You are here » Home » Companies » Company Overview » Kanchan International Ltd

Kanchan International Ltd.

BSE: 530165 Sector: Consumer
NSE: N.A. ISIN Code: INE924C01019
BSE LIVE 05:30 | 01 Jan Stock Is Not Traded.
NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN
PREVIOUS CLOSE
VOLUME
52-Week high 0.00
52-Week low 0.00
P/E
Mkt Cap.(Rs cr) 0
Buy Price
Buy Qty
Sell Price
Sell Qty
OPEN
CLOSE
VOLUME
52-Week high 0.00
52-Week low 0.00
P/E
Mkt Cap.(Rs cr) 0
Buy Price
Buy Qty
Sell Price
Sell Qty

Kanchan International Ltd. (KANCHANINTL) - Auditors Report

Company auditors report

KANCHAN INTERNATIONAL LIMITED ANNUAL REPORT 2011-2012 AUDITORS' REPORT We have audited the attached Balance Sheet of M/s KANCHAN INTERNATIONAL LIMITED, as at 31st March, 2012 and also the Profit & Loss Account & the Cash Flow 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. We conducted our audit in accordance with the Auditing Standards generally accepted in India. Those standards require that we plan & perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatements. An audit includes examining on a test basis, evidence supporting the amounts and disclosures in financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion. As required by the Companies (Auditors Report) Order, 2003, as amended by the Companies (Auditor's Report) Amendment Order, 2004 (the Order), issued by the Central Government of India in terms of Subsection (4A) of Section 227 of the Companies Act, 1956, and on the basis of the information and the books and records examined by us in the normal course of the audit and to the best of our knowledge and belief we give below our report on the matters specified in paragraph 4 & 5 of the said order. 2. Further to our comments in the Annexure, we report that :- (i) We have obtained all the information and explanation which to the best of our knowledge and belief were necessary for the purpose of our audit. (ii) In our opinion, the Company has kept proper books of accounts as required by Law so far as it appears from our examination of those books of accounts. (iii) The Balance Sheet and Profit and Loss Account and Cash Flow Statement dealt with by this comply with the mandatory Accounting standard referred to in sub-section (3C) of the section 211 of the Companies Act, 1956. (iv) On the basis of the written representations received from the Individual Directors and taken on record by the Board of Directors, we report that none of the Directors are disqualified as on 31st March, 2012, from being appointed as a Director in the terms of clause (g) of the subsection (1) of the section 274 of the Companies Act, 1956. (v) Retirement benefits & Leave encashment is made on accrual basis & charges to P&L A/c on the basis of valuation certified by Management instead of Actuarial Valuation as required by Accounting Standard-15 ' 'Employee benefits'. (vi) Note no 1 'Notes to accounts' in respect of balances of Sundry Creditors, Debtors, Loans & Advances & Deposit which are subject to Confirmation. (vii) Note no 14 regarding Concept of Deferred Revenue Expenditure (viii) Note no 15 regarding Non-Provision of Liabilities in respect of Non- Compliance of certain fiscal Statute. Amount not ascertainable. (ix) In our opinion and to the best of our information and according to the explanation given to us, the said financial statements read together with the significant policies and other notes given the information required by the Companies Act, 1956 in the manner required and subject to our comments in Para(v)to(viii) above give a true and fair view in conformity with accounting principles generally accepted in India in the case of the : i] Balance Sheet of the state of affairs of the company as on 31st March, 2012 and ii] Profit & Loss Account of the PROFIT of the company for the year ended on that date. iii] Cash Flow Statement of the cash flows for the year ended on that date. For M.B.Ladha & Company Chartered Accountants FR No l05503W Mukesh Ladha [Proprietor] M.No. 35544 Place: Mumbai. Date : 1st Sept, 2012 ANNEXURE TO THE AUDITORS* REPORT i) Fixed Assets (a) The Company has maintained proper records showing full particulars including quantitative details and situations of fixed assets. (b) We are informed that all the fixed assets have been physically verified by the management during the year. (c) According to the information and explanations given to us, Company has not disposed off substantial part of the fixed assets during the year, hence the going concern status of the company is not affected. ii) Inventory (a) In our opinion and according to the information and explanation given to us, the inventories of the company at all its locations have been physically verified by the management during the year. (b) In our opinion, the procedure of physical verification of Inventory followed by the management were found to be reasonable and adequate in relation to the size of the Company and nature of its business. (c) The Company is maintaining proper records of Inventories. We are informed that the discrepancies noticed on such verification between the physical inventories and book records were not material and they were properly dealt with in the books of accounts. iii) Loans/Deposit taken/ granted (a) The Company has given deposit against use of premises to one party listed in the Register maintained under Section 301 of the Companies Act, 1956. The Maximum amount involved during the year and the year end -balance of such deposit is Rs 155.52 lacs Amount shown as deposit. (b) As explained to us, the Deposit is interest free and will be repaid on vacating the premises by the company. In our opinion the other terms and conditions of the said Deposit given by the company are not prima faciepara (b),(c) and (d) related loans than how