Mar 31, 2015
We have audited the accompanying financial statements of Agio Paper &
industries 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 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.
Auditor''s 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
there under.
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, but not for the purpose of
expressing an opinion on whether the Company has in place an adequate
internal financial controls system over financial reporting and the
operating effectiveness of such controls. 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 qualified audit opinion on the
financial statements.
Basis for Qualified Opinion
The Paper Factory of the Company has been under shut down since 6th
October, 2010 to fulfil certain pollution control measures as
enumerated in note no. 2.18.F in the financial statements. As further
explained in note no 2.18.G, based on the future plans and valuation
of fixed assets, the management of the Company is not envisaging any
impairment loss in the fixed assets & Capital Work in Progress of the
Company as at the balance sheet date as per the requirements of
Accounting Standard AS- 28 on "Impairment of Assets". However in
absence of any certainty towards future plans of the Company or a
binding sale agreement at arm''s length basis indicating the amount
obtainable from sale of fixed assets & Capital Work in progress, we
are unable to comment on the quantum of impairment loss on the fixed
assets & Capital Work in progress, if any, at the balance sheet date.
The impact of the above on the financial statements therefore could
not be determined.
Qualified Opinion
In our opinion and to the best of our information and according to the
explanations given to us, except for the effects of the matter
described in the basis of qualified opinion paragraph, 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.
Emphasis of Matter
We draw attention to the following matter in the Notes to the
financial statements:
Note no. 2.18.E & Note No. 2.18.F indicates fact that the net worth of
the Company is completely eroded and the production facility at the
paper factory is at a halt due to reasons mentioned in the note. These
conditions indicate the existence of a material uncertainty that may
cast significant doubt about the Company''s ability to continue as a
going concern. However, the financial statements of the Company have
been prepared on a going concern basis for the reasons stated in the
above notes. The appropriateness of the said basis is interalia
dependent on the Company''s ability to infuse requisite funds for
meeting its obligations, repayment of term loans and resuming normal
operations.
Our opinion is not modified in respect of above matter.
Report on Other Legal and Regulatory Requirements
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 the
books of account.
d. Except for the effects of the matter described in the basis for
qualified opinion paragraph, 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. The matter described in the "Basis of Qualified Opinion" paragraph
and in the "Emphasis of Matter" paragraph above, in our opinion, may
have an adverse effect on the functioning of the Company.
f. On the basis of the written representations received from the
directors as on 31st March, 2015 and 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.
g. 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 explanations given to us:
i. The Company has disclosed the impact of pending litigations on its
financial position in its financial statements.
ii. The Company has made provision, as required under the applicable
law or accounting standards, for material foreseeable losses, if any,
on long-term contracts . The company neither entered into any
derivative contract during the year nor have any outstanding
derivative contract at the year-end.
iii. The provisions relating to transferring any amounts to the
Investor Education and Protection Fund is not applicable to the
Company during the year.
For and on behalf of
Singhi & Co
Chartered Accountants
Firm Registration No. 302049E
Gopal Jain
Partner
Date : 11th April, 2015 Membership No - 059147
Mar 31, 2014
We have audited the accompanying financial statements of Agio Paper &
Industries Limited ("the Company "), which comprise the Balance Sheet
as at March 31, 2014 and the Statement of Profit and Loss and Cash Flow
Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management''s responsibility for the financial statements
Management is responsible for 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 Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956 ("the Act") read with general circular 15/
2013 dated 13th September 2013 by Ministry of Company Affairs in
respect of section 133 of the Companies Act 2013. This responsibility
includes the design, implementation and maintenance of internal control
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 conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. 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 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
control relevant to the Company ''s preparation and fair presentation of
the financial statements in order to design audit procedures that are
appropriate in the circumstances but not for the purpose of expressing
an opinion on the effectiveness of the entity''s internal control. An
audit also includes evaluating the appropriateness of accounting
policies used and the reasonableness of the accounting estimates made
by management, 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
qualified audit opinion.
Basis for Qualified Opinion
The Paper Factory of the Company is under shut down since 6th October
2010 to fulfil certain pollution control measures as enumerated in note
no. 2.20.F in the financial statements. The power plant and the new
paper mill are also kept under capital work in progress due to reasons
mentioned in the note.
As further explained in note no 2.20.G, based on the future plans and
valuation of fixed assets, the management of the Company is not
envisaging any impairment loss in fixed assets of the Company as at the
balance sheet date as per the requirements of Accounting Standard AS-
28 on "Impairment of Assets". However in absence of any certainty
towards crystallization of future plans of the Company or a binding
sale agreement at arm''s length basis indicating the amount obtainable
from sale of fixed assets, we are unable to comment on the quantum of
impairment loss on the fixed assets , if any, at the balance sheet
date.
The impact of the above on the financial statements therefore could not
be determined. E mail: [email protected] / [email protected]
Qualified Opinion
In our opinion and to the best of our information and according to the
explanations given to us, except for the effects of the matter
described in the basis of qualified opinion paragraph, the 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:
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2014;
b) in the case of the Statement of Profit and Loss, of the loss for the
year ended on that date; and
c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Emphasis of Matter
Without qualifying our opinion, we draw our attention to note no.
2.20.E regarding preparation of financial statements of the Company on
a going concern basis notwithstanding the fact that its net worth is
completely eroded. During the year the Company has incurred net loss of
Rs. 576.64 lacs and has also defaulted in repayment of instalments of
term loans and interest accrued thereon. The appropriateness of the
said basis is interalia dependent on the Company''s ability to infuse
requisite funds for meeting its obligations, repayment of term loans
and resuming normal operations.
