Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of "MADHUR
INDUSTRIES LTD.", 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 Statement
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. 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, 2013;
b) in the case of the Profit and Loss Account, 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.
Report on Other Legal and Regulatory Requirements.
1. As required by the Companies (Auditor''s Report) Order, 2003 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 Reports on the accounts of Mumbai Branch audited by the branch
auditor has been forwarded to us & have been appropriately dealt with
while preparing our Report.
d) 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.
e) 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;
Except Accounting Standard -15 on Retirement benefits as no provision
has been made for retirement benefits, The effect of the same can not
be quantified, to that extent loss for the year and balance of Profit &
Loss account and balance of current liabilities is understated.
f) on the basis of written representations received from the directors
as on March 31, 2013, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2013, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
g) The Bank accounts of the Company was frizzed by the CBI BS & FC,
Mumbai in the financial year 2001-02, therefore no provision has been
made for bank balance of Rs. 32,56,783, DD in Transit of Rs.32,372 ,
doubtful sundry debtors of Rs. 34.07 lacs & doubtful advance of Rs.
82.21 lacs exceeding six months . The Consequential effect of this is
not ascertainable.
h) Note in Schedule relating to non provision of interest on fixed
deposit (accepted in previous year u/s 58A) for the year ending on 31st
March, 2013 and matured/encashed Fixed Deposits for which the cheques
are issued from separate bank account (which is freezed CBI BS & FC,
Mumbai) but not cleared due to suspension of banking operation of
Madhavpura Mercantile Co. Op. Bank Ltd. Consquently the loss and
liability are understated to the extent.
i) Subject to the above ,ln our opinion and to the best of our
information and according to the explanations given to us, the said
accounts, read in conjunction with the significant Accounting policies
(Note-25), Notes to Financial Statements(Notes 1-24) 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:
j) Since the Central Government has not issued any notification as to
the rate at which the cess is to be paid under section 441A of the
Companies Act, 1956 nor has it issued any Rules under the said section,
prescribing the manner in which such cess is to be paid, no cess is due
and payable by the Company.
The Annexure referred to in paragraph 1 of the Our Report of even date
to the members of MADHUR INDUSTRIES LTD. 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 showing full
particulars including quantitative details and situation of its fixed
assets.
(b) As per the information and explanation given to us, the assets have
been physically verified by the management during the regular interval.
However the details regarding the same are not available for our
verification.
(c) In our opinion and according to the information and explanations
given to us, no fixed asset has been disposed during the year and
therefore does not affect the going concern assumption.
2. (a) As explained to us, inventories have been physically verified
during the year by the management at reasonable intervals.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the company and the nature of its business.
(c) In our opinion and on the basis of our examination of the records,
the Company is generally maintaining proper records of its inventories.
No material discrepancy was noticed on physical verification of stocks
by the management as compared to book records.
3. As per the information and explanations given to us, the Company
has granted unsecured loans to six parties covered in the register
maintained u/s 301 of the Companies Act, 1956. The maximum balance
outstanding during the year was Rs. 25,32,790.32
In our opinion, the rate of interest and other terms and conditions of
such loan are not, prime facie, prejudicial to the interest of the
Company.
The company is neither regular in making recovery of the principal
amount nor its interest.
There is overdue amount of loans granted exceeding one lacs in case of
three parties and company is in process of recovery of the amount to
the. Parties covered in the register maintained under section 301 of
the Companies Act, 1956.
As per the information and explanations given to us, the Company has
taken unsecured loans from three parties covered in the Register
maintained u/s. 301 of the Companies Act, 1956. The maximum balance
outstanding during the year was Rs. 40,87,674
The terms and conditions of the above loans are prima facie not
prejudicial to the interest of the company.
The company is neither regular in making repayment of the principal
amount nor its interest.
4. In our opinion and according to the information and explanations
given to us, there is generally an adequate internal control procedure
commensurate with the size of the company and the nature of its
business, for the purchase of inventories & fixed assets and payment
for expenses & for sale of goods. During the course of our audit, no
major instance of continuing failure to correct any weaknesses in the
internal controls has been noticed.
5. a) Based on the audit procedures applied by us and according to the
information and explanations provided by the management, the
particulars of contracts or arrangements referred to in section 301 of
the Act have been entered in the register required to be maintained
under that section.
b) As per information & explanations given to us and in our opinion,
the transaction entered into by the company with parties covered u/s
301 of the Act does not exceeds five lacs rupees in a financial year
therefore requirement of reasonableness of transactions does not
arises.
