Mar 31, 2015
We have audited the accompanying financial statements of JD ORGOCHEM
LIMITED ('the Company'), which comprise the Balance Sheet as at March
31,2015, the Statement of profit and loss and the cash flow Statement
for the year then ended, and a summary of significant accounting
policies and other explanatory information.
Management's Responsibility for the Financial Statements
The Company's Board of Directors is responsible for the matter stated
in Section 134(5) of the Companies Act, 2013 (the "Act") with respect
to the preparation and presentation of the financial statements that
give a true and fair view of the financial position, financial
performance and cash flows of the Company in accordance with the
accounting principles generally accepted in India, including the
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility
also includes maintenance of adequate accounting records in accordance
with the provisions of the Act for safeguarding the assets of the
Company and from preventing and detecting frauds and other
irregularities; selection and application of appropriate accounting
policies; making judgements and estimates that are reasonable and
prudent; and design, implementation and maintenance of adequate
internal financial controls, that were operating effectively for
ensuring the accuracy and completeness of the accounting records,
relevant to the preparation and presentation of the financial
statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We have taken into account the
provisions of the Act, the accounting and auditing standards and
'matters which are required to be included in the audit report under
the provisions of the Act and the Rules made thereunder.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. Those Standards require
that we comply with ethical requirement and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial control relevant
to the Company's preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing
an opinion on whether the Company has in place an adequate internal
financial controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of
the accounting estimates made by the Company's Directors, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the financial
statements.
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 March 31,2015 and its loss and its cash flows for the year ended on
that date.
Emphasis of Matters
We draw attention to the following matters in the Notes to the
financial statements without qualifying our opinion;
* Note 2 in the financial statements which indicates that the financial
statements of the Company have been prepared on a going concern basis.
However, the Company has accumulated losses and its net worth has been
fully eroded, the Company has incurred a net loss / net cash loss during
the current and previous year(s) and, the Company's liabilities exceeded
its assets as at the balance sheet date. These conditions, along with
other matters set forth in notes, indicate the existence of material
uncertainty that may cast significant doubt about the Comapny's ability
to continue as a going concern.
Report on the other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2015 ("the
Order") 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 the paragraph 3 and 4 of the
Order, to the extent applicable.
2. As required by Section 143 (3) of the Act, we report that:
a) we have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
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 it appears from our examination of those
books;
c) the Balance Sheet, the statement of profit and loss and the cash
flow statement dealt with by this Report are in agreement with the
books of account;
d) in our opinion, the aforesaid financial statements comply with the
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014;
e) on the basis of the written representations received from the
directors as on March 31, 2015 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; and
f) with the respect to the other matters to be included in the
Auditor's Report in accordance with the Rule 11 of the Companies (Audit
and Auditors) Rule, 2014, in our opinion and to the best of our
information and according to the information given to us:
i. The impact of the pending litigation with regards to employee
liabilities on its financial position is not ascertainable. However, in
the opinion of management of the Company the provision made in the
accounts in this regards in earlier year is adequate as referred to in
note 7 & 8 to the financial statements.
ii. The company did not have any long term contracts including
derivative contracts for which there were any material foreseeable
losses.
iii. There are no amount which were required to be transferred to the
Investor Education and Protection Fund by the Company.
Annexure to Independent AuditorÂs Report
The Annexure referred to in paragraph of the Our Report of even date to
the members of JD ORGOCHEM LIMITED on the accounts of the company for
the year ended 31st March, 2015.
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 to show full
particulars including quantitative details and situation of its fixed
assets.
(b) As informed to us, the company had verified part of its fixed
assets in regular programme of periodical verification during the year.
According to the information and explanations given to us, no material
discrepancies have been noticed on such verificaton.
2 (a) As explained to us, inventories have been physically verified
during the year by the management.
(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 The company has granted interest-free unsecured loan of Rs 178 lakhs
in earlier years to a party listed in the register maintained under
Section 189 of the Companies Act, 2013, for which, as informed to us,
no terms of repayment has been stipulated and hence overdue amount
cannot be ascertained. The said amount due is considered doubtful of
recovery for which provision has been made in the accounts in earlier
year as referred to in Note No.14.1 of the Notes to Financial
Statement.
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 & for sale of
goods and services. During the course of our audit, no major instance
of continuing failure to correct any weaknesses in the internal
controls has been noticed.
5 In our opinion and according to the information and explanations
given to us, the company has not accepted deposits from the public
except from an agent. Therefore, the provisions of Section 73 to 76 of
the Companies Act, 2013 and Rules there under are not applicable to the
company
6 The Central Government of India has not specified the maintenance of
cost record under sub-section (1) of Section 148 of the Act for any of
the products of the Company.
7 (a) According to the information and explanation given to us and as
per the records of the Company examined by us, undisputed statutory dues
of Provident Fund, Investor Education and Protection Fund, Employee's
State Insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax, Duty of
Custom, Duty of Excise, Cess and other statutory dues other than
mentioned in (b) below have generally been regularly deposited with the
appropriate authorities.
(b) As per records of the Company, the following undisputed statutory
dues were outstanding as at the last day of the financial year
concerned for a period of more than six months from the date they
became payable.
