Mar 31, 2014
We have audited the accompanying financial statements of Crimson Metal
Engineering Company Limited (the Company), which comprise the Balance
Sheet as at March 31, 2014, 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 Company''s Management is responsible for the preparation of these
financial statements that give a true and fair view of the financial
position, financial performance and cash flows of the Company in
accordance with the Accounting Standards notified under 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 and in accordance with the
accounting principles generally accepted in India. This responsibility
includes the design, implementation and maintenance of internal control
relevant to the preparation and presentation of the financial
statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
AUDITORS'' RESPONSIBILITY
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the effectiveness of the Company''s
internal control. An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of the accounting
estimates made by management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our 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:
(a) In the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2014;
(b) In the case of the Statement of Profit and Loss, of the profit of
the Company for the year ended on that date; and
(c) In the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
1. As required by the Companies (Auditor''s Report) Order, 2003 (the
Order) issued by the Central Government of India in terms of Section
227(4A) of the Act, we give in the Annexure a statement on the matters
specified in paragraphs 4 and 5 of the Order.
2. As required by Section 227(3) of the Act, we report that:
a. We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b. In our opinion, proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books.
c. The Balance Sheet, 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 Accounting Standards notified
under 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
e. On the basis of the written representations received from the
directors as on March 31, 2014, taken on record by the Board of
Directors, none of the directors is disqualified as on March 31, 2014,
from being appointed as a director in terms of Section 274(1)(g) of the
Act.
The Annexure referred to in paragraph 1 of the Our Report of even date
to the members of CRIMSON METAL ENGINEERING COMPANY Limited on the
accounts of the company for the year ended 31st March, 2014.
On the basis of such checks as we considered appropriate and according
to the information and explanation given to us during the course of our
audit, we report that:
1. (a) The company has maintained proper records showing full
particulars including quantitative details and situation of its fixed
assets.
(b) As explained to us, fixed assets have been physically verified by
the management at reasonable intervals; no material discrepancies were
noticed on such verification.
(c) In our opinion the Company has not disposed off a substantial part
of its fixed assets during the year and the going concern status of the
Company is not affected.
2. (a) As explained to us, inventories have been physically verified
during the year by the management at reasonable intervals.
(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) In our opinion and on the basis of our examination of the records,
the Company is generally maintaining proper records of its inventories.
No material discrepancy was noticed on physical verification of stocks
by the management as compared to book records.
3. (a) According to the information and explanations given to us and
on the basis of our examination of the books of account, the Company
has not granted any loans, secured or unsecured, to companies, firms or
other parties listed in the register maintained under Section 301 of
the Companies Act, 1956. Consequently, the provisions of clauses iii
(b), iii(c) and iii (d) of the order are not applicable to the Company.
(b) According to the information and explanations given to us and on
the basis of our examination of the books of account, the Company has
taken loans from a individual of Rs. 0.31Lakhs covered in the register
maintained under Section 301 of the Companies Act, 1956.
(c) In our opinion, the rate of interest and other terms and conditions
on which loans have been taken from an individual covered in the
register maintained under section 301 of the Companies Act,1956 are
not, prima facie, prejudicial to the interest of the company.
(d) The company is regular in repaying the principal amount as
stipulated and has been regular in the payment of interest.
4. In our opinion and according to the information and explanations
given to us, there is generally an adequate internal control procedure
commensurate with the size of the company and the nature of its
business, for the purchase of inventories & fixed assets and payment
for expenses & for sale of goods. During the course of our audit, no
major instance of continuing failure to correct any weaknesses in the
internal controls has been noticed.
5. a) Based on the audit procedures applied by us and according to the
information and explanations provided by the management, the
particulars of contracts or arrangements referred to in section 301 of
the Act have been entered in the register required to be maintained
under that section.
b) As per information & explanations given to us and in our opinion,
the transaction entered into by the company with parties covered u/s
301 of the Act does not exceeding five lakhs rupees in financial year
therefore requirement of reasonableness of transactions does not
arises.
