Mar 31, 2015
1. We have audited the accompanying standalone financial statements of
Jauss Polymers Limited ("the Company"), which comprise the Balance
Sheet as at March 31,2015, the Statement of Profit and Loss, the Cash
Flow Statement for the year then ended, and a summary of the
significant accounting policies and other explanatory information.
Management's Responsibility for the Standalone Financial Statements
2. The Company's Board of Directors is responsible for the matters
stated in Section 134(5) of the Companies Act, 2013 ("the Act") with
respect to the preparation of these standalone financial statements to
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 of the assets of the
Company and for preventing and detecting frauds and other
irregularities; selection and application of appropriate accounting
policies; making judgments and estimates that are reasonable and
prudent; and design, implementation and maintenance of adequate
internal financial controls, 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
3. Our responsibility is to express an opinion on these financial
statements based on our audit.
4. We have taken into account the provisions of the Act and the Rules
made there under including the accounting standards and matters which
are required to be included in the audit report.
5. We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act and other applicable
authoritative pronouncements issued by the Institute of Chartered
Accountants of India. Those Standards and pronouncements 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.
6. 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 the 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.
7. 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
8. 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 profit/loss and its cash flows for the year
ended on that date.
Report on Other Legal and Regulatory Requirements
9. As required by 'the Companies (Auditor's Report) Order, 2015,
issued by the Central Government of India in terms of sub-section (11)
of section 143 of the Act (hereinafter referred to as the "Order"), and
on the basis of such checks of the books and records of the Company as
we considered appropriate and according to the information and
explanations given to us, we give in the Annexure a statement on the
matters specified in paragraphs 3 and 4 of the Order.
10. 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
purposes 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.
(f) With respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our knowledge and belief
and according to the information and explanations given to us:
i The Company does not have any pending litigations as at March 31,
2015 which would impact its financial position.
ii. The Company did not have any long-term contracts including
derivative contracts as at March 31,2015.
iii. There were no amounts which were required to be transferred to the
Investor Education and Protection Fund by the Company during the year
ended March 31,2015.
ANNEXURE TO INDEPENDENT AUDITOR'S REPORT
Referred to in paragraph 9 of the Independent Auditors' Report of even
date to the members of Jauss Polymers Limited on the financial
statements for the year ended March 31, 2015
i. (a) The Company is maintaining proper records showing full
particulars, including quantitative details and situation, of fixed
assets.
(b) The fixed assets are physically verified by the Management
according to a phased programme designed to cover all the items over a
period of three years which, in our opinion, is reasonable having
regard to the size of the Company and the nature of its assets.
Pursuant to the programme, a portion of the fixed assets has been
physically verified by the Management during the year and no material
discrepancies have been noticed on such verification.
ii. (a) The inventory has been physically verified by the Management
during the year. In our opinion, the frequency of verification is
reasonable.
(b) In our opinion, the procedures of physical verification of
inventory followed by the Management are reasonable and adequate in
relation to the size of the Company and the nature of its business.
(c) On the basis of our examination of the inventory records, in our
opinion, the Company is maintaining proper records of inventory The
discrepancies noticed on physical verification of inventory as compared
to book records were not material.
iii. The Company has not granted any loans, secured or unsecured, to
companies, firms or other parties covered in the register maintained
under Section 189 of the Act. Therefore, the provisions of Clause
3(iii), (iii)(a) and (iii)(b) of the said Order are not applicable to
the Company.
iv. In our opinion, and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business for the
purchase of inventory and fixed assets and for the sale of goods and
services. Further, on the basis of our examination of the books and
records of the Company, and according to the information and
explanations given to us, we have neither come across, nor have been
informed of, any continuing failure to correct major weaknesses in the
aforesaid internal control system.
v. The Company has not accepted any deposits from the public within
the meaning of Sections 73, 74, 75 and 76 of the Act and the rules
framed there under to the extent notified.
vi. We have broadly reviewed the books of account maintained by the
Company in respect of products where, pursuant to the rules made by the
Central Government of India, the maintenance of cost records has been
specified under sub- section (1) of Section 148 of the Act, and are of
the opinion that, prima facie, the prescribed accounts and records have
been made and maintained. We have not, however, made a detailed
examination of the records with a view to determine whether they are
accurate or complete.
vii. (a) According to the information and explanations given to us and
the records of the Company examined by us, in our opinion, undisputed
statutory dues including provident fund, employees' state insurance,
income-tax, sales-tax, wealth tax, service tax, duty of customs ,duty of
excise, value added tax and cess have not generally been regularly
deposited with the appropriate authorities though the delays in deposit
have not been serious.
(b) According to the information and explanations given to us and the
records of the Company examined by us, there are no dues of income-tax,
sales-tax, wealth-tax, service-tax, duty of customs, and duty of excise
or value added tax or cess25 which have not been deposited on account
of any dispute.