Report on other legal and regulatory requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order"), as amended, issued by the Central Government of India in terms
of sub-section (4A) of section 227 of the Act, we give in the Annexure
a statement on the matters specified in paragraphs 4 and 5 of the
Order.
2. 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 our knowledge and belief were necessary for the purpose of our
audit;
b) 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.
c) The Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
d) Except for the effects of the matter described in the basis for
qualified opinion paragraph, in our opinion, the Balance Sheet,
Statement of Profit and Loss, and Cash Flow Statement comply with the
Accounting Standards referred to in sub-section (3C) of section 211 of
the Companies Act, 1956 read with general circular 15/2013 dated 13th
September 2013 by Ministry of Company Affairs in respect of section 133
of the Companies Act 2013;
e) On the basis of written representations received from the directors
as on March 31st, 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31st, 2014, from
being appointed as a director in terms of clause (g) of sub-section (1)
of section 274 of the Companies Act, 1956.
The Annexure referred to in paragraph 1 under the heading "Report on
other legal and regulatory requirements" of the our Report of even date
to the members of Agio Paper & Industries Limited on the accounts of
the Company for the year ended 31st March, 2014.
i. In respect of fixed assets;
a) The Company has maintained proper records showing full particulars,
including quantitative details and situations of fixed assets.
b) According to the explanation given to us, due to non- operation of
factory during the whole year, physical verification of the fixed
assets could not be carried out.
c) According to the explanation given to us, the Company has not
disposed off substantial fixed Assets during the year.
ii. In respect of inventories
a) According to the information and explanation given to us, the
inventory (excluding stocks with third parties) has been physically
verified by the internal auditors during the year. In respect of
inventory lying with third parties, these have been substantially
confirmed by them. In our opinion, the frequency of verification is
reasonable.
b) In our opinion, the procedures of physical verification of inventory
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
c) On the basis of our examination of the inventory records, in our
opinion, the Company is maintaining proper records of inventory. The
discrepancies noticed on physical verification of inventory as compared
to book records were not material.
iii. a) According to the information and explanations given to us, the
Company has not granted any loans, secured or unsecured to companies,
firms or other parties covered in the register maintained under Section
301 of the Companies Act, 1956. Accordingly clause (iii) (b) to (d) of
the Order is not applicable.
e) According to the information and explanations given to us, the
Company has taken interest free unsecured loans from one party covered
in the register maintained under Section 301 of the Companies Act,
1956. The maximum of loan outstanding during the year and the year-end
balance of such loan is Rs. 12,12,00,000/-. The loan is repayable on
demand. The other terms & conditions of the loan are not prejudicial to
interest of the Company.
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 for the purchase of inventory and fixed assets and for the
sale of goods. The Company is not in the business of sale of services.
During the course of our audit, no major weakness has been noticed in
the internal control system.
v. a) In our opinion and according to the information and explanations
given to us, the particulars of contracts or arrangements referred to
in Section 301 of the Act have been entered in the register required to
be maintained under that section.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements 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. The Company has not accepted any deposits from the public within
the meaning of Sections 58A and 58AA of the Act and the rules framed
there under.
vii. In our opinion, the internal audit functions carried out during
the year by a firm of Chartered Accountants appointed by the management
have been commensurate with the size of the Company and the nature of
its business during the year.
viii. We have broadly reviewed the books of account and records
maintained by the Company pursuant to the order made by the Central
Government for the maintenance of cost records under Section 209 (1)
(d) of the Companies Act, 1956 and are of the opinion that prima facie
the prescribed accounts and records have been made and maintained. We
have, however, not made a detailed examination of the records with a
view to determine whether they are accurate or complete.
ix. According to the information and explanations given to us in
respect of statutory and other dues:
a) According to the information and explanations given to us and on the
basis of our examination of the records of the Company, amounts
deducted/accrued in the books of account in respect of undisputed
statutory dues including Provident Fund, Investor Education and
Protection Fund, Income tax, Sales tax, Wealth tax, Service tax and
other material statutory dues have been, except few delays, generally
regularly deposited during the year by the Company with the appropriate
authorities.
According to the information and explanations given to us, no
undisputed amounts payable in respect of Provident Fund, Investor
Education and Protection Fund, Income tax, Sales tax, Wealth tax,
Service tax and other material statutory dues were in arrears as at
31st March, 2014, for a period of more than six months from the date
they become payable except liability towards water cess amounting
29,89,881/- which is outstanding for more than six months.
b) According to the information and explanations given to us and the
records of the Company examined by us, the dues of income-tax, sales
tax, wealth tax, service tax, customs duty, excise duty and cess as at
31st March, 2014 which have not been deposited on account of any
dispute and the forum where the disputes are pending are as under:
Statute Nature of dues Forum where dispute is pending
The Income Tax Income tax Hon''ble High Court at Calcutta
Act 1961
The Income Tax Income tax Deputy Commissioner (Appeal)
Act 1961
The Central Cenvat Claim Central Excise & Service Tax
Excise Act 1944 Appellate Tribunal, New Delhi
Statute Amount Period to
involved (Rs.) which relates
The Income Tax 7,96,364 1996-97
Act 1961
The Income Tax 5,50,000 2007-08
Act 1961
The Central 3,20,192 1991-92 to 1992-93
Excise Act 1944
x. As per the financial statements of the Company, the accumulated
losses at the end of the financial year have exceeded fifty percent of
its net worth. The Company has incurred cash losses during the current
financial year and in the immediate preceding financial year.
xi. Based on our audit procedures and on the basis of information and
explanations given by the management, the Company did not have any
outstanding debentures or dues to the financial institution during the
year. Default in repayment of dues to a bank is given below:
a. Rs. 3,10,00,000/- towards instalments of Term Loan I & II and
working capital loan in four equal quarterly instalment since June
2013.
b. Rs. 2,00,00,000/- towards instalments of funded interest term loan
payable in sixteen equal monthly instalment since December 2012.
c. Rs. 4,66,74,710 /- towards interest on term loans and working
capital loan for the months January 2013 to February 2014.
d. Rs. 1,38,89,072/- towards interest on funded interest term loan
payable for the period July 2012 to February 2014. The aforesaid
amounts are due to the bank as on 31st March 2014.
xii. According to the information and explanations given to us, no
loans or advances has been granted by the Company on the basis of
securities by way of pledge of shares, debentures or other securities.
xiii. The Company is not a Chit fund or a Nidhi/Mutual benefit
fund/society.
xiv. The Company is not in the business of dealing or trading in shares
and securities.