6. In our opinion and according to the information and explanations
given to us, the company has not accepted/renewed the deposits falling
within preview of Section 58A / 58AA of the Companies Act, 1956 during
the financial year. However the honorable Company Law Board (CLB)
western region bench Mumbai, by its order dated 29th April,2002 in
company petition no 58AA/58A(9)/CLB/WR/2002/494 has order that there is
a default on the part of the company to repay the small depositors
their deposits as per terms and condition of acceptance of deposits.
However considering the submission made by the company that the company
is already having a separate Bank account for accepting and repaying
fixed deposits with Madhavpura Mercantile Co. Op. Bank Ltd., the banker
of the company and has transferred funds to the tune of Rs. 175 Lacs to
the said amount ( which is frizzed by CBI BS & FC Mumbai) for repayment
of depositors and since the clearing of the Madhavpura Mercantile Co.
Op. Bank Ltd., the banker of the company has been suspended w.e.f. 13th
March,2001 the company is unable to repay to depositors whose FD''s
stand matured & for repayment of the premature FD''s Hon''ble Company Law
Board has given directions to the company as contained in order. One of
prime direction of the order is that:
The Company shall make repayment of deposits along with interest at the
contracted rate till the date of payment to depositors whose deposits
become matured and also to depositors who have requested the company
for repayment of their premature fixed deposits within 30 days of start
of clearing of Madhavpura Mercantile Co. Op. Bank Ltd. However
clearance of Bank already has been started but the above bank account
has been freezed by CBI BS & FC Mumbai hence company could not paid
deposits.
7. As per information & explanations given by the management, the
Company has no internal audit system commensurate with its size and the
nature of its business.
8. In our opinion and according to the information and explanations
given to us, the central government has not prescribed maintenance of
cost records under section 209(1) (d) of the Companies Act, 1956.
9. (a) According to the records of the company, undisputed statutory
dues including Provident Fund, Investor Education and Protection Fund,
Employees'' State Insurance, Income-tax, Sales-tax, Wealth Tax, Service
Tax, Custom Duty, Excise Duty, cess to the extent applicable and any
other statutory dues have generally been regularly deposited with the
appropriate authorities. According to the information and explanations
given to us there were no outstanding statutory dues as on 31st of
March, 2013 for a period of more than six months from the date they
became payable.
(b) According to the information and explanation given to us, and
details produced for verification, there are dues of Income tax of Rs.
6,74,762 which have not been deposited as the said dispute is pending
before CIT (Appeal).
10. In our opinion and according to the information and explanations
given to us, the company has not incurred any cash losses during the
financial year under review. Moreover, the company has accumulated
losses of Rs. 3,11,52,628 at the end of the financial year.
11. According to the records of the company examined by us and on the
basis of information and explanations given to us, the company has
issued cheques of Rs. 2,10,07,851/-from its current account for
repayment of Term Loan to Madhavpura Mercantile Co. Op. Bank Ltd by way
of transfer of funds. We are unable to express our opinion because
necessary documents are not available by bank to us whether same have
been credited or not.
12. According to the information and explanations given to us, the
Company has not granted loans and advances on the basis of security by
way of pledge of shares, debentures and other securities.
13. The Company is not a chit fund or a nidhi /mutual benefit
fund/society. Therefore, the provision of this clause of the Companies
(Auditor''s Report) Order, 2003 (as amended) is not applicable to the
Company.
14. According to information and explanations given to us, the Company
is not trading in Shares, Mutual funds,Securities,Debenture & other
Investments .
15. According to the information and explanations given to us, the
Company has not given any guarantees for loan taken by others from a
bank or financial institution.
16. Based on our audit procedures and on the information given by the
management, we report that the company has not raised any term loans
during the year.
17. Based on the information and explanations given to us and on an
overall examination of the Balance Sheet of the Company as at 31st
March, 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 no outstanding debentures during the period under
audit.
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.
Date :- 30/05/2013 For, Purushottam Khandelwal & Co.