(c) There are no amounts required to be transferred by the Company to
the Investor Education and Protection Fund in accordance with the
provisions of the Companies Act, 1956 and the rules made there under.
viii. The Company has no accumulated losses as at the end of the
financial year and it has not incurred any cash losses in the financial
year ended on that date or in the immediately preceding financial year.
ix. According to the records of the Company examined by us and the
information and explanation given to us, the Company has not defaulted
in repayment of dues to any financial institution or bank or debenture
holders as at the balance sheet date.
x. In our opinion, and according to the information and explanations
given to us, the terms and conditions of the guarantees given by the
Company for loans taken by others from banks or financial institutions
during the year, are not prejudicial to the interest of the Company
xi. In our opinion, and according to the information and explanations
given to us, the term loans have been applied for the purposes for
which they were obtained.
xii. During the course of our examination of the books and records of
the Company, 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
material fraud on or by the Company, noticed or reported during the
year, nor have we been informed of any such case by the Management.
For BGJC & Associates
Firm Registration Number: 003304N
Chartered Accountants
Sd/-
Darshan Chhajer
Place : New Delhi Partner
Date :30th May 2015 Membership Number 088308
Mar 31, 2014
1. We have audited the accompanying financial statements of the Jauss
Polymers Ltd. (''the Company''), which comprise the Balance Sheet as at
31st March, 2014, the Statement of Profit and Loss and the Cash Flow
Statement for the period then ended and a summary of significant
accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
2. 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 referred in section 133 of the Companies Act
''2013 (''the Act '') (which has superseded section 211 (3C) of Companies
Act 1956). 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
3. 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.
4. 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.
5. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our audit opinion.
Opinion
6. Subject to in our opinion and to the best of our information and
according to the explanations given to us, the financial statement
together with the notes thereon give the information required by 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, 2014;
(ii) in the case of the Statement of Profit and Loss of the profit for
the period ended on that date; and
(iii) in the case of the Cash Flow Statement, of cash flows for the
period ended on that date.
7. As required by the Companies (Auditor''s Report) Order, 2003 (as
amended) (herein after collectively referred to as the ''Order''), issued
by the Central Government of India in terms of section 227 (4A) of the
Companies Act, 1956, we annex hereto a statement on the matters
specified in paragraph 4 & 5 of the said Order.
8. As required by Section 227(3) of the Act, we report that:
i. We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
ii. 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;
iii. The Balance Sheet, Statement of Profit & Loss and Cash Flow
Statement dealt with by this report are in agreement with the books of
accounts of the Company;
iv. In our opinion, the Balance Sheet, Statement of Profit & Loss and
Cash Flow Statement dealt with by this report comply with the
Accounting Standard referred to in section 133 of the Companies Act,
2013 (which has superseded section 211 (3C) of Companies Act 1956);
v. On the basis of the written representations received from the
directors as on March 31,2014, and taken on record by the Board of
Directors, we report that none of the directors are disqualified as on
March 31,2014 from being appointed as a director in terms of clause (g)
of sub-section (1) of section 274 of the Companies Act, 1956.
ANNEXURE REFERRED TO IN PARAGRAPH 7 OF THE AUDITOR''S REPORT TO THE
MEMBERS OF JAUSS POLYMERS LTD. ON THE ACCOUNTS FOR THE PERIOD ENDED
31ST MARCH 2014.
i. a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
b) As per the explanation and information given to us, the Company has
policy to physically verify all its fixed assets over a period in a
phased manner which is in our opinion is reasonable having regard to
the size of the Company and nature of its fixed assets. However, during
the current period no verification has been done.
c) The Company has not disposed off substantial parts of its fixed
assets during the period.
ii. a) The inventories have been physically verified by the management
at the period end which is in our opinion is adequate. The frequency
of such verification is reasonable.
b) In our opinion and according to the information and explanation
given to us, the procedure of such physical verification of inventories
followed by the management is appears to be reasonable and adequate in
relation to the size and nature of its operations and inventory items
involved.
c) In our opinion, the Company has maintained proper records of
inventories. The discrepancies noticed on physical verification of
inventories as compared to book records were not material and have been
properly dealt with in the books of accounts.
iii. During the period under audit, the Company has neither granted nor
taken any loan to / from any party covered in the register maintained
under section 301 of the Companies Act, 1956. Hence reporting under
this clause is not required.
iv. In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with size of the Company and the nature of its business for the
purchase of inventory, fixed assets and for the sale of goods &
services. During the course of our audit, we have not observed any
continuing failure to correct major weaknesses in the internal control
system.
v. According to the information and explanation provided to us by the
management, no contracts or arrangements were entered into during the
period as referred to in section 301 of the Companies Act, 1956. Hence,
this clause is not applicable.
vi. In our opinion and according to the information and explanations
given to us, the Company has not accepted deposits from public within
the meaning of section 58A/58AA of the Companies Act, 1956 or any other
relevant provisions of the Act and the rules framed there under.
vii. The Company is not having any internal audit system commensurate
with the size of the Company and nature of its business.
viii. The maintenance of cost records u/s 209 (1) (d) of the Companies
Act, 1956 is applicable to the company. The company has made &
maintained such records, however we have not made detailed review of
such records.
ix. a) According to the information and explanation given to us, the
undisputed statutory dues including Provident Fund, Investors
Educations Fund, income tax and sales tax, wealth tax, service tax etc
have generally been regularly deposited with the appropriate
authorities during the period except delay in few cases.
b) As per the information and explanation given to us as at 31st march
2014 there were no dues of income tax, sales tax, wealth tax, service
tax, excise duty, customs duty and cess etc which have not been
deposited on account of any dispute.
