Mar 31, 2012
We have audited the attached Balance Sheet of Crew B.O.S. Products
Limited, as at 31st March, 2012 and Statement of Profit & Loss and 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 misstatements. 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.
1. As required by the Companies (Auditors report) Order, 2003 issued
by the Central Government of India in terms of Section 227(4A) of the
Companies Act, 1956, we annex hereto a statement on the matters
specified in paragraph 4 & 5 of the said order.
2. Further to our comments in the annexure referred to in paragraph 1
above :-
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 the
books subject to note number 31 to notes on accounts.
c) The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account.
d) In our opinion, subject to note number 6(a) regarding provision of
gratuity on estimate basis without actuarial valuation, note number
9(a) regarding short provision for bonus, note number 18(a) and note
number 33 regarding no provision for write-off of loans & investment
made in
non functional subsidiaries / joint venture companies or overdue
balances, note number 20(b) and note number 20(c) regarding trading of
fabrics, note number 20(b) regarding previous year transactions for
purchases & expenses amounting to Rs. 120.02 lacs,, note number 26(d)
regarding accounting for professional charges of Rs 8.78 lacs for
incorporation of a associate company as expense of the company
resulting in overstatement of profit by this amount, note number 28 on
parties account non-reconciliation/ pending balances confirmation and
resultant effect on final accounts and note number 37 regarding excess
remuneration a amounting to Rs. 59.45 has paid to managerial people
subject to Central Govt. approval, the Balance Sheet, Statement of
Profit and Loss and Cash Flow Statement dealt with by the Report 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, 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) In our opinion and to the best of our knowledge and information and
according to the explanations given to us, the accounts give the
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 state of affairs of the
Company as at March 31st, 2012.
(ii) In the case of the Statement of Profit & Loss of the profit for
the year ended on that date.
(iii) In the case of the Cash Flow Statement, on the cash flows for the
year ended on that date.
annexures referred to in PARA 1 of the auditor's report to the members
of crew b.o.s. products limited accounts for THE YEAR ENDED MARCH 31st,
2012
1) a) The Company has generally maintained proper records
showing full particulars including quantitative details and situation
of Fixed Assets. As confirmed by the Management the records are being
compiled for all assets owned by the Company.
b) The Management has occasionally physically verified the fixed assets
and no materal discrepancies are reported to have been observed on such
verification as compared to book records.
c) In our opinion, and according to the information and explanations
given to us, the company has not disposed off a substantial part of
fixed assets during the year and therefore paragraph 4(i) (c) of the
Companies (Auditor's Report) Order, 2003 (hereinafter referred to as
the Order) is not applicable.
2) a) The Inventory has been occasionally physically verified
during the year by the Management and Auditors appointed by the bankers
from whom the company is enjoying various credit facilities. In our
opinion the frequency of verification needs to be increased in view of
the size and nature of its business. The physical stock at the year end
has been taken and valued as certified by Management.
b) In our opinion, the procedures of physical verification of inventory
followed by the Management need better scientific method and more
frequent in relation to the size of the company and the nature of its
business besides also involving internal Auditors as part of their
scope.
c) On the basis of our examination of the inventory records, in our
opinion, the company needs to implement a proper ERP System for
improvement of inventory records. As confirmed by the Management the
discrepancies noticed on physical verification of inventory compared to
book records / erstwhile ERP System used by the Company, have been
dealt with.
3) The Company has granted interest free unsecured loans/ advances to
nine parties covered in the register maintained under section 301 of
the Act, aggregating to Rs 1799.82 Lakhs. The terms and conditions
thereof are prejudicial to the interest of the company to the extent of
interest paid by the company to its bankers for funds borrowed from
them. The company has taken interest free unsecured, loans/advances
from five parties covered in the register maintained under section 301
of the Act, aggregating to Rs. 1684.40 Lakhs. The terms and conditions
thereof are generally not prima facie prejudicial to the interest of
the company
4) In our opinion, and according to information and explanations given
to us and as seen in Internal Audit Reports, there are scope for
improvement in internal control procedure commensurate with the size of
the Company and the nature of its business for the purchase of stores &
spare parts, fixed assets, and with regard to sale of products and
maintaining records in accounts thereof.
