Mar 31, 2014
We have audited the accompanying financial statements of AGRO DUTCH
INDUSTRIES LIMITED,("the company") which comprise the Balance Sheet
as at 31/03/2014, and the Statement of Profit and Loss and the cash
flow statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of financial position,
financial performance and cash flow 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 the General
Circular 15/2013 dated 13th September 2013 of the Ministry of Corporate
Affairs in respect of section 133 of the Companies Act, 2013. The
responsibility includes the design, implementation and maintenance of
internal control relevant to the preparation and presentation of
financial statements that give a true and fair view and are free from
material misstatements, 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 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 misstatements.
An audit involves performing procedure to obtain audit evidence about
the amounts and disclosure in the financial statements. The procedure
selected depend upon auditor''s judgment, including the assessment of
the risk of material misstatements of the financial statements, whether
due to fraud or error. In making those risk assessment, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedure 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 accounting
estimates made by management, as well as evaluating the overall
presentation of financial statements.
We believe that audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, 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 case of the Balance Sheet, of the state of affairs of the
Company as at 31/03/2014;
(b) in case Statement of Profit and Loss Account, of the Loss for the
year ended on that date;
(c) in case of the Cash Flow Statements, of the cash flows for the year
ended on that date.
Emphasis of Matters:
(i) Note 1b regarding pending export obligations against import of
machinery under advance license as stated in the said note.
(ii) Note 1b Para XIV regarding reasons for preparing the financial
statements of the company on a going concern basis, notwithstanding
the fact that its net worth is totally eroded. The appropriateness
of the said basis is interalia depends on the admission of its case
by BIFR and the rehabilitation package approved by BIFR, and repayment
of debts by sale of surplus and non-core assets of the company.
(iii) Note 1b Para XV regarding none provisioning of demurrage, freight
and other charges amounting to Rs. 530.00 lacs claimed by the freight forwarding agency on recall of containers but disputed by the company
on the basis of legal opinion.
(iv) Note 1b Para XVI regarding none provisioning for penal interest
and other charges levied by financial institutions/banks for the
reasons explained in the note.
(v) None provisioning of Goods in transit lying for the long period
with third party, for which no physical verification/ confirmation
has been made by the company.
Our opinion is not qualified in respect of these matters.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order,2003("the
order") issued by Central Government of India in terms of sub-section
(4A) of section 227 of the Act, We give in the Annexure a statements
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 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 examinations of those
books;
c. the Balance Sheet, Statement of Profit and Loss, and cash flow
statments dealt with by this Report are in agreement with the books of
account;
d. In our opinion , the Balance Sheet, Statement of Profit and Loss,
and cash flow statments comply with the Accounting Standards referred
to in sub-section(3C) of section 211 of the Companies Act,1956 , read
with the General Circular 15/2013 dated 13th September 2013 of the
Ministry of Corporate Affairs in respect of section 133 of the
Companies Act, 2013;
e. On the basis of written representations received from the directors
as on 31/03/2014 and taken on record by the Board of Directors, none of
the director is disqualified as on 31/03/2014, from being appointed as
a director in terms of clause (g) of sub-section (1) of section 274 of
the Companies Act, 1956.
1. In respect of its fixed assets:
(a) The company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
(b) As explained to us, All fixed assets were physically verified by
the management in the previous year in accordance with a planned
program of verifying them one in three years which, in our opinion, is
reasonable have regard to the size of the company and the nature of its
assets. As informed, no material discrepancies were noticed o such
verification.
(c) No substantial part of fixed assets have been disposed off during
the year, and it has not affected the going concern.
2. In respect of its inventories:
(a) As explained to us, The management has conducted physical
verification of inventory(except for the stock lying with third
parties.) at reasonable intervals during the year.
(b) 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) The company is maintaining proper records of inventory and no
material discrepancies were noticed on physical verification carried
out at the end of the year.
3. In respect of loans granted and taken to / from parties covered in
the register maintained u/s 301 ofthe Companies Act, 1956.
(a) 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 Act. Accordingly, clause (iii)(b) to (iii)(d)
of paragraph 4 of the Order are not applicable to the Company for the
Current year.
(b) N.A
(c) N.A
(d) N.A
(e) The company has taken loan from different companies/ entities
covered in the register maintained under section 301 of the Companies
Act, 1956. The maximum amount involved during the year . and the year
end balance of loans taken from such parties is enclosed as per
annexure I. (f)N.A (g)N.A
4. In respect of internal control In our opinion and according to the
information and explanations given to us there are adequate internal
control system 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 and services. During the course of audit, We have not
observed continuing failure to correct major weaknesses in internal
control system.
5. In respect of contracts or arrangements need to be entered into a
register maintained u/s 301 of the Companies Act, 1956
(a) According to the information and explanation given to us, we are of
the opinion that the particulars of contracts or arrangements referred
to in section 301 of the companies Act 1956 have been entered in the
register required to be maintained under that section.
(b) In our opinion and according to the information and explanation
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under section 301 of
the companies Act 1956 are made at price which are reasonable having
regard to prevailing market prices at the relevant time.
6. In respect of deposits from public
No deposits within the meaning of Sections 58A and 58AA or any other
relevant provision of the Act and rules farmed thereunder have been
accepted by the Company.
7. In respect of internal audit system
In our opinion, the Company has an internal audit system commensurate
with its size and nature of business.
8. In respect of maintenance of cost records
We have broadly reviewed the books of accounts relating to materials,
labour and other items of cost maintained by the company pursuant to
the Rules made by the Central Government for the maintenance of cost
records u/s 209)1)(d) of the companies Act, 1956 and we 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 not.