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.
xvi. To the best of our knowledge and belief and according to the
information and explanations given to us, term loans have been applied
for the purpose for which the loans were obtained.
xvii. According to the information and explanations given to us, and on
the basis of overall examination of the cash flow statements, no fund
raised on short term basis, prima facie, been used during the year for
long term investments.
xviii. The Company has not made any preferential allotment of shares to
parties and companies covered in the register maintained under section
301 of the Companies act, 1956 during the year.
xix. The Company has not issued any debentures during the period as
covered by our audit report.
xx. The Company has not raised monies by way of public issues during
the year.
xxi. To the best of our knowledge and belief and according to the
information and explanations given to us and so far as appears from our
examination of books and records of the Company, we are of the opinion
that no fraud on or by the Company was noticed and reported during the
year.
For and on behalf of Singhi & Co.
Chartered Accountants
Firm Registration No. 302049E
(Gopal Jain)
Partner
Membership No. - 059147
Kolkata, the 30th day of May 2014
Mar 31, 2013
We have audited the accompanying financial statements of Agio Paper &
Industries Limited ("the CompanyÂ), which comprise the Balance Sheet as
at March 31, 2013 and the Statement of Profit and Loss and Cash Flow
Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management''s responsibility for the financial statements
Management is responsible for 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 Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956 ("the ActÂ). This responsibility includes
the design, implementation and maintenance of internal control 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 conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. 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 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 control relevant to the
Company''s preparation and fair presentation of the financial statements
in order to design audit procedures that are appropriate in the
circumstances. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of the accounting
estimates made by management, 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 qualified audit opinion.
Basis for Qualified Opinion
The Paper Factory of the company is under shut down since 6th October
2010 to fulfil certain pollution control measures as enumerated in note
no. 2.20.F in the financial statements. The power plant and the new
paper mill are also kept under capital work in progress due to reasons
mentioned in the note.
As further explained in note no 2.20.G, based on the future plans and
valuation of fixed assets, the management of the company is not
envisaging any impairment loss in fixed assets of the company as at the
balance sheet date as per the requirements of Accounting Standard AS-
28 on "Impairment of AssetsÂ. However in absence of any certainty
towards crystallization of future plans of the company or a binding
sale agreement at arm''s length basis indicating the amount obtainable
from sale of fixed assets, we are unable to comment on the quantum of
impairment loss on the fixed assets , if any, at the balance sheet
date.
The impact on the financial statements therefore could not be
determined.
Qualified Opinion
In our opinion and to the best of our information and according to the
explanations given to us, except for the effects of the matter
described in the basis of qualified opinion paragraph, the 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:
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2013;
b) in the case of the Statement of Profit and Loss, of the loss for the
year ended on that date; and
c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date. Emphasis of Matter
Without qualifying our opinion, we draw our attention to note no.
2.20.E regarding preparation of financial statements of the Company on
a going concern basis notwithstanding the fact that its net worth is
completely eroded. During the year the Company has incurred net loss of
Rs. 812.21 lacs and has also defaulted in repayment of instalments of
term loans and interest accrued thereon. The appropriateness of the
said basis is interalia dependent on the Company''s ability to infuse
requisite funds for meeting its obligations, repayment of term loans
and resuming normal operations.
Report on other legal and regulatory requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
OrderÂ), as amended, issued by the Central Government of India in terms
of sub-section (4A) of section 227 of the Act, we give in the Annexure
a statement on the matters specified in paragraphs 4 and 5 of the
Order.
2. 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 our knowledge and belief were necessary for the purpose of our
audit;
b) 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.
c) The Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
d) Except for the effects of the matter described in the basis for
qualified opinion paragraph, in our opinion, the Balance Sheet,
Statement of Profit and Loss and Cash Flow Statement comply with the
Accounting Standards referred to in sub-section (3C) of section 211 of
the Companies Act, 1956.
e) On the basis of written representations received from the directors
as on March 31st, 2013, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31st, 2013, from
being appointed as a director in terms of clause (g) of sub-section (1)
of section 274 of the Companies Act, 1956.
The Annexure referred to in paragraph 1 under the heading "Report on
other legal and regulatory requirements of our Report of even date to
the members of Agio Paper & Industries Limited on the accounts of the
company for the year ended 31st March, 2013.
i. In respect of fixed assets;
a) The Company has maintained proper records showing full particulars,
including quantitative details and situations of fixed assets.
b) According to the explanation given to us, due to non- operation of
factory during the whole year, physical verification of the fixed
assets could not be carried out.
c) According to the explanation given to us, the Company has not
disposed off substantial fixed Assets during the year. ii. In respect
of inventories
a) As explained to us, inventories could not be verified due to non-
operation of factory during the whole year.
b) In view of clause (a) above, reporting under clause (b) is not
applicable.
c) In our opinion and according to the information and explanations
given to us, the Company has maintained proper records of its
inventories. In absence of any physical verification of inventories,
discrepancies between physical stock and book stock could not be
determined and commented upon.
iii. a) According to the information and explanations given to us, the
Company has not granted any loans, secured or unsecured to companies,
firms or other parties covered in the register maintained under Section
301 of the Companies Act, 1956. Accordingly clause (iii) (b) to (d) of
the Order is not applicable.
e) According to the information and explanations given to us, the
Company has taken interest free unsecured loans from one party covered
in the register maintained under Section 301 of the Companies Act,
1956. The maximum of loan outstanding during the year and the year-end
balance of such loan is Rs. 10,45,00,000/-. The loan is repayable on
demand. The other terms & conditions of the loan are not prejudicial to
interest of the Company.