Nature of Dues Period to which the amount relates (Rs in lacs)
Power (Electricity) 01.05.2001 to 28.02.2002 111.69
Sales Tax 01.06.2001 to 31.03.2004 86.59
Gram Panchayat Tax 01.04.2000 to 31.03.2011 105.76
(c) As per records of the company, the following disputed dues have
not been deposited.
Nature of Dues Forum where dispute is Pending (Rs in lacs)
Custom Duty (Shown as Commissioner of Customs - Mumbai 510.99
contingent liability)
Custom Duty Central Excise & Gold Appellate 53.99
Tribunal (CEGAT) - Mumbai
Gram Panchayat Tax Gram Panchayat , Vadgaon, 25.82
(Shown as contingent Taluka Khalapur, Dist. Raigad
Liability)
(d) No amount was required to be transferred to Investor Education and
Protection Fund (IEPF) in accordance with the Provision of Companies
Act 1956 and the rules made thereunder.
8 As per the accounts of the company, the company has accumulated
losses of Rs 8909.26 lakhs at the end of the financial year and the
accumulated losses of the company are not less than fifty percent of
its net worth.
As per the accounts of the company, the company has incurred cash loss
of Rs 37.39 lakhs during the financial year under reference and cash
loss of Rs 30.03 lakhs was incurred in the immediately preceding
financial year.
9 Based on our audit procedures and on the basis of 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, or bank or debenture holders.
10 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.
11 In our opinion, the term loans have been applied for the purpose for
which they were raised.
12 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 during the year, nor have we been informed
of such case by the management.
For MAGANLAL & AJAY MEHTA
Chartered Accountants
Firm Registration No. 105730W
(MAGANLAL THACKER)
Place : Mumbai Partner
Date : May 25, 2015 Membership No. 4549
Mar 31, 2014
We have audited the accompanying financial statements of JD ORGOCHEM
LIMITED ("the Company"), which comprise the Balance Sheet as at March
31, 2014, the Statement of Profit and Loss and the Cash Flow Statement
for the year then ended, and a summary of significant accounting
policies and other explanatory information.
Management''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 of India (the "Act") read with the General Circular No.
15/2013 dated September 13, 2013 of the Ministry of Corporate Affairs
in respect of Section 133 of the Companies Act, 2013. This
responsibility includes the design, implementation and maintenance of
internal control relevant to the preparation and presentation of the
financial statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by management, as
well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
a) in 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, loss for the year
ended on that date; and
c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on the 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
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
a) we have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b) in our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books.
c) the Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
d) In our opinion, the Balance Sheet, the Statement of Profit and Loss
and Cash Flow Statement dealt with by this report comply with the
Accounting Standards notified under the Act read with the General
Circular No. 15/2013 dated September 13, 2013 of the Ministry of
Corporate Affairs in respect of Section 133 of the Companies Act, 2013;
e) on the basis of written representations received from the directors
as on March 31, 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2014 from being
appointed as director in terms of clause (g) of sub section(1) of
Section 274 of the Companies Act, 1956.
Annexure to the Auditors'' Report
The Annexure referred to in paragraph 1 of the Our Report of even date
to the members of JD ORGOCHEM LIMITED on the accounts of the Company
for the year ended March 31, 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 to show full
particulars including quantitative details and situation of its fixed
assets.
(b) As informed to us, the Company had verified part of its fixed
assets in regular programme of periodical verification during the year.
According to the information and explanations given to us, the extent
of discrepancies noticed on physical verification and the extent of
un-reconciled differences for years prior to March 31, 1992, which are
not material, are not yet been finally determined, since the same
continue to be under scrutiny by the Company. As explained to us,
adjustments necessary on these counts will be made only after the said
scrutiny is completed and reconciled with the book records.
(c) The accounts of the Company have been prepared on the basis that
the Company is a going concern. The Company has fixed assets at its
unit at Patalganga. The Hon''ble High Court of Bombay on June 20, 2008
has approved the Scheme of Compromise/ Arrangement between Secured
Creditors and equity shareholders and the scheme has been effective
from July 4, 2008. The Company''s plant at Patalganga was partially
restarted in earlier year. During the year the Company has sold some
part of plant & machinery which is not substantial. Also no
manufacturing activity is carried out during the year under reference
and hence we are still unable to express any opinion about the
Company''s ability to continue as a going concern in the foreseeable
future.
2 (a) As explained to us, inventories have been physically verified
during the year by the management.
(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) The Company has granted interest-free unsecured loan of Rs. 178
lakhs in earlier years to a party listed in the register maintained
under Section 301 of the Companies Act, 1956, for which, as informed to
us, no terms of repayment has been stipulated and hence overdue amount
cannot be ascertained. The said amount due is considered doubtful of
recovery for which provision has been made during the year in the
accounts as referred to in Note No.14.1 of the Notes to Financial
Statement. b) The interest-free unsecured loan of Rs. 18.54 lakhs taken
by the Company in earlier years from a party listed in the register
maintained under Section 301 of the Companies Act, 1956, has been
repaid during the year.
