNEXURE TO AUDITORS` REPORT
Referred to in paragraph 3 of the Auditors` Report of even date to the
members of INEOS ABS (India) Limited on the financial statements for the
year ended December 31,2011
1. (a) The Company is maintaining proper records showing full particulars,
including quantitative details and situation, of fixed assets.
(b) The fixed assets are physically verified by the Management according to
a phased programme designed to cover all the items over a period of 2 years
which, in our opinion, is reasonable having regard to the size of the
Company and the nature of its assets. Pursuant to the programme, a portion
of the fixed assets has been physically verified by the Management during
the year and no material discrepancies between the book records and the
physical inventory have been noticed.
(c) In our opinion and according to the information and explanations given
to us, a substantial part of fixed assets has not been disposed of by the
Company during the year.
2.(a) The inventory (excluding stocks with third parties) has been
physically verified by the Management during the year. In respect of
inventory lying with third parties, these have substantially been confirmed
by them. In our opinion, the frequency of verification is reasonable.
(b) In our opinion, 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) On the basis of our examination of the inventory records, in our
opinion, the Company is maintaining proper records of inventory. The
discrepancies noticed on physical verification of inventory as compared to
book records were not material.
3.(a) 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 Act.
(b) 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 Act.
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 purchase of
inventory, fixed assets and for the sale of goods and services. Further, on
the basis of our examination of the books and records of the Company, and
according to the information and explanations given to us, we have neither
come across nor have been informed of any continuing failure to correct
major weaknesses in the aforesaid internal control system.
5.(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 Act have been entered in the register required to be
maintained under that section.
(b) In our opinion and according to the information and explanations given
to us, the transactions made in pursuance of such contracts or arrangements
and exceeding the value of Rupees Five Lakhs in respect of any party during
the year have been made at prices which are reasonable having regard to the
prevailing market prices at the relevant time.
6. The Company has not accepted any deposits from the public within the
meaning of Sections 58Aand 58AA of the Act and the rules framed there
under.
7. In our opinion, the Company has an internal audit system commensurate
with its size and nature of its business.
8. We have broadly reviewed the books of account maintained by the Company
in respect of products where, pursuant to the Rules made by the Central
Government of India, the maintenance of cost records has been prescribed
under clause (d) of subsection (1) of Section 209 of the Act, and are of
the opinion that prima facie, the prescribed accounts and records have been
made and maintained. We have not, however, made a detailed examination of
the records with a view to determine whether they are accurate or complete.
9. (a) According to the information and explanations given to us and the
records of the Company examined by us, in our opinion, the Company is
regular in depositing the undisputed statutory dues including provident
fund, investor education and protection fund, employees` state insurance,
income-tax, sales-tax, wealth tax, service tax, customs duty, excise duty,
cess and other material statutory dues as applicable with the appropriate
authorities.
(b) According to the information and explanations given to us and the
records of the Company examined by us, the particulars of dues of income-
tax, sales-tax, wealth-tax, service-tax, customs duty, excise duty and cess
as at December 31, 2011 which have not been deposited on account of a
dispute, are as follows:
Amount under Period to Forum where the
Name of the Nature of dues dispute* which the dispute is pending
statute (Rs. in lakhs) amount
relates
The Central Sales Tax 57.39 2001 Commissioner of
Sales Tax including Sales Tax
Act, 1969 interest and (Appeals)
penalty as
applicable.
The Central Excise Duty 21.36 2005 to Assistant
Excise Act, including July 2011 Commissioner -
1944 interest and Vadodara
penalty as
applicable. 32.99 September Additional
2004 to Commissioner
January - Vadodara
2010
5.27 March Deputy
1996 to Commissioner
September Appeals -
2009 Vadodara
9.82 September Joint Commissioner
2000 to - Vadodara
February
2003
The Income Income Tax 6.64 1991-1992 Assessing Officer
Tax Act, including
1961 interest and 30.86 2005-06 & Commissioner of
penalty as 2006-2007 Income Tax -
Appeals
applicable.
114.24 1999-2000 & Honourable High
2005-2006 Court of Gujarat
* Net of amount deposited under protest.
10. The Company has no accumulated losses as at December 31, 2011 and it
has not incurred any cash losses in the financial year ended on that date
or in the immediately preceding financial year.
11. According to the records of the Company examined by us and the
information and explanations given to us, the Company has not defaulted in
repayment of dues to any financial institution or bank or debenture holders
as at the balance sheet date.
12. 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. The provisions of any special statute applicable to chit fund / nidhi /
mutual benefit fund/ societies are not applicable to the Company.
14. In our opinion, the Company is not a dealer or trader in shares,
securities, debentures and other investments.
15. In our opinion and 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. The Company has not obtained any term loans.
17. On the basis of an overall examination of the balance sheet of the
Company, in our opinion and according to the information and explanations
given to us, there are no funds raised on a short-term basis which have
been used for long-term investment.
18. The Company has not made any preferential allotment of shares to
parties and Companies covered in the register maintained under Section 301
of the Act during the year.
19. The Company has not issued any debentures.
20. The Company has not raised any money by public issues during the year.
21. 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 fraud on or by the
Company, noticed or reported during the year, nor have we been informed of
such case by the management.
For and on behalf of Price Waterhouse
Firm Registration Number: 301112E
Chartered Accountants
Uday Shah
Mumbai Partner
February 14, 2012 Membership Number F-46061 |