To the Members of
Glittek Granites Limited
Report on the Financial Statements
We have audited the accompanying financial statements of GLITTEK GRANITES LIMITED (the"Company") which comprises the Balance Sheet as at 31st March 2014 theStatement of Profit and Loss and the Cash Flow Statement for the year ended on that dateand a summary of significant accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
The company management is responsible for preparation of these financial statementsthat give a true and fair view of the financial position financial performance and cashflows of the company in accordance with Accounting Standards referred to in Sec 211(3C) ofthe Companies Act 1956 read with the General Circular 15/2013 dated 13th September 2013of the Ministry of Corporate Affairs in respect of Section 133 of the Companies Act 2013and in accordance with the accounting principles generally accepted in India. Thisresponsibility includes the design implementation and maintenance of internal controlsrelevant to the preparation and presentation of financial statements that give a true andfair view and are free from material misstatement whether due to fraud or error.
Our responsibility is to express an opinion on these financial statements based on ouraudit. We conducted our audit in accordance with Standards on Auditing issued by theInstitute of Chartered Accountants of India. Those standards require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether the financial statements are free from material misstatements.
An audit involves performing procedures to obtain audit evidence about the amount anddisclosures in the financial statements. The procedure selected depends on auditor'sjudgment including the assessment of the risks of material 'misstatement of financialstatements whether due to fraud or error. In making those risk assessments the auditorsconsider internal control relevant to the Company's preparation and fair presentation ofthe financial statements in order to design audit procedures that are appropriate in thecircumstances but not for the purpose of expressing an opinion on the effectiveness ofthe Company's internal control. An audit also includes evaluating the appropriateness ofthe accounting policies used and the reasonableness of the accounting estimates made bythe Management as well as evaluating the overall presentation of financial statements.
We believe that the audit evidence we have obtained Is sufficient and appropriate toprovide a basis for our audit opinion.
In our opinion and to the best of our information and according to theexplanation given to us the aforesaid financial statements give the information requiredby the Companies Act 1956 in the manner so required and give a true and fair view inconformity with the accounting principles generally accepted in India :
a. in the case of the Balance Sheet of the State of affairs of the Company as at 31stMarch 2014;
b. in case of the Statement of Profit and Loss of the profit for the year ended on thatdate; and
c. in case of the Cash Flow Statement of the cash flows of the company for the yearended on that date
Report on Other Legal and Regulatory Requirements
As required by the Companies (Auditors Report) Order 2003 issued by theDepartment of Company Affairs in terms of section 227(4A) of the Companies Act 1956 wegive in the Annexure a statement on the matters specified in the paragraph 4 and 5 of thesaid order.
2. As required by Section 227(3) of the Companies Act 1956 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 and Statement of Profit and Loss and the Cash Flow Statement dealtwith by the report are in agreement with the books of account.
d. In our opinion the Balance Sheet Statement of Profit and Loss and Cash FlowStatement dealt with by this report comply with the Accounting Standards referredto in sub-section 3(C) of Section 211 of the Companies Act 1956 read with the GeneralCircular 15/2013 dated 13th September 2013 of the Ministry of Corporate Affairs in respectof Section 133 of the Companies Act 2013; and
e. On the basis of the written representations received from the Directors as on 31 stMarch 2014 and taken on record by the Board of Directors We report that none of thedirectors is disqualified as on 31st March 2014 from being appointed as a Director interms clause (g) of the Section 274 of the Companies Act 1956.
| ||For Rungta & Rungta Chartered Accountants |
| ||(Firm Registration No. 305134E) |
|25 R.N. Mukherjee Road ||S.K.Roongtaa |
|Kolkata the 29th day of May 2014. ||Partner |
| ||Membership No. : 15234 |
ANNEXURE TO INDEPENDENT AUDITORS REPORT
(Referred to in Paragraph 1 under Report on other Legal and RegulatoryRequirement section of our report of even date)
1. (i) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets
(ii) Fixed assets have been physically verified by the management during the year basedon a phased program of verifying all the assets over a period of three years which in ouropinion is reasonable having regard to the size of the Company and the nature of its fixedassets. As informed no material discrepancies were noticed on such verification.
(iii) There was no substantial disposal of fixed assets during the year.
2. (i) As explained to us the management has conducted Physical verification ofinventory at reasonable intervals during the year. In our opinion the frequency of suchverification is reasonable.
(ii) In our opinion and according to information and explanations given to us theprocedures of physical verification of inventory followed by the management are in ouropinion reasonable and adequate in relation to the size of the Company and the nature ofits business
(iii) In our opinion and according to the information and explanations given to us theCompany is maintaining proper records of inventories and no material discrepancies werenoticed on physical verification as compared to book records
3. (i) During the year the Company has taken unsecured loan of Rs. 39.75 Lacs from twoother parties covered in the register maintained u/s 301 of the Companies Act 1956 apartfrom Rs.101.34 Lacs brought forward from previous year and have repaid Rs.73.48 Lacsduring the year. The maximum amount involved during the year and the year end balance ofsuch loans aggregated Rs120.79 Lacs and Rs74.62 Lacs (including accrued interest ofRs.7.08 lacs respectively).