x. The Company has accumulated losses at the end of the period March
31st, 2014 which are less than 50% of net worth. The company has not
incurred cash losses in the period covered by our audit and also in the
immediately preceding financial year.
xi. As per the information and explanations given by the management,
the Company has not taken any loan from bank / financial institution,
hence this clause is not applicable.
xii. In our opinion and according to the information and explanations
given to us, the Company has not granted any loans and advances during
the period on the basis of security by way pledge of shares, debentures
and other securities.
xiii. In our opinion, the Company is not a chit fund or a nidhi /
mutual benefit fund/society. Therefore, the provisions of clause
4(xiii) of Order are not applicable to the Company.
xiv. According to the information and explanations given to us, the
Company is not dealing / trading in shares, securities and other
investments.
xv. According to the information and explanations given to us, the
Company has not given any guarantees for loan taken by others from any
Bank / financial institution.
xvi. According to the information and explanations given to us the,
Company had no outstanding term loan during the except vehicle loans
which have been applied for the purpose it was obtained.
xvii. According to the information and explanations given to us and on
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
investments.
xviii. The Company has not made any preferential allotment of shares
during the period covered under audit.
xix. The Company had no outstanding debentures during the period.
xx. The Company has not raised any money by way of public issue during
the period.
xxi. Based upon audit procedures performed and according to the
information and explanations given to us by the management and to the
best of our knowledge, we report that no fraud on or by the Company has
been noticed or reported during the course of our audit.
For BGJC & ASSOCIATES
Chartered Accountants
FRN.-003304N
Sd/-
Darshan Chhajer
Place : New Delhi Partner
Date : 30.05.2014 Membership No. 088308
Jun 30, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of JAUSS POLYMERS
LIMITED ("the company") which comprise the Balance Sheet as at 30th
June 2013 and 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.
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 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.
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 June 30th,2013
b) in the case of the Statement of Profit and Loss, of the profit 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.
Emphasis of Matter
We draw attention to:
1. Pending initiation of recovery proceedings towards advance of Rs.
3.60 crores for development of properties, we are unable to comment on
the provision of Rs. 3.60 crores (refer note no.23).
2. Change in the basis of providing depreciation on plant and
machinery and moulds from straight line method to written down value
method, resulting into lower profits before tax for the year by Rs. 29.94
lacs and accumulated profits up to 30th June, 2012 by Rs. 92.25 lacs
(refer note no.24).
3. Balance confirmation, reconciliation and consequential adjustments,
if any (refer note no.35).
Our opinion is not qualified in respect of these matters.
Report On Other Legal And Regulatory Requirements:
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by 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 June 30,2013 and taken on record by the Board of Directors, none
of the directors is disqualified as on June 30, 2013, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
REFERRED TO IN PARAGRAPH (1) OF OUR REPORT OF EVEN DATE ON OTHER LEGAL
AND REGULATORY REQUIREMENTS ON THE ACCOUNTS OF JAUSS POLYMERS LIMITED
FOR THE YEAR ENDED ON 30th JUNE, 2013
i) a) The Company is maintaining proper records showing full
particulars including quantitative details and situation of fixed
assets.
b) Major portion of the fixed assets have been physically verified by
the management during the period as per the phased programme of
verification which, in our opinion, is reasonable having regard to the
size of the Company and the nature of its business. No material
discrepancies were noticed on such verification.
c) During the year ended 30 June, 2013, the Company has sold/ disposed
off major part of fixed assets which may affect the going concern
status of the company.
ii) a) The inventory has been physically verified during the period by
the management. In our opinion, the frequency of verification is
reasonable.
b) In our opinion, the procedures of physical verification of inventory
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
c) On the basis of our examination of the records of inventory, we are
of the opinion that the Company is maintaining proper records of
inventory. The discrepancies noticed on verification between the
physical stocks and the book records were not material and have been
properly dealt with in the books of accounts.
iii) a) The Company has not granted any loan-secured or unsecured, to
companies, firms or other parties covered in the register maintained
under Section 301 of the Companies Act, 1956. Accordingly, the clauses
4(iii) (b) to (d) of the Order are not applicable.
b) The terms and conditions of unsecured interest free loans taken
during the period from the parties covered in the register maintained
under Section 301 of the Companies Act, 1956 are not prima facie,
prejudicial to the interest of the Company.
c) There were no unsecured loans outstanding as on 30th June, 2013 in
case of parties covered in the register maintained u/s 301 of the
Companies Act,1956, the maximum amount involved, in case of one party,
during the year was Rs. 41,59,000/-. The repayment of principal amount of
those loans was regular wherever stipulated.
iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business with regard to purchases of inventory and fixed assets and
with regard to the sale of goods and services. Further, on the basis of
our examination of the books and records of the Company and according
to the information and explanations given to us, we have not come
across nor have been informed of any continuing failure to correct
major weaknesses in the aforesaid internal control procedures.
v) According to the information and explanations given to us, no
contracts or arrangements were entered into during the period as
referred to in Section 301 of the Companies Act, 1956. Therefore, the
provisions of clause (v) of the said Order are not applicable to the
Company under the circumstances.
vi) The Company has not accepted any deposits from the public during
the period to which the directives issued by the Reserve Bank of India
and the provisions of Sections 58 A and 58 AA of the Companies Act,
1956 and the rules framed there under are applicable.