6. According to the explanation & information given to us, the Company
has not accepted any deposits from the public. Therefore, the
provisions of Clause (vi) of paragraph 4 of the order are not
applicable to the Company.
7. As per information & explanations given by the management, the
Company has an internal audit system commensurate with its size and the
nature of its business.
8. We have broadly reviewed the cost records maintained by the Company
pursuant to the Companies (Cost Accounting Records) Rules, 2011
prescribed by the Central Government under Section 209(1)(d) of the
Companies Act,1956 and are of the opinion that prima facie the
prescribed cost records have been maintained. We have, however, not
made a detailed examination of the cost records with a view to
determine whether they are accurate or complete.
9. (a) According to the records of the company, undisputed statutory
dues including Provident Fund, Investor Education and Protection Fund,
Employees'' State Insurance, Income-tax, Sales-tax, Wealth Tax, Service
Tax, Custom Duty, Excise Duty, cess to the extent applicable and any
other statutory dues have generally been regularly deposited with the
appropriate authorities.
(b)According to the information and explanations given to us there were
no undisputed amounts payable in respect of income tax, wealth tax,
service tax, sales tax, customs duty and excise duty and cess were in
arrears as on 31st of March, 2014 for a period of more than six months
from the date they became payable.
10. The Company has an accumulated loss of Rs225.31lakhs and has not
incurred cash loss during the financial year covered by our audit and
in the immediate preceding financial year.
11. Based on our audit procedures and on the information and
explanations given by the management, we are of the opinion that, the
Company has not defaulted in repayment of dues to a financial
institution, bank or debenture holders.
12. According to the information and explanations given to us, the
Company has not granted loans and advances on the basis of security by
way of pledge of shares, debentures and other securities.
13. The Company is not a chit fund or a nidhi /mutual benefit
fund/society. Therefore, the provision of this clause of the Companies
(Auditor''s Report) Order, 2003 (as amended) is not applicable to the
Company.
14. According to information and explanations given to us, the Company
is not trading in Shares, Mutual funds & other Investments, therefore
the provision of this clause of the company auditors'' (report) order,
2003 (as amended) is not applicable to the company.
15. According to the information and explanations given to us, the
Company has not given any guarantees for loan taken by others from a
bank or financial institution.
16. Based on our audit procedures and on the information given by the
management, we report that the company has not raised any term loans
during the year.
17. Based on the information and explanations given to us and on an
overall examination of the Balance Sheet of the Company as at 31st
March, 2014, we report that no funds raised on short-term basis have
been used for long-term investment by the Company.
18. Based on the audit procedures performed and the information and
explanations given to us by the management, we report that the Company
has not made any preferential allotment of shares during the year.
19. The Company has not issue any debenture till date. Hence the
Provision of Clause 19 of the paragraph 4 of the order is not
applicable to the company.
20. The Company has not raised any money by public issue during the
year.
21. Based on the audit procedures performed and the information and
explanations given to us, we report that no fraud on or by the Company
has been noticed or reported to us during the year under report.
For ABHAY JAIN & CO.,
Chartered Accountants
FRN : 000008S
(A.K. JAIN)
Place : Chennai Partner
Date : 30.05.2014 M. No. 70224
Mar 31, 2011
1. We have audited the attached Balances Sheet of M/S.CRIMSON METAL
ENGINEERING COMPANY LIMITED (Formerly Known as SRI SAARBATI STEEL TUBES
LIMITED), as at 31st March 2011 and also the Profit & Loss Account and
Cash Flow Statement 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 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.
3. As required by the Companies (Auditor's Report) Order, 2003 issued
by the Central Government of India in terms of section 227(4A) of the
Companies Act, 1956. and on the basis of such checks as we considered
appropriate and according to information and explanation given to us,
we setout in the annexure a statement on the matters specified in
paragraph 4 and 5 of the said order.