(ii) In our opinion and according to the information and explanations given to us theterms and conditions of such unsecured loan taken are not prima-facie prejudicial to theinterest of the Company.
(iii) In respect of the aforesaid loans there is no stipulation as to repayment of loanand/ or interest thereon. Further the loan are repayable by the party on demand/call loanpolicy framed by the Company
(iv) The company has not granted any loans secured or unsecured to companies firmsor other parties covered in the register maintained under section 301 of the CompaniesAct 1956.
4. In our opinion and according to the information and explanations given to us thereare adequate internal control procedures commensurate with the size of the Company and thenature of its business with regard to purchase of inventory and fixed assets and for thesale of goods and services. During the course of our audit no major weakness has beennoticed in the internal control system in respect of these areas.
5. (i) According to the information and explanations given to us we are of the opinionthat the transactions that need to be entered into the register maintained under Section301 have been so entered
(ii) In our opinion and according to information and explanations given to us thetransactions made in pursuance of such contract or arrangements exceeding Rupees Five Lacshave been made at prices which are reasonable having regard to the prevailing marketprices at the relevant times
6. The Company has not accepted any deposits from the public.
7. In our opinion the Company has an internal audit system commensurate with the sizeand nature of its business.
8. On the basis of the records we are of the opinion that prima facie cost records andaccounts prescribed by the Central Government of India under section 209(1) (d) of theCompanies Act 1956 have been maintained . However we are not required to and have notcarried out any detailed examination of such account and records.
9. (i) According to the information and explanations given to us and on the basis ofour examination of the records of the Company the Company has been regular in depositingundisputed statutory dues including Provident Fund Investor Education and ProtectionFund Employees State Insurance Income Tax Sates tax Wealth Tax Service TaxCustom Duty Excise Duty Cess and other material Statutory Dues as applicable with theappropriate authorities In India.
(it) At the end of financial year there were no undisputed dues of Provident FundInvestor Education and Protection Fund Employee's State insurance Sales Tax Income TaxCustom Duty Wealth Tax Service Tax Excise Duty cess and other material statutory dueswhich has remained outstanding for more than six months from the date they became payable.
(iii) Details of dues. Sales Tax Income Tax Custom Duty Wealth Tax Service TaxExcise Duty and cess dues which has not been deposited as on 31st March 2014 on accountof dispute are given below :
|SI. No ||Name of the Statute ||Nature of Dues ||Amount (Rs. in lacs) ||Forum where dispute is pending |
|1. ||The Income Tax Act 1961. ||Fringe Benefit Tax A.Y. 2006-07 ||1.85 ||Commissioner of Income Tax (Appeals) |
|2. ||The Income Tax Act 1961. ||Income Tax A.Y.2010-11 || ||Commissioner of Income Tax (Appeals) |
Show cause notice for Penalty u/s 271(1) C received for Asst. Year 2006-07 &2010-11 proceedings pending.
10. There are no accumulated losses at the end of the financial year and the Companyhas not incurred any cash losses in the current and immediately preceding financial year.
11. Based on our audit procedures and as per the information and explanations given bythe management we are of the opinion that the Company during the year has not defaultedIn repayment of dues to financial institutions banks. The Company has not issued anydebentures.
12. According to the information and explanations given to us and based on thedocuments and records produced to us the Company has not granted loans and advances onthe basis of security by way of pledge of shares debentures and other securities.
13. In our opinion the Company is not a chit fund or a nidhi / mutual benefit fund /society. Therefore the provisions of clause 4(xiii) of the Companies (Auditor's Report)Order2003 are not applicable to the Company.
14. In our opinion the Company is not dealing in or trading in shares securitiesdebentures and other investments. Accordingly the provisions of Clause 4 (xiv) of theorder are not applicable to the company.
15. According to the information & explanations given to us the Company has notgiven guarantee for loans taken by others from banks or financial institutions.
16. In our opinion and according to information and explanation given to us the termloan obtained during the year has been utilized for the purpose for which it was obtained.
17. On the basis of review of utilisation of funds on overall basis relatedinformation as made available to us and as represented to us by the management fundsraised on short-term basis have not been used for long term investment.
18. The Company has not made any preferential allotment of shares to parties orcompanies covered in the register maintained under Section 301 of the Companies Act1956during the year.
19. The Company has not issued any debentures during the year.
20. The Company has not raised any money by way of public issue during the year.
21. During the course of our examination of the books of account carried out inaccordance with the generally accepted auditing practices In India we have neither comeacross any instance of fraud on or by the Company nor have been informed of such case bythe management.
| ||For Rungta & Rungta Chartered Accountants |
| ||(Firm Registration No. 305134E) |
| ||S.K.Roongtaa |
|25 R.N. Mukherjee Road ||Partner |
|Kolkata the 29th day of May 2014. ||Membership No. : 15234 |