Place:- Ahmedabad Chartered Accountants
SD/-
(P.H. Khandelwal)
Proprietor
M.No.100601
FRN: 123825W
Mar 31, 2012
1. We have audited the attached Balance Sheet of MADHUR INDUSTRIES
LTD., as at 31 March 2012/ and the statement of Profit and Loss Account
and also the cash flow statement for the year ended on the date annexed
thereto, in which are incorporated accounts of the Branch audited by
the Branch Auditor whose reports have been considered in preparing this
report. These financial statements are the I 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 auditing standards
generally accepted in India. These standards require that we plan and
perform the aiidit to obtain reasonable assurance aboutr whether the
financial statements are free of material misstatements. An audit
includes examining, on test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by Companies (Auditor's Report) Order, 2003 and as
amended by the Companies (Auditor's Report)(Amendment) Order, 2004
issued by Central Government of India in terms of sub-section (4A) of
section 227 of the Companies Act, 1956, we enclose in the Annexure a
statement on the matters specified in paragraphs 4 & 5 of said order,
4. Further to our comments in the Annexure xeferred to above, we report
that:
a. We have obtained all the mformation 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 appearsfrom om examination of those
books and proper returnsadequate for the purposes of our audithavebeen
received fromthe branch not visited by us;
c. The Reports on the accounts of Mumbai Branch audited by the branch
auditor has been forwarded to us & have been appropriately dealt with
while preparing our Report;
d. The Balance Sheet , the Profit and Loss Account and cash flow
statement dealt with by this report are in agreement with the books
of account.
e. In our opinion, the Balance Sheet ,Profit & Loss Account and cash
flow statement dealt with by this report comply with the i Accounting
Standards referred to in sub-section 3C of Section 211 of the Companies
Act, 1956;
Except Accounting Standard -15 on Retirement benefits as no provision
has been made for retkement benefits , The effect of the same can not
be quantified, to that extent loss for the year and balance of Profit &
Loss account and balance of current liabilities is understated.
f. On the basis of written representations received from the directors
as at 31 March, 2012 and taken on record by the Board of Directors and
in accordance with the information and explanations as made available,
the directors of the company do not have prima - facie
have any disqualification as at 31March, 2012 from being appointed
as a director in terms of clause (g) of sub-section (1) of section
274 of the Companies Act, 1956.
g. TheBankaccounts of the Company was frizzed by the CBI BS&FC, Mumbai
in the financial year 2001-02, therefore no provision has been made
for bank balance of Rs. 32,56,783, DD in Transit of Rs.32,372 ,
doubtful sundry debtors of Rs. 34.07 lacs & doubtful advance of Rs.
82J21 lacs exceeding six months . The Consequential effect of
this is not ascertainable.
h. Note in Schedule relating to non provision of interest on fixed
deposit (accepted in previous year u/s 58A) for the year ending on 3lst
March, 2012 and matured/encashed Fixed Deposits for which the* cheques
are issued frorn separate bank account (which is freezedCBI BS &FC,
Mumbai) but not cleared due to suspension of banking operation of
Madhavpura Mercantile Co, Op. Bank Ltd. Consquently the loss
and liability are understated to the extent.
1 Subject to the above ,In our opinion and to the best of our
information and according to the explanations given to us, the said
accounts, read in conjunction with the significant Accounting policies
(Note-25), Notes to Fmancial Statements (Notes 1-24) give the
information required by the Companies Act/1956, in the mariner
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 31 March, 2012.
ii In the case of the Profit and Loss Account, of the profit of the
Company for the period ended on that date.
iii In the case of Cash Flow Statement, of the Cash Flow of the Company
for the year ended on that date.
Date:- 28/05/2012 For Purushottam Khandelwal & Co.
Place: - Ahmedabad Chartered Accountants
Sd/-
(P.H. Khandelwal)
Proprietor
ANNEXURE TO THE AUDrrdRS'REPORT
(Referred to in paragraph 3 of our report of even date)
1. (a) As per the information and explanation given to us, the Company
has maintained proper records showing full particulars, including
quantitative details and situation of fixed assets.
(b) As per the information and explanation given to us, the assets have
been physically verified by the management during the regular interval.
However the details regarding the same are not available for our
verification.
(c) The Company has not disposed of any substantial part of its fixed
assets during the year as would affect its going concern status.
2. (a) As per the information and explanations given to us , the
inventories has been psically verified during the year by the
management.
(b) In our opinion and according to the mfprrnation and explanation
given to us, the procedure of physical verification of inventories
followed by the management is reasonable and adequate in relation to me
size of the company and me nature of its business.
(c) The company has maintained proper records of inventories. As
explained to us, there were no material discrepancies that have been
noticed on physical verification of inventories as compared to books
records.
3. (a) As per the information and explanations given to us, the
Company has granted unsecured loans to six parties covered in the
register maintained u/s 301 of the Companies Act, 1956.
The maximum balance outstanding during the year was
Rs. 23,52,971.34
(b) In our opinion, the rate of interest and other terms and
conditions of such loan are not, prime facie, prejudicial to the
interest of the Company.
(c): The company is neither regular in making recovery of the
principal amount nor its interest.
