To The Members of Abhishek Corporation Ltd.
Report on the Financial Statements
We have audited the accompanying financial statements of Abhishek Corporation Ltd.("the Company") which comprise the Balance Sheet as at March 312015 theStatement of Profit and Loss for the year then ended and the Cash Flow Statement for theyear then ended and a summary of significant accounting policies and other explanatoryinformation.
Managements Responsibility for the Financial Statements
The Companys Board of Directors is responsible for the matters in section 134(5)of the Companies Act 2013 ("the Act") with respect to the preparation of thesefinancial statements that give a true and fair view of the financial position financialperformance and cash flows of the Company in accordance with the accounting principlesgenerally accepted in India including the Accounting Standards specified under Section133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility also includes the maintenance of adequate accounting records in accordancewith the provision of the Act for safeguarding of the assets of the Company and forpreventing and detecting the frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of internal financial control thatwere operating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.
Our responsibility is to express an opinion on these financial statements based on ouraudit. We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made thereunder. We conducted our audit in accordancewith the Standards on Auditing specified under section 143(10) of the Act. Those Standardsrequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the financial statements are free from materialmisstatement.
An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on theauditors judgment including the assessment of the risks of material misstatement ofthe financial statements whether due to fraud or error. In making those risk assessmentsthe auditor considers internal control relevant to the Companys preparation and fairpresentation of the financial statements in order to design audit procedures that areappropriate in the circumstances. An audit also includes evaluating the appropriateness ofaccounting policies used and the reasonableness of the accounting estimates made bymanagement as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the financial statements.
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India:
a In the case of the Balance Sheet of the state of afairs of the Company as at March312015; and
b In the case of the Statement of Profit and Loss of the profit /Loss for the yearended on that date; and
c In the case of the Cash Flow Statement of the Cash Flows for the year ended on thatdate
Emphasis on Matter
Without qualifying our opinion we draw attention to the following:-
a. Owing to the losses borne by the company in past several years the company was notable to repay its debts in time. The CDR package failed and consequently certain bankershave transferred their debt to various Asset Reconstruction Companies.
b. The company is not regular in paying its undisputed statutory dues and is also indispute with various authorities on various issues.
c. The company is in process of compiling the information about the status of suppliersas a Micro Small and Medium Enterprises and registered under MSMED Act 2006 (Micro Smalland Medium Enterprises Development Act 2006) hence the interest provision and/ordisclosure thereon is not made.
Report on Other Legal and Regulatory Requirements
1. As required by Section 143(3) ofthe Act we report that:
a. We have obtained all the information and explanations which to the best of ourknowledge and belief were necessary for the purpose of our audit;
b. In our opinion proper books of account as required by law have been kept by theCompany so far as appears from our examination of those books.
c. The Balance Sheet the Statement of Profit and Loss and cash flow statement dealtwith by this Report are in agreement with the books of account.
d. In our opinion the aforesaid financial statements comply with the AccountingStandards specified under section 133 of the Act read with Rule 7 of the Companies(Accounts)Rule2014
e. On the basis of the written representations received from the directors as on March31 2015 taken on record by the Board of Directors none of the directors aredisqualified as on March 31 2015 from being appointed as a director in terms of Section164(2) of the Act
f. With respect to the other matters included in the Auditors Report and to ourbest of our information and according to the explanations given to us :
i) The Company has disclosed the impact of pending litigations on its financialposition in its financial statements - Refer Note 1 point no 13 to the financialstatements
ii) The Company did not have any long-term contracts including derivatives contractsfor which there were any material foreseeable losses
iii) There were no amounts which are required to be transferred to the InvestorEducation and Protection Fund by the Company
| ||For Shrikant & Co. |
|Date : September 1 2015 ||Chartered Accountants FRN : 110186 |
|Place : Kolhapur ||Shrikant Shirdhonkar |
| ||Proprietor |
| ||M. No. 015703 |
Annexure as referred to in paragraph (3) of the Auditors Report to the members ofAbhishek Corporation Ltd for the year ended on 31 March 2015
(i) a) The Company has maintained proper records showing full particulars includingquantitative details and situation
of fixed assets.
b) The fixed Assets have been physically verified by the management at reasonableintervals. No material discrepancies were noticed on such verification by the management.
c) During the year the Company has not disposed off a substantial part of fixedassets.