4. 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 the
audit.
b) In our opinion proper books of accounts as required by Law have been
kept by the company, so far as appears from our examination of those
books.
c) The Balance Sheet and Profit & Loss Account and cash flow statement
dealt with by this report are in agreement with the books of account.
d) In our opinion, the Balance Sheet, Profit & Loss account and cash
flow statement dealt with by this report have been prepared, in all
material respects, in compliance with the applicable Accounting
Standards referred to in section 211(3C) of the Companies Act, 1956.
e) On the basis of the written representations received from the
directors and taken on record by the Board of Directors, none of the
directors is disqualified as 31st march 2011 from being appointed as a
director in terms section 274(1)(g) of the Companies Act 1956.
f) As stated in Note to accounts Point no 13 company has reduced its
share capital to 40% to Rs.20353500 and share premium of Rs. 39088375
has been set off against accumulated losses. Subject to this, In our
opinion and to the best of our information and according to the
explanations given to us, the said accounts give the information
required by the Companies Act, 1956, in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India:
(i) In the case of the Balance Sheet of the state of affairs of the
company as at 31st March, 2011; and
(ii) In the case of Profit and Loss Account, of the profit for the year
ended on that date.
(iii) In the case of the Cash Flow Statement, of the cash flow for the
year ended on that date.
ANNEXURE REFERRED TO IN PARAGRAPH 3 OF OUR REPORT OF EVEN DATE TO THE
MEMBERS OF M/S. CRIMSON METAL ENGINEERING COMPANY LIMITED (Formerly
known as SRI SAARBATI STEEL TUBES LIMITED), CHENNAI, THE ACCOUNT FOR
THE YEAR ENDED ON 31st MARCH, 2011.
(i)(a) The Company records showing full particulars including
quantitative details and situation of Fixed Assets have been lost and
an FIR has been filed on 03.08.2003 in that regard. It was explained
to us that record from 01.04.2003 is being made. Further, the Company
is taking efforts to make the records of Fixed Assets for earlier
period as much as possible.
(b) Some of the Fixed Assets were physically verified by the management
randomly during the year in accordance with a programme of verification
which, in our opinion, provides for physical verification of all assets
at reasonable intervals. According to information and explanations
given to us, no material discrepancies were noticed on such
verification.
(c) None of the Fixed Assets have been revalued during the year.
(ii) (a) The Inventories of the company at its locations have been
physically verified during the year by the management.
(b) In our opinion the procedures of physical verification of
inventories 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 and the
discrepancies noticed on verification between the physical stocks and
the book records have been properly dealt with in the books of account.
(iii) (a) The company has taken loans secured or unsecured from an
individual and two of the Corporate bodies for Rs.8.87 Crores.The
Maximum amount involved during the year was Rs.12.34 Crores.
(b) As explained to us that Loans so taken is interest free and none of
the conditions on which loan has been accepted is prejudicial to the
interest of the company except the loan taken from Anudeep Towers (P)
Ltd.The rate of Interest so paid is not prejudicial to the interest of
the company.
(c) The company is regularly paying the principal amount as
stipulated.
(d) There is no overdue amount of loan taken from parties listed in
the register maintained under section 301 of the Companies Act ,1956.
(iv) In our opinion and according to the information and explanation
given to us, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business with regard to the purchase of inventories, fixed assets and
sale of goods. During the course of our audit, we have not observed
any continuing failure to correct major weakness in internal Controls.
(v) (a) According to the information and explanations given to us, we
are of the opinion that the transactions that need to be entered into
the register maintained under section 301 of Companies Act, 1956 have
been so entered.
(b) In our opinion and according to the information and explanations
given to us, the transaction made in pursuance of contracts or
arrangements entered in the register maintained under section 301 of
the Companies Act, 1956 and exceeding the value of five lakhs rupees in
respect of any party covered during the year have been made at prices
which are reasonable having regard to prevailing market prices at the
relevant time.