5) The transactions that need to be entered into a register in
pursuance of section 301 of the Companies Act have been entered.
According to the information and explanations given
to us, purchase of goods and sale of services aggregating during the
year to Rs. 5,00,000/- or more in respect of a party in pursuance of
contracts or arrangements entered into the register maintained under
section 301 of the Companies Act, 1956 have been made at prices which
are reasonable having regard to prevailing market prices at the
relevant time for such goods.
6) In our opinion and according to information and explanations given
to us the Company has not accepted any deposits from the public.
7) in our opinion the Company has an internal audit system that is
commensurate with the size and nature of its business. The company
needs to increase the scope of internal Auditors including physical
stock verification, which will help enhance the control.
8) The company has not maintained the cost records as per the
requirement of clause (d) of sub - section (1) of Section 209 of the
Companies Act, 1956.
9) In our opinion and according to the information and explanations
given to us, the company is not regular in depositing undisputed
statutory dues including Provident Fund, employees' state insurance,
investor education and protection fund, income tax, sales tax, wealth
tax, service tax, custom duty, excise duty ,cess, and other statutory
dues, as applicable to its activities, with appropriate authorities.
The arrears of outstanding statutory dues as at 31st March, 2012 for a
period of more than six months from the date they became payable are as
under:-
S. Particulars Amount
No. (Rs. in Lacs)
1 ESi-FY 2011-12 53.46
2 Provident Fund-FY 2011-12 129.72
3 Self Assessment Tax-AY- 2011-12 1524.64
4 TDS other than Salary-FY 2011-12 77.40
5 TDS Salary-FY 2011-12 32.73
6 Excise Duty-FY 2011-12 10.53
TOTAL 1828.48
As explained to us, the Company did not have any dues on
account of investor education and protection fund.
According to the records of the Company, following are the
disputed liabilities of the Company. The Company has not
made the provision for the same in its books of accounts and
the amount paid has been shown under Loans & Advances.
Name of Nature Amount Period to Forum Amount
Statute of Dues (Rs.in which the where paid against
Lakhs) amount dispute
is Demand
relates pending (Rs. in
Lakhs)
income
Tax income 31.01 AY 2005-06 ITAT(New 31.01
Act,
1961 Tax Delhi)
income
Tax income 50.14 AY 2006-07 ITAT (New 50.14
Act, 1961 Tax Delhi)
10) The company has neither accumulated losses as at the end of the
financial year nor it incurred cash losses in the current financial
year as well as in the immediately preceding financial year.
11) Based on our audit procedures and as per the information and
explanations given by the management, the Company has defaulted in
repayment of loans and interest to following banks and financial
institutions as at 31st March, 2012.
Overdue
Bank/Financial
Institution Interest Principal Total Period of Overdue
Working Capital
- IDBI Bank Ltd 17,837,117 17,837,117 From Oct, 2011
- Bank of Baroda 1,135,479 1,135,479 March, 2012
- State Bank
of India 4,318,570 50,039,328 54,357,898 March, 2012 &
Overdue in
principal due to LC
devolvement
- Allahabad
Bank 5,579,680 5,579,680 March, 2012
- Bank of India 4,513,133 4,513,133 Feb & March, 2012
-SiDBi 11,270,629 For the year
- DBS 127,223,468 For the year
Term Loan
- HSiiDC Limited 4,178,503 4,178,503 For the quarter
ended Jan, 2012
- Bank Of Baroda 2,291,218 2,291,218 March, 2012
- Citi Bank
ECB Loan 1,763,611 32,389,274 34,152,885 For the quarter
ended December,
2011 and March,
2012
-iFCi Factors
Limited 4,163,737 4,163,737 March, 2012
-Karvy Financial
Services Limited 228,887 228,887 March, 2012
TOTAL 41,846,198 225,086,436
Delays were noticed in payment of interest & principal on several
occasions during the year. The company has not issued any debentures.
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 and therefore paragraph 4(xii)of the Order is not
applicable.
13) In our opinion and according to the information and explanations
given to us, the provisions of any special statute applicable to chit
fund and nidhi/mutual benefit fund/society are not applicable to the
company and therefore paragraph 4(xiii) of the Order is not applicable.
