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Auditor Report of Betex India Ltd.

Mar 31, 2015

We have audited the accompanying financial statements of BETEX INDIA LIMITED, SURAT, which comprise the Balance Sheet as at March 31, 2015, 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

The management and Board of Directors of the Company are responsible for the matters stated in Section 134(5) of the Companies Act, 2013 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 Companies (Accounts) Rules, 2014. This responsibility 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; design, implementation and maintenance of adequate internal financial controls, that are operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the

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 the that we comply with ethical requirements and plan & perform the audit to obtain reasonable assurance about whether the financial statements are free 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 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 accounting policies used and the reasonableness of the accounting estimates made by the Company's management and Board of Directors, as well as evaluating the overall presentation of the financial statements

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India of the state of affairs of the Company as at 31st March 2015, its profit/loss and its cash flows for the year ended on that date We Report that:

1 As required by the Companies (Auditor's Report) Order, 2015 issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in the Annexure a statement on the matters Specified in paragraphs 3 and 4 of the Order

2. As required by section 143(3) of the Act, we further 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 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) in our opinion, the aforesaid financial statements comply with the applicable Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules 2014

e) on the basis of written representations received from the directors as on March 31, 2015, and taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2015, from being appointed as a director in terms of Section 164(2) of the Act

f) In our opinion and to the best of our information and according to the explanations given to us, we report as under with respect to other matters to be included in the Auditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014:

i. The Company does not have any pending litigations which would impact its financial position.

ii. The Company did not have any long-term contracts including derivative contracts; as such the question of commenting on any material foreseeable losses thereon does not arise.

iii. There has not been an occasion in case of the Company during the year under report to transfer any sums to the Investor Education and Protection Fund. Therefore the question of delay in transferring such sums does not arise.

BETEX INDIA LIMITED

The Annexure referred to in our report to the members of BETEX INDIA LIMITED for the year Ended on March 31, 2015, We report that:

i.a) As per the information provided to us and based on our verification, the Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets ,

b) As explained to us, fixed assets have been physically verified by the management at regular intervals; as informed to us no material discrepancies were noticed on such verification.

ii.a) As informed to us, physical verification of inventory has been conducted at reasonable intervals by the management.

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) The company is maintaining proper records of inventory The discrepancies noticed on physical verification were not material and these have been properly dealt with in books of accounts.

iii.

a) The company has granted unsecured loan/advances of Rs. 446.85 Lacs to companies firms or other parties covered in the register maintained under section 189 of the Act.

b) As per information given to us, receipt of the principal amount and interest are as per decided by management.

c) The company has taken reasonable steps to recover the loan whose overdue amount is exceeding Rs. 1 Lakh.

iv. In our opinion and according to the information and explanations given to us, there is adequate internal control system commensurate with the size of the Company and the nature of its business, for the purchase of fixed assets and for the sale of services. 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, no major weakness has not been noticed or reported.

v. The Company has not accepted any deposits from the public covered under Section 73 to 76 of the Companies Act, 2013.

vi. We have broadly reviews the books of accounts maintained by the Company pursuant to the rule made by the Central Government of maintenance of cost records under sub-section (1) of Section 148 of the Act. We are of the opinion that the prima facie the prescribed accounts and records have been made and maintained. However we have not made a detailed examination of the records.

vii.

a) According to the information and explanations given to us and based on the records of the company examined by us, the company is regular in depositing the undisputed statutory dues, including Provident Fund, , Employees' State Insurance, Income-tax, Sales-tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty and other material statutory dues, as applicable, with the appropriate authorities in India ,

b) According to the information and explanations given to us and based on the records of the company examined by us, there are no dues of Income Tax, Wealth Tax, Service Tax Sales Tax, Customs Duty and Excise Duty which have not been deposited on account of any disputes.

c) There has not been an occasion in case of the Company during the year under report to transfer any sums to the Investor Education and Protection Fund. The question of reporting delay in transferring such sums does not arise. question 01

viii. The Company has no accumulated losses and has not incurred cash losses in the current financial year and in the immediately preceding financial year

ix. According to the records of the company examined by us and as per the information and the company has not defaulted in any repayment dues to financial institution or banks or debentures holders.