(d) There is overdue amount of loans granted exceeding one
lacs in case of three parties and company is in process of
recovery of the amount to the. Partiesi covered in the register
maintamed under section 301 of the Companies Act, 1956.
(e) As per the information and explanations given to us, the Company
has taken unsecured loans from three parties covered in the Register
maintained u/s. 301 of the Companies Act, 1956. The maximum
balance outstanding during the year was Rs. 33,43,494
(f) The terms and conditions of the above loans are prima facie not
prejudicial to me interest of the company.
(g) The company is neither regular in making repayment of the principal
amount nor its interest
4. In our opinion and according to information and explanation given
to us; there is adequate internal control system commensurate with
the size of the Company and the nature of its business, for the
purchase of inventory and f fixed assets, and for the sale of goods and
services. Further on the basis of J our examination of 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.
5. In our opinion and according to the information and explanations
given to us, there is no transaction made m pursuance of contracts or
arrangements entered in the register maintained under section 301 of
the companies act 1956 exceedingthe value ofRupees five lakhs in
respect of any party during the Year.
6. In our opinion and according to the information and explanations
given to us, the company has not accepted/renewed the deposits
falling within preview of Section 58 A / 58 A A of the Companies Act,
1956 during the financial year. However the honorable Company Law
Board (CLB) western region bench fvtfumbai, by its order dated 29th
April,2002 in company petition no 58AA/58A(9)/CLB/WR/2002/494 has
order that there is a default on the part of the company to repay the
small depositors their deposits as per terms and condition of
acceptance of deposits. However considering the submission made by
the company that the company is already having a separate Bank
account for accepting and repaying fixed deposits with Madhavpura
Mercantile Co. Op. Banjk Ltd. thecompany and has tiansferred
fund s to me said amount (Which is frizzed by CBIBS & FC Murhbai)
for repayment of S depositors and since the clearing of the Madhavpura
Mercantile Co. Op. Bank Ltd., the banker of the company has been
suspended w.e.f. 13th March,2001 the company is unable to repay to
depositors whose FD's stand matured & for repayment of thepremature
FD's Hon'ble Company Law Board has given directions to the company as
contained in order. One of prime direction of the order is that
The Company shall make repayment of deposits along with interest at the
contracted rate till the date of payment to depositors whose deposits
become matured and also to depositors who have requested the company
for repayment of their premature fixed deposits within 30 days of start
of clearing of Madhavpura Mercantile Co. Op. Bank Ltd. However
clearance of Bank already has been started but the above bank account
has been freezed by CBI BS & FC Mumbaihence company could not paid
deposits.
7. In our opinion and according to the inforrnation and explanation
given to us, the Company has no internal audit system commensurate with
size and nature of its business.
8. In our opinion and according to the information and explanations
given to us, the central government has not prescribed maintenance of
cost records under section 209(1) (d) of the Companies Act, 1956.
9. (a)According to the information given to us, the Company is
generally regular in depositing with appropriate authorities undisputed
statutory dues including income tax, sales tax, excise duty, cess and
other material statutory dues applicable to it. And the Company had no
arrears of such outstanding statutory dues as at 31st March, 2012 for a
period more than six months; from the date they became payable .
, (b) According to the information and explanation given to us, and
details produced for verification, there are dues of Income tax of Rs.
6,74,762which have not been deposited as the said dispute is pending
before CIT (Appeal).
10. In our opinion and according to the information and explanations
given to us, the company has not incurred any cash losses during the
financial year under review. Moreover, the company has accumulated
losses of Rs. 3,18,41,232 at the end of the financial year.
11. According to the records of the company examined by us and on the
basis of information and explanations given to us, the company has
issued cheques of Rs. 2,10,07,851/- from its current account for
repayment of Term Loaii to Madhavpura Mercantile Co. Op. Bank Ltd by
way of transfer of funds. We are unable to express our opinion because
necessary documents are not available by bank to us whether same have
been credited or not.
12. The company has not granted any loans and advances on the basis of
securities by way pledge of shares, debentures and other securities.
13. In our opinion, the company is not a chit fund or a nidhi mutual
benefit fund/society. Therefore, the provisions of clause 4(xiii)
of the Cornpanies (Auditor's Report) Order, 2003 are not
applicable to the company.
14. According to the informationand explanation given to us, the
company is I not dealing or trading in shares, securities, Debentures
and other Securities.
15. In our opinion and according to the information and explanation
given to us, the company has not given any guarantee for loans taken
by others from banks and financial institutions during the year.
16. As per the Information made available to us, there are no Term
Loans taken by the Company.