9. In respect of statutory dues
(a) According to the information and explanation given to us and the
records of the company examined by us. The company is regular in
depositing the undisputed statutory dues including provident fund,
investor education protection fund, employees'' state insurance, income
tax, sales, tax wealth tax, service tax, custom duty, excise duty. Cess
and other material statutory dues applicable to the Company with the
appropriate authorities. No undisputed amounts payable in respect of
the aforesaid statutory dues were outstanding as at the last day of the
financial year for a period of more than six months from the date they
became payable. Except Rs. 1184033.00 for Provident Fund, RS. 354612.00
for TDS and Rs. 92213.00 for Service Tax.
(b) According to the records of the Company, there are no dues of
Income tax, sales tax, customs duty, wealth tax, service tax, excise
duty, sales tax and cess that have been not been deposited on amount of
any dispute.
10. In respect of accumulated losses and cash losses
The company''s accumulated losses at the end of the financial year are
more than fifty percent of its net worth. The company has incurred cash
loss during the year and also incurred cash losses in the immediately
preceding financial year.
11. In respect of dues to financial institution / banks / debentures
Based on our audit procedures and as per the information and
explanations given by the management, we are of the opinion that the
company has defaulted in repayment of dues to a financial institutions
and banks. The details are given as per annexure II.
12. In respect of loans and advances granted on the basis of security
According to the information and explanations given to us and based on
the documents and records produced 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.
13. In respect of provisions applicable to Chit fund
In our opinion and according to information and explanations given to
us the company is not chit fund or a nidhi or mutual benefit
fund/society. Accordingly, the provisions of clause 4(xiii) of the
Order are not applicable to the company.
(a) N.A
(b) N.A
(c) N.A
(d) N.A
14. In respect of dealing or trading in shares, securities, debentures
and other investment
In our opinion, the Company is not dealing in or trading in shares,
securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the Order are not applicable to the
company.
15. In respect of guarantee given for loans taken by others
In our opinion and 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.
16. In respect of application of term loans
According to the information and expalnations given to us, in our
opinion, the terms loans availed by the company were, prima facia,
applied for the purpose for which they were raised.
17. In respect of fund used
Based on an overall examination of the Balance Sheet of the company and
a review of the consolidated fund flow statement for the year, we
report that no funds raised on short-term basis have been used for
long-term investment.
18. In respect of preferential allotment of shares
The company has not made any preferential allotment of shares to
parties and companies covered in the register maintained u/s 301 of the
Act, during the year.
19. In respect of securities created for debentures
The company did not have any outstanding debentures as on 31.03.2014.
20. In respect of end use of money raised by public issues
The company has not raised any money from the public during the year
under audit.
21. In respect of fraud
Based upon the audit procedures performed for the purpose of recording
the true and fair view of the financial statements and as per the
information and explanations given by the management, we report that no
fraud or by the company has been noticed or reported during the course
of our audit.
Date : 26/05/2014
Place : CHANDIGARH FOR RAKESH SINGLA & ASSOCIATES
(Chartered Accountants)
Reg No. :03371N
RAKESH KUMAR KHANNA
Partner M.No.:086046
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of Agro Dutch
Industries Limited ("the company") which comprise the Balance Sheet as
at March 31, 2013, the statement of Profit and Loss Account and the
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 principles generally accepted in India including
Accounting Standards referred to in section 211( 3 C ) of the companies
Act , 1956 ( " the Act " ) . 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 misstatements.
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 assessment, 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 the 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 audit opinion.
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;:
i) In the case of the Balance Sheet, of the state of affairs of the
Company as at March 31st, 2013;
ii ) In the case of the Statement of Profit and Loss, of the loss for
the year ended on that date. And
iii) In the case of Cash Flow Statement, of the cash flows for the year
ended on that date.
Emphasis of Matters
We draw attention to:
(i) Note 1B regarding pending export obligations against machinery
imported under advance license as stated in the said note
(ii) Note 1B Para XIV , regarding reasons for preparing the financial
statements of the company on a going concern basis , notwithstanding
the fact that its net worth is totally eroded . The appropriateness of
the said basis is interalia depends on the admission of its case by
BIFR and the rehabilitation packages approved by BIFR, repayment of
debts by sale of surplus and non-core assets.
(iii) Note XV regarding demurrage and other charges amounting to Rs 154
lacs claimed by the freight forwarding agency on recall of containers
but disputed by the company on the basis of legal opinion.
(iv) Note XVI regarding none provisioning for penal interest and other
charges levied by financial Institutions/ banks for the reasons
explained in the Note.
Our opinion is not qualified in respect of these matters.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Reports) Order, 2003 ( "
the order " ) issued by the Central Government of India in terms of Sub
Section (4A) of Section 227 of the Companies Act, 1956 , we give in the
Annexure a statement on the matters specified in paragraph 4 and 5 of
the said 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, 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) In our opinion the Balance Sheet, the statement of Profit and Loss
and the 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 representation received from the directors
and taken on record by the Board of Directors, we report that none of
the directors is disqualified as on 31st March, 2013 from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
ANNEXURE TO INDEPENDENT AUDITOR''S REPORT
Annexure referred to paragraph 1 under the heading of "Report on Other
Legal and Regulatory Requirements" of our report of even date.
i. a. The Company has maintained proper records in respect of fixed
assets showing full particulars including quantitative details and
situation of fixed assets.
b. As explained to us, the management has physically verified fixed
assets according to a phased programme of periodic verification which,
in our opinion is reasonable having regard to the size of the company
and nature of the assets. As informed, no material discrepancies
between book records and physical inventory have been noticed in
respect of the fixed assets physically verified during the year.
c. Fixed assets disposed off during the year were not substantial, and
therefore, do not affect the going concern assumption.
ii. a) As informed the inventories have been physically verified during
the year by the management ( except the stock lying with third parties
) and in our opinion the frequency of verification is reasonable.