X. Our Opinion' and according to the information and explanations given to us the Company warrantee for loan taken others from a ban or financial investment

Xi. In our opinion and according to,the information and explanations given to us the term loan taken by the Company were applied for the purpose it had been obtained

Xii. During the course examination of the books and records of the The company carried in accordance with the auditing standards generally Accepted in India we have neither come across any instance of fraud on or by the company noticed or reported during the course of out auditor have we been informed of any such instance by the management

FOR B. CHORDIA & CO.

CHARTERED ACCOUNTANTS,

F.R.N. 121083W

B. C. CHORDIA

Partner Place : Surat M.N. 048557 Date : May 30, 2015


Mar 31, 2014

We have audited the attached Balance sheet of Betex India Ltd., Surat, as at 31st March, 2014, and profit & loss account for the year ended on that date attached 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 standard generally accepted in India. Those standard require that we plan and perform the audit to obtain reasonable assurance about whether the financial statement are free of material misstatement The audit includes examining, on a test basis evidence supporting the amounts and disclosure in the financial statement. The audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluation of the overall financial statement presentation. We believe that our audit provide a reasonable basis for our opinion.

We report that:

1 As required by the Companies (Auditors Report) Order, 2004 issued by the Company Law Board in terms of Section 227(4A) 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.

2 Further to our comments in the Annexure referred to in paragraph 1 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 accounts as required by Law have been kept by the company, so far as it appears from our examination of the books.

c. The Balance Sheet and Profit & Loss Account referred to in the report are in agreement with the books of accounts.

d. In our opinion the Balance sheet and Profit & Loss Account complies with the requirements of the mandatory accounting standard referred to in Section 211 (3C) of the Companies Act, 1956.

e. On the basis of written representation received from the directors of the company, taken on record by the Board of Directors, we report that none of the directors is disqualified as on 31st March 2014 from being appointed as a director under section 274(1 )(g) of the Companies Act, 1956.

f. In our opinion, and to the best of our information and according to the explanations given to us, the said Balance Sheet and Profit & Loss Account read together with the notes thereon, give in information required by the Companies Act, 1956 in the manner so required and give a true and fair view.

I. In the case of the Balance Sheet of the company of the state of affairs of the company as at 31st March 2014.

ii. In the case of the Profit & Loss Account, of the Profit/Loss for the year ended 31st March 2014.

1. Fixed Assets :

a) The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets.

b) In our opinion, the fixed assets have been physically verified by management at reasonable intervals, having regard to the size of the company and nature of the assets.

c) The company has not disposed of the substantial part of fixed assets during the year, which affect the going concern assumption.

2. lnventory :

a) As informed to us, physical inventory have been physically verified by the management during the year at reasonable intervals.

b) In our opinion the procedures of physical verification of stocks followed by the management are reasonable and adequate in relation to the size of the company and nature of its business

c) The company has maintained proper records of inventories. The discrepancies noticed on the verification of stocks as compare to book records were not material and these have been properly dealt with in the books of accounts.

3. Loans & Advances:

a) The company has granted unsecured loans/ Advances of Rs. 89,956,271 to companies, Firms or other parties mentioned under the register maintained u/s. 301 of the companies Act, 1956.

b) This Clause is Not Applicable to the Company.

c) This Clause is Not Applicable to the Company.

d) The company has taken reasonable steps to recover the loan whose overdue amount is exceedinq Rs. 1 lakh.

e) As informed to us, The company has taken unsecured loans/ advances of Rs.93,935,844 from companies, Firms or other parties covered in the register maintained under section 301 of the Act.

f) As per information and explanations given to us, the rate of interest wherever applicable and other terms and conditions, if applicable on loan taken are not prima facie prejudicial to the interest of the Company.

g) As per information given to us, Payment of the principal amount and interest are as per decided by management.