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 and services. 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) On the basis of the Audit procedures applied by us and according
to the information and explanations given to us, we are of the opinion
that the transactions in which directors were interested and which were
required to be entered into the register maintained under Section 301
of the Companies Act, 1956 have been entered. (b) In our opinion and
according to the information and explanation given to us and excluding
certain transactions of purchase and sale of goods and material of
special nature for which suitable alternative sources do not exist for
obtaining comparative quotations, where each of such transactions is in
excess of rupees five lakhs in respect of any party, the transactions
have been made at prices which are prima facie reasonable having regard
to the prevailing market prices at the relevant time and other relevant
circumstances.
6 In our opinion and according to the information and explanations
given to us, the Company has not accepted deposits from the public
except from an agent. Therefore, the provisions of Section 58A and 58AA
of the Companies Act, 1956 and Rules there under 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 books of account maintained by the
Company pursuant to the rules made by the central government for the
maintenance of cost records under section 209(1)(d) of the Companies
Act, 1956 in respect of the Company''s products to which the said rules
are made applicable and are of the opinion that, prima facie, the
prescribed accounts and records have been made and maintained. We have,
however, not made a detailed examination of the records with a view to
determine whether they are accurate and / or complete.
9 (a) As per the records of the Company, undisputed statutory dues of
Provident Fund, Investor Education and Protection Fund, Employee''s
State Insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax, Custom
Duty, Excise Duty, Cess and other statutory dues other than mentioned
in (b) below have generally been regularly deposited with the
appropriate authorities.
(b) As per records of the Company, the following undisputed statutory
dues were outstanding as at the last day of the financial year
concerned for a period of more than six months from the date they
became payable.
Nature of Dues Period to which the amount relates Amount (Rs.in lacs)
Power (Electricity) 01.05.2001 to 28.02.2002 111.69
Sales Tax 01.06.2001 to 31.03.2004 88.43
Gram Panchayat Tax 01.04.2000 to 31.03.2011 105.76
(c) As per records of the Company, the following disputed dues have not
been deposited.
Nature of Dues Forum where dispute is Pending Amount (Rs.in lacs)
Custom Duty (Shown as Commissioner of Customs  Mumbai 510.99
contingent liability)
Custom Duty Central Excise & Gold Appellate
Tribunal (CEGAT) - Mumbai 53.99
Gram Panchayat Tax Gram Panchayat , Vadgaon, Taluka
(Shown as contingent Khalapur, Dist. Raigad 12.91
Liability)
10 As per the accounts of the Company, the Company has accumulated
losses of Rs. 8801.13 lacs at the end of the financial year and the
accumulated losses of the Company are not less than fifty percent of
its net worth.
As per the accounts of the Company, the Company has incurred cash loss
of 30.03 lacs during the financial year under reference and cash loss
of 47.93 lacs was incurred in the immediately preceding financial
year.
11 Based on our audit procedures and on the basis of 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
has made investments in shares and securities in earlier years. These
investments are held by the Company in its own name.
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 In our opinion, the term loans have been applied for the purpose for
which they were raised.
17 Based on the information and explanations given to us and on an
overall examination of the Balance Sheet of the Company as at March 31,
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 In respect of Zero coupon Non-convertible debentures of Rs.1604 lacs
which are outstanding at the year- end charge has been created.
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 during the year, nor have we been informed
of such case by the management.
For MAGANLAL & AJAY MEHTA
Chartered Accountants
Firm Registration No. 105730W
(MAGANLAL THACKER)
Place : Mumbai Partner
Date : May 28, 2014 Membership No. 4549
Mar 31, 2013
Report of Financial Statements
We have audited the accompanying financial statements of JD ORGOCHEM
LIMITED ("the Company"), which comprise the Balance Sheet as at March
31, 2013, and the Statement of Profit and Loss and Cash Flow Statement
for the year then ended, and a summary of significant accounting
policies and other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible tor the preparation ot these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956 ("the Act"). 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.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by management, as
well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion. Basis of
Qualified Opinion
i) Adequacy of the provision made for meeting workers liability cannot
be ascertained as referred to in note no.7.1 & 8.1 of Notes to
Financial Statement.
ii) No provision has been made in the accounts for advances of Rs. 178
lacs given to Jaysynth Polychem Private Limited in earlier years as
referred to in note no. 14.1 of Notes to Financial Statement resulting
into the understatement of accumulated losses by 7 178 lacs.
Qualified Opinion
Subject to above, in our opinion and to the best of our information and
according to the explanations given to us, the financial statements
give the information required by the Act in the manner so required and
give a true and fair view in conformity with the accounting principles
generally accepted in India:
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2013;
b) in the case of the Profit and Loss Account, of the ioss for the year
ended on that date; and
c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date. Report on the 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
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
a) we have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b) in our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books
c) the Balance Sheet.Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
d) In our opinion, the Balance Sheet, Statement of Profit and Loss, and
Cash Flow Statement comply with the Accounting Standards referred to in
subsection (3C) of section 211 of the Companies Act, 1956.
e) on the basis of written representations received from the directors
as on March 31, 2013, and taken on record by the Board of Directors,
and information about the company''s failure to redeem its debentures on
due date in earlier years and failure continued for more than one year,
we report that all the directors are disqualified as on March 31, 2013
from being appointed as a director of any other public company in terms
of clause (g) of Sub Section (1) of Section 274 of the Companies Act,
1956.