b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventory
followed by the Company are reasonable and adequate commensurate with
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 and on the basis of our examination of the records of
inventory, the Company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical inventory &
book records were not material.
iii. a) 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 Act. Accordingly, the Clause (iii)(b),
(iii)(c) and (iii)(d) of the paragraph 4 of the order are not
applicable.
b) The company has taken loan from parties covered in the register
maintained under section 301 of the Companies Act, 1956. Total number
of party is four, the maximum amount involved during the year was Rs
14,02,74,974.00 and the year end balance of loan taken from such
parties was Rs 10,64,74,974.00.
c) In our opinion and according to information and explanations given
to us , the rate of interest and other terms and conditions for such
loan are not prima facie prejudicial to the interest of the company.
d) In respect of loans taken , repayment of the principal amount is as
stipulated and payment of interest have been regular
iv. In our opinion and according to the information and explanation
given to us and having regard to the explanations that some of the
items purchased/ sold are of special nature and alternative quotations
are not available, 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. Further , on the basis of our examination of the books and
records of the company and according to the information and
explanations given to us , we have neither come across nor have we been
informed of any continuing failure to correct major weaknesses in the
aforesaid internal control system.
v. a. In our opinion and according to information and explanations
given to us, the particulars of contracts or arrangements referred to
in Section 301 of the Act that need to be entered into the register
maintained under section 301 have been so entered.
b. In our opinion and according to the information and explanation
given to us, the transactions made in pursuance of such contracts or
arrangements and exceeding the value of Rs. Five Lacs in respect of
each party during the year, have been made at prices which are
reasonable having regard to the prevailing market price at the relevant
time.
vi. According to the information and explanations given to us the
company has not accepted deposit from the public. We are informed by
the management that no order has been passed by the Company Law Board ,
National Company Law Tribunal or Reserve Bank Of India or any court or
any other Tribunal
vii. In our opinion, the Company has an internal audit system
commensurate with its size and nature of its business.
viii. We have broadly reviewed the books of account maintained by the
company pursuant to the rules made by the Central Government for the
maintenance of cost records under 209 (1) (d) of the Companies Act,
1956 , and are of the opinion that prima facie , the prescribed
accounts and records have been maintained. We have, however, not made a
detailed examination of the records with a view to determine whether
they are accurate or note.
ix. a) According to the information and explanation given to us and the
records of the company examined by us, in our opinion, the company has
been regular in depositing during the year undisputed statutory dues
including Provident Fund, Employee''s State Insurance Dues, Investor
Education and Protection Fund, Income-Tax, Sales-Tax, Wealth Tax,
Custom Duty, Service Tax, Excise Duty, Cess and other material
statutory dues as applicable, with the appropriate authority in India.
b) According to the information and explanation given to us and the
records of the company examined by us, there are no outstanding dues of
income-tax, sales-tax, wealth tax, service tax, custom duty, excise
duty and on account of any cess.
x. The company has accumulated losses as at 31.3.2013 not less than
fifty percent of its net worth. Company has incurred cash losses in the
financial year ended on that date and also incurred cash losses in the
immediately proceeding financial year.
xi. Based on our audit procedures and on the basis of information and
explanations given by the management, we report that the company has
defaulted in repayment of loans and interest thereon. The details are
as per Annexure-I
xii. According to the information and explanations given to us, the
company has not granted any 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, nidhi, mutual
benefit or a society. Accordingly, Clause 4 (xiii) of the Order is not
applicable.
xiv. In our Opinion, the company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the Companies ( Auditors'' Report ) Order
, 2003 are not applicable to the company.
xv. In our Opinion and according to information and explanations given
to us and the records produced before us the company has not given
guarantee for loan taken by others from bank.
xvi. In our opinion and according to the information and explanations
given to us, on an overall basis, term loans availed by the company
were, prima facie, applied for the purpose for which they were raised.
xvii. On the basis of information and explanations given to us, and on
the basis of an overall examination of the balance sheet of the
company, no funds raised on short term basis have been utilized for
long-term investments.
xviii. The company has not made any preferential allotment of shares to
the parties and companies covered in the register maintained u/s 301 of
the Companies Act during the year.
xix. Company has no outstanding Debentures as on 31.3.2013.
xx. The Company has not raised any money by way of public issues
during the year.
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 instance of fraud on or
by the company , noticed or reported during the year, nor have we been
informed of such case by the management.
For Suresh Mittal & Associates
Chartered Accountants
FRN003800N
Place : Chandigarh (Suresh Mittal)
Dated : 14.8.2013 Partner,
Membership No 82740
Mar 31, 2012
We have audited the attached Balance Sheet of Agro Dutch Industries
Limited as at March 31, 2012, the statement of Profit and Loss Account
and 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 Reports) Order, 2003 issued by
the Central Government of India in terms of Sub Section (4A) of Section
227 of the Companies Act, 1956 ,and on the basis of such checks of the
books and records of the company as we may consider appropriate, We
enclose in the Annexure a statement on the matters specified in
paragraph 4 and
5 of the said order.