4. lnternal control procedure :

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. During the course of our audit, no major weakness has been noticed in the internal controls.

a) The transaction made in pursuance of contracts or arrangement that need to be entered into the register maintained u/s. 301 of the companies Act, 1956 have been recorded in register.

b) Transactions made in pursuance of such contracts or arrangements aggregating during the year to Rs. 5,00,000/- or more in respect of each party have been made at reasonable prices having regard to the prevailing market price at relevant time.

6.Public Deposits :

The company has not accepted deposits from public, hence the clause is not applicable.

7. lnternal Audit System:

In our opinion and according to the information and explanations given to us, there are adequate internal control procedures for the purchase of goods and assets and for the sale of goods and services commensurate with the size of the company and nature of its business. During the course of our audit no major weakness has been noticed in the internal control system.

8. Cost Records :

We have broadly reviewed the books of accounts maintained by the company pursuant to the rule made by the central Govt, for maintenance of cost records under section 209(1)(d) of the companies act, 1956. We are of the opinion that prima facie the prescribed accounts and records have been made and maintained. we have note however made a detailed examination of the records.

9. Statutorv Dues :

a) According to the information and explanation given to us and the records examined by us, the company is Generally regular in depositing undisputed statutory dues with appropriate authorities. According to the information and explanations given to us, there are no undisputed amounts payable in respect of Statutory dues which has remained outstanding as at 31st March, 2014 for a period more than six months from the date they became payable.

b) According to the information and explanation given to us there is no dispute related to the dues of Income Tax/Sales Tax/Wealth Tax/Service Tax/Custom Duty/Excise Duty/Cass.

10.Accumulated/Cash Losses :

The company has no accumulated losses, other than depreciations losses, and has not incurred cash losses in the current financial year and in the immediately preceding financial year.

11. Default in Repayment of Dues to Banks/Financial Institution etc :

The company has not defaulted in repayment of dues to the financial institution or Bank or Debenture holders.

12. Grantina of Loan & Advances

The Company has not granted any Loan & Advances on the basis of securities by way of pledge of shares, debentures and other securities.

13. Chit Fund/Nidhi/Mutual Fund :

The provisions of any Special Statute applicable to Chit Fund, Nidhi, Mutual Benefit Fund/ Societies are not applicable to the company.

14. Dealinq or Trading in Shares etc :

As explained to us by the management, the company has not purchased securities/ shares of the Govt, and other companies for investment purpose.

15. Guarantee Given by Company :

As explained to us by the management, the company has not given guarantee for loans taken by others from banks or financial institution.

16. Utilization of Term Loans :

The Term Loans taken by the company were applied for the purpose for which it had been obtained.

17. Application of Short Term Fund for Long Term Investment and vice versa :

On the basis of our examination of the cash flow statement, the funds raised on short term basis have not been used for long term investment, and vice versa.

18. Preferential Allotment of Shares :

The Company has not made any preferential allotment of shares during the year.

19. Creation of Securities for Debenture Issued :

The company has not issued any Debenture during the year.

20. End Use of Money :

The Company has not raised any money by way of public issues during the year.

21. Fraud noticed or Reported :

As per information & explanation given to us, no fraud on or by the company has been noticed or

FOR B. CHORDIA & CO. Chartered Accountants F.R.N.121083W Place: Surat Date: May30, 2014 CA. B.C. CHORDIA Partner M. N. 048557


Mar 31, 2011

1. We have audited the attached Balance Sheet of BETEX INDIA LIMITED as on March 31, 2011, also the Profit and Loss Account and the Cash Flow Statement for the year ended on that date annexed thereto, which we have signed under reference to this report. 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.

2. We conducted our audit in accordance with the auditing standards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statement. 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.

3. As required by Companies Act (Auditors Report) Order, 2003,as amended by the companies (Auditor's Report)(Amendment) Order 2004, (together the 'Order') issued by the Central Govt. of India in terms of Sub-Sec (4A) of Sec 227 of the Companies Act, 1956 of India (the 'Act') and on the basis of such checks of the books and records of the company as we considered appropriate and according to the information and explanations given to us, we enclose in the Annexure a statement on the matters specified in paragraph 4 and 5 of the said order, to the extent applicable.