Annexure to the Auditors'' Report
Annexure referred to in paragraph 1 of our report of even date to the
members of JD Orgochem Limited on the accounts of the Company for the
year ended 31st March, 2013.
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 to show fui!
particulars Including quantitative details and situation of its fixed
assets.
(b) As informed to us, the company had verified part of its fixed
assets in regular programme of periodical verification during the year.
According to the information and explanations given to us, the extent
of discrepancies noticed on physical verification and the extent of
un-reconciled differences for years prior to 31st March 1992, which are
not material, are not yet been finally determined, since the same
continue to be under scrutiny by the company. As explained to us,
adjustments necessary on these counts will be made only after the said
scrutiny is completed and reconciled with the book records.
(c) The accounts of the company have been prepared on the basis that
the company is a going concern. The company has fixed assets at its
unit at Patalganga.The Hon''ble High Court of Bombay on 20/06/2008 has
approved the Scheme of Compromise/ Arrangement between Secured
Creditors and equity shareholders and the scheme has been effective
from 04/07/2008.The company''s plant at Patalganga was partially
restarted in earlier year. During the year the company has sold some
part of plant & machinery which is not substantial. Also no
manufacturing activity is carried out during the year under reference
and hence we are still unable to express any opinion about the
company''s ability to continue as a going concern in the foreseeable
future.
2 (a) As explained to us, inventories have been physically verified
during the year by the management.
(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) The company has granted interest-free unsecured loan in earlier
years to two parties listed in the register maintained under Section
301 of the Companies Act, 1956, the amount aggregates to Rs. 228.91 lacs
for which, as informed to us, no terms of repayment has been stipulated
and hence overdue amount cannot be ascertained. Out of above, Rs. 178
lacs due is considered doubtful of recovery for which no provision has
been made in the accounts as referred to in Note No. 14.1 of the Notes
to Financial Statement. b) The company has taken interest-free
unsecured loan in earlier years from a party listed in the register
maintained under Section 301 of the Companies Act, 1956, whose
outstanding balance at the year end is Rs. 18.54 lacs for which, as
informed to us, no terms of repayment has been stipulated and hence
overdue amount cannot be ascertained.
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 and services. 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) On the basis of the Audit procedures applied by us and according
to the information and explanations given to us, we are of the opinion
that the transactions in which directors were interested and which were
required to be entered into the register maintained under section 301
of the companies Act, 1956 have been entered. (b) In our opinion and
according to the information and explanation given to us and excluding
certain transactions of purchase and sale of goods and material of
special nature for which suitable alternative sources do not exist for
obtaining comparative quotations, where each of such transactions is in
excess of rupees five lakhs in respect of any party, the transactions
have been made at prices which are prima facie reasonable having regard
to the prevailing market prices at the relevant time and other relevant
circumstances.
6 In our opinion and according to the information and explanations
given to us, the company has not accepted deposits from the public
except from an agent and a director. Therefore, the provisions of
Section 58A and 58AA of the Companies Act, 1956 and Rules there under
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 books of account maintained by the
company pursuant to the rules made by the central government for the
maintenance of cost records under section 209(1 )(d) of the companies
Act, 1956 in respect of the company''s products to which the said rules
are made applicable and are of the opinion that, prima facie, the
prescribed accounts and records have been made and maintained. We have,
however, not made a detailed examination of the records with a view to
determine whether they are accurate and / or complete.
9 As per the records of the Company, undisputed statutory dues of
Provident Fund, Investor Education and Protection Fund, Employee''s
State Insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax, Custom
Duty, Excise Duty, Cess and other statutory dues other than mentioned
in (b) below have generally been regularly deposited with the
appropriate authorities.
10 As per the accounts of the company, the company has accumulated
losses of Rs. 8190.92 lacs at the end of the financial year and the
accumulated losses of the company are not less than fifty percent of
its net worth.
As per the accounts of the company, the company has incurred cash loss
of Rs. 47.93 lacs during the financial year under reference. However no
such cash loss was incurred in the immediately preceding financial
year.
11 Based on our audit procedures and on the basis of 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
has made investments in shares and securities in earlier years. These
investments are held by the company in its own name.
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 In our opinion, the term loans have been applied for the purpose for
which they were raised.
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, 2013, 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 issued debenture certificate during the year for
Zero Coupon Non-Convertible Debentures issued as per the scheme of
compromise/arrangement by Bombay High Court order dated 20th June 2008
which is secured by first pari passu charge on all the existing asset
of the company situated at Patalganga Unit.
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 during the year, nor have we been informed
of such case by the management.
For MAGANLAL & AJAY MEHTA
Chartered Accountants
Firm Registration No. 105730W
(MAGANLAL THACKER)
Place: Mumbai Partner
Date : May 20, 2013 Membership No. 4549
Mar 31, 2012
We have audited the attached Balance Sheet of JD ORGOCHEM LIMITED as at
March 31, 2012 the statement of Profit & Loss Account and the Cash flow
statement for the year ended on that date both 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.
1. 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 from any 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 presentation of the
financial statements. We believe that our audit provides a reasonable
basis for our opinion.