Further to our comments in the Annexure referred to above, 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, the statement of Profit and Loss Account and the
Cash Flow Statement dealt with by this Report are in agreement with the
books of account;
d) In our opinion the Balance Sheet, the statement of Profit and Loss
Account and the Cash Flow Statement dealt with by this report comply
with the applicable Accounting Standards referred to in sub-Section (
3C ) of section 211 of the Companies Act, 1956 .
e) On the basis of written representation received from the directors
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.
f) Without qualifying attention is drawn to;
(i) Note 1B regarding pending export obligations against machinery
imported under advance license as stated in the said note
(ii) Note 1B para XIV), regarding reasons for preparing the financial
statements of the company on a going concern basis, notwithstanding the
fact that its net worth is totally eroded . The appropriateness of the
said basis is interalia depends on the admission of its case by BIFR
and the rehabilitation packages approved by BIFR, repayment obligations
of its loans and interest due as on date and falling due during the
year ending 31.3.2013 and infusion of funds for meeting obligations.
g) Subject to our comments in para (f) above, in our opinion and to the
best of our information and according to the explanations given to us,
the said financial statements read together with Significant Accounting
Policies and notes thereon 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 principals generally accepted in
India;
i) In the case of the Balance Sheet of the state of affairs of the
Company as on March 31st, 2012;
ii) In the case of the Statement of Profit and Loss Account, of the
loss of the Company for the year ended on that date. and
iii) In the case of Cash Flow Statement, of the cash flows of the
company for the year ended on that date.
ANNEXURE TO THE AUDITOR'S REPORT
Annexure referred to in the Auditors report to the members of Agro
Dutch Industries Limited on the accounts for the year ended on March
31st, 2012.
i. a. The Company has maintained proper records in respect of fixed
assets showing full particulars including quantitative details and
situation of fixed assets.
b. As explained to us, the management has physically verified certain
fixed assets according to a phased programme of periodic verification
which, in our opinion is reasonable having regard to the size of the
company and nature of the assets. As informed, no material
discrepancies between book records and physical inventory have been
noticed in respect of the fixed assets physically verified during the
year.
c. In our opinion and accordingly to the information and explanations
given to us, no substantial part of the fixed assets have been disposed
of during the year.
ii. a) As informed the inventories have been physically verified
during the year by the management and in our opinion the frequency of
verification is reasonable.
b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventory
followed by the Company are reasonable and adequate commensurate with
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 and on the basis of our examination of the records of
inventory, the Company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical inventory &
book records were not material.
iii. a) 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 Act. Accordingly, the Clause (iii)(b), (iii)(c)
and (iii)(d) of the paragraph 4 of the order are not applicable.
b) The company has taken loan from parties covered in the register
maintained under section 301 of the Companies Act, 1956. Total number
of party is two, the maximum amount involved during the year was Rs
6,69,83,900 and the year end balance of loan taken from such parties
was Rs 5,97,03,150.
c) In our opinion and according to information and explanations given
to us , the rate of interest and other terms and conditions for such
loan are not prima facie prejudicial to the interest of the company.
d) In respect of loans taken , repayment of the principal amount is as
stipulated and payment of interest have been regular
iv. In our opinion and according to the information and explanation
given to us and having regard to the explanations that some of the
items purchased/ sold are of special nature and alternative quotations
are not available, 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. Further , on the basis of our examination of the books and records
of the company and according to the information and explanations given
to us , we have neither come across nor have we been informed of any
continuing failure to correct major weaknesses in the aforesaid internal
control system.
v. a. In our opinion and according to information and explanations
given to us, the particulars of contracts or arrangements referred to
in Section 301 of the Act that need to be entered into the register
maintained under section 301 have been so entered.
b. In our opinion and according to the information and explanation
given to us, the transactions made in pursuance of such contracts or
arrangements and exceeding the value of Rs. Five Lacs in respect of
each party during the year, 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 deposit from the public. We are
informed by the management that no order has been passed by the Company
Law Board , National Company Law Tribunal or Reserve Bank Of India or
any court or any other Tribunal
vii. In our opinion, the Company has an internal audit system
commensurate with its size and nature of its business.
viii. We have broadly reviewed the books of account maintained by the
company pursuant to the rules made by the Central Government for the
maintenance of cost records under 209 (1) (d) of the Companies Act,
1956 , and are of the opinion that prima facie , the prescribed
accounts and records have been maintained. We have, however, not made a
detailed examination of the records with a view to determine whether
they are accurate or note.
ix. a) According to the information and explanation given to us and
the records of the company examined by us, in our opinion, the company
has been regular in depositing during the year undisputed statutory
dues including Provident
Fund, Employee's State Insurance Dues, Investor Education and
Protection Fund, Income-Tax, Sales-Tax, Wealth Tax, Custom Duty,
Service Tax, Excise Duty, Cess and other material statutory dues as
applicable, with the appropriate authority in India.
b) According to the information and explanation given to us and the
records of the company examined by us, there are no outstanding dues of
income-tax, sales-tax, wealth tax, service tax, custom duty, excise
duty and on account of any cess.
x. The company has accumulated losses as at 31.3.2012 not less than
fifty percent of its net worth. Company has incurred cash losses in the
financial year ended on that date and also incurred cash losses in the
immediately proceeding financial year.
xi. Based on our audit procedures and on the basis of information and
explanations given by the management, we report that the company has
defaulted in repayment of loans and interest thereon. The details are
as per Annexure-I
xii. According to the information and explanations given to us, the
company has not granted any 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, nidhi, mutual
benefit or a society. Accordingly, Clause 4 (xiii) of the Order is not
applicable.
xiv. In our Opinion, the company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the Companies ( Auditors' Report ) Order
, 2003 are not applicable to the company.
xv. In our Opinion and according to information and explanations given
to us and the records produced before us the company has given
guarantee for loan taken by others from bank and the terms and
conditions thereof are not prejudicial to the interest of the company.
xvi. In our opinion and according to the information and explanations
given to us, on an overall basis, term loans availed by the company
were, prima facie, applied for the purpose for which they were raised.
xvii. On the basis of information and explanations given to us, and on
the basis of an overall examination of the balance sheet of the
company, no funds raised on short term basis have been utilized for
long-term investments.
xviii. The company has not made any preferential allotment of shares
to the parties and companies covered in the register maintained u/s 301
of the Companies Act during the year.
xix. Company has no outstanding Debentures as on 31.3.2012.
xx. The Company has not raised any money by way of public issues
during the year.