4. Further to our comments in the Annexure referred to above, we report that

(i) We have obtained all the information and explanations, which to the best of our knowledge and belief, were necessary for the purposes of our audit ;

(ii) In our opinion, proper books of account as required by law have been kept by the Company so far as appears from our examination of those books;

(iii) The Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by this report are in agreement with the books of accounts;

(iv) In our opinion, the Balance Sheet, Profit and Loss Account and the Cash Flow Statement dealt with by this report comply with the accounting standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956;

(v) On the basis of written representation received from the directors, as on March 31, 2011 and taken on record by the Board of Directors, we report that none of the directors is disqualified as on March 31, 2011 from being appointed as a director in terms of clause (g) of sub-section (1) of Section 274 of the Companies Act, 1956;

(vi) In our opinion and to the best of our information and according to the explanation given to us, the said accounts, read together with the 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 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, 2011.

(b) In the case of the Profit and Loss Account, of the Profit / Loss for the year ended on that date and

(c) In the case of the Cash Flow Statement, of the Cash Flow for the year ended on that date.

Annexure to the Auditor's Report

Referred ton in paragraph 3 of Report of even date on the account of BETEX INDIA LIMITED, for the year ended (March 31, 2011)

a) The company has generally maintained proper records showing full particular including quantitative details and situation of fixed assets on the basis of available information.

b) As explained to us, the fixed assets have been physically verified by the management at reasonable Intervals during the year which in our opinion is reasonable, having regard to the size Company and nature of its assets. No material discrepancies were noticed on such physical verification.

c) In our opinion the Company has not disposed off substantial part of fixed assets during the year and the going concern status of the Company is not affected.

2 a) As explain to us, the physical verification of the inventory has been conducted by the management at reasonable intervals during the year.

b) In our opinion and according to the information and explanations given to us the procedures of physical verification of inventories followed by the management are reasonable and adequate in relation to the size of the Company and the nature of its business.

c) The Company has maintained proper records of inventory. As explained to us, there was no material discrepancies noticed on physical verification of inventory as compared to the book records.

3 a) The company has not granted any secured loan but granted unsecured Loan to companies, Firms or other parties mentioned under the register maintained u/s. 301 of the companies Act, 1956. There are Fourteen such parties and Total outstanding amount as on 31/03/2011 is Rs.3,05,31,256/- (Total Debits Rs.402.27 Lacs & Total Credit Rs. 236.96 Lacs).

b) As per information and explanations given to us, the rate of interest is NIL P.A. on the loan given by the company. Other terms and conditions, if applicable on loan given are not prima facie prejudicial to the interest of the company.

c) The parties to whom advances in the nature of loans have been given are repaying the principal amounts as stipulated wherever applicable.

d) There are no overdue amounts of loans granted by the company.

e) The company has not taken any secured loan but taken unsecured Loan from companies, Firms or other parties mentioned under the register maintained u/s. 301 of the companies Act, 1956. There are Ten such parties and Total outstanding amount as on 31/03/2011 is Rs.9,44,09j552/- (Total Debits Rs.106.04 Lacs & Total Credits Rs. 134.33 Lacs).

f) As per information and explanations given to us, the rate of interest is 6% p.a. from one party and Nil P.A. form other parties on the loan taken by the company. Other terms and conditions, if applicable on loan given are not prima facie prejudicial to the interest of the company.

g) The company is repaying the. principal amounts as stipulated wherever applicable.

4. In our opinion and according to the information and explanations given to us, there is adequate internal control system commensurate with the size of the Company and the nature of its business with regard to purchase of Inventory, fixed assets, and' for the sale goods and services. During the course of our audit, We have not observed any continuing failure to correct major weaknesses in internal controls.