17. In our opinion and according to the information and explanations
given to j I us, the Company has not used any funds raised on short
term basis for long term mveslment.
18. The Conipany has not made any preferential allotment during the
Year.
19. During the period covered by our audit report, the company has not
issued any debentures.
20. As the company has not raised money by making Public issue during
the Financial year.
21. As represented to us by the Management and based on our
examination of the books and records of the Company in accordance
with the generally accepted auditing practices in India, we have
neither come across any material fraud in or by the company noticed
or reported during the year nor we have been informed of any such
case by the management that causes the financial statements to be
materially misstated.
For, Purushottam Khandelwal & Co.
Chartered Accountants
Purushottam Khandelwal
Proprietor
Place: Ahmedabad.
Date : 28/05/2012
Mar 31, 2010
1. We have audited the attached Balance Sheet of MADHUR INDUSTRIES
LTD., as at 31 March 2010, the Profit and Loss Account of the Company
for the year ended on that date and Cash Flow statement, 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.
2. We conducted our audit in accordance with 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 of material misstatements. An audit
includes examining, on test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. This report includes statement on the matters specified in the
paragraph 4 of the Companies (Auditors Report) Order,2005 issued by
the Central Government of India in terms of sub-section (4A) of section
227 of the Companies Act, 1956.
4. Further to our comments in the Annexure referred to above, we
report that:
a. We have obtained the available 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 Reports on the accounts of Mumbai Branches audited by the
branch auditors has been forwarded to us & the same has been
considering in preparing our report.
d. The Balance Sheet, the Profit and Loss Account and cash flow
statement dealt with by this report are in agreement with the books of
account;
e. In our opinion, the Balance Sheet ,Profit & 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; Except Accounting Standard -15 on Retirement benefits as no
provision has been made for retirement benefits , The effect of the
same can not be quantified, to that extent loss for the year and
balance of Profit & Loss account and balance of current liabilities is
si understated.
Accounting Standard -13 on Accounting for investments as no provision
is made for diminution in the value of investment of group concern
amounting to Rs. 63,90,965 lacs. |
f. On the basis of written representations received from the directors
as at 31 March, 2010 and taken on record by the Board of Directors and
in accordance with the information and explanations as made available,
the directors of the company do not have prima - facie have any
disqualification as at 31 March, 2010 from being appointed as a
director in terms of clause (g) of sub-section (1) of section 274 of
the Companies Act, 1956.
g. The Bank accounts of the Company was frizzed by the CBI BS & FC,
Mumbai in the financial year 2001-02, therefore no provision has been
made for bank balance of Rs. 32,56,783, DD in Transit of Rs.32,372 ,
doubtful sundry debtors of Rs. 34.07 lacs & doubtful advance of Rs.
82.21 lacs exceeding six months . The Consequential effect of this is
not ascertainable.
h. Note in Schedule relating to non provision of interest on fixed
deposit (accepted in previous year u/s 5 8A) for the year ending on
31st March, 2010 and matured/enchased Fixed Deposits for which the
cheques are issued from separate bank account (which is freezed CBI BS
& FC, Mumbai) but not cleared due to suspension of banking operation of
Madhavpura Mercantile Co. Op. Bank Ltd. Consquently the loss and
liability are understated to the extent.
i. Subject to the above ,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 given 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 31 March, 2010.
ii In the case of the Profit and Loss Account, of the loss of the
Company for the period ended on that date.
iii In the case of Cash Flow Statement, of the Cash Flow of the Company
for the year ended on that date.
ANNEXURE TO THE AUDITORS REPORT
(Referred to in paragraph 3 of our report of even date)
1. (a) As per the information and explanation given to us, the Company
has maintained proper records showing full particulars, including
quantitative details and situation of fixed assets.
(b) As per the information and explanation given to us, the assets have
been physically verified by the management during the regular interval.
(c) The Company has not disposed of any substantial part of its fixed
assets during the year as would affect its going concern status.
2. (a) As per the information and explanations given to us , the
inventories has been physically verified during the year by the
management.
(b) In our opinion and according to the information and explanation
given to us, the procedure of physical verification of inventories
followed by the management is reasonable and adequate in relation to
the size of the company and the nature of its business.
(c) The company has maintained proper records of inventories. As
explained to us, there were no material discrepancies that have been
noticed on physical verification of inventories as compared to books
records.
3. (a) As per the information and explanations given to us, the
Company has granted unsecured loans to six parties covered in the
registered maintained u/s 301 of the Companies Act, 1956. The maximum
balance outstanding during the year was Rs. 11,26,917.