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 instance of fraud on or
by the company , noticed or reported during the year , nor have we been
informed of such case by the management.
Amount In Lacs
Name of Institution Principle Due Int Due
Union Bank Of India 0 11.96
Union Bank Of India 4.2 12.79
Union Bank Of India 1693.89 145.3
Bank Of India 0 268.02
Bank Of India 136.74 58.14
Bank Of India 126.63
Federal Bank 70.68 162.21
Federal Bank 0 22.74
Federal Bank 251.85
State Bank Of Hyderabad 0 32.9
State Bank Of Hyderabad 0 60.95
State Bank Of Hyderabad 26.64 11.35
Axis Bank 174.92 12.36
Axis Bank 99.99 169.05
Axis Bank 79.74 33.92
IDBI Bank 0 487.95
IDBI Bank 0 14.83
ICICI Bank 0 37.31
ICICI Bank 253.83 347.4
ICICI Bank 70.5 29.96
State Bank Of India 270.83 27.49
State Bank Of India 0 279.19
State Bank Of India 35.46 15.05
Allahabad Bank 138.36 91.32
Barclays Bank 1107.57 199.36
Kotak Bank 960.12 172.82
DEG 2008.13 404.24
M&T 920.96 213.2
Name of Institution Due Date Period of Default
Union Bank Of India 1 DEC 11 - 31 MARCH'12 1 - 122
Union Bank Of India 29 FEB 12 - 31 MARCH'12 1 - 31
Union Bank Of India 1 NOV 11 - 31 MARCH'12 1 - 153
Bank Of India 1 MAY 11 - 31 MARCH'12 1 - 336
Bank Of India 1 NOV 11 - 31 MARCH'12 1 - 153
Bank Of India 1 JUL 11 - 31 MARCH'12 1 - 274
Federal Bank 1 NOV 11 - 31 MARCH'12 1 - 153
Federal Bank 1 JAN 12 - 31 MARCH'12 1 - 90
Federal Bank 1 SEPT 11 - 31 MARCH'12 1 - 212
State Bank Of
Hyderabad 31 MAR 11 - 31 MARCH'12 1 - 366
State Bank Of
Hyderabad 1 MAY 11 - 31 MARCH'12 1 - 336
State Bank Of
Hyderabad 1 NOV 11 - 31 MARCH'12 1 - 153
Axis Bank 1 JUN 11 - 31 MARCH'12 1 - 305
Axis Bank 1 MAY 11 - 31 MARCH'12 1 - 336
Axis Bank 1 NOV 11 - 31 MARCH'12 1 - 153
IDBI Bank 1 MAY 11 - 31 MARCH'12 1 - 336
IDBI Bank 1 AUG 11 - 31 MARCH'12 1 - 243
ICICI Bank 31 MAR 11 - 31 MARCH'12 1 - 366
ICICI Bank 1 MAY 11 - 31 MARCH'12 1 - 336
ICICI Bank 1 NOV 11 - 31 MARCH'12 1 - 153
State Bank Of India 1 JUL 11 - 31 MARCH'12 1 - 275
State Bank Of India 1 MAY 11 - 31 MARCH'12 1 - 336
State Bank Of India 1 NOV 11 - 31 MARCH'12 1 - 153
Allahabad Bank 1 MAY 11 - 31 MARCH'12 1 - 336
Barclays Bank 31 MAR 11 - 31 MARCH'12 731
Kotak Bank 31 MAR 11 - 31 MARCH'12 731
DEG 15 MAR 09 - 31 MARCH 12 16 - 1112
M&T 1 APR 09 - 31 MARCH'12 182 - 1095
For Suresh Mittal & Associates
Chartered Accountants
FRN003800N
PLACE: Village Tofapur (Suresh Mittal)
Dated: 30.8.2012 Partner,
Membership No 82740
Mar 31, 2011
We have audited the attached Balance Sheet of Agro Dutch Industries
Limited as at March 31, 2011 and the Profit & Loss Account 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 Reports) Order, 2003 as amended
by the Companies (Auditor's Report) [Amendment] Order, 2004 together
'the order' issued by the Central Government of India in terms of Sub
Section (4A) of Section 227 of the Companies Act, 1956, and on the
basis of such checks of the books and records of the company as we may
consider appropriate, we enclose in the Annexure a statement on matters
specified in paragraph 4 & 5 of the said order.
Further to our comments in the Annexure referred to above, 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, the Profit & Loss Account and the Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
d) In our opinion the Balance Sheet, the Profit and Loss Account and
the Cash Flow Statement dealt with by this report comply with the
applicable Accounting Standards referred to in sub-Section (3C) of
section 211 of the Companies Act, 1956.
e) On the basis of written representation received from the directors
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.
f) In respect of following items no provision/charge to profit and loss
account has been made.
(i) Old/slow moving stock of Canned Mushroom amounting to Rs 1071.69
lacs, included in closing stock, which in our opinion, has no
reliasable value.
(ii) Debts amounting to Rs 1480.24 lacs due against export, which are
outstanding for more than two years, bills discounted against which has
not been made good by the buyer and as such in our opinion, are
doubtful of recovery (Refer para 16 of schedule 19).
We further report that had the effect of items mentioned In (f) above
considered, loss for the year would have been increased by Rs 2551.93
lacs resulting into a loss of Rs 14949.51 lacs for the year and
accumulated loss at the year end would have been higher by Rs 2551.93
lacs. Further current assets would have been lower by Rs 2551.93 lacs
and the balance of the Profit and Loss Account in assets side of the
Balance Sheet would have been higher by Rs 2551.93 lacs.
g) Without qualifying attention is drawn to;
(i) Note 1 B of schedule 19 regarding pending export obligations
against machinery imported under advance license as stated in the said
note.