(vi) The company has not accepted any fixed deposits from the public
during the year.
(vii) In our opinion, the company has an internal audit system
commensurate with the size and nature of its business.
(viii) We have already broadly reviewed the books of account 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 under section 209 (I ) (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. However,
we have not carried out detailed examination of such accounts and
records.
(ix) (a) The company is regular in depositing with appropriate
authorities undisputed statutory dues including investor's education
protection fund, Income Tax, Wealth Tax, customs duty, excise duty,cess
and other material statutory dues applicable to it. However some
delays were there in payment of provident fund, Employee state
insurance during the year.
(b) According to the information and explanation given to us, the
details of disputed sales tax, income tax, customs duty, wealth tax,
service tax, excise duty and cess which have not been deposited as on
31 st March 2011 on account of dispute are given below:
Nature of Nature of Amount Period to which Forum where
Statute Dues (Rs in the amount the dispute is
Lacs) relates Asst. pending
Years
Sales Tax Sales Tax 1.5 Interest for the Sales tax
Act year 1992-93 Department
for waiver
of interest
as per BIFR
order
Dt.30.6.2011
Sales Tax Sales Tax 0.6 Interest for the - do -
Act year 1993-94
Sales Tax Sales Tax 9.3 Interest for the - do -
Act year 2002-03
Sales Tax Sales Tax 2.7 Interest for the - do -
Act year 2003-04
Sales Tax Sales Tax 0.38 Interest for the - do -
Act year 2004-05
Sales Tax Sales Tax 0.66 Interest for the - do -
Act year 2005-06
Sales Tax Sales Tax 0.9 Interest for the - do -
Act year 2001-02
Sales Tax Sales Tax 0.05 Interest for the - do -
Act year 2002-03
Sales Tax Sales Tax 0.51 CST not allowed - do -
Act
(x) The accumulated losses of the company exceed fifty percent of net
worth at the end of the year. The company has not incurred cash loss
during immediately preceding financial year.
(xi) In our Opinion and according to information and explanation given
to us , there were no amounts due to a Financial Institution, Banks or
Debenture Holders.As such Provision of clause 4(xi) of the company
(Auditor's Report) Order 2003 are not applicable to the company..
(xii) The company has not granted any loan 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 or a nidhi/mutual
benefit/society. Therefore, the provision of clause 4 (xiii) of the
companies (Audit Report) Order 2003, are not applicable to the company.
(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 (xiii) of the companies (Audit Report) Order
2003, are not applicable to the company.
(xv) The company has not given any guarantee for loans taken by others
from banks or financial institutions.
(xvi) According to the information and explanation given to us no terms
loans raised by the company during the year.
(xvii) According to the information and explanations given to us and an
overall examination of the balance sheet of the company, we report that
no funds raised on short term basis have been used for long term
investment. No long term funds have been used to finance short term
assets except permanent working capital.
(xviii)According to the information and explanations given to us, BIFR
has ordered to the Company for preferential allotment of 2392857 equity
shares of Rs.10/- each at a premium of Rs.4/- to parties and companies
covered in the register maintained under section 301 of the Act. The
Company has preferentially allotted shares accordingly.
(xix) According to the information and explanations given to us, during
the period covered by our audit report, the company has not issued any
debentures.
(xx) We verified the books of accounts of the company and report that
the company has not raised any money by public issue during the year.
(xxi) According to the information and explanations given to us, no
fraud on or by the company has been noticed or reported during the
course of our audit.
For ABHAY JAIN & CO.,
Chartered Accountants
(A.K. JAIN)
Partner
M. No. 70224
FRN : 000008 S
Place : Chennai
Date : 03.09.2011
Mar 31, 2010
1. We have audited the attached Balances Sheet of M/S.CRIMSON METAL
ENGINEERING COMPANY LIMITED (Formerly Known as SRI SAARBATI STEEL TUBES
LIMITED), as at 31st March 2010 and also the Profit & Loss Account and
Cash Flow Statement of the companyÃs Management. Our responsibility is
to express an opinion on these financial statements based on our audit.