2. As required by the Companies (Auditors' Report) Order, 2003 as
amended by the Companies (Auditors' Report) (Amendment) Order, 2004
(hereinafter referred to as "the Order") issued by the Central
Government in terms of section 227 (4A) of the companies Act, 1956, and
on the basis of such checks of the books and records of the company as
we considered appropriate and according to the information given to us,
we annex hereto a statement on the matters specified in paragraphs 4
and 5 of the said order.
3. Further to our comments in the Annexure referred to in Para (2)
above, we report that :-
i) We have obtained all the information and explanation, which to the
best of our knowledge and belief were necessary for the purpose of 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 & Loss Account and Cash flow statement
dealt with by this report are in agreement with the books of account.
iv) In our opinion, the Balance sheet, Profit & Loss Account and Cash
flow statement dealt with by this report are in compliance with the
accounting standards referred to in sub-section (3C) of Section 211
of the Companies Act, 1956 except for our comments in para (v) below:
v) a) Adequacy of the provision made for meeting workers liability
cannot be ascertained as referred to in note no. 7.1 & 8.1 of Notes to
Financial Statement.
b) No provision has been made in the accounts for the diminution in the
value of investments in the shares of Jaysynth Polychem Private Limited
as referred to in note no. 13.2 of Notes to Financial Statement as well
as of advances given as referred to in note no. 14.1 of Notes to
Financial Statement resulting into the understatement of accumulated
losses by Rs. 402.25 lacs.
c) No provision has been made of Rs. 12.91 lacs for the Gram Panchayat
Tax payable for the year ended under reference resulting into
understatement of losses to that extent.
vi) On the basis of written representation received from all the
Directors of the company as on March 31, 2012 and taken on record by
the Board of Directors and information about the company's failure to
redeem its debentures on due date in earlier years and failure
continued for more than one year, we report that all the directors are
disqualified as on March 31, 2012 from being appointed as a director of
any other public company in terms of clause (g) of Sub Section (1) of
Section 274 of the Companies Act, 1956.
vii) 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
subject to our remarks given in paragraph 3 (v) above and read together
with other notes and their overall impact (to the extent ascertainable)
present a true and fair view in conformity with the accounting
principles generally accepted in India:
a) In the case of Balance Sheet, of the state of affairs of the company
as at March 31, 2012;
b) In the case of Profit & Loss Account, of the Loss of the company for
the year ended March 31, 2012 on that date; and
c) In case of Cash flow statement, of the Cash flows for the year ended
on that date.
ANNEXURE TO THE AUDITORS' REPORT
ANNEXURE REFERRED TO IN PARAGRAPH 3 OF OUR REPORT OF EVEN DATE TO THE
MEMBERS OF JD ORGOCHEM LIMITED
1. (a) The company has maintained proper records to show full
particulars including quantitative details and situation of its fixed
assets.
(b) As informed to us, the company had verified part of its fixed
assets in regular programme of periodical verification during the year.
According to the information and explanations given to us, the extent
of discrepancies noticed on physical verification and the extent of
un-reconciled differences for years prior to 31st March 1992, which are
not material, are not yet been finally determined, since the same
continue to be under scrutiny by the company. As explained to us,
adjustments necessary on these counts will be made only after the said
scrutiny is completed and reconciled with the book records.
(c) The accounts of the company have been prepared on the basis that
the company is a going concern. The company has fixed assets at its
unit at Patalganga. The Hon'ble High Court of Bombay on 20/06/2008 has
approved the Scheme of Compromise/Arrangement between Secured Creditors
and equity shareholders and the scheme has been effective from
04/07/2008. The company's plant at Patalganga was partially restarted
in earlier year. During the year the company has sold some part of
plant & machinery which is not substantial. Also no manufacturing
activity is carried out during the year under reference and hence we
are still unable to express any opinion about the company's ability to
continue as a going concern in the foreseeable future.
2. (a) As informed to us, inventories have been physically verified
during the year by the management.
(b) As explained to us, the procedures followed by the management for
physical verification of inventories are, in our opinion, 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 of the
company, we are of the opinion that the company is maintaining proper
records of its inventory. Discrepancies that were noticed on physical
verification of inventories as compared to book records have been
properly dealt with in the books of accounts.
3. (a) The company has granted interest-free unsecured loan in earlier
years to two parties listed in the register maintained under Section
301 of the Companies Act, 1956. The amount aggregates to Rs. 459.91
lacs for which, as informed to us, no terms of repayment has been
stipulated and hence overdue amount cannot be ascertained. Out of
above, Rs. 178 lacs due is considered doubtful of recovery for which no
provision has been made in the accounts as referred to in Note No. 14.1
of the Notes to Financial Statement.
(b) The company has taken interest-free unsecured loan in earlier years
from a party listed in the register maintained under Section 301 of the
Companies Act, 1956, whose outstanding balance at the year end is Rs.
56.04 lacs for which, as informed to us, no terms of repayment has been
stipulated and hence overdue amount cannot be ascertained.
(c) In our opinion, the other terms and conditions of the loans granted
and received are prima facie, not prejudicial to the interest of the
company.
