Mar 31, 2010
We have audited the attached Balance Sheet of ELPRO PACKAGING LIMITED,
as at 3 Ist March 2010, the Profit and Loss Account and Cash Flow
Statement for the year ended on that date annexed thereto. These
financial statements are the responsibility of the Companys
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 and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation.We believe that our audit provides a reasonable basis for
our opinion.
As required by the Companies (Auditors Report) Order, 2003 issued by
the Central Government of India in terms of sub section (4A) of section
227 of the Companies Act, 1956, we enclose in the Annexure, a statement
on the matters specified in paragraphs 4 and 5 of the said Order.
Further to our comments in the Annexure referred to above, we report
that:
(i) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
(ii) In our opinion, proper books of account as required by law have
been kept by the company so far as appears from our examination of
those books;
(iii) The Balance Sheet, Profit and Loss Account and the Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
(iv) In our opinion, the Balance Sheet, the Profit and Loss Account and
the Cash Flow Statement dealt with by this report comply with the
accounting standards referred to in sub section (3C) of section 21 I of
the Companies Act, 1956;
(v) On the basis of written representations received from the
directors, as on 31s March, 2010 and taken on record by the Board of
Directors, we report that none of the directors is disqualified as on 3
I March, 2010 from being appointed as a director in terms of clause (g)
of sub section (I) of section 274 of the Companies Act, 1956;
(vi) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts give the information
required by the Companies Act, 1956, in the manner so required and give
a true and fair view in conformity 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 31s March, 2010;
(b) In the case of the Profit and Loss Account, of the profit for the
year ended on that date.
(c) In the case of the Cash Flow Statement, of the Cash Flows for the
year ended on that date.
Subject to following:
d) The accounts of the company are drawn upon going concern basis
despite of the fact that more than fifty percent of the Companys net
worth is eroded. ii) The Company has not engaged a Whole Time Company
Secretary as required by section 383 A of the Companies Act, I9S6.
ANNEXURE TO THE AUDITORS REPORT
The Annexure referred to in the auditors report to the members of
Elpro Packaging Limited for the year ended 3 I March, 2010. We report
that:
(i) Fixed Assets:
(a) The company is maintaining proper records showing full particulars,
including quantitative details and situation of fixed assets.
(b) The company has a programme for physical verification of fixed
assets at periodic intervals. In our opinion, the frequency of
verification is reasonable having regard to the size of the Company and
the nature of its assets. No material discrepancies were noticed on
such verification.
(c) During the year, the company has not disposed off any part of the
fixed assets.
(ii) Inventory:
(a) The Management has conducted physical verification of inventory at
reasonable intervals. 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) In our opinion and according to the information and explanations
given to us, the Company has maintained proper records of its
inventories and no material discrepancies were noticed on physical
verification.
(iii) (a) The Company has not granted any loans, secured and unsecured,
to companies, firms or other parties covered in the register maintained
under section 301 of the Companies Act, 1956.
(b) The Company has not taken any loans, secured and unsecured, from
companies, firm or other parties covered in the register maintained
under section 301 of the Companies Act, 1956.
(iv) 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. During the course of our audit, we have not observed any
continuing failure to correct major weaknesses in internal control
systems.
(v) (a) According to the information and explanations given to us, we
are of the opinion that the particulars of all contracts or
arrangements that need to be entered into the register maintained under
section 301 of the Companies Act, 1956 have been so entered.
(b) In our opinion and according to the information and explanations
given to us, the Company does not have any transaction made in
pursuance of contracts or arrangements entered in the register
maintained under section 301 of the Companies Act, 1956 and exceeding
the value of rupees five lakhs in respect of any party during the year.
(vi) The company has not accepted any deposits under the provisions of
Sections 58A and 58AA of the Act and the rules framed there under.
(vii) The Company does not have formal internal audit system. Internal
audit is carried out by in house staff, in our opinion, there is a
scope for further improvement in the internal audit system.
(viii) To the best of our knowledge and according to the information
and explanations given to us, the Central Government has not prescribed
any rules for the maintenance of cost records under section 209( I )(d)
of the Companies Act, 1956.
(ix) (a) According to the information and explanations given to us, and
the records of the Company examined by us, in our opinion, the company
is generally regular in depositing the undisputed statutory dues,
including provident fund, investor education and protection fund,
employees state insurance, income tax, sales tax, wealth tax,
service tax, customs duty, excise duty, cess and other material
statutory dues as applicable, with appropriate authorities.
(b) (i) According to the information and explanations given to us and
the records of the Company examined by us, no undisputed amounts
payable in respect of income tax, and cess were in arrears, as at 31
March 2010 for a period of more than six months from the date they
became payable.
(ii) According to the information and explanations given to us, there
are no dues of sales tax, income tax, custom duty, wealth tax, excise
duty and cess which have not been deposited on account of any dispute.
(x) In our opinion, the accumulated losses of the company are more than
fifty percent of its net worth. Further, the company has not incurred
cash losses during the financial year covered by our audit and the
immediately preceding financial year.
(xi) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to a
financial institution, bank or debenture holders.
(xii) The Company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
(xiii) In our opinion the Company is not a Chit Fund Company or Nidhi /
Mutual Benefit Fund / Society.Therefore the paragraph 4 (xiii) Order is
not applicable to the Company.
(xiv) In our opinion, the Company has maintained proper records of
transactions and contracts relating to dealing or trading in shares,
securities, debentures and other investments during the year and timely
entries have been made therein. Further, such securities have been held
by the Company in its own name.
(xv) 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) The Company has not raised any term loan during the year under
consideration.
(xvii) According to the information and explanations given to us, and
on an overall examination of the balance sheet of the company, we
report that no fund raised on short basis have been used for long term
investment during the year.
(xviii) According to the information and explanations given to us, the
Company has not made preferential allotment of shares to parties and
companies covered in the Register maintained under Section 301 of the
Companies Act, 1956.
(xix) As per the information and explanations given to us, the Company
has not issued any debenture.
(xx) The company has not raised any money by public issue during the
year, and hence paragraph 4(xx) of the Order is not applicable.
(xxi) During the course of our examination of the books and records of
the Company, carried out in accordance with generally accepted auditing
practices in India, and according to the information and explanations
given to us, we have neither come across any instances of material
fraud on or by the Company, noticed or reported during the year, nor
have been informed of such case by management.
For Arvind Darji Associates
Chartered Accountants
Firm Registration No: 100576W
Sd/-
Arvind M Darji
Proprietor
Membership No. 041748
Place : Pune
Date :23rd August, 2010