(b) In our opinion, the rate of interest and other terms and conditions
of such loan are not, prime facie, prejudicial to the interest of the
Company.
(c) The company is neither regular in making recovery of the principal
amount nor its interest.
(d) There is overdue amount of loans granted exceeding one lacs in case
of three parties and company is in process of recovery of the amount to
the Parties covered in the register maintained under section 301 of the
Companies Act,1956.
(e) As per the information and explanations given to us, the Company
has taken unsecured loans from three parties-covered in the Register
maintained u/s. 301 of the Companies Act, 1956. The maximum balance
outstanding during the year was Rs. 2,38,814.
(f) The terms and conditions of the above loans are prima facie not
prejudicial to the interest of the company.
(g) The company is neither regular in making repayment of the principal
amount nor its interest.
4. In our opinion and according to information and explanation given
to- us; there is adequate internal control system commensurate with the
size of the Company and the nature of its business, for the purchase of
inventory and fixed assets, and for the sale of goods and services.
Further on the basis of our examination of 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.
5. In our opinion and according to the information and explanations
given to us, there is no transaction during the year as referred to in
Section 301 of the Companies Act, 1956.
6. In our opinion and according to the information and explanations
given to us, the company has not accepted/renewed the deposits falling
within preview of Section 58A / 58AA of the Companies Act, 1956 during
the financial year. However the honourable Company Law Board (CLB)
western region bench Mumbai, by its order dated 29* April,2002 in
company petition no 58AA/58A(9)/CLB/WR/2002/494 has order that there is
a default on the part of the company to repay the small depositors
their deposits as per terms and condition of acceptance of deposits.
However considering the submission made by the company that the company
is already having a separate Bank account for accepting and repaying
fixed deposits with Madhavpura Mercantile Co. Op. Bank Ltd., the banker
of the company and has transferred funds to the tune of Rs. 175 Lacs to
the said amount (which is frizzed by CBI BS & FC Mumbai) for repayment
of depositors and since the clearing of the Madhavpura Mercantile Co.
Op. Bank Ltd., the banker of the company has been suspended wef 13*
March,2001 the company is unable to repay to depositors whose FDs
stand matured & for repayment of the premature FDs Honble Company Law
Board has given directions to the company as contained in order. One of
prime direction of the order is that:
The Company shall make repayment of deposits along with interest at the
contracted rate till the date of payment to depositors whose deposits
become matured and also to depositors who have requested the company
for repayment
of their premature fixed deposits within 30 days of start of clearing
of Madhavpura Mercantile Co. Op. Bank Ltd. However clearance of Bank
already has been started but the above bank account has been freezed by
CBI BS & FC Mumbai hence company could not paid deposits.
7. In our opinion and according to the information and explanation
given to us, the Company has not adequate internal audit system
commensurate with size and nature of its business.
8. In our opinion and according to the information and explanations
given to us, the central government has not prescribed maintenance of
cost records under section 209(1) (d) of the Companies Act, 1956.
9. (a)According to the information given to us, the Company is
generally regular
in depositing with appropriate authorities undisputed statutory dues
including income tax, sales tax, excise duty, cess and other material
statutory dues applicable to it. and the Company had no arrears of such
outstanding statutory dues as at 31st March, 2010 for a period more
than six months from the date they became payable except TDS of
preceding years of Rs.4069 not deposited.
(b) According to the information and explanation given to us, and
details produced for verification, there are dues of Income tax of Rs.
69,83,703 which have not been deposited as the said dispute is pending
before CIT (Appeal).
10. In our opinion and according to the information and explanations
given to us, the company has incurred cash losses of Rs. 1,11,77,265
during the financial year under review. Moreover, the company has
accumulated losses of Rs. 3,29,84,650 at the end of the financial
year.
11. According to the records of the company examined by us and on the
basis of information and explanations given to us, the company has
issued cheques of Rs. 2,10,07,851/- from its current account for
repayment of Term Loan to Madhavpura Mercantile Co. Op. Bank Ltd by way
of transfer of funds. We are unable to express our opinion because
necessary documents are not available by bank to us whether same have
been credited or not.
12. The company has not granted any loans and advances on the basis of
securities by way pledge of shares, debentures and other securities.
13. In our opinion, the company is not a chit fund or a nidhi mutual
benefit fund/society. Therefore, the provisions of clause 4(xiii) of
the Companies (Auditors Report) Order, 2003 are not applicable to the
company.