14) The company is not dealing or trading in shares, securities and
debentures, therefore paragraph 4(xiv) of the Order is not applicable.
15) According to the records of the company and the information and
explanations provided by the management, the company has given
guarantees aggregating to USD 25 Million and INR 600.00 Lacs to the
bankers of its overseas and Indian WOS respectively for loans taken by
them from banks. The company's operations may substantially be affected
in case of encashment of guarantee by their bankers due to default by
these overseas subsidiaries.
16) The company has availed term loans from a bank/financial
institutions. According to the information and explanation given and in
our opinion these term loans were applied for the purpose for which the
loans were obtained.
17) According to the information & explanations given to us and based
on examination of documents & records made available, we are of the
opinion that fund raised on short term basis have prima facie not
beeing used: during the year for long term investment.
18) According to the information and explanations given to us, the
company has not made any preferential allotment of shares during the
year to parties and companies covered in the Register maintained under
section 301 of the Companies Act, 1956 except conversion of share
warrants when paid in same as per share warrant conditions within SEBI
Guidelines, and therefore paragraph 4(xviii) of the Order is not
applicable.
19) The company has not issued any debentures during the year and
therefore paragraph 4(xix) of the Order is not applicable.
20) During the year under review, no money was raised by public issue
except receipt of money against share warrants as per their issue terms
and as such disclosure of end use of money raised is not applicable.
21) During the course of our examination of the books and records of
the company, carried out 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 nor reported during year nor we
have been informed of such case by the Management, however since some
of the material transactions remain un- confirmed the probability
thereof cannot be ruled out altogether.
For ANIL K. GOYAL & ASSOCIATES
Chartered Accountants
(Firm Reg. No. 04558N)
Sd/-
(V.P. Sony)
Place: New Delhi Partner
Date : 29th May, 2012 Membership No. 86718
Mar 31, 2011
We have audited the attached Balance Sheet of Crew B.O.S. Products
Limited, as at 31st March, 2011 and Profit & Loss Account and 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 misstatements. 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.
1. As required by the Companies (Auditors report) Order, 2003 issued
by the Central Government of India in terms of Section 227(4A) of the
Companies Act, 1956, we annex hereto a statement on the maters
specified in paragraph 4 & 5 of the said order.
2. Further to our comments in the annexure referred to in paragraph 1
above :- 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 the
books.
c) The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account.
d) In our opinion, subject to note number 18 regarding short provision
for bonus, note number 22 regarding no provision for write-of of loans
& investment made in non functional joint venture company, note no. 17
regarding non provision for wealth tax liability the Balance Sheet,
Profit and Loss Account and Cash Flow Statement dealt with by the
Report 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, 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 our opinion and to the best of our knowledge and information and
according to the explanations given to us, the accounts give the
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 state of affairs of the Company as at March 31st,
2011.
(ii) In the case of the Profit & Loss Account of the Profit for the
year ended on that date.
(iii) in the case of the Cash Flow Statement, on the cash flows for the
year ended on that date.
ANNEXURES REFERRED TO IN PARA 1 OF THE AUDITOR'S REPORT TO THE MEMBERS
OF CREW B.O.S. PRODUCTS LIMITED ACCOUNTS FOR THE YEAR ENDED MARCH 31ST,
2011
1) a) the Company has generally maintained proper records showing full
particulars including quantitative details and situation of Fixed
Assets. The records are being compiled for all assets owned by the
Company.
b) The management has occasionally physically verified the Fixed Assets
and no material discrepancies are reported to have been observed on
such verification as compared to book records.
c) In our opinion, and according to the information and explanations
given to us, the company has not disposed of a substantial part of
fixed assets during the year and therefore paragraph 4(i) (c) of the
Companies (Auditor's Report) Order, 2003 (hereinafter referred to as
the Order) is not applicable.
2) a) The Inventory has been physically verified during the year by the
management and auditors appointed by the bankers from whom the company
is enjoying various credit facilities. We have relied on the stock
audit report submitted by the management and auditors to the bankers
certifying the stock value figure. In our opinion the frequency of
verification is reasonable.
b) In our opinion, the procedures of physical verification of inventory
followed by the Management are reasonable and adequate in relation to
the size of the company and the nature of its business.
c) On the basis of our examination of the inventory records, in our
opinion, the company is maintaining proper records of inventory. The
discrepancies noticed on physical verification of inventory as compared
to book records have been dealt with.