(ii) Note 15 of schedule 19, regarding reasons for preparing the
financial statements of the company on a going concern basis,
notWithstanding the fact that its net worth is totally eroded. The
appropriateness of the said basis is interalia depends on the admission
of its case by BIFR and the rehabilitation packages sanctioned by BIFR,
repayment obligations of its loans and interest due as on date and
falling due during the year ending 31.3.2012 and infusion of funds for
meeting obligations.
h) Subject to out comments in para (f) and (g) above, in our opinion
and to the best of our information and according to the explanations
given to us, the said financial statements read together with
Significant Accounting Policies and Notes thereon appearing 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 principals generally accepted in India;
i) In the case of the Balance Sheet of the state of affairs of the
Company as on March 31st, 2011;
ii) In the case of Profit & Loss Account. of the loss of the Company
for the year ended on that date and
iii) In the case of Cash Flow Statement, of the cash flows of the
company for the year ended on that date.
annexure to the auditor's report
Annexure referred to in the Auditors report to the members of Agro
Dutch Industries Limited on the accounts for the year ended on March
31st, 2011.
i. a. The Company has maintained proper records in respect of fixed
assets showing full particulars including quantitative details and
situation of fixed assets.
b. As explained to us, the management has physically verified certain
fixed assets according to a phased programme of periodic verification
which, in our opinion is reasonable having regard to the size of the
company and nature of the assets. As informed, no material
discrepancies between book records and physical inventory have been
noticed in respect of the fixed assets physically verified during the
year.
c. In our opinion and accordingly to the information and explanations
given to us, no substantial part of the fixed assets have been disposed
of during the year.
ii. a) As informed the inventories have been physically verified
during the year by the management and in our opinion the frequency of
verification is reasonable.
b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventory
followed by the Company are reasonable and adequate commensurate with
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 and on the basis of our examination of the records of
inventory, the Company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical inventory &
book records were not material.
iii. a) 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 Act. Accordingly, the Clause (iii)(b),
(iii)(c) and (iii)(d) of the paragraph 4 of the order are not
applicable.
b) The company has taken loan from parties covered in the register
maintained under section 301 of the Companies Act, 1956. Total number
of party is two, the maximum amount involved during the year was Rs
6,04,55,174 and the year end balance of loan taken from such parties
was Rs 6,04,55,174.
c) In our opinion and according to information and explanations given
to us, the rate of interest and other terms and conditions for such
loan are not prima facie prejudicial to the interest of the company.
d) In respect of loans taken, repayment of the principal amount is as
stipulated and payment of interest have been regular.
Iv. In our opinion and according to the information and explanation
given to us and having regard to the explanations that some of the
items purchased/sold are of special nature and alternative quotations
are not available, 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. Further, on the basis of our examination of the books and
records of the company and according to the information and
explanations given to us, we have neither come across nor have we been
informed of any continuing failure to correct major weaknesses in the
aforesaid internal control system.
v. a. In our opinion and according to information and explanations
given to us, the particulars of contracts or arrangements referred to
in Section 301 of the Act that need to be entered into the register
maintained under section 301 have been so entered.
b. In our opinion and according to the information and explanation
given to us, the transactions made in pursuance of such contracts or
arrangements and exceeding the value of Rs. Five Lacs in respect of
each party during the year, 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 deposit from the public. We are
informed by the management that no order has been passed by the Company
Law Board, National Company Law Tribunal or Reserve Bank of India or
any court or any other Tribunal
vii. In our opinion, the Company has an internal audit system
commensurate with its size and nature of its business.
viii. We are informed that maintenance of cost records has not been
prescribed by the Central Government under Section 209 (1) (d) of the
Companies Act, 1956 in respect of the Company's product.
ix. a) According to the information and explanation given to us and
the records of the company examined by us, ,In our opinion, the company
has been regular in depositing during the year undisputed statutory
dues including Provident Fund, Employee's State Insurance Dues,
Investor Education and Protection Fund, Income-Tax, Sales-Tax, Wealth
Tax, Custom Duty, Service Tax, Excise Duty, Cess and other material
statutory dues as applicable, with the appropriate authority in India.
b) According to the information and explanation given to us and the
records of the company examined by us, the dues outstanding of
income-tax, sales-tax, wealth tax, service tax, custom duty, excise
duty and on account of any cess are as under;
Sr. Nature of Statue Nature of Dues Duty/ Service
No. Tax Involved
1 Finance Act GTA Service Tax 173,265
Outward
2 Finance Act GTA Service 356,575
Tax Outward
3 Finance Act GTA Service 51,817
Tax Outward
4 Finance Act Service Tax on 215,288
Business Exhibition.
5 Finance Act Service Tax on 140,318
Business Exhibition.
6 Finance Act Service Tax on 98,396
Business Exhibition.
7 Custom Penalty on Duty 47,877
Sr. Nature of Statue Period Forum where dispute
No. is pending
1 Finance Act Jan 2005- Appeal filed in
Nov 05 CESTAT, New Delhi
2 Finance Act Oct 2006- Appeal filed in
10.5.2007 CESTAT - New Delhi
3 Finance Act Mar 2008- Commissioner appeals
June 2008 Chandigarh.
4 Finance Act 1-10-2004 to A. C - Dera Bassi.
17.2.2006
5 Finance Act April 2007- to Commissioner appeals
March 2008 Chandigarh.
