Timbor Home Ltd.
|BSE: 533444||Sector: Others|
|NSE: TIMBOR||ISIN Code: INE346L01016|
|BSE 00:00 | 04 Mar||Timbor Home Ltd|
|NSE 05:30 | 01 Jan||Timbor Home Ltd|
|BSE: 533444||Sector: Others|
|NSE: TIMBOR||ISIN Code: INE346L01016|
|BSE 00:00 | 04 Mar||Timbor Home Ltd|
|NSE 05:30 | 01 Jan||Timbor Home Ltd|
The Members of TImbor Home Limited Ahmedabad
Report on the Financial Statements
We have audited the accompanying financial statements of TIMBOR HOME LIMITEDAHMEDABAD. which comprise the Balance Sheet as at March 312014 and the statements ofProfit and Loss and cash flow for the year then ended and a summary of significantaccounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation of these financial statements that give atrue and fair view of the financial position financial performance and cash flows of theCompany in accordance with accounting principles generally accepted in India includingthe Accounting Standards referred to in sub-section (3C) of section 211 of the CompaniesAct 1956 ("the Act")read with the General Circular 15/2013 dated 13thSeptember 2013 of the Ministry of Corporate Affairs in respect of Section 133 of theCompanies Act 2013. This responsibility includes the design implementation andmaintenance of internal control relevant to the preparation and presentation of thefinancial statements that give a true and fair view and are free from materialmisstatement 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 the 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 aboutwhetherthe 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 theauditor'sjudgment including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error. In making those risk assessments theauditor 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 the Company's internal control. An audit also includes evaluating theappropriateness of accounting policies used and the reasonableness of the accountingestimates made by management as well as evaluating the overall presentation of thefinancial statements. We believe that the audit evidence we have obtained is sufficientand appropriate to provide a basis for our audit opinion subject to audit evidences whichwe have not been able to obtain due to company's disability and have relied onManagement's representation in that cases to form an audit opinion.
In our opinion and to the best of our information and according to the explanationsgiven to usread with the points stated in theEmphasis of Matter and Qualification andNotes to accounts of the financial statements the financial Statements give theinformation required by the Act in the manner so required and give a true and fair view inconformity with the accounting principles generally accepted in India:
a) In case of the Balance Sheet of the state of affairs of the Company as at March312014;
b) In case of the Statement of Profit and Loss of the Loss for the year ended on thatdate; and
c) In case of the Cash Flow Statement of the cash flows for the year ended on thatdate.
Emphasis of Matter and Qualifications
1. We draw attention to Note No. 32 of the accompanying financial statements in respectof recovery cases and arbitration matters filed by Creditors and Banks/ NBFCs against thecompany and the Note No. 33 of the accompanying financial statements in respect ofinternal restructuring of the debts of the company and which may affect the goingconcern's concept of the company upon final outcome of the said pendingpetitions/arbitration/cases.
2. We draw attention to Note No. 21 of the accompanying financial statements in respectof third party balance confirmationsgrouping & classification Disclosure of GrossAmounts and other related issues resulting into effect on the results/affairs as givenin the said Notes.
3. The company is in continuing default in respect of non compilance of provison sec.383A of the companys act 1956 in respect of appointment of whole time company secretary
Reporton Other Legal and Regulatory Requirements
1. As required by section 227(3) of the Act we report that:
a) We have obtained all the information and explanations which to the best of ourknowledge and belief were necessary forthe 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 Statement of Profit and Loss and Cash Flow Statement dealt withby this report are in agreement with the books of account.
d) In our opinion the Balance Sheet Statement of Profit and Loss and Cash FlowStatement comply with the Accounting Standards referred to in subsection (3C) of section211 of the Companies Act 1956read with the General Circular 15/2013 dated 13th September2013 of the Ministry of Corporate Affairs in respect of Section 133 of the Companies Act2013.;
e) On the basis of written representations received from the directors as on March312014 and taken on record by the Board of Directors none of the directors isdisqualified as on March 31 2014 from being appointed as a director in term of clause(g) of sub-section (1) of section 274 of the Companies Act 1956.
f) Since the Central Government has not issued any notification as to the rate at whichthe cess is to be paid under section 441A of the Companies Act 1956 nor has it issued anyRules under the said section prescribing the manner in which such cess is to be paid nocess is due and payable by the Company.
