THE MEMBERS OF ANIL LIMITED
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of ANIL LIMITED(the Company") which comprise the Balance Sheet as at March 31 2015 theStatement of Profit and Loss and the Cash flow statement for the year ended and a summaryof significant accounting policies and other explanatory information.
Managements Responsibility for the Standalone Financial Statements
The Companys Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparationand presentation of these standalone financial statements that give a true and fair viewof the financial position financial performance and cash flows of the Company inaccordance with the accounting principles generally accepted in India including theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014. This responsibility also includes maintenance ofadequate accounting records in accordance with the provisions of the Act for safeguardingthe assets of the Company and for preventing and detecting frauds and otherirregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statements that give a true ana fair viewand are free from material misstatement whether due to fraud or error.
Our responsibility is to express an opinion on these standalone financial statementsbased on our audit.
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 there under.
We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatement.
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 Company's preparation and fairpresentation of the financial statements in order to design audit procedures that areappropriate in the circumstances but not for the purpose of expressing an opinion on theeffectiveness of Company's internal Control. An audit also includes evaluating theappropriateness of accounting policies used and the reasonableness of the accountingestimates made by the companys directors as well as evaluating the overallpresentation 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 standalone financial statements.
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India of the state of affairs of the Companyas at 31 March 2015 and its profit and its cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors Report) Order 2015("the Order)issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Act we give in the Annexure a statement on the matters specified in the paragraph 3and 4 of the Order to the extent applicable.
2. As required by section 143(3) of the Act we report that:
a. we have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purposes of our audit;
b. in our opinion proper books of account as required by law nave been kept by theCompany so far as it appears from our examination of those books;
b. the Balance Sheet Statement of Profit and Loss and Cash Flow Statement dealt withby this Report are in agreement with the books of account;
c. in our opinion the aforesaid standalone financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014;
d. on the basis of written representations received from the directors as on March312015 and taken on record by the Board of Directors none of the directors isdisqualified as on March 31 2015 from being appointed as a director in terms of Section164(2) the Act;
e. with respect to the other matters to be included in the Auditors Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best 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 as referred to in Note no.27 to the financialstatements;
ii. the Company did not have any long term contracts including derivative contracts forwhich there were any material foreseeable losses and
iii. Except for two Instances of Delay i.e 156 days for an Amount Rs 1.85 lacs and 1Day for an Amount of Rs 0.25 lacs required to be transferred to the Investor Educationand Protection Fund by the Company there were no other delay in transferring the amountrequired to be transferred to the Investor Education and Protection Fund by the Company.
| ||For Parikh & Majmudar |
| ||Chartered Accountants |
| ||FR No. 107525W |
| ||[C.A (Dr) Hiten M. Parikh] |
| ||PARTNER |
|Place : Ahmedabad ||Membership No. 40230 |
|Date : 29th May2015 || |
ANNEXURE TO INDEPENDENT AUDITORS' REPORT
(Referred to in paragraph 1 under 'Report on other Legal and Regulatory Requirements'section of our Report on even Date)
i) (a) The company is in the process of updating its fixed asset records to show fullparticulars including quantitative details and situation of fixed assets.
(b) As explained to us the company has a regular programme of physical verification ofits fixed assets by which all the fixed assets are verified in a phased manner over aperiod of three years. In the absence of updated fixed assets records discrepancies ifany noticed on such physical verification could not be ascertained.
ii) (a) As informed to us Physical verification of inventory has been conducted duringthe year by the management at reasonable intervals.
(b) In our opinion & according to the information & explanations given to usthe procedures of physical verification of inventories followed by the management arereasonable & adequate in relation to the size of the company & nature of itsbusiness.
(c) On the basis of our examination of the records of the company we are of theopinion that the company is maintaining proper records of inventory. The discrepanciesnoticed on verification between physical stocks and the books of accounts were notmaterial.
iii) The Company has granted unsecured loans to one body corporate [i.e. 100%subsidiary company] covered in the register maintained under section 189 of the CompaniesAct2013 ("The Act"):
(a) In respect of the loans granted the terms of the arrangement do not stipulate anyrepayment schedule and the loans are repayable on demand and the said loans are interestfree.