5) (a) In our opinion and according to the information and explanations given to us, the transactions made in pursuance of contracts or arrangement, that need to be entered into the register maintained under section 301 of the Companies Act, 1956 for the year have been so entered.

(b) In our opinion and to the information and explanations given to us, the transaction of purchase and sale of goods, materials and services made in pursuance of contacts or arrangement entered in the register maintained under section 301 of the Company Act, 1956, aggregation during the year to Rs.5,00,000/- or more in respect of each party have been made at prices which in our opinion, are reasonable having regard to prevailing market price at the relevant time for similar goods, materials and services at price for which transactions for similar goods, materials and services have been made with other parties.

6. In our opinion and according to the information and explanations given to us, the company has complied by the provisions of sections 58A, 58AA and any other relevant provisions of the Act, and the directives issued by the Reserve Bank of India. We are informed that no order has been passed by the Company -2.V Board or National Company Law Tribunal or Reserve Bank of India or any Court or any other " Sunal in this regard on the company.

7. In our opinion and according to the information and explanations given to us, the company has in general and adequate internal audit system commensurate with the size and the nature of the business of the Company.

8. We have been formed that the Central Government has not prescribed maintenance of cost records to the clause of sub- section (1) of section 209 of the Companies Act, 1956.

9. a) According to the information and explanations given to us and on the basis of records produced before us, the Company is 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 dues with appropriate authorities applicable to it. According to the information and explanations given to us, no undisputed arrears of statutory dues were outstanding as at March31, 2011 for a period of more than six months from the date they became payable.

b) According to the information and explanation given to us, no undisputed amount payable in respect of Income Tax / Sales Tax / Wealth Tax / Service Tax / Custom Duty / Excise Duty / Cess pending with the Company.

c) As per information given to us Following disputed Amount as on 31st March 2011 have not been deposited with the appropriate authorities.

Name of the Statute Nature of Due Amount Concerened Authorities

Central Excise & Excise Duty Rs. 17.71 Lacs Add. Commissioner of

Customs Act (Rs.4.43 Lacs Deposited Central Excise & Customs,

Out of Rs. 22.14 Lacs.) Surat - I

10) The Company has no accumulated losses and has not incurred any cash loss in the current financial year. there was no cash loss in the immediately preceding financial year.

11) In our opinion and according to the information and explanations given to us, the Company has not defaulted during the year in repayment of dues to Banks or Financial Institution. The Company does not have any dues to debenture holders.

12) In our opinion and according to the information and explanations given to us, the Company has not granted any loans or advances on the basis of security by way of pledge of shares, debentures and other securities.

13) In our opinion the Company is not a chit fund or a nidhi / mutual benefit fund / society, therefore, clause 4 (xiii) of the Companies (Auditors Report) order 2003 is not applicable to the Company.

14) The Company is not dealing or trading in shares, securities, debentures and other investments. Therefore clause 4 (xiv) of the Companies (Auditors Report) order 2003 is not applicable to the Company. All other -vestments are held by the Company in its own name.

15) As per information given to us, the company has not given any guarantees in respect of loans taken by any other person from Bank and Financial Institutions. Therefore Clause 4 (xv) of the Companies Auditors Report) order 2003 is not applicable to the company.

16) The Company has not raised new Term loans during the year.

17) In our Opinion and according to the information and explanations given to us, as well as on the basis of the explanation of the Balance sheet, we are of the opinion that the funds raised on short term not been used for long term investments.

18) During the year, the company has not made any preferential allotment shares to any parties companies covered in the Register maintained under section 301 of Companies Act, 1956.

19) The company has not raised debentures during the financial year.

20) The company has not raised any money by public issues during the year end hence clause (xx) of the companies (Auditor's Report) order 2003 is not applicable to the company.

21) On the basis of our examination and according to the information and explanations given to us, no fraud, by the company, has been noticed or reported during the course of our audit.

for RRA & co.