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 for the purchase of inventory and fixed assets and for the
sale of goods. The company is not in the business of sale of services.
During the course of our audit, no major weakness has been noticed in
the internal control system.
v. a) In our opinion and according to the information and explanations
given to us, the particulars of contracts or arrangements referred to
in Section 301 of the Act have been entered in the register required to
be maintained under that section.
(b)In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements 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. The Company has not accepted any deposits from the public within
the meaning of Sections 58A and 58AA of the Act and the rules framed
there under.
vii. In our opinion, the internal audit functions carried out during
the year by a firm of chartered accountants appointed by the management
have been commensurate with the size of the Company and the nature of
its business during the year.
viii. We have broadly reviewed the books of account and records
maintained by the Company pursuant to the order made by the Central
Government for the maintenance of cost records under Section 209 (1)
(d) of the Companies Act, 1956 and are of the opinion that prima facie
the prescribed accounts and records have been made and maintained. We
have, however, not made a detailed examination of the records with a
view to determining whether they are accurate or complete.
ix. According to the information and explanations given to us in
respect of statutory and other dues:
a) According to the information and explanations given to us and on the
basis of our examination of the records of the Company, amounts
deducted/accrued in the books of account in respect of undisputed
statutory dues including Provident Fund, Investor Education and
Protection Fund, Income tax, Sales tax, Wealth tax, Service tax and
other material statutory dues have been, except few delays, generally
regularly deposited during the year by the Company with the appropriate
authorities.
According to the information and explanations given to us, no
undisputed amounts payable in respect of Provident Fund, Investor
Education and Protection Fund, Income tax, Sales tax, Wealth tax,
Service tax and other material statutory dues were in arrears as at
31st March, 2013, for a period of more than six months from the date
they become payable except liability towards water cess amounting
28,69,881/- which is outstanding for more than six months.
x. As per the financial statements of the company, the accumulated
losses at the end of the financial year have exceeded fifty percent of
its net worth. The Company has incurred cash losses during the current
financial year and immediate preceding financial year.
xi. Based on our audit procedures and on the basis of information and
explanations given by the management, the Company did not have any
outstanding debentures or dues to the financial institution during the
year. Default in repayment of dues to a bank is given below:
a. Rs. 50,00,000/- towards instalments of funded interest term loan
payable in four equal monthly instalment since December 2012.
b. Rs. 62,40,343/- towards interest on term loans and working capital
loan for the month January & February 2013.
c. Rs. 53,15,482/- towards interest on funded interest term loan
payable for the period July 2012 to February 2013.
The aforesaid amounts are due to the bank as on 31st March 2013.
xii. According to the information and explanations given to us, no
loans or advances has been granted by the company on the basis of
securities by way of pledge of shares, debentures or other securities.
xiii. The Company is not a Chit fund or a Nidhi/Mutual benefit
fund/society.
xiv. The Company is not in the business of dealing or trading in shares
and securities.
xv. According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from bank
or financial institutions.
xvi. To the best of our knowledge and belief and according to the
information and explanations given to us, term loans have been applied
for the purpose for which the loans were obtained.
xvii. According to the information and explanations given to us, and on
the basis of overall examination of the cash flow statements, no fund
raised on short term basis, prima facie, been used during the year for
long term investments.
xviii. The Company has not made any preferential allotment of shares to
parties and companies covered in the register maintained under section
301 of the companies act, 1956 during the year.
xix. The Company has not issued any debentures during the period as
covered by our audit report.
xx. The Company has not raised monies by way of public issues during
the year.
xxi. To the best of our knowledge and belief and according to the
information and explanations given to us and so far as appears from our
examination of books and records of the company, we are of the opinion
that no fraud on or by the company was noticed and reported during the
year.
For and on behalf of Singhi & Co.
Chartered Accountants
Firm Registration No. 302049E
(Gopal Jain)
Partner
Membership No. - 059147
Kolkata, the 30th day of May 2013
Mar 31, 2012
We have audited the attached Balance Sheet of AGIO PAPER AND INDUSTRIES
LIMITED as at 31st March, 2012, the Statement of Profit & Loss for the
year ended on that date and also the Cash Flow Statement 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 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 (Auditor,s Report) Order, 2003 as amended
by the Companies (Auditor,s Report) (Amendment) Order, 2004 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:
1. We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
2. 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;
3. The Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
4. In our opinion, the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement dealt with by this report comply with the
accounting standards referred to in sub-section (3C) of section 211 of
the Companies Act, 1956.
5. On the basis of written representations received from the Directors
as on 31st March, 2012 and taken on record by the Board of Directors,
we report that none of the Directors is disqualified as on 31st March,
2012 from being appointed as a Director in terms of clause (g) of
sub-section (1) of section 274 of the Companies Act, 1956;
6. We report that, in our opinion and to the best of our information
and according to the explanations given to us, the said accounts read
with the significant Accounting Policies and Notes on Account 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 31st March, 2012;
(b) In the case of the Statement of Profit and Loss, of the loss for
the year ended on that date; and
(c) In the case of Cash Flow Statement, of the Cash Flows for the year
ended on that date.