(b) There is no overdue amount of more than rupees one lakh in respect of the loansgranted to the bodies corporate listed in the register maintained under section 189 of theAct.
iv) In our opinion & according to the information & explanations given to usthere is an adequate internal control system commensurate with the size of the company& nature of its business for the purchase of inventory fixed assets & also forthe sale of goods and services. We have not observed any major weakness in internalcontrol systems during the course of our audit.
v) In our opinion the company has not accepted any deposits during the year. Hence theprovisions of section 73 to 76 or any other relevant provisions of the companies Act andthe Companies (Acceptance of Deposits) Rules 2014 with regard to the deposits acceptedare not applicable to the company. Therefore provisions of clause (v) of paragraph 3 ofthe Order are not applicable to the company. According to information and explanationgiven to us no order has been passed by Company Law Board or National Company LawTribunal or Reserve bank of India or any other court or any other Tribunal.
vi) As explained to us the Central Government has not specified maintenance of theCost records under subsection (1) of Section 148 of the Act.
vii) (a) According to the records of the company Undisputed Statutory dues includingProvident fund Employees' State Insurance Income-tax Wealth-tax Service Tax ValueAdded Tax Duty of Customs Duty of Excise Cess & other Statutory dues have beengenerally regularly deposited during the year with the appropriate authorities. Accordingto the information and explanation given to us no undisputed amounts were outstanding asat 31st March 2015 for a period of more than six months from the date they becamepayable.
(b) According to the information and explanations given to us there are no materialdues of Wealth Tax Service Tax and Cess which have not been deposited with theappropriate authorities on account of any dispute However according to the informationand explanation given to us the following dues of Sales Tax Duty of Excise Duty ofCustoms & Income Tax have not been deposited by the company on account of dispute ason 31st March 2015 are as under.
|Statue ||Nature of the Dues ||Financial Year to which the matter relates ||Forum where the matter is pending ||Amount (Rs in Lacs) (Net of payment) |
| ||GUJARAT SALES TAX ACT || || || |
|a) ||Sales Tax Demand ||1994 to 1997 ||Gujarat High Court ||49.84 |
| ||CENTRAL EXCISE ACT1946 || || || |
|a) ||Excise demand for Product Classification ||01/04/1998 to 29/02/2000 ||Customs Excise and Service Tax Appellate Tribunal Ahmedabad ||147.91 |
|b) ||Excise demand for Product Classification ||01/09/1996 to 31/05/1997 ||Customs Excise and Service Tax Appellate Tribunal Ahmedabad ||9.61 |
|c) ||Excise demand for Product Classification ||August 2004 to January 2012 ||Customs Excise and Service Tax Appellate Tribunal Ahmedabad ||4881.41 |
|d) ||Excise demand for Cenvat Credit reversal of Capital Goods ||Year 2010-11 to 2012-13 (Upto Nov. 2012) ||Customs Excise and Service Tax Appellate Tribunal Ahmedabad ||127.09 |
| ||CUSTOMS ACT 1962 || || || |
|a) ||Custom Duty Demand ||August 2012 to January 2013 ||Customs Excise and Service Tax Appellate Tribunal Ahmedabad ||74.20 |
| ||Income Tax Act1961 || || || |
|a) ||Income Tax Demand ||2003-04 ||Income Tax Appellate Tribunal Ahmedabad ||5.12 |
|b) ||Income Tax Demand ||2006-07 ||Income Tax Appellate Tribunal Ahmedabad ||6.59 |
|c) ||Income Tax Demand ||2007-08 ||CIT (Appeal) -VI Ahmedabad ||15.31 |
|d) ||Income Tax Demand ||2008-09 ||CIT (Appeal) -VI Ahmedabad ||58.87 |
|e) ||Income Tax Demand ||2009-10 ||CIT (Appeal) -VI Ahmedabad ||317.91 |
|f) ||Income Tax Demand ||2010-11 ||CIT (Appeal) -VI Ahmedabad ||642.64 |
|g) ||Income Tax Demand ||2011-12 ||CIT (Appeal) -VI Ahmedabad ||880.04 |
(c) Except for two Instances of Delay i.e 156 days for an Amount of Rs 1.85 lacs and 1Day for an Amount of Rs. 0.25 lacs required to be transferred to the Investor Educationand Protection Fund by the Company there were no other delay in transferring the amountrequired to be transferred to the Investor Education and Protection Fund by the Companyin accordance with the provisions of the Companies Act 1956 and the rules made thereunder
viii) The Company does not have accumulated losses at the end of the financial year andhas not incurred cash losses in the financial year under question and in the immediatelypreceding financial year.
ix) According to information & explanations given to us the company has generallynot defaulted in repayment of dues to Banks or Financial Institution or debenture holders.
x) According to the information and explanations given to us the terms and conditionson which the company has given guarantee for loans taken by others from banks are primafacie not prejudicial to the interest of the company.
xi) According to the information & explanations given to us the term loans havebeen applied for the purpose for which they were raised.
xii) According to the information and explanations given to us no fraud on or by theCompany has been noticed or reported during the course of our audit.
| ||For Parikh & Majmudar |
| ||Chartered Accountants |
| ||FRNNO 107525W |
| ||(CA Dr. Hiten Parikh) |
|Place : Ahmedabad ||Partner |
|Date : 29/05/2015 ||M. No.40230 |