3) The Company has granted interest free unsecured loans/ advances to
seven parties covered in the register maintained under section 301 of
the Act, aggregating to Rs 2097.86 Lakhs. The terms and conditions
thereof are generally not prejudicial to the interest of the company.
The company has taken interest free unsecured, loans/advances from
eight parties covered in the register maintained under section 301 of
the Act, aggregating to Rs. 933.42 Lakhs. The terms and conditions
thereof are generally not prejudicial to the interest of the company
4) In our opinion, and according to information and explanations given
to us, there are adequate internal control procedure commensurate with
the size of the Company and the nature of its business for the purchase
of stores & spare parts, fixed assets , and with regard to sale of
products and there are no major internal control weaknesses in regard
thereto.
5) The transactions that need to be entered into a register in
pursuance of section 301 of the Companies Act have been entered.
According to the information and explanations given to us, purchase of
goods and sale of services aggregating during the year to Rs.
5,00,000/- or more in respect of a party in pursuance of contracts or
arrangements entered into the register maintained under section 301 of
the Companies Act, 1956 have been made at prices which are reasonable
having regard to prevailing market prices at the relevant time for such
goods.
6) During the year Company has taken unsecured interest free short-term
loans of Rs. 149.50 lakhs from a Society. Necessary compliances for
loans were not done since above loan was taken for the purpose of
purchase of plant & machinery and for incurring expenses on behalf of
the society.
7) in our opinion the Company has an internal audit system that is
commensurate with the size and nature of its business.
8) The company is still in the process of compiling the cost records as
per the requirement of clause (d) of sub à section (1) of Section 209
of the Companies Act, 1956.
9) In our opinion and according to the information and explanations
given to us, the company is generally regular in depositing undisputed
statutory dues including Provident Fund, employees' state insurance,
investor education and protection fund, income tax, sales tax, wealth
tax, service tax, custom duty, excise duty ,cess, and other statutory
dues, as applicable to its activities, with appropriate authorities.
There are no arrears of outstanding statutory dues as at 31st March,
2011 for a period of more than six months from the date they became
payable except undisputed Tax liability of Rs. 266.32 Lakhs towards
Income Tax and Fringe Benefit Tax for FY 2008- 09 and Rs. 681.89 Lakhs
towards Income Tax for FY 2009-10. As explained to us, the Company did
not have any dues on account of investor education and protection fund.
According to the records of the Company, following are the disputed
liabilities of the Company. The Company has not made the provision for
the same in its books of accounts.
Name of Nature Amount Period Forum Amount
Statute of Dues (Rs.in to which where paid against
Lakhs) the dispute is Demand
amount pending (Rs. in
relates Lakhs)
income income 16.64 AY 2003- itat 16.64
tax Act, tax 04 (new
1961 delhi)
income income 31.01 AY 2005- itat 31.01
tax Act, tax 06 (new
1961 delhi)
income income 50.14 AY 2006- itat (new 50.14
tax Act, tax 07 delhi)
1961
10) the company has neither accumulated losses as at the end of the
financial year nor it incurred cash losses in the current financial
year as well as in the immediately preceding financial year.
11) According to the records of the company examined by us and the
information and explanations given to us, the Company has not defaulted
in repayment of dues to any financial institutions or bank.
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 and therefore paragraph 4(xii)of the Order is not
applicable.
13) In our opinion and according to the information and explanations
given to us, the provisions of any special statute applicable to chit
fund and nidhi/mutual benefit fund/society are not applicable to the
company and therefore paragraph 4(xiii) of the Order is not applicable.
14) The company is not dealing or trading in shares, securities and
debentures, therefore paragraph 4(xiv) of the Order is not applicable.
15) According to the records of the company and the information and
explanations provided by the management, the company has not given any
guarantee for loans taken by others from banks or financial
institutions.
16) The company has availed term loans from a bank/financial
institutions. According to the information and explanation given and in
our opinion these term loans were applied for the purpose for which the
loans were obtained.