vii) The company has an internal audit system, the scope and coverage
of which, in our opinion requires to be enlarged to be commensurate
with the size and nature of its business.
viii) The Central Government vide notification dated 3rd June, 2011
made mandatory for the Company to maintain cost record as prescribed
from 1st April, 2011. The company has made and maintained such accounts
and records.
ix) a) According to the records of the Company examined by us, the
Company is generally regular during the period in depositing with
appropriate authorities undisputed statutory dues including Provident
Fund, Investor Education and Protection Fund, Employees'' State
Insurance, Income-tax, Wealth-tax, Sales Tax, Cess and other statutory
dues applicable to it. There were no arrears of such dues as on 30th
June, 2013 for a period of more than six months.
b) According to the information and explanation given to us and the
records of the Company examined by us, there was no disputed amount
payable in respect of Provident Fund, Investor Education and Protection
Fund, Employees State Insurance Fund, Sales Tax, Income Tax, Custom
Duty, Wealth Tax, Excise Duty and Cess as at 30th June, 2013.
x) The Company''s accumulated losses at the end of the period were not
more than fifty percent of its net worth. The company has not incurred
cash losses during the period covered by our audit and in the
immediately preceding period.
xi) On an examination of the records of the Company and according to
information and explanation given to us, the Company has not taken any
loan from bank or financial institution, therefore clause xi of the
order not applicable.
xii) Based on our examination of documents and records, the Company has
not granted any loans and advances on the basis of security by way of
pledge of shares, debentures and other securities.
xiii) In our opinion, the provisions of any special statute applicable
to chit fund/nidhi/mutual benefit/societies 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.
xv) According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks or financial institutions during the period.
xvi) According to the information and explanations given to us, the
Company applied term loans and the same were utilized for the purpose
for which the loans were obtained.
xvii) According to the information and explanations given to us and on
an overall examination of the balance sheet of the Company, we report
that funds raised on short term basis have not been used for long term
investment.
xviii) According to the information and explanations given to us and on
overall examination of the balance sheet of the Company, we report that
the company has not made any preferential allotment of shares during
the year.
xix) The Company has not issued any debentures during the period.
xx) The Company has not raised any money through public issue during
the period.
xxi) During the course of our examination of the books and records of
the Company, 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 period, nor
have we been informed of such case by the management.
For V. K. DHINGRA & CO.
CHARTERED ACCOUNTANTS
(FRN- 000250N)
Sd/-
V.K. DHINGRA
Place : New Delhi (PARTNER)
Date : 29.08.2013 M. No. 014467
Jun 30, 2011
1. We have audited the attached Balance Sheet of JAUSS POLYMERS
LIMITED as at 30th June, 2011, the Profit & Loss Account and the Cash
Flow Statement of the Company for the period from 1st April,2010 to
30th June,2011 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.
2. We conducted our audit in accordance with the auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatements. 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 the 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(as
amended) issued by the Central Government of India in terms of
sub-section (4A) of Section 227 of the Companies Act, 1956 and on the
basis of such checks of books and records of the Company as we consider
appropriate and according to the information and explanations given to
us during the course of audit, we enclose in the Annexure a statement
on the matters specified in paragraphs 4 and 5 of the said Order.
4. Further to our comments in the Annexure referred to in paragraph 3
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 purposes 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, 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 and Loss Account and Cash
Flow Statement dealt with by this report comply with the Accounting
Standards referred to in sub section (3C) of Section 211 of the
Companies Act, 1956, to the extent applicable to the Company under the
circumstances;
e) On the basis of written representations received from directors, as
on 30th June 2011 and taken on record by the Board of Directors, we
report that none of the directors is disqualified as on 30th June 2011
from being appointed as a director in terms of clause (g) of subsection
(1) of Section 274 of the Companies Act, 1956.
f) Without qualifying our report, attention is drawn to the following
Notes of Schedule'M':
i) Note No.5 (b) - regarding increase in remuneration of Managing
Director which is subject to the approval of members.
ii) Note No. 7- regarding unconfirmed/unreconciled balances in some of
the parties accounts.
iii) Note No.18- regarding the accounts of the Company being prepared
on going concern basis.
g) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts, read with the
significant accounting policies and other notes thereon as per Schedule
'M', 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 30th June, 2011;
ii) in the case of the Profit and Loss Account, of the Profit of the
Company for the period ended on that date; and
iii) in the case of the Cash Flow Statement, of the cash flows for the
period ended on that date.
ANNEXURE TO THE AUDITORS' REPORT
REFERRED TO IN PARAGRAPH (3) OF OUR REPORT OF EVEN DATE ON THE ACCOUNTS
OF JAUSS POLYMERS LIMITED FOR THE PERIOD ENDED ON 30th JUNE, 2011
i) a) The Company is maintaining proper records showing full
particulars including quantitative details and situation of fixed
assets.
b) Major portion of the fixed assets have been physically verified by
the management during the period as per the phased programme of
verification which, in our opinion, is reasonable having regard to the
size of the Company and the nature of its business. No material
discrepancies were noticed on such verification.
c) There was no disposal of fixed assets during the period.
ii) a) The inventory has been physically verified during the period by
the management. In our opinion, the frequency of verification is
reasonable.
b) In our opinion, the procedures of physical verification of inventory
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
c) On the basis of our examination of the records of inventory, we are
of the opinion that the Company is maintaining proper records of
inventory. No material discrepancies were noticed on verification
between the physical stocks and the book records.
iii) a) The Company has not granted any loan-secured or unsecured, to
companies, firms or other parties covered in the register maintained
under Section 301 of the Companies Act, 1956. Accordingly, the clauses
4(iii) (b) to (d) of the Order are not applicable.
b) The terms and conditions of unsecured interest free loans taken
during the period from the parties covered in the register maintained
under Section 301 of the Companies Act, 1956 are not prima facie,
prejudicial to the interest of the Company.