Chartered Accountants

F.R.N.112115W

R. K. Malani

Partner

M.N. 074673

Place : Surat

Date : 02.09.2011


Mar 31, 2009

1. We have audited the attached Balance Sheet of BETEX INDIA LIMITED as on March 31, 2009 and also the Profit and Loss Account for the year ended on that date annexed thereto, which we have signed under reference to this report. There financial statements are the responsibility of the Companys management. Our responsibility is to express an opinion on these financial statements based on our audit.

2. We conducted our audit in accordance with the auditing standards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statement. 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.

3. As required by Companies Act (Auditors Report) Order, 2003,as amended by the companies (Auditors Report)(Amendment) Order 2004, (together the Order) issued by the Central Govt, of India in terms of Sub-Sec (4A) of Sec 227 of the Companies Act, 1956 of India (the Act) and on the basis of such checks of the books and records of the company as we considered appropriate and according to the information and explanations given to us, we enclose in the Annexure a statement on the matters specified in paragraph 4 and 5 of the said order, to the extent applicable. J

4. Further to our comments in the Annexure referred to above, we report that

(i) We have obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the purposes of our audit;

(ii) In our opinion, proper books of account as required by law have been kept by the Company so far as appears from our examination of those books:

(iii) The Balance Sheet and, Profit and Loss Account dealt with by this report are in agreement with the books of accounts;

(iv) In our opinion, the Balance Sheet and Profit and Loss Account dealt with by this report comply with the accounting standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956;

(v) On the basis of written representation received from the directors, as on March 31, 2009 and taken on record by the Board of Directors, we report that none of the directors is disqualified as on March 31, 2009 from being appointed as a director in terms of clause (g) of sub-section (1) of Section 274 of the Companies Act, 1956;

(vi) In our opinion and to the best of our information and according to the explanation given to us, the said accounts, read together with the notes thereon, give the information required by the Companies Act, 1956, in the manner so required and give a true a accepted and fair view in conformity with the accounting generally accepted in India.

(a) In the case of the Balance Sheet, of the state of affairs of the Company as at March 31, 2009.

(b) In the case of the Profit and Loss Account, of the Profit / Loss for the year ended on that date.





Annexure to the Auditors Report

(Referred ton in paragraph 3 of Report of even date on the account of BETEX INDIA LIMITED, for the year ended March 31, 2009)

1) (a) The company has generally maintained proper records showing full particular including quantitative details and situation of fixed assets on the basis of available information.

(b) As explained to us, the fixed assets have been physically verified by the management at reasonable intervals during the year which in our opinion is reasonable, having regard to the size Company and nature of its assets. No material discrepancies were noticed on such physical verification.

(c) In our opinion the Company has not disposed off substantial part of fixed assets during the year and the going concern status of the Company is not affected.

2) (a) As explain to us, the physical verification of the inventory has been conducted by the management at reasonable intervals during the year.

(b) In our opinion and according to the information and explanations given to us the procedures of physical verification of inventories followed by the management are reasonable and adequate in relation to the size of the Company and the nature of its business.

(c) The Company has maintained proper records of inventory. As explained to us, there was no material discrepancies noticed on physical verification of inventory as compared to the book records.

3) (a) The company has not granted any secured loan but granted unsecured Loan to companies, Firms or other parties mentioned under the register maintained u/s. 301 of the companies Act, 1956. There are Twelve such parties and Total outstanding amount as on 31/03/2009 is Rs. 19023292/-

(b) As per information and explanations given to us, the rate of Interest is NIL P.A. on the loan given by the company. Other terms and conditions, if applicable on loan given are not prima facie prejudicial to the inteitest of the company.

(c) The parties to whom advances in the nature of loans have been given are repaying the principal amounts as stipulated wherever applicable.

(d) There are no overdue amounts of loans granted by the company.

(e) The company has not taken any secured loan but taken unsecured Loan from companies, Firms or other parties mentioned under the register maintained u/s. 301 of the companies Act, 1956. There are Eleven ; such parties and Total outstanding amount as on 31/03/2009 is Rs. 86659386/-.