For Singhi & Co
Chartered Accountants
Firm Registration
No. 302049E
S. K. Kothari 1-B, Old Post
Office Street, Kolkata Partner
Date : 30th May, 2012 Membership No - 54157
Annexure to the Auditors, Report
(Referred to in Paragraph 3 of our report of even date)
i. (a) In our opinion, the company has maintained records showing full
particulars, including quantitative details and their situation of its
fixed assets.
(b) As per the information and explanations given to us, due to
suspension of operations during the whole year, physical verification
of fixed assets could not be carried out.
(c) There was no substantial disposal of fixed assets during the year.
ii. (a) According to the explanation given to us, the inventories have
been physically verified at reasonable intervals during the year by the
management except materials lying with third parties, where
confirmations are obtained.
(b) In our opinion, the procedure of physical verification of
inventories followed by the management is reasonable and adequate in
relation to the size of the Company and the nature of its business.
(c) The Company has maintained proper records of inventories. The
discrepancies between the physical stock and book stock, if any, have
been properly dealt with in the books of account.
iii. (a) As per the information furnished, the Company has not granted
any loans secured or unsecured to Companies, firms or other parties
covered in the Register maintained u/s 301 of the Companies Act, 1956.
Hence, clauses 4 (iii) (b), (c) and (d) of the order are also not
applicable to the company.
(b) As per the information and explanations given to us, during the
year the company has taken interest free unsecured loans aggregating
Rs. 1302.00 lacs from two parties covered in the register maintained
u/s 301 of the Companies Act, 1956. The maximum amount outstanding
during the year from these parties and the year-end balance of loan
taken from one party was Rs. 1302.00 lacs and Rs. 699.50 lacs
respectively.
(c) In our opinion the terms and conditions of above loans are
prima-facie, not prejudicial to the interest of the company.
(d) The aforesaid loans are repayable on demand and there is no
repayment schedule. During the year the company has not paid any amount
as interest to the parties covered in register maintained under section
301 of the Act.
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 nature of its business
for the purchase of inventory and fixed assets and for the sale of
goods and services. Further, on the basis of our examination of the
books of accounts and according to the information and explanation
given to us, we have not come across any instances of major weaknesses
in the aforesaid internal control system.
v. (a) In our opinion and according to the information and explanations
given to us, we are of the opinion that the contracts or arrangements
that need to be entered in the register maintained u/s. 301 of the
Companies Act, 1956 have been entered.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contract or
arrangements entered in the register maintained under section 301 of
the Companies Act, 1956 have been made at prices which reasonable
having regard to the prevailing market price at the relevant time.
vi. The Company has not accepted any fixed deposit from the public
within the meaning of the provisions of Section 58A and 58AA of the
Companies Act, 1956 and rules made there under.
vii. In our opinion, the Company does not have internal audit system
commensurate with the size and nature of its business. Internal audit
was not conducted during the current year.
viii. We have broadly reviewed the books of accounts maintained by the
company pursuant to the rules made by the Central Government for the
maintenance of cost records under clause (d) of sub section (1) of
Section 209 of the Companies Act, 1956 and are of the opinion that
prima facie, the prescribed accounts and records have been made and
maintained. We have, however, not made a detailed examination of the
records with a view to determine whether they are accurate or complete.
ix. (a) According to the information and explanations given to us and
on the basis of our examination of the books of account, the Company
has been generally regular in depositing undisputed statutory dues
including Provident Fund, Employees, State Insurance, Income-tax,
Sales-tax, Service Tax, Excise Duty, Cess, Wealth Tax and any other
statutory dues during the year with the appropriate authorities.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of above statutory dues were in
arrears, as at 31st March, 2012 for a period of more than six months
from the date they became payable except liability towards Water Cess
amounting to Rs. 26.29 lacs are outstanding for more than six months.
(c) According to the information and explanation given to us, the
following statutory dues have not been deposited on account of matters
pending before appropriate authorities:
Sl Name
of the
Statute Nature of
Dues Amount Period to
which Forum
where dispute
is pending
(Rs. in
Lacs) the amount
relates
1 Income
Tax Act, 1961 Income
Tax 7.96 1996 - 1997 Kolkata High
Court
2 Income
Tax Act, 1961 Income
Tax 6.23 2007 - 2008 Deputy
Commissioner
3 Central
Excise Act,
1944 Cenvat
Claim 3.81 1993 - 2005 Central Excise
Authorities
4 Employees
Provident
Fund Provident
Fund 2.64 1990 - 1991 to Provident
Fund & Misc.
Provisions
Act, 1952 2000 - 2001 & Appellate
Tribunal
2003 - 2004
5 Central
Sales Tax
Act, 1956 Sales Tax 0.37 2002-03 & Sales Tax
Appellate
2003-04
x. As per books of accounts, the Company,s accumulated losses at the
end of the financial year have exceeded fifty present of its net worth.
The Company has incurred cash losses in the current year and in
immediately preceding financial year.
xi. Based on our audit procedures and on the basis of information and
explanations given to us by the management, the Company has not delayed
in repayment of dues to the banks.
xii. According to the information and explanations given to us, 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/ mutual benefit/
society and therefore, the provisions of clause 4 (xiii) of the order
are not applicable.
xiv. According to the information and explanations given to us, the
company is not dealing or trading in shares, securities, debentures and
other investments and therefore, the provisions of clause 4 (xvi) of
the order are not applicable.
xv. As per the information and explanation given to us, the company
has not given any guarantee for loans taken by others from Bank or
financial institutions.
xvi. Based on the information and explanations given to us by the
management, term loans were applied for the purpose for which these
were obtained.