2. 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.
3. 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. and on the basis of such checks as we considered
appropriate and according to information and explanation given to us,
we setout in the annexure a statement on the matters specified in
paragraph 4 and 5 of the said order.
4. 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 the
audit.
b) In our opinion proper books of accounts as required by Law have been
kept by the company, so far as appears from our examination of those
books.
c) The Balance Sheet and Profit & Loss Account and cash flow statement
dealt with by this report are in agreement with the books of account.
d) In our opinion, the Balance Sheet, Profit & Loss account and cash
flow statement dealt with by this report have been prepared, in all
material respects, in compliance with the applicable Accounting
Standards referred to in section 211(3C) of the Companies Act, 1956.
e) On the basis of the written representations received from the
directors and taken on record by the Board of Directors, none of the
directors is disqualified as 31st march 2010 from being appointed as a
director in terms 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 accounts give the information
required by the Companies Act, 1956, in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India:
(i) In the case of the Balance Sheet of the state of affairs of the
company as at 31st March, 2010; and
(ii) In the case of Profit and Loss Account, of the profit for the year
ended on that date.
(iii) In the case of the Cash Flow Statement, of the cash flow for the
year ended on that date.
ANNEXURE REFERRED TO IN PARAGRAPH 3 OF OUR REPORT OF EVEN DATE TO THE
MEMBERS OF M/S. CRIMSON METAL ENGINEERING COMPANY LIMITED (Formerly
known as SRI SAARBATI STEEL TUBES LIMITED), CHENNAI, THE ACCOUNT FOR
THE YEAR ENDED ON 31st MARCH, 2010.
(i)(a) The Company records showing full particulars including
quantitative details and situation of Fixed Assets have been lost and
an FIR has been filed on 03.08.2003 in that regard. It was explained to
us that record from 01.04.2003 is being made. Further, the Company is
taking efforts to make the records of Fixed Assets for earlier period
as much as possible.
(b) Some of the Fixed Assets were physically verified by the management
randomly during the year in accordance with a programme of verification
which, in our opinion, provides for physical verification of all assets
at reasonable intervals. According to information and explanations
given to us, no material discrepancies were noticed on such
verification.
(c) None of the Fixed Assets have been revalued during the year.
(ii) (a) The Inventories of the company at its locations have been
physically verified during the year by the management.
(b) In our opinion the procedures of physical verification of
inventories 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 and the
discrepancies noticed on verification between the physical stocks and
the book records have been properly dealt with in the books of account.
(iii) (a) The company has taken loans secured or unsecured from an
individual and two of the Corporate bodies for Rs.9.22 Crores. The
Maximum amount involved during the year was Rs.15.84 Crores.
(b) As explained to us that Loans so taken is interest free and none of
the conditions on which loan has been accepted is prejudicial to the
interest of the company except the loan taken from Anudeep Towers (P)
Ltd. The rate of Interest so paid is not prejudicial to the interest of
the company.
( c) The company is regularly paying the principal amount as
stipulated.
( d) There is no overdue amount of loan taken from parties listed in
the register maintained under section 301 of the Companies Act ,1956.
(iv) In our opinion and according to the information and explanation
given to us, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business with regard to the purchase of inventories, fixed assets and
sale of goods. During the course of our audit, we have not observed
any continuing failure to correct major weakness in internal Controls.
(v) (a) According to the information and explanations given to us, we
are of the opinion that the transactions that need to be entered into
the register maintained under section 301 of Companies Act, 1956 have
been so entered.
(b) In our opinion and according to the information and explanations
given to us, the transaction made in pursuance of contracts or
arrangements entered in the register maintained under section 301 of
the Companies Act, 1956 and exceeding the value of five lakhs rupees in
respect of any party covered during the year have been made at prices
which are reasonable having regard to prevailing market prices at the
relevant time.