4. In our opinion, having regard to the explanation that certain items
purchased are of special nature for which suitable alternative sources
do not exist for obtaining comparative quotations, there are adequate
internal control procedures commensurate with the size of the company
and the nature of its business for the purchase of inventory and fixed
assets and for the sale of goods. Further, on the basis 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 not observed any continuing failure to correct major weaknesses in
the aforesaid internal control procedures.
5. (a) On the basis of the Audit procedures applied by us and
according to the information and explanations given to us, we are of
the opinion that the transactions in which directors were interested
and which were required to be entered into the register maintained
under section 301 of the companies Act, 1956 have been entered.
(b) In our opinion and according to the information and explanation
given to us and excluding certain transactions of purchase and sale of
goods and material of special nature for which suitable alternative
sources do not exist for obtaining comparative quotations, where each
of such transactions is in excess of rupees five lakhs in respect of
any party, the transactions have been made at prices which are prima
facie reasonable having regard to the prevailing market prices at the
relevant time and other relevant circumstances.
6. In our opinion and according to the information and explanations
given to us, the company has not accepted deposits from the public
except from the agents and inter-corporate deposit. Therefore, the
provisions of Section 58A and 58AA of the Companies Act, 1956 and Rules
thereunder are not applicable to the company.
7. In our opinion, the company has an internal audit system which is
commensurate with the size and nature of its business.
8. We have broadly reviewed the books of account maintained by the
company pursuant to the rules made by the central government for the
maintenance of cost records under section 209(1)(d) of the companies
Act, 1956 in respect of the company's products to which the said rules
are made applicable and are of the opinion that, prima facie, the
prescribed accounts and records have been made and maintained. We have,
however, not made a detailed examination of the records with a view to
determine whether they are accurate and/or complete.
9. (a) As per records of the Company, undisputed statutory dues of
Provident Fund, Investor Education and Protection Fund, Employee's
State Insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax, Custom
Duty, Excise Duty, Cess and other statutory dues other than mentioned
in (b) below have generally been regularly deposited with the
appropriate authorities.
(b) As per records of the Company, the following undisputed statutory
dues were outstanding as at the last day of the financial year
concerned for a period of more than six months from the date they
became payable.
Nature of Dues Period to which the Amount
amount relates (Rs. in
lacs)
Power (Electricity) 01.05.2001 to 28.02.2002 111.70
Sales Tax 01.06.2001 to 31.03.2004 92.90
Gram Panchayat Tax 01.04.2000 to 31.03.2011 105.76
(c) As per records of the company, the following disputed dues have not
been deposited.
Nature of Dues Forum where dispute is Amount
Pending (Rs. in
lacs)
Custom Duty (Shown Commissioner of Customs 510.99
as contingent - Mumbai
liability)
Custom Duty Central Excise & Gold 53.99
Appellate Tribunal
(CEGAT) - Mumbai
10. As per the accounts of the company, the company has accumulated
losses of Rs. 7613.22 lacs at the end of the financial year and the
accumulated losses of the company are not less than fifty percent of
its net worth.
As per the accounts of the company, the company has not incurred any
cash loss during the year under reference however in the immediately
preceding financial year, the company has incurred cash loss of Rs.
0.07 lacs.
11. The company has not granted any loans or advances on the basis of
security by way of pledge of shares, debentures or any other
securities.
12. In our opinion, considering the nature of activities carried on by
the company during the year, the provisions of any special statute
applicable to Chit Fund, nidhi/mutual benefit fund/ societies are not
applicable to it.
13. (a) Based on the records examined by us and according to the
information and explanations given to us, we are of the opinion that
the Company is maintaining proper record of the transactions and
contracts of dealing in shares, securities and debentures and other
investments during the year and timely entries have been made in these
records.
(b) Based on our audit procedures and to the best of our knowledge and
belief and according to the information and explanations given to us,
the shares and securities have been held by the Company in its own
name.
14. In our opinion, the term loans have been applied for the purpose
for which they were raised.
15. In our opinion and according to information given to us, the
company has not given any guarantee for loans taken by others from bank
or financial institution during the year.
16. On the basis of an overall examination of the Balance Sheet of the
company, in our opinion, there are no funds raised on a short-term
basis, which have been used for long-term investment and vice versa.
17. Based on our examination of records and information provided to us
by the management, we report that the company has not made preferential
allotment of shares to parties and companies covered in the register
maintained under section 301 of the Act.
18. The company has issued letter of allotment for issue of Zero
Coupon Non-Convertible Debentures as per the scheme of
compromise/arrangement by Bombay High Court order dated 20th June 2008
which is secured by first pari passu charge on all the existing asset
of the company situated at Patalganga Unit. However, the company has
not issued debenture certificates for the same & has so far not created
charges in respect of these debentures.
19. The company has not raised money by Public Issue during the year.
20. During the course of our examination of the books of account
carried out in accordance with the generally accepted auditing
practices in India and according to the information and explanations
given to us, we have neither come across any instance of fraud on or by
the company, noticed or reported during the year nor have we been
informed of such case by the management.