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 funds raised on short term basis have been used for long term
investment during the year on overall basis.
xviii. According to the information and explanations given to us, the
company has not made any preferential allotment during the year, to
parties and companies covered in the Register maintained under section
301 of the Companies Act, 1956.
xix. The company did not issue debentures during the year.
xx. The Company has not raised any monies by public issue during the
year.
xxi. According to the information and explanations given to us, no
fraud on or by the company has been noticed or reported during the year
For Singhi & Co
Chartered Accountants
Firm Registration
No. 302049E
S. K. Kothari 1-B, Old Post
Office Street, Kolkata Partner
Date : 30th May, 2012 Membership No - 54157
Mar 31, 2011
We have audited the attached Balance Sheet of AGIO PAPER AND INDUSTRIES
LIMITED as at 31st March, 2011, the Profit & Loss Account for the year
ended on that date and also the Cash Flow Statement 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 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 (Auditor's Report) Order, 2003 as amended
by the Companies (Auditor's Report) (Amendment) Order, 2004 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:
1. We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
2. 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;
3. The Balance Sheet. Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account;
4 In our opinion, the Balance Sheet. Profit and Loss Account and Cash
Flow Statement dealt with by this report comply with the accounting
standards referred to in sub-section (3C) of section 211 of the
Companies Act, 1956.
5. On the basis of written representations received from the Directors
as on 31st March, 2011 and taken on record by the Board of Directors,
we report that none of the Directors is disqualified as on 31st March,
2011 from being appointed as a Director in terms of clause (g) of
sub-section (1) of section 274 of the Companies Act, 1956:
6. We report that, in our opinion and to the best of our information
and according to the explanations given to us, the said accounts read
with the significant Accounting Policies and Notes on Account in
Schedule "19" 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 i in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2011;
(b) In the case of the Profit and Loss Account, of the loss for the
year ended on that date; and
(c) In the case of Cash Flow Statement, of the Cash Flows for the year
ended on that date.
ANNEXURE TO THE AUDITORS' REPORT
(Referred to in Paragraph 3 of our report of even date)
i. a) In our opinion, the Company has maintained records showing full
particulars, including quantitative details and their situation of its
fixed assets. However the fixed assets register is under updation.
b) As per the information and explanations given to us, physical
verification of fixed assets has been carried out in terms of the
phased program of verification of its fixed assets adopted by the
company and no material discrepancies were noticed on such
verification. In our opinion, the frequency of verification is
reasonable having regard to the size of the company and nature of its
business.
c) There was no substantial disposal of fixed assets during the year.
ii. a) According to the explanation given to us, the inventories have
been physically verified at reasonable intervals during the year by the
management except materials lying with third parties, where
confirmations are obtained.
b) In our opinion, the procedure of physical verification of
inventories followed by the management is reasonable and adequate in
relation to the size of the Company and the nature of its business.
c) The Company has maintained proper records of inventories. The
discrepancies between the physical stocks and book stocks, if any, have
been properly dealt with in the books of account.
iii. a) As per the information furnished, the Company has not granted
any loans secured or unsecured to Companies, firms or other parties
covered in the Register maintained u/s 301 of the Companies Act, 1956.
Hence, clauses 4 (iii) (b), (c) and (d) of the order are also not
applicable to the company.
b) As per the information and explanations given to us, the company has
taken interest free unsecured loans aggregating Rs. 711.60 lacs from
one party covered in the register maintained u/s 301 of the Companies
Act. 1956. The maximum amount outstanding during the year from three
such parties and the year-end balance of loans taken from one party was
Rs. 2195.70 lacs and Rs. 390.00 lacs respectively.
c) In our opinion the terms and conditions of above loans are
prima-facie, not prejudicial to the interest of the company.
d) The aforesaid loans are repayable on demand and there is no
repayment schedule. During the year the company has not paid any amount
as interest to the parties covered in register maintained under section
301 of the Act.
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 nature of its business
for the purchase of inventory and fixed assets and for the sale of
goods and services. Further, on the basis of our examination of the
books of accounts and according to the information and explanation
given to us, we have not come across any instances of major weaknesses
in the aforesaid internal control system.
v. a) In our opinion and according to the information and explanations
given to us. we are of the opinion that the contracts or arrangements
that need to be entered in the register maintained u/s 301 of the
Companies Act. 1956 have been entered.
b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contract or
arrangements entered in the register maintained u/s 301 of the
Companies Act, 1956 have been made at prices which are reasonable
having regard to the prevailing market price at the relevant time.
vi. The Company has not accepted any fixed deposit from the public
within the meaning of the provisions of Section 58A and 58AA of the
Companies Act, 1956 and rules made there under
vii. In our opinion, the Company has internal audit system
commensurate with the size and nature of its business.
viii. We have broadly reviewed the books of accounts maintained by the
Company pursuant to the rules made by the Central Government for the
maintenance of cost records under clause (d) of sub section (1) of
Section 209 of the Companies Act, 1956 and are of the opinion that
prima facie, the prescribed accounts and records have been made and
maintained. We have, however, not made a detailed examination of the
records with a view to determine whether they are accurate or complete.
ix. a) According to the information and explanations given to us and on
the basis of our examination of the books of account, the Company has
been generally regular in depositing undisputed statutory dues
including Provident Fund, Employees' State Insurance, Income-tax,
Sales- tax, Wealth Tax, Service Tax, Custom Duty Excise Duty. Cess and
any other statutory dues during the year with the appropriate
authorities.
b) According to the information and explanations given to us, no
undisputed amounts payable in respect of above statutory dues were in
arrears, as at 31st March. 2011 for a period of more than six months
from the date they became payable except liability towards Water Cess
amounting to Rs. 22.90 lacs are outstanding for more than six months.