There were unsecured loans of Rs.5.84 Lacs outstanding as on 30th June,
2011 in case of six parties covered in the register maintained u/s 301
of the Companies Act,1956, the maximum amount due during the period was
Rs.84.79 Lacs. The repayment of principal amount of those loans was
regular wherever stipulated.
iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business with regard to purchases of inventory and fixed assets and
with regard to the sale of goods and services. Further, on the basis of
our examination of the books and records of the Company and according
to the information and explanations given to us, we have not come
across nor have been informed of any continuing failure to correct
major weaknesses in the aforesaid internal control procedures.
v) According to the information and explanations given to us, no
contracts or arrangements were entered into during the period as
referred to in Section 301 of the Companies Act, 1956. Therefore, the
provisions of clause (v) of the said Order are not applicable to the
Company under the circumstances.
vi) The Company has not accepted any deposits from the public during
the period to which the directives issued by the Reserve Bank of India
and the provisions of Sections 58 A and 58 AA of the Companies Act,
1956 and the rules framed there under are applicable.
vii) The Company has an internal audit system which, in our opinion, is
commensurate with the size of the Company and nature of its business.
viii) The Central Government has not prescribed maintenance of cost
records under Section 209(1) (d) of the Companies Act, 1956 for any of
the product of the Company.
ix) a) According to the records of the Company examined by us, the
Company is generally regular during the period in depositing with
appropriate authorities undisputed statutory dues including Provident
Fund, Investor Education and Protection Fund, Employees' State
Insurance, Income tax, Wealth tax, Sales Tax, Cess and other statutory
dues applicable to it. The extent of arrears of such dues as on 30th
June, 2011 for a period of more than six months was Rs. 19.21Lacs which
have been paid subsequently.
b) According to the information and explanation given to us and the
records of the Company examined by us, there was no disputed amount
payable in respect of Provident Fund, Investor Education and Protection
Fund, Employees State Insurance Fund, Sales Tax, Income Tax, Custom
Duty, Wealth Tax, Excise Duty and Cess as at 30th June, 2011.
x) The accumulated losses of the Company as at 30th June, 2011 were
more than fifty percent of its net worth. The Company has not incurred
cash losses during the period covered by our audit and in the
immediately preceding financial year.
xi) On an examination of the records of the Company and according to
information and explanation given to us, the Company has not defaulted
in the repayment of dues to any bank or financial institutions during
the period.
xii) Based on our examination of documents and records, the Company has
not granted any loans and advances on the basis of security by way of
pledge of shares, debentures and other securities.
xiii) In our opinion, the provisions of any special statute applicable
to chit fund/nidhi/mutual benefit/societies 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.
xv) According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks or financial institutions during the period.
xvi) According to the information and explanations given to us, the
Company applied term loans and the same were utilised for the purpose
for which the loans were obtained.
xvii) According to the information and explanations given to us and on
an overall examination of the balance sheet of the Company, we report
that funds raised on short term basis have not been used for long term
investment.
xviii) In our opinion and according to the information and explanations
give to us, the price at which the Company has made the preferential
allotment of shares to parties and companies covered in the register
maintained under Section 301 of the Companies Act, 1956, during the
period was not prima facie prejudicial to the interest of the Company.
xix) The Company has not issued any debentures during the period.
xx) The Company has not raised any money through public issue during
the period.
xxi) During the course of our examination of the books and records of
the Company, 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 period, nor
have we been informed of such case by the management.
For V. K. DHINGRA & CO.
CHARTERED ACCOUNTANTS
Firm Registration No. 000250N
PLACE: NEW DELHI (V.K.DHINGRA)
DATED: OCTOBER 21,2011 PARTNER
M. No. : 014467
Mar 31, 2010
We have audited the attached Balance Sheet of JAUSS POLYMERS LTD. as at
31 st March, 2010, the Profit & Loss Account and the Cash Flow
Statement of the Company for the year ended on that date annexed
thereto. These financial statements are the responsibility of the
Companys management. Our responsibility is to express an opinion on
these financial statements based on our audit.
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 of material misstatements. 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 the management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
2 As required by the Companies (Auditors Report) Order, 2003 issued by
the Central Government of India in terms of sub-section (4A) of section
227 of the Companies Act, 1956 and on the basis of such checks of books
and records of the company as we consider appropriate and according to
the information and explanations given to us during the course of
audit, we enclose in the Annexure a statement on the matters specified
in paragraph 4 and 5 of the said order, to the extent applicable to the
Company.