For MAGANLAL & AJAY MEHTA
Chartered Accountants
Firm Registration No. 105730W
(MAGANLAL THACKER)
Partner
Membership No. 4549
Place : Mumbai
Date : August 13, 2012
Mar 31, 2010
We have audited the attached Balance Sheet of JD ORGOCHEM LIMITED as at
March 31, 2010 and also the annexed Profit & Loss Account of the
Company for the year ended on that date and the Cash Flow Statement for
the year ended on that date. 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.
1. We conducted our audit in accordance with the auditing standards
generally accepted in India. These standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free from any 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 presentation of the
financial statements. We believe that our audit provides a reasonable
basis for our opinion.
2. As required by the Companies (Auditors Report) Order, 2003 as
amended by the Companies (Auditors Report) (Amendment) Order, 2004
(hereinafter referred to as "the Order") issued by the Central
Government in terms of section 227 (4A) of the companies Act, 1956, we
annex hereto a statement on the matters specified in paragraphs 4 and 5
of the said order.
3. Further to our comments referred to in Para (2) above, we report
that :-
i) We have obtained all the information and explanation, which to the
best of our knowledge and belief were necessary for the purpose of
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 the
books.
iii) The Balance Sheet, Profit & Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account.
iv) In our opinion, the Balance sheet, Profit & Loss Account and Cash
Flow Statement dealt with by this Report are in compliance with the
Accounting Standards (AS) referred to in sub-section (3C) of Section
211 of the Companies Act, 1956 except for our comments in para (v)
below:
v) a) Adequacy of the provision made for meeting workers liability
cannot be ascertained as referred to in note no.14 of Schedule 7?.
b) No provision has been made in the accounts for the diminution In the
value of investments In the shares of Jaysynth Anthraquinones Limited
and Jaysynth Polychem Private Limited as well as of advances given as
referred to In note no. 15 of Schedule 7? resulting into the
understatement of accumulated losses by Rs.1731.16lacs.
vi) b) On the basis of written representation received from all the
Directors of the company as on March 31, 2010 and taken on record by
the Board of Directors and Information about the companys failure to
redeem its debentures on due date in earlier years and failure
continued for more than one year, we report that all the directors are
disqualified as on March 31, 2010 from being appointed as a director of
any other public company In terms of clause (g) of Sub Section (1) of
Section 274 of the Companies Act, 1956.
vii) 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
subject to our remarks given in paragraph 3 (v) above and read
together with other notes and their overall impact (to the extent
ascertainable) present a true and fair view in conformity with the
accounting principles generally accepted in India:
a) In the case of Balance Sheet, of the state of affairs of the company
as at March 31, 2010;
b) In the case of Profit & Loss Account, of the Profit of the company
for the year ended March 31,2010 on that date; and
c) In case of Cash Flow Statement, of the Cash Flows for the year ended
on that date.
ANNEXURE TO THE AUDITORS REPORT
ANNEXURE REFERRED TO IN PARAGRAPH 3 OF OUR REPORT OF EVEN DATE TO THE
MEMBERS OF JD ORGOCHEM LIMITED
1. (a) The company has maintained proper records to show full
particulars including quantitative details and situation of its fixed
assets.
(b) As informed to us, the company had verified part of its fixed
assets in regular programme of periodical verification during the year.
According to the information and explanations given to us, the extent
of discrepancies noticed on physical verification and the extent of
un-reconciled differences for years prior to 31st March 1992, which are
not material, are not yet been finally determined, since the same
continue to be under scrutiny by the company. As explained to us,
adjustments necessary on these counts will be made only after the said
scrutiny is completed and reconciled with the book records.
(c) The accounts of the company have been prepared on the basis that
the company is a going concern. The company has fixed assets at its
unit at Patalganga. The Honble High Court of Bombay on 20/06/2008 has
approved the Scheme of Compromise/ Arrangement between Secured
Creditors and equity shareholders and the scheme has been effective
from 04/07/2008. The companys plant at Patalganga was partially
restarted in earlier year. However no manufacturing activity is earned
out during the year under reference and hence we are still unable to
express any opinion about the companys ability to continue as a going
concern in the foreseeable future.
2. (a)As informed to us, inventories have been physically verified
during the year by the management.
(b) As explained to us, the procedures followed by the management for
physical verification of inventories are, in our opinion, 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 of the
company, we are of the opinion that the company is maintaining proper
records of its inventory. Discrepancies that were noticed on physical
verification of inventories as compared to book records have been
properly dealt with in the books of accounts.
3. (a) The company has granted interest-free unsecured loan in earlier
years to two parties listed in the register maintained under Section 301
of the Companies Act, 1956 which together with current years amount
aggregates to Rs. 86,091,234/- for which, as informed to us, no terms
of repayment has been stipulated and hence overdue amount cannot be
ascertained. The entire amount of Rs. 86,091,234/- due as above is
considered doubtful of recovery for which no provision has been made in
the accounts as referred to note no. 15 of Schedule R.
(b) As informed to us, Rs.15,741,064/- outstanding at the year end
represent advance received for supply of goods from a party listed in
the register maintained u/s 301 of the Companies Act, 1956.
(c) In our opinion, the other terms and conditions of the loans granted
and received are prima facie, not prejudicial to the interest of the
company.