(c) According to the information and explanation given to us, the
following statutory dues have not been deposited on account of matters
pending before appropriate authorities:
SI Name of the
Statute Nature of
Dues Amount Period to
which Forum where
dispute is pending
(Rs. in
Lacs) the amount
relates
1 Income Tax
Act, 1961 Income Tax 7.96 1996-1997 Kolkata High Court
2 Income Tax
Act, 1961 Income Tax 6.23 2007-2008 Deputy Commissioner
3 Central
Excise
Act, 1944 Cenvat
Claim 16.09 1993-2005 Central Excise
Authorities
x. As per books of accounts, the Company's accumulated losses at the
end of the financial year have not exceeded fifty percent of its
networth. The Company has incurred cash losses in the current year and
immediately preceding financial year.
xi. Based on our audit procedures and on the basis of information and
explanations given to us by the management, the Company has delayed in
repayment of dues of Rs. 225 lacs to a Bank. The period of delay being
5 days to 90 days.
xii. According to the information and explanations given to us. 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/ mutual benefit/
society and therefore, the provisions of clause 4 (xili) of the order
are not applicable.
xiv. According to the information and explanations given to us, the
Company is not dealing or trading in shares, securities, debentures and
other investments and therefore, the provisions of clause 4 (xvi) of
the order are not applicable.
xv. As per the information and explanation given to us. the Company
has not given any guarantee for loans taken by others from Bank or
financial institutions.
xvi. Based on the information and explanations given to us by the
management, term loans were applied for the purpose for which these
were obtained.
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 funds raised on short term basis have been used for long term
investment during the year on overall basis.
xviii. According to the information and explanations given to us, the
Company has made preferential allotment of 55,00,000 shares of Rs. 10/-
each at a premium of Rs. 2/-per share during the year, to parties and
companies covered in the Register maintained u/s 301 of the Companies
Act, 1956.
In our opinion the terms and conditions of above allotment are
pnma-facie, not prejudicial to the interest of the company.
xix. The Company did not issue debentures during the year.
xx. The Company has not raised any monies by public issue during the
year.
xxi. According to the information and explanations given to us, no
fraud on or by the Company has been noticed or reported during the
year.
For Singhi & Co
Chartered Accountants
Firm Registration No. 302049E
L.N.Dey
1-B, Old Post Office Street. Kolkata Partner
Date : 30th May. 2011 Membership No - 03569
Mar 31, 2010
We have audited the attached Balance Sheet of AGIO PAPER AND INDUSTRIES
LIMITED as at 31st March, 2010, the Profit & Loss Account for the year
ended on that date and also the 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 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 as amended
by the Companies (Auditors Report) (Amendment) Order, 2004 issued by
the Central Government of India in terms of sub-section (4A) of section
227 of the Companies Act, 1S56, 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:
1. We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
2. 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;
3. The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account;
4. In our opinion, the Balance Sheet, Profit and Loss Account and Cash
Flow Statement dealt with by this report comply with the accounting
standards referred to in sub-section (3C) of section 211 of the
Companies Act, 1956, subject to non compliance of Accounting Standard
16 on (Borrowing Costs).
5. On the basis of the written representations received from the
Directors as on 31 st March, 2010 and taken on record by the Board of
Directors, we report that none of the Directors is disqualified as on
31st March, 2010 from being appointed as a Director in terms of clause
(g) of sub-section (1) of section 274 of the Companies Act, 1956;
6. Without qualifying our opinion, we draw attention to Note No. 16
(a) in Schedule "19" regarding carry forward of Minimum Alternate Tax
(MAT) Credit Entitlement of Rs.59.06 lacs recognized upto 31st March
2009, based on the future normal taxable income projected by the
Company.
7. Further, attention is invited to:
i) Note No. 6 in Schedule "19" regarding non-provision of arrear
depreciation of Rs. 357.39 lacs for earlier years.
ii) Capitalization of Interest on term loan of Rs. 174.58 lacs towards
power plant which is not in accordance with the requirements of
Accounting StandardAS-16 on "Borrowing Cost".
Had the observations made by us in paragraph 7 above been considered
the loss for the year would have been Rs. 861.74 lacs against the
reported loss figure of Rs. 329.77 lacs: debit balance in Profit and
Loss Account would have been Rs.953.28 lacs as against reported loss
figure of Rs. 421.31 and Net Fixed Assets would have Rs. 4047.31 lacs
as against the reported figure of Rs. 4579.28 lacs.
8. We report that, in our opinion and to the best of our information
and according to the explanations given to us, the said accounts read
with the significant Accounting Policies and Notes on Account in
Schedule "19" subject to para 7 above 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 31st March, 2010;
(b) In the case of the Profit and Loss Account, of the loss for the
year ended on that date; and
(c) In the case of Cash Flow Statement, of the Cash Flows for the year
ended on that date.
ANNEXURE TO THE AUDITORS REPORT
(Referred to in Paragraph 3 of our report of even date)
i. (a) In our opinion, the company has maintained records showing full
particulars, including quantitative details and their situation of its
fixed assets, however the fixed assets register is .under updation,
(b) As per the information and explanations given to us, physical
verification of fixed assets has been carried out in terms of the
phased program of verification of its fixed assets adopted by the
Company and no material discrepancies were noticed on such
verification. In our opinion, the frequency of verification is
reasonable having regard to size of the Company and nature of its
business.
(c) There was no substantial disposal of fixed assets during the year.
ii. (a) According to the explanation given to us, the inventories have
been physically verified at reasonable intervals during the year by the
management except materials lying with third parties, where
confirmations are obtained.