17) According to the information & explanations given to us and based
on examination of documents & records made available, we are of the
opinion that the company has not used funds raised on short term basis
for long term investments and vice versa.
18) According to the information and explanations given to us, the
company has not made any preferential allotment of shares during the
year to parties and companies covered in the Register maintained under
section 301 of the Companies
Act, 1956 and therefore paragraph 4(xviii) of the Order is not
applicable.
19) The company has not issued any debentures during the year and
therefore paragraph 4(xix) of the Order is not applicable.
20) During the year under review, no money was raised by public issue
and as such disclosure of end use of money raised is not applicable.
21) During the course of our examination of the books and records of
the company, carried out 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 nor reported during year nor we
have been informed of such case by the Management.
For ANIL K. GOYAL & ASSOCIATES
Chartered Accountants
Sd/-
(ANIL K. GOYAL)
Partner
Membership No. 71221
Firm Reg. No. 004558N
Place : new Delhi
Date : 28th May, 2011
Mar 31, 2010
We have audited the attached Balance Sheet of Crew B.O.S. Products
Limited, as at 31st March, 2010 and Profit & Loss Account and Cash
Flow Statement for the year ended on that date annexed thereto.
These financial statements are the responsibility of the Companys
Management. Our responsibility is to express an opinion on these
financial statements based on our audit.
we conducted our audit in accordance with 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
misstatements. 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.
1. As required by the Companies (Auditors report) Order, 2003
issued by the Central Government of India in terms of Section
227(4A) of the Companies Act, 1956, we annex hereto a
statement on the maters specified in paragraph 4 & 5 of the
said order.
2. Further to our comments in the annexure referred to in
paragraph 1 above :-
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 the books.
c) The Balance Sheet, Profit and Loss Account and Cash Flow
Statement dealt with by this report are in agreement with
the books of account.
d) In our opinion, subject to note number 17 regarding
non provision of gratuity liability and note number 18
regarding short provision for bonus the Balance Sheet,
Profit and Loss Account and Cash Flow Statement dealt
with by the Report 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, 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) In our opinion and to the best of our knowledge and
information and according to the explanations given to
us, the accounts give the 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 state of
affairs of the Company as at March 31st, 2010.
(ii) In the case of the Profit & Loss Account of the profit
for the year ended on that date.
(iii) In the case of the Cash Flow Statement, on the cash
flows for the year ended on that date.
Annexures Referred to in PARA 1 of THE AuDITORS REPORT To THE
Members of CREW B.O.S. Products Limited Accounts for the Year
Ended March 31st, 2010
1) a) the Company has generally maintained proper records
showing full particulars including quanttative details and
situation of Fixed Assets. The records are being compiled
for all assets owned by the Company.
b) The management has occasionally physically verified the
Fixed Assets and no material discrepancies are reported
to have been observed on such verifcation as compared
to book records.
c) In our opinion, and according to the information and
explanations given to us, the company has not disposed
of a substantial part of fixed assets during the year and
therefore paragraph 4(i) (c) of the Companies (AuditorÃs
Report) Order, 2003 (hereinafter referred to as the Order)
is not applicable.
2) a) The Inventory has been physically verified during the
year by the management and auditors appointed by the
bankers from whom the company is enjoying various
credit facilities. we have relied on the stock audit report
submitted by the management and auditors to the
bankers certifying the stock value figure as on March
31st, 2010. In our opinion the frequency of verifcation is
reasonable.
b) In our opinion, the procedures of physical verifcation of
inventory followed by the management are reasonable
and adequate in relation to the size of the company and
the nature of its business.
c) On the basis of our examination of the inventory records,
in our opinion, the company is maintaining proper records
of inventory. The discrepancies noticed on physical
verifcation of inventory as compared to book records
have been dealt with.
3) The Company has granted interest free unsecured loans/ advances to
ten parites covered in the register maintained under section 301 of the
Act, aggregating to Rs 695.81 Lakhs. The terms and conditions thereof
are generally not prejudicial to the interest of the company. the
company has taken interest free unsecured, loans/advances from three
partes covered in the register maintained under section 301 of the Act,
aggregating to Rs. 65.14 Lakhs. The terms and conditions thereof are
generally not prejudicial to the interest of the company
4) In our opinion, and according to information and explanations given
to us, there are adequate internal control procedure commensurate with
the size of the Company and the nature of its business for the purchase
of stores & spare parts, fixed assets , and with regard to sale of
products and there are no major internal control weaknesses in regard
thereto.