6 Finance Act April 2008- to A. C - Dera Bassi.
March 2009
7 Custom May 2010 Commissioner appeals
Chandigarh.
x. The company has accumulated losses as at 31.3.2011 not less than
fifty percent of its net worth. Company has incurred cash losses in the
financial year ended on that date and also incurred cash losses in the
immediately proceeding financial year.
xi. Based on our audit procedures and on the basis of information and
explanations given by the management, we report that the company has
defaulted in repayment of loans and interest thereon. The details are
as per Annexure-I
xii. According to the information and explanations given to us, the
company has not granted any 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, nidhi, mutual
benefit or a society. Accordingly, Clause 4 (xiii) of the Order is not
applicable.
xiv. In our Opinion, the company is not dealing or trading in shares,
securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the Companies (Auditors' Report) Order,
2003 (as amended) are not applicable to the company.
xv. In our opinion and according to the information and explanations
given to us and the records produced before us the company has given
guarantee for loans taken by others from bank and the terms and
conditions thereof are not prejudicial to the interest of the company.
xvi. In our opinion and according to the information and explanations
given to us, on an overall basis, term loans availed by the company
were, prima facie, applied for the purpose for which they were raised.
xvii. On the basis information and explanations given to us, and on the
basis of an overall examination of the balance sheet of the company, no
funds raised on short term basis have been utilized for long-term
investments.
xviii. The company has not made any preferential allotment of shares to
the parties and companies covered in the register maintained u/s 301 of
the Companies Act during the year.
xix. Company has no outstanding Debentures as on 31.03.2011.
xx. During the year company has raised funds by way of preferential
allotment amounting to Rs 195.50 lacs including a premium of Rs 104.00
lacs and the company has disclosed the utilization of funds raised and
the same has been verified.
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 instance of fraud on or by
the company, noticed or reported during the year, nor have we been
informed of such case by the management.
For Suresh Mittal & Associates
Chartered Accountants
FRN003800N (Suresh Mittal)
PLACE : Village Tofapur Partner
Dated : 15.7.2011 Membership No 82740
Mar 31, 2010
We have audited the attached Balance Sheet of Agro Dutch Industries
Limited as at March 31, 2010 and the Profit & Loss Account 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 Reports) Order, 2003 as amended
by the Companies (Auditors Report) [Amendment] Order, 2004 together
the order issued by the Central Government of India in terms of Sub
Section (4A) of Section 227 of the Companies Act, 1956 ,and on the
basis of such checks of the books and records of the company as we may
consider appropriate. We enclose in the Annexure a statement on matters
specified in paragraph 4 & 5 of the said order.
Further to our comments in the Annexure referred to above, 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, the Profit & Loss Account and the Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
d) In our opinion the Balance Sheet, the Profit and Loss Account and
the Cash Flow Statement dealt with by this report comply with the
applicable Accounting Standards referred to in sub-Section ( 3C ) of
section 211 of the Companies Act, 1956.
e) 9n tne basis of written representation received from the directors
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.
f) Without qualifying attention is drawn to;
(i) Note no. 6k of Schedule 18 regarding pending necessary approval for
managerial remuneration as explained in the said note.
(ii) Note no. 9 of schedule 18 regarding adjustment of foreign currency
expenses incurred by customers on behalf of company as stated in the
said note.
(iii)Note no. 1B of schedule 18 regarding pending export obligations
against machinery imported under advance license as stated in the said
note.
g) In our opinion and to the best of our information and according to
the explanations given to us, the said financial statements read
together with Significant Accounting Policies and Notes thereon, give
the information as required by the Companies Act, 1956 in the manner so
required and give a true and fair view in conformity with the
accounting principals generally accepted in India;
i) In the case of the Balance Sheet of the state of affairs of the
Company as on March 31st, 2010;
ii) In the case of Profit & Loss Account, of the loss of the Company
for the year ended on that date and
iii) In the case of Cash Flow Statement, of the cash flows of the
company for the year ended on that date.
ANNEXURE TO THE AUDITORS REPORT
Annexure referred to in the Auditors report to the members of Agro
Dutch Industries Limited on the accounts for the year ended on March
31st, 2010.
i. a. The Company has maintained proper records in respect of fixed
assets showing full particulars including quantitative details and
situation of fixed assets.
b. As explained to us, the management has physically verified certain
fixed assets according to a phased programme of periodic verification
which, in oui opinion is reasonable having regard to the size of the
company and nature of the assets. As informed, no material
discrepancies between book records and physical inventory have been
noticed in respect of the fixed assets physically verified during the
year.
c. In our opinion and accordingly to the information and explanations
given to us, no substantial part of the fixed assets have been disposed
off during the year.
ii. a) As informed the inventories have been physically verified during
the year by the management and in our opinion the frequency of
verification is reasonable.
b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventory
followed by the Company are reasonable and adequate commensurate with
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 and on the basis of our examination of the records of
inventory, the Company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical inventory &
book records were not material.
iii. a) The Company has not granted any loans, Secured or unsecured, to
companies, firms or other parties coyered in the register maintained
under section 301 of the Act. Accordingly, the Clause (iii)(b),
(iii)(c) and (iii)(d) of the paragraph 4 of the order are not
applicable.
b) The company has taken loan from a party covered in the register
maintained under section 301 of the Companies Act, 1956. Total number
of party is one, the maximum amount involved during the year was Rs 16,
60, 50,000 and the year end balance of loan taken from such party was
Rs 2, 63, 10,000.
c) In our opinion and according to information and explanations given
to us, the rate of interest and other terms and conditions for such
loan are not prima facie prejudicial to the interest of the company.
d) In respect of loans taken, repayment of the principal amount is as
stipulated and payment of interest have been regular
iv. In our opinion and according to the information and explanation
given to us and having regard to the explanations that some of the
items purchased/ sold are of special nature and alternative quotations
are not available, 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. Further, on the basis of our examination of the books and
records of the company and according to the information and
explanations given to us, we have neither come across nor we have been
informed of any continuing failure to correct major weaknesses in the
aforesaid internal control system.