(b) In our opinion, the procedure of physical verification of
inventories followed by the management is reasonable and adequate in
relation to the size of the Company and the nature of its business.
(c) The Company has maintained proper records of inventories. The
discrepancies between the physical stocks and book stocks, which are
not significant, have been properly dealt with in the books of account.
iii. (a) As per the information furnished, the Company has not granted
any loans secured or unsecured to Companies, firms or other parties
covered in the Register maintained u/s 301 of the Companies Act, 1956.
Hence, clauses 4 (iii) (b), (c) and (d) of the order are not applicable
to the company.
(b) As per the information and explanations given to us, the company
has taken interest free unsecured loans aggregating Rs. 950.92 lacs
from four partes during the year covered in the register maintained u/s
301 of the Companies Act, 1956. The maximum amount outstanding during
the year and the year-end balance of loans taken from such parties was
Rs. 2073.08 lacs and Rs. 1856.34 lacs respectively.
(c) In our opinion the terms and conditions of above loans are not
prima-facie, prejudicial to the interest of the company.
(d) The aforesaid loans are repayable on demand and there is no
repayment schedule. During the year the company has not paid any amount
as interest to the parties covered in register maintained under section
301 of the Act.
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 nature of its business
for the purchase of inventory and fixed assets and for the sale of
goods and services. Further, on the basis of our examination of the
books of accounts and according to the information and explanation
given to us, we have not come across any instances of major weaknesses
in the aforesaid internal control system.
v. (a) In our opinion and according to the information and explanations
given to us, we are of the opinion that the contracts or arrangements
that need to be entered in the register maintained u/s. 301 of the
Companies Act, 1956 have been entered.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contract or
arrangements entered in the register maintained under section 301 of
the Companies Act, 1956 have been made at prices which reasonable
having regard to the prevailing market price at the relevant time.
vi. The Company has not accepted any fixed deposit from the public
within the meaning of the provisions of Section 58A and 58AA of the
Companies Act, 1956 and rules made there under.
vii. In our opinion, the Company has internal audit system
commensurate with the size and nature of its business.
viii. We have broadly reviewed the books of accounts maintained by the
company pursuant to the rules made by the Central Government for the
maintenance of cost records under clause (d) of sub section (1) of
Section 209 of the Companies Act, 1956 and are of the opinion that
prima facie, the prescribed accounts and records have been made and
maintained. We have, however, not made a detailed examination of the
records with a view to determine whether they are accurate or complete.
ix. (a) According to the information and explanations given to us and
on the basis of our examination of the books of account, the Company
has been generally regular in depositing undisputed statutory dues
including Provident Fund, Employees State Insurance, Income-tax,
Sales- tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess and
any other statutory dues during the year with the appropriate
authorities.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of above statutory dues were in
arrears, as at 31 st March, 2010 for a period of more than six months
from the date they became payable except liability towards Water Cess
amounting to Rs. 20.30 lacs are outstanding for more than six months.
(c) According to the information and explanation given to us, the
following statutory dues have not been deposited on account of matters
pending before appropriate authorities:
Sl Name of the
Statute Nature of Dues Amount Period to which
(Rs/ Lacs) the amount relates
1 Income Tax
Act, 1961 Income Tax 7.96 1996-97
Income Tax 7.17 2007-08
2 Sales Tax Act Pending
Declaration 5.94 1999-2000
Forms & other
matters to 2004 -05
3 Central
Excise Act, 1944 Cenvat Claim 16.45 Financial Year
1993 to 2005
Name of the Statute Forum where dispute is pending
Income Tax Act, 1961 Kolkata High Court
Deputy Commissioner
Sales Tax Act Assistant Commissioner -
Chattisgarh Commercial Tax
& AC-Safes Tax(Appeal), Nagpur
Central Excise
Act, 1944 Central Excise Authorities
x. Considering our observations as stated in para 7 of our audit
report, the Companys accumulated losses at the end of the financial
year have exceeded fifty percent of its networth.
However, as per books of accounts, the Companys accumulated losses at
the end of the financial year have not exceeded fifty present of its
networth and the Company has incurred cash losses in the current year
but has not incurred cash losses in the immediately preceding financial
year.
xi. Based on our audit procedures and on the basis of information and
explanations given to us by the management during the year, the Company
has delayed in repayment of quarterly installments of Rs. 225 lacs to
bank. The period of delays were ranging from 27 days to 41 days.
xii. According to the information and explanations given to us, the
Company has not granted loans and advances on the basts of security by
way of pledge of shares, debentures and other securities.
xiii. In our opinion, the Company is not a chit fund/ mutual benefit/
society and therefore, the provisions of clause 4 (xiii) of the order
are not applicable.
xiv. According to the information and explanations given to us, the
company is not dealing or trading in shares, securities, debentures and
other investments and therefore, the provisions of clause 4 (xvi) of
the order are not applicable.
xv. As per the information and explanation given to us, the company
has not given any guarantee for loans taken by others from Bank or
financial institutions.
xvi. Based on the information and explanations given to us by the
management, term loans were applied for the purpose for which these
were obtained.
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 funds raised on short term basis have been used for long term
investment during the year on overall basis.
xviii. According to the information and explanations given to us, the
company has not made any preferential allotment of shares during the
year to parties and companies covered in the Register maintained under
section 301 of the Companies Act, 1956.
xix. The company has not issued debentures during the year.
xx. The Company has not raised any monies by public issue during the
year.
xxi. According to the information and explanations given to us, no
fraud on or by the company has been noticed or reported during the
year.
For Singhi & Co
Chartered Accountants
Firm Registration No. 302049E
L.N. Dey
1-B, Old Post Office
Street, Kolkata Partner
Date : 14th August, 2010 Membership No - 03569