14. According to the information and explanation given to us, the
company is
dealing or trading in shares, securities; Proper records have been
maintained of the transactions and contracts and timely entries have
been made therein. The other investments have been held by the company
in its own name except to the extent of exemption, if any granted under
section 49 of the act.
15. In our opinion and according to the information and explanation
given to us, the company has not given any guarantee for loans taken by
others from banks and financial institutions during the year.
16. As per the information and explanation given to us, the company
has not taken term loans during the financial year.
17. In our opinion and according to the information and explanations
given to us, the Company has not used any funds raised on short term
basis for long term investment.
18. The Company has not made any preferential allotment to parties
covered in the register maintained under Section 301 of the Companies
Act, 1956.
19. During the period covered by our audit report, the company has not
issued any debentures.
20. As the company has not raised money by making Public issue during
the financial year.
21. According to the information and explanations given to us, no
fraud on or by the company has been noticed or reported during the
course of our audit.
For, Purushottam Khandelwal & Co.
Chartered Accountants
Purushottam Khandelwal
Proprietor
Mem. No. 100601
FRN:-123825W
Place : Ahmedabad.
Date :03/09/2010
Mar 31, 2009
We have audited the attached Balance Sheet of MADHUR INDUSTRIES LTD.,
as at 31st March, 2009 and also the Profit and Loss Account 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 ppinion on these financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally
accepted in India. Those Standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
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, we enclose in the Annexure a statement
on the matters specified in paragraphs 4 and 5 of the said Order to the
extent applicable to the Company.
Further to our comments in the Annexure referred to above, we report
that;
(a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
(b) In our opinion, proper books of accounts as required by law have
been kept by the company so far as appears from our examination of the
books of accounts;
(c) The Reports on the accounts of Mumbai Branches audited by the
branch auditors has been forwarded to us & the same has been considered
in preparing our report.
(d) The Balance Sheet and the Profit and Loss Account dealt with by
this report are in agreement with the books of accounts;
(e) In our opinion, the Balance Sheet of the company comply with the
Accounting Standards as referred in Sub-Section (3C) of Section 211 of
the Companies Act, 1956, to the extent applicable;
(fj Based on the representations made by the Directors of the Company
and taken on records by the Board of Directors, and in accordance with
the information and explanations as made available, the Directors of
the Company do not prima- facie have any disqualification as referred
to in Section 274 (1) (g) of the act.
(g) The bank accounts of the company was frizzed by CBI BS & FC, Mumbai
in the financial year 2001-02 therefore no provision has been made for
bank balance of Rs. 119.47 lacs, and no provision has been made for
diminution in the value of investment of group concern amounting to Rs.
72.91 lacs, doubtful sundry debtors of Rs. 34.07 lacs & doubtful
advance Rs. 82.21 lacs exceeding six month. The consequential effect of
this is not ascertainable.
(h) Company has not disclosed the information in respect of dues to SSI
units as required and
(i) Note in Schedule relating to non provision of interest on Fixed
deposit, (accepted in previous years u/s. 58 A) for the year ending on
31st March, 2009 and matured/encashed Fixed Deposits for which the
cheques are issued from separate bank account, (which is frizzed CBI BS
& FC, Mumbai) but not cleared due to suspension of banking operation of
Madhavpura Mercantile co-op Bank Ltd. Consequently the loss and
liability are understated to the extent.
(j) Subject to above, in our opinion and to the best of our information
and according to explanation given to us, the said accounts give the
information required by the Companies Act, 1956 in manner so required
and given a true and fair view in conformity with the accounting
principles generally accepted in India.
(i) in case of Balance Sheet, of the state of the affairs of the
company as at 31st March 2009 and
(ii) In case of Profit and Loss Account, of the Loss of the Company for
the year ended on that date &
ANNEXURE TO THE AUDITORS REPORT Referred to in our Report of even
date:
1. (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) As explained to us, all the assets have been physically verified by
the management during the year, which in our opinion is reasonable
having regard to the size of the Company and the nature of its assets.
No material discrepancies were noticed on such verification.
(c) No substantial part of fixed assets has been disposed off during
the year.
2. (a) As explained to us, the Inventories has been physically
verified during the year
by the management.
(b) In our opinion and according to the information and explanation
given to us, the procedure of physical verification of Inventories
followed by the management is reasonable and adequate i;i relation to
the size of the Company and the nature of its Business.
(c) The Company has maintained proper records of Inventories. As
explained to us, there were no material discrepancies have been noticed
on physical verification of Inventories as compared to book records.