2. As required by the Companies (Auditors Report) Order 2003 ("the Order")issued by the Central Government of India in terms of sub-section (4A) of section 227 ofthe Act we give in the Annexure a statement on the matters specified in paragraphs 4 and5 of the order.
ANNEXURE TO THE AUDITOR'S REPORT
Annexure referred to in paragraph 2 of our Auditor's Report of even date on thefinancial statementsof Timbor Home Limited for the year ended 31st March 2014
On the basis of such checks as we considered appropriate and in terms of theinformation and explanation given to us we state that:-
1. a) The company is in process of updating the records showing particulars of quantityand situation of fixed assets.
b) As informed to us the fixed assets of the company have been physically verified bythe Management at reasonable intervals and no materials discrepancies have been noticed onsuch verification.
c) None of the substantial part of fixed assets has been disposed off during the yearhowever as informed to us substantial part of Fixed Assets has been lost due to fire atfactory premises. It is informed to us that On 17th August 2013 on account of shortcircuit fire wedgedat Unit I of the Company situated at7 Shubhlaxmi Industrial EstateSarkhej-Bavala Highway. Changodhar - 382213 Ahmedabad Gujarat due to which a substantialpart of Fixed Assets got burnt and have no realisable value. As per management estimatedLoss of Fixed Assets as reported by the Surveyor in his Survey / Valuation Report is Rs.65.22 Lakhs (Net Construction Loss Value) & Rs. 286.84 Lakhs (Net Plant &Machinary Loss Value). We have relied on the Management representations on the basis ofwhich we are of the opinion that the company shall be able to continue as a going concernfor the foreseeable future despite the lossof substantial part of fixed assets.
2. a) As informed to us during the year the management has conducted physicalverification of the inventories except of the inventories as stated in Note No. 43 andfurther in our opinion the frequency of verification is reasonable.
b) In our opinion and according to the information and explanations given to us theprocedures of physical verification of inventory followed by the management are broadlyreasonable and adequate in relation to the size of the Company and the nature of itsbusiness.
c) In our opinion and according to the information and explanations given to us and onthe basis of our examination of the records of inventory & subject to limited auditevidences available the Company seems to be maintaining proper records of inventory. Asinformed by managementthe discrepancies noticed on physical verification of inventory ascompared to book records were not material and have been properly dealt with in the booksof account.
3. a) According to the information and explanations given to us the company hasgranted secured or unsecured loans to
1 (ONE) parties covered in the register maintained under Section 301 of the Act. Themaximum amount outstanding during the year was Rs. 3.50 Lakhs and the year end balance ofloans was Rs. 3.50 Lakhs. The rate of interest and the terms of repayment are notstipulated and other terms and conditions are not prima facie prejudicial to the interestof the Company. b) According to the information and explanation given to us the Companyhad taken unsecured loan from the 8 (Eight) Parties listed in the register maintainedunder Section 301 of the Companies Act 1956. The maximum amount outstanding during theyear was Rs.795.07 Lacs and the year end balance of loans was Rs.534.09 Lacs. The rate ofinterest and the terms of repayment are not stipulated and other terms and conditions arenot prima facie prejudicial to the interest of the Company.
4. In our opinion and according to the information and explanation given to us thereare generally adequate internal control procedures commensurate with the size of theCompany and the nature of its business with regard to the purchase of inventories andfixed assets and with regard to the sale of goods. In our opinion and according toinformation and explanation given to us there is nocontinuingfailuretocorrectmajorweakness of such internal control system.