3. Further to our comments in the Annexure referred to in paragraph 2
above, we report that:
a) Subject to our comments in paragraphs 3(f) (i) and (ii), we have
obtained all the information and explanations which to the best of our
knowledge and belief were necessary for the purposes of our audit;
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, Profit & Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account;
d) In ouropinion, the Balance Sheet, Profit and Loss Account and Cash
Flow Statement dealt with by th is report comply with the Accounting
Standards referred to in sub section (3C) of Section 211 of the
Companies Act, 1956, to the extent applicable to the company underthe
circumstances;
e) On the basis of written representations received from directors, as
on 31 st March 2010 and taken on record by the Board of Directors, we
report that none of the directors is disqualified as on 31 st March
2010 from being appointed as a director in terms of clause (g) of
subsection (1) of Section 274 of the Companies Act, 1956.
f) Attention is invited to the following notes in Schedule-M.
I) Note No. (7): regarding non- confirmation/ reconciliation of
balances of some of sundry creditors, loans and advances and other
personal accounts, the effect of which on accounts upon confirmations
and reconciliation of the same not ascertainable.
ii) Note no, (11): regarding non- provision of interest on accrual
basis on unsecured loans from companies and others and its impact on
accounts not ascertainable in the absence of details.
iii) Note No. (21): regarding the accounts of the company prepared on
going concern basis.
Subjectto the foregoing, in our opinion and to the best of our
information and according to the explanations given to us, the said
accounts, read with the significant accounting policies and other notes
thereon, give the information required by the Companies Act, 1956 in
the manner so required and give a true andtair view in conformity with
the accounting principles generally accepted in India:
i) in the case of the Balanpe Sheet, of the state of affairs of the
Company as at 31 st March, 2010;
ii) in the case of the Profit and Loss Account, of the Profit of the
company forthe yearended on that date; and
iii) in the case of the Cash Flow Statement, of the cash flows forthe
yearended on that date.
ANNEXURE TO THE AUDITORS REPORT REFERRED TO IN PARAGRAPH (2) OF OUR
REPORT OF EVEN DATE ON THE ACCOUNTS OF JAUSS POLYMERS LIMITED FOR THE
YEAR ENDED ON 31 ST MARCH, 2010.
i) a) The Company is maintaining proper records showing full
particulars including quantitative details and situation of fixed
assets.
b) Major portion of the fixed assets have been physically verified by
the management during the year as per the regular programme of
verification which, in our opinion, is reasonable having regard to the
size of the company and the nature of its business. No material
discrepancies were noticed on such verification.
c) There was no substantial disposal off fixed assets during the
period.
ii) a) The inventory has been physically verified during the year by
the management. In our opinion, the frequency of verification is
reasonable.
b) In our opinion, the procedures of physical verification of inventory
followed by the management are reasonable and adequate in relation to
the size of the company and the nature of its business.
c) On the basis of our examination of the records of inventory, we are
of the opinion that the company is maintaining proper records of
inventory. The discrepancies noticed on verification between the
physical stocks and the book records were not material and have been
properly dealt with in the books of accounts.
iii) a) The Company has not granted any loan-secured or unsecured, to
companies, firms or other parties covered in the register maintained
under Section 301 of the Companies Act, 1956. Accordingly, the clauses
4(iii) (b) to (d) of the Order are not applicable.
b) The terms and conditions of unsecured interest free loans taken
during the year from the parties covered in the register maintained
under Section 301 of the Companies Act, 1956 are not prima facie,
prejudicial to the interest of the Company.
There were unsecured loans of ^54.58 Lacs outstanding as on 31 st
March, 2010 in case of six parties covered in the register maintained
u/s 301 of the Companies Act, 1956, the maximum amount due during the
year was ^63.64 Lacs. The repayment of principal amount of those loans
was regular as stipulated.
iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business with regard to purchases of inventory, fixed assets and with
regard to the sale of goods and services. Further, on the basis of our
examination of the books and records of the Company and according to
the information and explanations given to us, we have not come across
nor have been informed of any continuing failure to correct major
weaknesses in the aforesaid internal control procedures.
v) a) On the basis of the audit procedures performed by us, and
according to the information and explanations and representations given
to us, we are of the opinion that the transactions that need to
be.entered in pursuance of Section 301 of the Act have been so entered.
b) In our opinion and according to the information and explanations
given to us the transactions made in pursuance of contracts or
arrangements entered in the register maintained under Section 301 of
the Act have been made at prices which are reasonable having regard to
the prevailing market prices at that relevant time.
vi) The Company has not accepted any deposits from the public during
the year to which the directives issued by the Reserve Bank of India
and the provisions of Sections 58 A and 58 AA of the Companies Act,
1956 and the rules framed there under are applicable.
vii) In our opinion, the company has an internal audit system which is
commensurate with the size of the Company and nature of its business.
viii) The Central Government has not prescribed maintenance of cost
records under Section 209(1) (d) of the Companies Act, 1956 for any of
the product of the company.
ix) a) According to the records of the company examined by us, the
company is generally regular during the period in depositing with
appropriate authorities undisputed statutory dues including Provident
Fund, Investor Education and Protection Fund, Employees State
Insurance, Income- tax, Wealth-tax, Sales Tax, Cess and other statutory
dues applicable to it. The extent of arrears of such dues as on 31 st
March, 2010 for a period of more than six months was ?28.26Lacs.
