| We have audited the financial statements of YASHRAJ CONTAINEURS LIMITED
("the Company"), which comprise the Balance Sheet as at 31st March,
2015, the Statement of Profit and Loss,the Cash Flow Statement for the
year then ended, and a summary of the significant accounting policies
and other explanatory information.
MANAGEMENT'S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS
The Company's Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 ("the Act") with respect
to the preparation of these financial statements that give a true and
fair view of the financial position, financial performance and cash
flows of the Company in accordance with the accounting principles
generally accepted in India, including the Accounting Standards
specified under Section 133 of the Act, read with Rule 7 of the
Companies(Accounts) Rules, 2014. This responsibility also includes
maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding of the assets of the Company and
for preventing and detecting frauds and other irregularities; selection
and application of appropriate accounting policies; making judgments
and estimates that are reasonable and prudent; and design,
implementation and maintenance of adequate internal financial controls,
that were operating effectively for ensuring the accuracy and
completeness of the accounting records, relevant to the preparation and
presentation of the financial statements that give a true and fair view
and are free from material misstatement, whether due to fraud or error.
AUDITORS' RESPONSIBILITY
Our responsibility is to express an opinion on these financial
statements based on our audit.
We have taken into account the provisions of the Act, the accounting
and auditing standards and matters which are required to be included in
the audit report under the provisions of the Act and the Rules made
thereunder.
We conducted our audit in accordance with the Standards on Auditing
specified under section 143(10)of the Act. Those Standards require that
we comply with ethical requirements and plan and perform the audit to
obtain reasonable assurance about whether the financial statements are
free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial control relevant
to the Company's preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company's Directors, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the financial
statements.
OPINION
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India, of the state of affairs of the Company as
at 31st 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 (Auditor's Report) order, 2015 (the
order) issued by the central government of India in exercise of power
conferred by sub section (11) of the companies Act 2013, We give in the
Annexure a statement on the matters specified in paragraph 3 and 4 of
the order.
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 best of our knowledge and belief were necessary for the
purposes of our audit.
b. In our opinion, proper books of account as required by law have
been kept by the Company so far as it appears from our examination of
those books.
c. The balance sheet, the Statement of Profit and Loss and the Cash
Flow Statement dealt with by this report are in agreement with books of
account.
d. In our opinion, the aforesaid financial statements comply with the
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014.
e. On the basis of the written representations received from the
directors as on 31st March, 2015 taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March, 2015
from being appointed as a director in terms of Section 164 (2) of the
Act.
f. With respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanation given to us :
i. In our opinion, the Company has disclosed the impact for all
pending litigations on its financial position in its financial
statements.
ii. In our opinion, the Company has made all provisions, as required
by law or accounting standards, for foreseeable losses on long term
contracts including derivative contracts.
iii. There were no amounts which were required to be transferred to the
investors Education And Protection Fund by the company.
THE ANNEXURE REFERRED TO IN PARAGRAPH 1 OF THE OUR REPORT OF EVEN DATE
TO THE MEMBERS OF YASHRAJ CONTAINEURS LIMITED ON THE ACCOUNTS OF THE
COMPANY FOR THE YEAR ENDED 31ST MARCH, 2015
1. (a) The Company has maintained Proper Records showing Full
Particulars including Quantitative Details and situation of Fixed
Assets.
(b) All the assets have been physically verified by the Management
during the year and there is a Regular Program of Verification which,
in our opinion, is Reasonable having regard to the size of the Company
and the nature of its Fixed Assets. No material discrepancies were
noticed on such verification.
2. (a) The Inventory has been physically verified during the year by the
Management. In our opinion, the frequency of verification is Reasonable.
(b) The procedures of Physical Verification of Inventories followed by
the Management are Reasonable and Adequate in relation to the size of
the Company and the Nature of its Business.
(c) The Company is maintaining Proper Records of Inventory. The
discrepancies noticed on verification between the physical stocks and
the book records were not material.
3. The Company has granted Unsecured loans to parties covered in the
register maintained under section 189 of the Companies Act, 2013.
There are no covenants, so we are not able to comment about repayment,
the rate of interest and other terms and conditions of loans given by
the company.
4. In our opinion and according to the information and explanations
given to us, there are adequate Internal Control Procedures
Commensurate with the Size of the Company and the nature of its
Business with regard to the Purchases of Inventory, Fixed Assets and
Sale of goods. During the course of our audit, we have not observed any
continuing failure to correct major weaknesses in Internal Controls.
5. The Company has not accepted any Deposits from the Public.
6. Maintenance of Cost Records has not been specified by the central
government under sub section (1) of section 148 of the Companies Act,
2013.
7. (a) In our opinion, the Company is Regular in depositing with
Appropriate Authorities Undisputed Statutory Dues except for few delays
including Provident Fund, Investor Education Protection Fund, Employees
state Insurance, Income Tax, Sales Tax, Wealth Tax, Custom Duty, Excise
Duty, Cess and other Material Statutory Dues applicable to it. According
to the information & explanations given to us there were outstanding
statutory dues as on 31st March, 2015 for a period of more than six
months from the date they became payable.
Sr. Name of Nature Period Amount Remarks
No. the Statue (Rs.)
1 Sales Tax CST April'14 to Sept'14 35,19,598/-
2 Sales Tax VAT April'14 to Sept'14 8,50,525/-
(b) According to the information and explanations given to us, the
amounts payable in respect of service tax, and excise duty which have
not been deposited on account of any dispute.
Name of Amount Period Forum Amount Date
Statutory for Where The Agreed of
dues Which it Dispute is Payment
Related Pending
Excise Duty 31,60,831 2012-13 Addl. Comm, Vapi Nil Nil
(c) There is no amount required to be transferred to investor education
and protection fund.
8. The accumulated losses at the end of the financial year are more
than 100% (Hundred Percent) of its net worth however has incurred cash
losses during the financial year covered by our audit & the immediately
preceding financial year.
9. Based on our audit procedures and on the information and
explanations given by the management, we are of the opinion that, the
Company has not defaulted in repayment of dues to a financial
institution, bank or debenture holders except those details as stated
below.
Sr. Name of the Principal Interest Total
No. financial Institution (Rs.) (Rs.) (Rs.)
1 Term Loan IDBI 103,450,000 102,533,691 205,983,691
2 Non Conv Deb. 27,500,000 29,176,545 56,676,545
The company had in Principle received an approval from IDBI for One
Time Settlement of all its dues at Rs 13.10 Crores wherein the company
was liable to pay Rs. 26.26 Crores as per the schedule provided above,
the company has till date has made a payment of Rs. 8.64 Crores and
accordingly has reversed the difference of OTS and the actual payment
on a pro rata basis which till date amounts to Rs 5.65cr.
Further it is observed the Company has not been following the OTS
scheme as the repayment is not according to the OTS Scheme, in view of
which the OTC may get void. The company has started providing interest
on the balance loan however interest provision which has been reversed
on the basis of OTS and Interest from the date of OTS till 2014 is yet
to be provided and accordingly the profits of the company are
overstated.
10. The Company has not given any guarantee for loans taken by others
from bank or financial institutions.
11. In our opinion, the Term Loans have been applied for the Purpose
for which they were obtained.
12. According to the information and explanation given to us, No Fraud
on or by the Company has been Noticed or Reported during the course of
our Audit.
For KAKARIA & ASSOCIATES
Chartered Accountants
Firm Regn. No.: 104558W
(Kakaria Ujwal K.)
Place : Mumbai Partner
Date : 08/08/2015 Membership No.: 35416
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