(vi) The company has not accepted any fixed deposits from the public
during the year.
(vii) In our opinion, the company has an internal audit system
commensurate with the size and nature of its business.
(viii) We have already broadly reviewed the books of account 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 under section 209 (I ) (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. However,
we have not carried out detailed examination of such accounts and
records.
(ix) (a) The company is regular in depositing with appropriate
authorities undisputed statutory dues including investorÃs education
protection fund, Income Tax, Wealth Tax, customs duty, excise duty,cess
and other material statutory dues applicable to it. However some delays
were there in payment of provident fund, Employee state insurance
during the year.
According to the information and explanation given to us, undisputed
amounts payable in respect of sales tax amounts to Rs.3.70 lacs were in
arrears as at 31.03.2010 for a period more than six month from the date
they become payable. The company is paying the arrears in instalments
to sales tax department.
(b) According to the information and explanation given to us, the
details of disputed sales tax, income tax, customs duty, wealth tax,
service tax, excise duty and cess which have not been deposited as on
31 st March 2010 on account of dispute are given below:
Nature of Nature of Amount Period to which Forum
Statute Dues (Rs in the amount where the
Lacs) relates Asst. dispute is
Years pending
Sales Tax Sales Tax 1.5 Interest for the year Salestax Act
1992-93
Department
Sales Tax Sales Tax 0.6 Interest for the year Salestax Act
1993-94 Department
Sales Tax Sales Tax 9.3 Interest for the year Salestax
Act 2002-03 Department
Sales Tax Sales Tax 2.7 Interest for the year Salestax
Act 2003-04 Department
Sales Tax Sales Tax 0.38 Interest for the year Salestax
Act 2004-05 Department
Sales Tax Sales Tax 0.66 Interest for the year Salestax
Act 2005-06 Department
Sales Tax Sales Tax 0.9 Interest for the year Sales Tax
Act 2001-02 Department
Sales Tax Sales Tax 0.05 Interest for the year Sales Tax
Act 2002-03 Department
Sales Tax Sales Tax 0.51 CST not allowed Sales Tax
Act Department
(x) The accumulated losses of the company exceed fifty percent of net
worth at the end of the year. The company has not incurred cash loss
during immediately preceding financial year.
(xi) In our Opinion and according to information and explanation given
to us , there were no amounts due to a Financial Institution, Banks or
Debenture Holders.As such Provision of clause 4(xi) of the company
(Auditors Report) Order 2003 are not applicable to the company.
(xii) The company has not granted any loan 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 or a nidhi/mutual
benefit/society. Therefore, the provision of clause 4 (xiii) of the
companies (Audit Report) Order 2003, are not applicable to the company.
(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 (xiii) of the companies (Audit Report) Order
2003, are not applicable to the company.
(xv) The company has not given any guarantee for loans taken by others
from banks or financial institutions.
(xvi) According to the information and explanation given to us no terms
loans raised by the company during the year.
(xvii) According to the information and explanations given to us and an
overall examination of the balance sheet of the company, we report that
no funds raised on short term basis have been used for long term
investment. No long term funds have been used to finance short term
assets except permanent working capital.
(xviii)According to the information and explanations given to us, the
company has not made preferential allotment of shares to parties and
companies covered in the register maintained under section 301 of the
Act.
(xix) According to the information and explanations given to us, during
the period covered by our audit report, the company has not issued any
debentures.
(xx) We verified the books of accounts of the company and report that
the company has not raised any money by public issue during the year.
(xxi) According to the information and explanations given to us, no
fraud on or by the company has been noticed or reported during the
course of our audit.
For ABHAY JAIN & CO.,
Chartered Accountants
(A.K. JAIN)
Place : Chennai Partner
Date : 29.05.2010 M. No. 70224
FRN : 000008 S