b) According to the information and explanation given to us and the
records of the Company examined by us, no disputed amount payable in
respect of Provident Fund, Investor Education and Protection Fund,
Employees State Insurance Fund, Sales Tax, Income Tax, Custom Duty,
Wealth Tax, Excise Duty and Cess as at 31 st March, 2010 except the
following:
Name of the
statutory Due Nature of Dues Amount Forum where dispute
(Rs.) Lacs is pending
Sales Tax Act Regular 36.91 Commissioner (Appeals)
x) The accumulated losses of the company as at 31 st March, 2010 were
more than fifty percent of its net worth. The company has not incurred
cash losses during the period covered by our audit and in the
immediately preceding financial year.
xi) On an examination of the records of the company and according to
information and explanation given to us, the company has not, during
the year, defaulted in the repayment of dues to any financial
institutions.
xii) Based on our examination of documents and records, the company has
not granted any loans and advances on the basis of security by way of
pledge of shares, debentures and other securities.
xiii) In our opinion, the provisions of any special statute applicable
to chit fund/nidhi/mutual benefit/societies 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.
xv) According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks or financial institutions during the year.
xvi) According to the information and explanations given to us, the
Company applied term loans and the same were utilised for the purpose
for which the loans were obtained.
xvii) According to the information and explanations given to us and on
an overall examination of the balance sheet of the company, we report
that funds raised or short term basis have not been used for long term
investment.
xviii) The Company has not made any preferential allotment of shares to
parties and companies covered in the register maintained under section
301 of the Act during the year.
xix) The Company has not issued any debentures during the year.
xx) The Company has not raised any money through public issue during
the year.
xxi) During the course of our examination of the books and records of
the company, carried out in accordance with 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 V.K.DHINGRA&CO.
CHARTERED ACCOUNTANTS
Firm Registration No. 000250N
PLACE: NEW DELHI (V.K.DHINGRA)
DATED: September 3,2010 PARTNER
M. No.: 014467
Mar 31, 2009
We have audited the attached Balance Sheet of JAUSS POLYMERS LTD. as at
31th March, 2009, and also the Profit & Loss Account and the Cash Flow
Statement of the Company for the year ended on that date annexed
thereto. These financial statements are the responsibility of the
Companys management. Our responsibility is to express an opinion on
these financial statements based on our audit.
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 of material misstatements. An audit
includes examining, on a test basis, evidence support- ing the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by the management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
2. As required by the Companies (Auditors Report) Order, 2003 issued
by the Central Government of India in terms of sub-section (4A) of
section 227 of the Companies Act, 1956 and on the basis of such checks
of books and records of the company as we consider appropriate and
according to the information and explanations given to us during the
course of audit, we enclose in the Annexure a statement on the matters
specified in paragraph 4 and 5 of the said order, to the extent
applicable to the Company.
3. Further to our comments in the Annexure referred to in paragraph 2
above, we report that:
a) Subject to our comments in paragraphs 3(f) (i) to (iii), we have
obtained all the information and explanations which to the best of our
knowledge and belief were necessary for the purposes of our audit;
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, Profit & Loss Account and Gash Flow Statement
dealt with by this report are in agree ment with the books of account;
d) In our opinion, the Balance Sheet, Profit and Loss Account and Cash
Flow Statement dealt with by this report comply with the Accounting
Standards referred to in sub section (3C) of Section 211 of the
Companies Act, 1956, to the extent applicable to the company under the
circumstances;
e) On the basis of written representations received from directors, as
on 31st March 2009 and taken on record by the Board of Directors, we
report that none of the directors is disqualified as on 31st March 2009
from being appointed as a director in terms of clause (g) of subsection
(1) of Section 274 of the Companies Act, 1956.
f) Attention is invited to the following notes in Schedule-M.
i) Note No. (6): regarding non- confirmation / reconciliation of
balances of some of sundry creditors, loans and advances and other
personal accounts, the effect of which on accounts upon confirmations
and reconciliation of the same not ascertainable.
ii) Note no. (10): regarding non- provision of interest on accrual
basis on unsecured loans from compa- nies and others and its impact on
accounts not ascertainable in the absence of details.
iii) Note No. (11): regarding non- provision of overdue interest,
liquidated damages, penalty etc. on loans from financial institutions
and its impact on accounts not ascertainable in the absence of detail.
iv) Note No. (21) : regarding the accounts of the company prepared on
going concern basis.
Subject to the foregoing, in our opinion and to the best of our
information and according to the explanations given to us, the said
accounts, read with the significant accounting policies and other notes
thereon, give the informa- tion 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 31th March, 2009;
ii) in the case of the Profit and Loss Account, of the Profit of the
company for the year ended on that date; and
iii) in the case of the Cash Flow Statement, of the cash flows for the
period ended on that date.