3. Company has granted loan to following four group concern amount of
Rs. 853645/- In respect of loans granted to and .taken from the
companies, firms or other parties listed in the register maintained
u/s. 301 of the companies Act, 1956 where no stipulation as to
repayment is fixed along with non provision of interest on loan is
made.
Payment of the Principal amount and interest are.not regular.
4. In our opinion, according to the information and explanations given
to us, there are adequate internal control procedures, commensurate
with the size of the Company and nature of its Business for purchase of
inventories & Purchase and sale of plant and machinery, equipment and
other assets.
5. (a) In our opinion and according to the information and
explanations given to us, the transactions that need to be entered in
to a register in pursuance of section 301 of the companies act, 1956,
have been so entered.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contract or
arrangements entered in the register maintained under section 301 of
the Companies Act, 1956 and exceeding rupees five lakhs each have been
made at prices, which are reasonable having regard to prevailing market
prices at the relevant time.
6. In our opinion and according to the information and explanations
given to us, the Company has not accepted /renewed the deposits falling
within the preview of Section 58A / 58AA of the Companies Act, 1956
during the financial year. However, the honorable Company Law Board
(CLB) western region bench Mumbai, by its order dated 29th April, 2002
in company petition no 58AA/58A(9)/CLB/WR/2002/494 has order that there
is a default on the part of the company to repay the small depositors
their deposits as per terms and conditions of acceptance of deposits.
However considering the submissions made by the company that the
company is already having a separate Bank account for accepting and
repaying fixed deposits with Madhavpura Mercantile Co. Op. Bank Ltd.,
the banker of the company, and has transferred funds to the tune of Rs.
175 lacs to the said amount (which is frizzed by CBI BS & FC, Mumbai)
for repayment of depositors and since the clearing of the Madhavpura
Mercantile Co. Op. Bank Ltd., the banker of the company has been
suspended w.e.f. 13th March, 2001 the Company is unable to repay to
depositor whose FDs stands matured & for repayment of their prematured
FDs Honble Company Law Board has given directions to the company as
contained in order. One of prime direction of the order i? that:
The Company shall make repayment of deposits along with interest at the
contracted rate till the date of payment to depositors whose deposits
become matured and also to depositors who have requested the company
for repayment of their premature fixed deposits within 30 days of start
of clearing of Madhavpura Mercantile Co. Op. Bank Ltd. However
clearance of Bank already has been started but the above bank account
has been freezed by CBI BS & FC Mumbai hence company could not paid
deposits.
7. In our opinion, according to the information and explanations given
to us, the Company has not adequate Internal Audit System commensurate
with size and nature of its Business.
8. As informed to us , the maintenance of cost records has not been
prescribed by the Central Government under Section 209 (1) (d) of the
Companies Act, 1956.
9. (a) According to information and explanation given to us no
undisputed amount in respect of Income Tax, Sales Tax, Wealth Tax,
Custom Duty, Cass and excise duty and no other statutory liabilities
were outstanding for a period more than six month as on 31st March,
2009 except TDS of preceding years Rs. 4069/- not deposited.
(b) Disputed claims pending before different Appellate forum are as
under.
Item Amount Forum Where dispute is pending Income Tax Rs.
6983703 CIT (Appeal)
10. The Company has incurred cash losses during the financial year
covered under the audit. The company has accumulated Losses of previous
years Rs. 234283607-
11. The Company has issued cheque of Rs. 21007851/- from its current
account for repayment of Term Loan to Madhavpura Mercantile Co. Op.
Bank Ltd by way of transfer of funds. We are unable to express our
opinion because necessary documents are not available by bank to us
whether same have been credited or not.
12. Company has not granted such loans & advances during the year.
13. Not Applicable
14. During the year the Company has carried out transactions of
trading in shares/ Commodities. Proper records have been maintained of
the transactions and contracts and timely entries have been made
therein. The other investments have been held by the Company, in its
own name except to the extent of exemption, if any, granted under
section 49 of the Act.
15. No
16. No Term Loan has been taken during the year.
17. According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the Company, we are of
the opinion that the Company has not utilized short term sources
towards repayment of long term borrowings and acquisition of fixed
assets.
18. No such allotment has been made.
19. The Company has not issued any debentures during the year and
therefore the question of creating security in respect thereof does not
arise.
20. Not Applicable
21. In our Opinion and according to the information and explanations
given to us, no fraud on or by the Company has been noticed or reported
during the year, that causes the financial statements to be materially
misstated.
For, RAM N. AGARWAL & CO.
Chartered Accountants
s/d-
Place : Ahmedabad R. N. AGARWAL
Date: 07/09/2009 Proprietor
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