we should show in audit report prejudicial to the interest of the company. (c) The Company has taken loan from a Company under the same management listed in the register maintained under section 301 of the Companies Act, 1956. The Maximum amount involved during the year and the year end -balance of such loans is Rs 30.75 lacs. (d) As explained to us, the loans are interest free and do not carry any stipulation as to its repayment. In our opinion the other terms and conditions of the said loan taken by the company are not prima facie prejudicial to the interest of the company iv) Internal Control In our opinion and according to the information given to us, there are adequate internal control procedures commensurate with the size of the Company and nature of its business with regard to purchase of plant & machinery, equipment and other assets and for the sale of goods. We have not come across any major weaknesses in the Internal Control. v) Section 301 (a) The transactions that are required to be entered into Register in pursuance of Section 301 of the Act have been so entered. (b) The transactions for Sales & Services rendered in pursuance of contracts or arrangements entered in the Register maintained under Section 301 of the Companies Act, 1956 and exceeding the value of Rs. Five Lacs 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. vi) Deposit from Public The Company has not accepted any Public Deposits and hence compliance of provisions of Section 58A, 58AA or any other provisions do not apply. vii) Internal Audit The Company have an internal audit system which needs to be strengthened to commensurate with the size and nature of the Company's business. viii) Cost Records We have been informs d that the Central Government has not prescribed maintenance of cost records under section 209(l)(d) of the Companies Act, 1956 in the case of the Company. ix) Payment of Statutory Dues The Company is generally regular in depositing undisputed statutory dues except following Sales Tax and FBT with the appropriate authorities in India which are as follows. Name of Nature of Amount Period to Due date Date of the statute the dues Rs which Payment amount relates Fringe Taxes 3,22,332/- F.Y.2007-08 15/06/2007 Pending Benefit 15/09/2007 Tax 15/12/2007 15/03/2008 Fringe Taxes 3,17,543/- F.Y.2008-09 15/06/2008 Pending Benefit 15/09/2008 Tax 15/12/2008 15/03/2009 Sales Taxes 6,18,620/- F.Y.2010-11 21st of each Pending Tax(CST) month Sales Taxes 24,33,242/- F.Y.2011-12 21st of each Pending Tax(CST) month VAT Taxes 6,48,253/- F.Y.2010-11 21st of each Pending month VAT Taxes 1,53,227/- F.Y.2011-12 21st of each Pending month At the end of the Financial Year there are no disputed dues of Income Tax, Sales tax, Wealth tax, Custom duty & Cess which have not been deposited. x) Accumulated Losses / Cash Losses The Company has accumulated losses of Rs 1,90,48,791/- as on March 31,2012. The company has not incurred any cash losses in the current financial year ended on 31st March, 2012 xi) Default in Repayment of Dues According to the records of the company examined by us and the explanations given to us, the Company has defaulted in the repayment of dues to Bank. i. Installment of FITL Rs. 11.66 Lacs ii. Installment of WCTL Rs. 394.50 Lacs xii) Grant of Secured Loans & Advances According to the information and explanations given to us ,the Company has not granted Loans & Advances on the basis of security by way of pledge of shares, debentures and other securities. xiii) Special Statute-Chit Fund Companies, Nidhis/Mutual Benefit Fund/Societies: The provisions of any special status applicable to Chit Fund Nidhi or Mutual Benefit Fund or Societies are not Applicable to Company. xiv) Company dealing or Trading in Shares, Securities etc In our opinion and according to the information and explanations given to us, the company is not a dealer or trader in shares, securities, debentures and other investment. Accordingly the provisions of clause 4(xiv) of the Companies (Auditors report) Order, 2003 are not applicable to the Company. xv) Provision of Guarantee 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. xvi) Term Loans In our opinion and according to the information and explanations given to us, the Company has not obtained any Term Loans during the year. xvii) Usage of Funds In our opinion and according to the information and explanations given to us and on an overall examination of the Balance Sheet and Cash Flow Statement of the Company, the funds raised on Short-Term basis have not been used for Long Term Investment and vice-versa. xviii) Preferential Allotments The Company has made a preferential allotment of 4,76,300 equity shares to parties and companies covered in the register maintained U/S 301 of the Act, and as per the information and explanation given to us the price at which the shares have been issued are not prejudicial to the interest of the company. xix) Creation of Security for Debenture Issue According to the information and explanations given to us, and the records examined by us, the company has not issued any debentures during the year. xx) Disclosure of end use of fund The Company has raised Rs. 2,48,56,854/-by way of Application money for 25,00,000 Fully Convertible Equity Share Warrants which is used for its purpose of meeting the working capital requirement of the company. xxi) Frauds Based on the audit procedures performed for the purpose of reporting the true and fair view of the Financial Statements and as per information and explanation given by the management, we report that no material fraud on or by the company has been noticed or reported during the course of our audit. For M.B.Ladha & Company Chartered Accountants F R No 105503W Mukesh Ladha [Proprietor] M.No. 35544 Place: Mumbai Date : 1st Sept, 2012