ANNEXURE TO THE AUDITORS REPORT
REFERRED TO IN PARAGRAPH (2) OF OUR REPORT OF EVEN DATE ON THE ACCOUNTS
OF JAUSS POLYMERS LIMITED FOR THE YEAR ENDED ON 31th MARCH, 2009.
i) a) The Company is maintaining proper records showing full
particulars including quantitative details and situ- ation of fixed
assets except in certain items of fixed assets where the reconciliation
/reconstruction of record is in process.
b) Major portion of the fixed assets have been physically verified by
the management during the year as per the regular programme of
verification which, in our opinion, is reasonable having regard to the
size of the company and the nature of its business. According to
information and explanations given to us, no material discrepancies
were noticed on such verification.
c) There was no substantial disposal of fixed assets during the period.
ii) a) The inventory has been physically verified during the year by
the management. In our opinion, the fre- quency of verification is
reasonable.
b) In our opinion, the procedures of physical verification of inventory
followed by the management are reason- able 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 records of inventory, we are
of the opinion that the company is maintaining proper records of
inventory. The discrepancies noticed on verification between the
physical stocks and the book records were not material and have been
properly dealt with in the books of accounts.
iii) a) The Company has not granted any loan-secured or unsecured, to
companies, firms or other parties cov- ered in the register maintained
under Section 301 of the Companies Act, 1956. Accordingly, the clauses
4(iii) (b) to (d) of the Order are not applicable.
b) The terms and conditions of unsecured interest free loans taken
during the year from the parties covered in the register maintained
under Section 301 of the Companies Act, 1956 are not prima facie,
prejudicial to the interest of the Company.
There were unsecured loans of Rs.31.84 Lacs outstanding as on 31th
March, 2009 in case of six parties covered in the register maintained
u/s 301 of the Companies Act, 1956, the maximum amount due during the
year was Rs.37.32 Lacs. The repayment of principal amount of those
loans was regular as stipulated.
iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business with regard to purchases of inventory, fixed assets and with
regard to the sale of goods and services. Further, on the basis of our
examination of the books and records of the Company and according to
the information and explanations given to us, we have not come across
nor have been informed of any continuing failure to correct major
weaknesses in the aforesaid internal control procedures.
v) a) On the basis of the audit procedures performed by us, and
according to the information and explanations and representations given
to us, we are of the opinion that the transactions that need to be
entered in pursuance of section 301 of the Act have been so entered.
b) In our opinion and according to the information and explanations
given to us the transactions made in pursuance of contracts or
arrangements entered in the register maintained under Section 301 of
the Act have been made at prices which are reasonable having regard to
the prevailing market prices at that relevant time.
vi) The Company has not accepted any deposits from the public during
the year to which the directives issued by the Reserve Bank of India
and the provisions of Sections 58 A and 58 AA of the Companies Act,
1956 and the rules framed there under are applicable.
vii) In our opinion, the company has an internal audit system which is
commensurate with the size of the Company and nature of its business.
viii) The Central Government has not prescribed maintenance of cost
records under Section 209(1) (d) of the companies Act, 1956 for the
product of the company.
ix) a) According to the records of the company examined by us, the
company is generally regular during the period in depositing with
appropriate authorities undisputed statutory dues including Provident
Fund, Em- ployees State Insurance, Income-tax, Sales Tax, Cess and
other statutory dues applicable to it. The extent of arrears of such
dues as on 31th March, 2009 for a period of more than six months was
Rs.129.12 Lacs.
b) According to the information and explanation given to us and the
records of the Company examined by us, the particulars of the dues of
Sales Tax, Income Tax, Custom Duty, Wealth Tax, Excise Duty and Cess as
at 31th March, 2009 which have not been deposited on account of a
dispute, are as follows:
Name of the Nature of Amount Forum where dispute
statutory Due Dues (Rs.) Lacs is pending
Sales Tax Act Regular 16.68 Commissioner (Appeals)
x) The accumulated losses of the company as at March 31th, 2009 were
more than fifty percent of its net worth. The company has not incurred
cash losses during the period covered by our audit and in the
immediately preceding financial year.
xi) The company is a sick industrial company within the meaning of Sick
Industrial Companies (Special Provisions) Act, 1985 and had defaulted
in re-payment of dues to financial institutions. Detail of such
outstanding dues including the period and amount of default is given as
hereunder:
Name of F.I. Amount of default Period to which relate
(Rs.) Lacs
PFC/PSIDC 167.27 Since 1998
xii) Based on our examination of documents and records, the company has
not granted any loans and ad- vances on the basis of security by way of
pledge of shares, debentures and other securities.
xiii) In our opinion, the provisions of any special statute applicable
to chit fund/nidhi/mutual benefit/societies are not applicable to the
Company.
xiv) In our opinion, the Company is not dealing in or trading in
shares, securities, debentures and other invest- ments.
xv) According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks or financial institutions during the year.
xvi) According to the information and explanations given to us, the
Company applied term loans and the same were utilised for the purpose
for which the loans were obtained.
xvii) According to the information and explanations given to us and on
an overall examination of the balance sheet of the company, we report
that funds raised on short term basis have not been used for long term
investment and vice versa, except for long term working capital.
xviii) The Company has not made any preferential allotment of shares to
parties and companies covered in the register maintained under section
301 of the Act during the year.
xix) The Company has not issued any debentures during the year.
xx) The Company has not raised any money by public issues during the
year.
xxi) During the course of our examination of the books and records of
the company, carried out in accordance with 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 V.K. DHINGRA & CO.
CHARTERED ACCOUNTANTS
PLACE: NEW DELHI (V.K. DHINGRA)
DATED: SEPTEMBER 2, 2009 PARTNER
M. No. 014467
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