62
Kajaria Ceramics Limited
Annual Report
2012-13
25
YEARSOF
WORKINGWITH
ANATTITUDE
CELEBRATING
Annexure to the Auditor’s Report
Annexure referred to in Paragraph 1 of the Auditors’ Report on Accounts for the year ended 31st March, 2013
1.
a)
The Company has maintained proper records to show
full particulars including quantitative details and
situation of fixed assets.
b) As explained to us, all the fixed assets have been
physically verified by the management in a phased
periodical manner, which in our opinion is reasonable,
having regard to the size of the Company and nature
of its assets. No material discrepancies were noticed on
such physical verification.
c)
In our opinion, the Company has not disposed off a
substantial part of its fixed assets during the year and
the going concern status of the Company is not affected.
2.
a)
Physical verification has been conducted by the
management at reasonable intervals in respect of
finished goods, stores, spare parts and raw materials.
We were informed that physical verification of clay
was made on the basis of volume and density which is
approximately correct.
b) In our opinion and according to the information and
explanation given to us, the procedure of physical
verification of these stocks followed by themanagement
is reasonable and adequate in relation to the size of the
Company and the nature of its business.
c)
In our opinion the Company is maintaining proper
records of inventories. The discrepancies noticed on
such verification between the physical stocks and book
records were not significant and the same has been
properly dealt with in the books of account.
3.
The Company has not granted any loan to Companies, firms
or other parties covered in the register maintained under
section 301 of the Act, except loans of
`
216.77 million given
to four Subsidiary Companies. As per the information and
explanations given to us, the terms and conditions of the loan
are not Prima facie prejudicial to the interest of Company.
There are no overdue balances outstanding in relation to the
loans as on 31.03.2013.
4.
The Company has not taken any loan from companies, firms
or other parties covered in the register maintained under
section 301 of the Act.
5.
In our opinion and according to the information and
explanations given to us there is an adequate internal
control system commensurate with the size of the Company
and the nature of its business with regard to purchase of
inventories, fixed assets and with regard to the sale of
goods and services. During the course of audit, we have not
observed any continuing failure to correct major weaknesses
in internal control system.
6.
a)
In our opinion and according to information and
explanations given to us the transactions that needed
to be entered in the register maintained under section
301 of the Act have been entered in the register.
b) In our opinion, the transactions made in pursuance
of contracts/ arrangements entered in the register
maintained under Section 301 of the Companies Act,
1956 and exceeding the value of
`
500,000 in respect
of each party during the year have been made at prices
which appear reasonable as per information available
with the Company.
7.
In our opinion and according to the information and
explanations given to us, the Company has not accepted any
deposits within the meaning of provisions of section 58A,
58AA or any other relevant provisions of the Companies Act,
1956 and the Companies (Acceptance of Deposits) Rules,
1975.
8.
In our opinion and according to the information and
explanations given to us, the Company has adequate internal
audit system commensurate with its size and nature of its
business.
9.
The central government has prescribed the maintenance
of cost records under section 209(1)(d) of the Companies
Act, 1956 in respect of the manufacturing activities of the
Company. We have broadly reviewed the accounts and
records of the Company in this connection and are of the