(f) As per information and explanations given to us,the rate of interest is NIL P.A. on the loan taken by the company. Other terms and conditions, if applicable on loan given are not prima facie prejudicial to the interest of the company. *

(g) The company is repaying the principal amounts as stipulated wherever applicable.

4) 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 with regard to purchase of Inventory, fixed assets and for the sale goods and services. During the course of our audit, we have not obsered any continuing failure to correct major weaknesses in internal controls.

5) (a) In our opinion and according to the information and explanations given to us, the transactions made in pursuance of contracts or arrangement, that need to be entered into the register maintained under section 301

of the Companies Act, 1956 for the year have been so entered. (b) In our opinion and to the information and explanations given to us, the transaction of purchase and sale of goods, materials and services made in pursuance of contacts or arrangement entered in the register maintained under section 301 of the Company Act, 1956, aggregation during the year to Rs.5,00,000/- or more in respect of each party have been made at prices which in our opinion, are reasonable having regard to prevailing market price at the relevant time for similar goods, materials and services at price for which transactions for similar goods, materials and services have been made with other parties.

6) In our opinion and according to the information and explanations given to us, the company has complied with the provisions of sections 58A, 58AA and any other relevant provisions of the Act, and the directives issued by the Reserve Bank of India. We are informed that no orderhas been passed by the Company Law Board or National Company Law Tribunal or Reserve Bank of India or any Court or any other Tribunal in this regard on the company.

7) In our opinion and according to the information and explanations given to us, the company has in general and adequate internal audit system commensurate with the size and the nature of the business of the Company.

We have been informed that the Central Government has not prescribed maintenance of cost records under clause (d) of sub- section (1) of section 209 of the Companies Act, 1956.

9) (a) According to the information and explanations given to us and on the basis of records produced before us, the Company is 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 dues with appropriate authorities applicable to it. According to the information and explanations given to us, no undisputed arrears of statutory dues were outstanding as at March31, 2009 for a period of more than six months from the date they became payable. (b) There are no dues of Income Tax / Sales Tax / Wealth Tax / Service Tax / Custom Duty / Excise Duty / Cess pending with the Company.

10) The Company has no accumulated losses and has not incurred any cash loss in the current financial year. There was no cash loss in the immediately preceding financial year.

11) In our opinion and according to the information and explanations given to us, the Company has not defaulted during the year in repayment of dues to Banks or Financial Institution. The Company does not have any dues to debenture holders.

12) In our opinion and according to the Information and explanations given to us, the Company has not granted any loans or advances on the basis of security by way of pledge of shares, debentures and other securities.

13) In our opinion the Company is not a chit fund or a nidhi / mutual benefit fund / society, therefore, clause 4 (xiii) of the Companies (Auditors Report) order 2003 is not applicable to the Company.

14) The Company is not dealing or trading in shares, securities, debentures and other investments. Therefore clause 4 (xiv) of the Companies (Auditors Report) order 2003 is not applicable to the Company. All other investments are held by the Company in its own name.

15) As per information given to us, the company has not given any guarantees in respect of loans taken by any other person from Bank and Financial Institutions. Therefore Clause 4 (xv) of the Companies (Auditors Report) order 2003 is not applicable to the company.

16) The Company has not raised new Term loans during the year.

17) In our opinion and according to the information and explanations given to us, as well as on the basis of our over all explanation of the Balance sheet, we are of the opinion that the funds raised on short term basis have not been used for long term investments.

18) During the year, the company has not made any preferential allotment of shares to parties and companies covered in the Register maintained under section 301 of Companies Act, 1956.

19) The company has not raised debentures during the financial year.

20) The company has not raised any money by public issues during the year end hence clause (xx) of the companies (Auditors Report) order 2003 is not applicable to the company.

21) On the basis of our examination and according to the information and explanations given to us, no fraud, on or by the company, has been noticed or reported during the course of our audit.

for RRA & co.

Chartered Accountants

R.K.Malani

Partner

M. N. 074673

Place : Surat

Date : 01.09.2009

 
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