5) The transactions that need to be entered into a register in
pursuance of section 301 of the Companies Act have been entered.
According to the information and explanations given to us, purchase of
goods and sale of services aggregating during the year to Rs.
5,00,000/- or more in respect of a party in pursuance of contracts or
arrangements entered into the register maintained under section 301 of
the Companies Act, 1956 have been made at prices which are reasonable
having regard to prevailing market prices at the relevant time for such
goods.
6) During the year Company has taken unsecured interest free short-term
loans of Rs. 2 lakhs from a Society. Necessary compliances for loans
were not done since these stands squared-up during the same financial
year
7) In our opinion the Company has an internal audit system that is
commensurate with the size and nature of its business.
8) The company is still in the process of compiling the cost records as
per the requirement of clause (d) of sub à section (1) of Section 209
of the Companies Act, 1956.
9) In our opinion and according to the information and explanations
given to us, the company is generally regular in depositing undisputed
statutory dues including Provident Fund, employeesà state insurance,
investor education and protection fund, income tax, sales tax, wealth
tax, service tax, custom duty, excise duty,cess, and other statutory
dues, as applicable to its activites, with appropriate authorities.
There are no arrears of outstanding statutory dues as at 31st March,
2010 for a period of more than six months from the date they became
payable except undisputed Tax liability of Rs266.32Lakhs (including
Fringe Benefit Tax for the financial year 2008 -09 as per income tax
return filed.. As explained to us, the Company did not have any dues on
account of investor education and protection fund.
The Company has disputed Income Tax Liability of Rs. 18.95 Lakhs
(Deposit Rs 18.95 Lakhs) for financial year 2002-03, Rs. 31.01 Lakhs
(Deposit Rs 31.01 Lakhs) relating to financial year 2004-05 and Rs.
32.07 Lakhs (Deposit Rs 32.07 Lakhs) relating to financial year 2005-06
which have not been provided for being to be contested in appeal.
10) the company has neither accumulated losses as at the end of the
financial year nor it incurred cash losses in the current financial
year as well as in the immediately preceding financial year.
11) According to the records of the company examined by us and the
information and explanations given to us, the Company has not defaulted
in repayment of dues to any financial insttutions or bank.
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 and therefore paragraph 4(xii)of the Order is not
applicable.
13) In our opinion and according to the information and explanations
given to us, the provisions of any special statute applicable to chit
fund and nidhi/mutual benefit fund/society are not applicable to the
company and therefore paragraph 4(xiii) of the Order is not applicable.
14) The company is not dealing or trading in shares, securities and
debentures, therefore paragraph 4(xiv) of the Order is not applicable.
15) According to the information and explanations given to us, the
company has given a guarantee on behalf of its JV Company- Centre of
Excellence In Design Limited for loans amounting to Rs. 560 Lakhs
sanctioned from a bank during the year. The company holds 50%
shareholding in this JV Company.
16) The company has availed term loans from a bank/financial
insttutions. According to the information and explanation given and in
our opinion these term loans were applied for the purpose for which the
loans were obtained.
17) According to the information & explanations given to us and based
on examination of documents & records made available, we are of the
opinion that the company has not used funds raised on short term basis
for long term investments and vice versa.
18) During the year the company has made preferential allotment of
warrants convertible into equity shares on private placement basis to
partes and Companies covered in the register maintained u/s 301 of the
Companies Act 1956 as per SEBI Guidelines.
19)The company has not issued any debentures during the year and
therefore paragraph 4(xix) of the Order is not applicable.
20) During the year under review, no money was raised by public issue
and as such disclosure of end use of money raised is not applicable.
21) During the course of our examination of the books and records of
the company, carried out 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 nor reported during year nor we
have been informed of such case by the management.
for ANIL K. GOYAL & ASSOCIATES
Chartered Accountants
Sd/-
(ANIL K. GOYAL)
proprietor
membership no. 71221
Firm Reg. No. 004558N
place : new Delhi
Date : 25 May, 2010
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