v. a) In our opinion and according to information and explanations
given to us, the particulars of contracts or arrangements referred to
in Section 301 of the Act that need to be entered into the register
maintained under section 301 have been so entered.
b) In our opinion and according to the information and explanation
given to us, the transactions made in pursuance of such contracts or
arrangements and exceeding the value of Rs. Five Lacs in respect of
each party during the year, 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 deposit from the public. We are
informed by the management that no order has been passed by the Company
Law Board, National Company Law Tribunal or Reserve Bank Of India or
any court or any other Tribunal
vii. In our opinion, the Company has an internal audit system
commensurate with its size and nature of its business.
viii. We are informed that maintenance of cost records has not been
prescribed by the Central Government under Section 209 (1) (d) of the
Companies Act, 1956 in respect of the Companys product.
ix. a) According to the information and explanation given to us and the
records of the company examined by us, in our opinion, the company has
been regular in depositing during the year undisputed statutory dues
including Provident Fund, Employees State Insurance Dues, Investor
Education and Protection Fund, Income-Tax, Sales-Tax, Wealth Tax,
Custom Duty, Service Tax, Excise Duty, Cess and other material
statutory dues as applicable, with the appropriate authority in India.
b) According to the information and explanation given to us and the
records of the company examined by us, the dues outstanding of
income-tax, sales-tax, wealth tax, service tax, custom duty, excise
duty and on account of any cess are as under;
Sr. Nature of Particulars Duty/ Service
No. Statue Tax Involved
1 Finance Act GTA Service Tax 173,265
Outward
2 Finance Act GTA Service 356,575
Tax Outward
3 Finance Act GTA Service 51,817
Tax Outward
4 Finance Act Service Tax on 215,288
Business Exhibition.
5 Finance Act Service Tax on 140,318
Business Exhibition.
6 Finance Act Service Tax on 98,396
Business Exhibition.
7 Custom Additional Custom 540,000
Duty
Total 1,575,659
Sr. Nature of Period Forum where dispute
No. Statue is pending
1 Finance Act Jan 2005- Appeal filed in
Nov 05 CESTAT, New Delhi
2 Finance Act Oct 2006- Appeal filed in
10.5.2007 CESTAT - New Delhi
3 Finance Act Mar 2008- Commissioner appeals
June 2008 Chandigarh.
4 Finance Act 1-10-2004 to A. C - Dera Bassi.
17.2.2006
5 Finance Act April 2007- to Commissioner appeals
March 2008 Chandigarh.
6 Finance Act April 2008- to A. C - Dera Bassi.
March 2009
7 Custom Oct 2003 Appeal filed in
onwards CESTAT, New Delhi
x The company has accumulated losses as at 31.3.2010 less than fifty
percent of its net worth. Company has incurred cash losses in the
financial year ended on that date and also incurred cash losses in the
immediately proceeding financial year.
xi. Based on our audit procedures and on the basis of information and
explanations given by the management, we report that the company has
defaulted in repayment of loans and interest thereon. The details are
as under
Principal Date of No of Day Principal Date of
Amount Default overdue Amount Default
254.01 15-Mar-09 382 504.00 Oct-09
122.77 1-Jun-09 304 1323.55 Nov-09
95.90 31-Jul-09 244 470.50 Dec-09
254.01 15-Sep-09 198 988.00 Jan-10
114.39 30-Nov-09 122 565.00 Feb-10
475.00 30-Nov-09 122 1229.00 Mar-10
274.82 31-Dec-09 91 Interest
122.77 1-Jan-10 90 54.24 1-Jun-09
254.01 15-Mar-10 17 6.07 31-Jul-09
79.00 Jun-09 285 63.77 15-Sep-09
217.00 Aug-09 213 3.44 30-Nov-09
94.00 Sep-09 197 6.17 31-Dec-09
(Rs in lacs)
Principal No of Day Interest Date of No of Day
Amount overdue Default overdue
254.01 162 61.22 31-Dec-09 91
122.77 140 47.16 1-Jan-10 90
95.90 106 3.63 31-Jan-10 60
254.01 69 3.28 28-Feb-10 32
114.39 45 6.17 31-Dec-09 91
475.00 35 61.22 31-Dec-09 91
274.82 3.63 31-Jan-10 60
122.77 304 3.28 28-Feb-10 32
254.01 244
79.00 198
217.00 122
94.00 91
xii. According to the information and explanations given to us, the
company has not granted any 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, nidhi, mutual
benefit or a society. Accordingly, Clause 4 (xiii) of the Order is not
applicable.
xiv. In our Opinion, the company is not dealing or trading in shares,
securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the Companies (Auditors Report) Order,
2003 (as amended) are not applicable to the company.
xv. In our opinion and according to the information and explanations
given to us the company has not given any guarantee for loans taken by
others from bank and the terms and condition thereof are not
prejudicial to the interest of the company.
xvi. In our opinion and according to the information and explanations
given to us, on an overall basis, term loans availed by the company
were, prima facie, applied for the purpose for which they were raised.
xvii. On the basis of information and explanations given to us, and on
the basis of an overall examination of the balance sheet of the
company, no funds raised on short term basis have been utilised for
long term investments.
xviii. The company made preferential allotment of shares to the parties
and companies covered in the register maintained u/s 301 of the
Companies Act during the year. The price at which the allotment was
made is not prejudicial to the interest of the company.
xix. Company has no outstanding Debentures as on 31.3.2010.
xx The Company has not raised any money through public issue during the
year.
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 instance of fraud on or by
the company, noticed or reported during the year, nor have we been
informed of such case by the management.
For Suresh Mittal & Associates
Chartered Accountants
FRN003800N
(Suresh Mittal)
PLACE: Village Tofapur Partner
Dated : 2.8.2010 Membership No 82740