5. a) According to the information and explanations given to us we are of the opinionthat the particulars of contracts or
arrangements referred to in Section 301 of the Companies Act 1956 that need to beentered into the register maintained under Section 301 of the Companies Act 1956 havebeen so entered. b) In respect of transactions with parties with whom transactionsexceeding value of' 5 Lacs have been entered into during the financial year are at theprices which are reasonable having regard to the prevailing market prices at the relevanttime except in case of transactions where we are unable to comment owing to the uniqueand specialized nature of the items and absence of any comparable prices whether thetransactions are made at the prevailing market prices at the relevant time or not.
6. In our opinion and according to the information and explanation given to us thecompany has not accepted deposits from the public.
7. The Company does not have proper Internal Audit System. Looking to the size andnature of its business we recommend to Audit Committee to strengthen the Internal Auditsystem.
8. We have been informed that the Central Government has prescribed maintenance of costrecords under Clause (d) of Subsection (1) of Section 209 of the Companies Act 1956 andaccording to the information and explanation given to us maintenance of Cost Records ofFY 2013-14 are still in process and Compliance Report will be submitted with in prescribedtime limit. However the Compliance Report for FY 2012-13 has not been submitted yet due tounavoidable circumstances as informed by the management.
9. a) According to the records of the company and information and explanations given tous the company is regular in depositing undisputed statutory dues including ProvidentFund Income Tax Custom Duty and any other statutory dues wherever applicable with theappropriate authorities during the year. However at times the company gets irregular indepositing the aforesaid undisputed statutory dues. Details of Outstanding Undisputed duesfor over six months as at year end is asunder :- TDS Payable :-Rs. 3.99 Lacs ProfessionalTax :-Rs. 3.08 Lacs VAT/CST/Excise Duty:- Rs. 160 Lacs (Approx.) IncomeTax:-Rs. 248.99Lacs
b) According to the records of the company and information and explanations given to usthere is no disputed statutory dues payable by the company.However the company has filedtheIncome Tax Returns for Financial Year 2011-12 on 28-032014 and the income tax payablefor the same is Rs. 21813470. It is to be noted that the company has not filed the Incometax return for the financial year 2012-13.
10. The company has incurred losses during the current year. Accumulated Cash lossesstand to be Rs. 1773.84 Lakhs and Net worth of the company as on the end of financial yearstands to be Rs. 3530.49 Lakhs. So the accumulated losses at the end of the financial yearare more than 50% of thecompany's net worth.
In the current year thecompany has incurred a cash loss of Rs. 1773.84 Lakhs. While inthe immediately preceeding previous year company had earned an average profits.
11. Based on our audit procedures and on the information and explanations given by themanagement we are of the opinion that the company has defaulted in repayment of dues(including interest) to financial institution and banks and as informed to us detailsrelating to extent of defaults is not readily available with the company.
12. According to the information and explanation given to us the company has notgranted any loans and advances on the basis of security by way of pledge of sharesdebentures and other securities.
13. The Company is not achit fun do ranidhi /mutual benefit fundor society.Thereforeclause4 (xiii) is not applicable to the company.
14. The Company is not dealing or trading in shares or securities debentures and otherinvestments. Therefore clause 4(xiv) is 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. According to the Cash Flow Statement and other records examined by us as well asinformation and explanations given to us during theyear under consideration nonewtermloanhas been taken by the company.
17. According to the Cash Flow Statement and other records examined by us as well asinformation and explanations given to us on an overall basis we report that funds raisedon short term basis have not prima-facie 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 Act 1956.
19. The company has not issued any debentures and accordingly the provisions of clause4(xix) of the Companies (Auditor's Report) Order 2003 are not applicable to the company.
20. During theyear the company has not raised any money through a public issue.
21. During the course of our examination of the books of account and records of thecompany carried out in accordance with the generally accepted auditing practices in Indiaand according to the information and explanation given to us we have neither come acrossany instance of material fraud on or by the Company noticed or reported during the yearnor have we been informed of such case by the management.