(ii) In respect of its inventories:
a) As explained to us the management at the regular intervals and at end of the yearphysically verified inventories.
b) In our opinion and according to the information and explanation given to us theprocedure of physical verification of inventories followed by the management is reasonableand adequate in relation to the size of the company and the nature of its business.
c) In our opinion and according to the information and explanation given to us thecompany has maintained adequate stock record for stock of stores and spares. As explainedto us the discrepancies noticed on physical verification of stock of raw material andfinished goods were not material.
(iii) The company has not granted any Loans secured or unsecured to companies firmsor other parties covered in the register maintained under section 189 of the Companies Act2013.
(iv) In our opinion and according to the information and explanation given to us thereis generally adequate internal control procedures commensurate with the size of thecompany and nature of its business with regard to purchase of inventories fixed assetsand with regard to sale of goods. Further during the course of audit we have neithercome across nor have we been informed of any continuing failure to correct majorweaknesses in the aforesaid internal control procedures.
(v) During the year under review the company has not accepted any amount by way ofDeposits pursuant to provisions of section 73 to 76 or any other relevant provisions ofthe Companies Act & the rules framed there under.
(vi) We have broadly reviewed the books of account maintained by the company pursuantto the rules prescribed by the Central Government for maintenance of cost records undersection 148(1) of the Companies Act and are of the opinion that prima facie theprescribed accounts and records have been made and maintained. However we have not made adetailed examination of the records.
(vii) a) According to the information and explanation given to us the company isregular in depositing with appropriate
authorities undisputed statutory dues including provident fund Income Tax Wealth TaxSales Tax Purchase Tax Custom Duty Excise Duty Cess Entry Tax & Service TaxValue added taxes Cess and any other statutory dues except following dues which are duesince more than six months but still not paid
|i. Tax Deducted At Source ||4727015/- |
|ii. Provident Fund ||5670174/- |
|iii. Professional Tax ||2533350/- |
b) The disputed statutory dues have not been deposited on account of disputed matterspending before appropriate authorities as on March 312015 are as under: ( ' In Lacs)
|. Authority ||Item ||Amount |
|1 Additional Commissioner of Central Excise ||Central Excise ||15.70 |
|2 Commissioner of Central Excise ||Custom Duty ||88.29 |
|3 Commissioner of Central Excise ||Service Tax ||73.51 |
|4 Commissioner of Central Excise ||Central excise/Custom duty ||480.44 |
|5 Commissioner of central Excise ||Central excise ||37.51 |
|6 Regional Provident Fund Commissioner ||Provident Fund (Damages+Interest) ||180.32 |
The company has not considered any interest and penalties while considering the abovefigures except for point no 6 where the amount itself is in relation to penalty andinterest.
c) There is no amount required to transferred to Investor Education & ProtectionFund in accordance with the relevant provisions of the Companies Act2013 and rules madethereunder.
(viii) During the year the Company has incurred cash loss of ' 7294.29 Lakhs. Furtherduring the previous year the Company has incurred cash losses of ' 6674.20 Lakhs/-.Therebycompanys net worth has become negative and the company has become a sick unitunder the provisions of the Sick Industrial Companies Act.
(ix) In our opinion and according to the explanations and informations given to usCorporate Debt Restructuring (CDR) Scheme has failed and withdrawn by the bankers due tonon-compliances of the terms and conditions of the CDR scheme on the part of the company.Interest on these loans has been provided at the rates as per the original sanctions. Inthe result company is defaulted in repayment of the following loans as are mentioned inNote 4A and Note 6 of the Balance Sheet.
(x) The Company has not given any guarantee for loans taken by others from banks orfinancial institutions.
(xi) During the year the company has not obtained any term loan from banks orfinancial institutions. In our opinion and according to the explanations and informationgiven to us and on overall examination of the balance sheet of the company we report thatno funds raised on short-term basis have been used for long-term investment andvice-versa. However all the long term loans are recalled and hence re-classified under"Other Current Liabilities".
(xii) Based upon the audit procedure performed and information and explanation given bythe management we report that no fraud on or by the Company has been noticed or reportedduring the course of our audit for the year ended on 31 March 2015
| ||For Shrikant & Co. |
| ||Chartered Accountants FRN : 110186 |
|Date : September 1 2015 Place : Kolhapur ||Shrikant Shirdhonkar |
|M. No. : 015703 |