4. In our opinion, having regard to the explanation that certain items
purchased are of special nature for which suitable alternative sources
do not exist for obtaining comparative quotations, there are adequate
internal control procedures commensurate with the size of the company
and the nature of its business for the purchase of inventory and fixed
assets and for the sale of goods. Further, on the basis 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 not observed any continuing failure to correct major weaknesses in
the aforesaid internal control procedures.
5. (a) On the basis of the Audit procedures applied by us and
according to the information and explanations given to us, we are of the
opinion that the transactions in which directors were interested and
which were required to be entered into the register maintained under
section 301 of the companies Act, 1956 have been entered.
(b) According to the information and explanation given to us and
excluding certain transactions of purchase and sale of goods and
material of special nature for which suitable alternative sources do
not exist for obtaining comparative quotations, where each of such
transactions is in excess of Rupees Five Lakhs in respect of any party,
in our opinion, the transactions have been made at prices which are
prima facie reasonable having regard to the prevailing market prices at
the relevant time and other relevant circumstances.
6. In our opinion and according to the information and explanations
given to us, the company has not accepted deposits from the public
except from the agents and inter-corporate deposit. Therefore, the
provisions of Section 58A and 58AA of the Companies Act, 1956 and Rules
thereunder are not applicable to the company.
7. In our opinion, the company has an internal audit system which is
commensurate with the size and nature of its business.
8. We have broadly reviewed the books of account maintained by the
company pursuant to the rules made by the central government for the
maintenance of cost records under section 209(1)(d) of the companies
Act, 1956 in respect of the companys products to which the said rules
are made applicable and are of the opinion that, prima facie, the
prescribed accounts and records have been made and maintained. We have,
however, not made a detailed examination of the records with a view to
determine whether they are accurate and / or complete.
9. (a) As per records of the Company, undisputed statutory dues of
Provident Fund, Investor
Education and Protection Fund, Employees State Insurance, Income Tax,
Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess and
other statutory dues other than mentioned in (b) below have generally
been regularly deposited with the appropriate authorities.
(b) As per records of the Company, the following undisputed statutory
dues were outstanding as at the last day of the financial year
concerned for a period of more than six months from the date they
became payab e._
Nature of Dues Period to which the
amount relates Amount(Rs.)
Power (Electricity) 01.05.2001 to 28.02.2002 11,169,845
Sales Tax 01.06.2001 to 31.03.2004 10,632,562
Gram Panchavat Tax 01.04.2000 to 31.03.2009 8,124,968
(c) As per records of the company, the following disputed dues have no
been deposited.
Nature of Dues Forum where dispute is Pending Amount (Rs.)
Custom Duty Commissioner of Customs - Mumbai 51,099,633
Custom Duty Central Excise & Gold Appellate 5,399,121
Tribunal (CEGAT) - Mumbai
10. As per the accounts of the company, the company has accumulated
losses of Rs.690,927,006/- at the end of the financial year and the
accumulated losses of the company are not less than fifty percent of
its net worth.
As per the accounts of the company, the company has incurred cash loss
of Rs.32,404,463/- during the year under reference and cash loss of
Rs.16,190,669/- in the immediately preceding financial year. However,
after accounting of an extra ordinary income of Rs.71,488,491/- (as
referred to in Note No. 11 of schedule R), pursuant to waivers &
compromise by secured & unsecured creditors consequent to one time
settlement the net result is profit.
11. The company has not granted any loans or advances on the basis of
security by way of pledge of shares, debentures or any other
securities.
12. In our opinion, considering the nature of activities carried on by
the company during the year, the provisions of any special statute
applicable to Chit Fund, nidhi / mutual benefit fund/ societies are not
applicable to it.
13. (a)Based on the records examined by us and according to the
information and explanations
given to us, we are of the opinion that the Company is maintaining
proper record of the transactions and contracts of dealing in shares,
securities and debentures and other investments during the year and
timely entries have been made in these records. (b) Based on our audit
procedures and to the best of our knowledge and belief and according to
the information and explanations given to us, the shares and securities
have been held by the Company in its own name.
14. In our opinion, the term loans have been applied for the purpose
for which they were raised.
15. On the basis of an overall examination of the Balance Sheet of the
company, in our opinion, there are no funds raised on a short-term
basis, which have been used for long-term investment and vice versa.
16. Based on our examination of records and information provided to us
by the management, we report that the company has not made preferential
allotment of shares to parties and companies covered in the register
maintained under section 301 of the Act.
17. The company has issued letter of allotment for issue of Zero Coupon
Non-Convertible Debentures as per the scheme of compromise/arrangement
by Bombay High Court order dated 20th June 2008 which is secured by
first paripassu charge on all the existing asset of the company
situated at Patalganga Unit. However, the company has not issued
debenture certificates for the same & has so far not created charges in
respect of these debentures.
18. The company has not raised money by Public Issue during the year.
19. During the. course of our examination of the books of account
carried out in accordance with the generally accepted auditing
practices in India and according to the information and explanations
given to us, we have neither come across any instance of fraud on or by
the company, noticed or reported during the year nor have we been
informed of such case by the management.
For Maganlal & Ajay Mehta
Chartered Accountants
Firm Registration No. -105730W
(Maganlal Thacker)
Place: Mumbai Partner
Date : August 13, 2010 Membership No. 4549