Mar 31, 2014
We have audited the accompanying financial statements of Raghunath
International Limited, ("the Company"), which comprise the Balance
Sheet as at March 31, 2014, and the Statement of Profit and Loss and
Cash Flow Statement for the year then ended, and a summary of
significant accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible 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.
Auditors'' Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditors'' judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by management, as
well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
a) In the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2014;
b) In the case of the Statement of Profit and Loss of the loss for the
year ended on that date; and
c) In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors'' 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 [and proper returns adequate for the purposes of our audit have
been received from branches not visited by us];
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 [and with the returns received from branches not visited by
us];
d) in our opinion, the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement comply with the Accounting Standards referred to in
subsection (3C) of section 211 of the Companies Act, 1956;
e) on the basis of written representations received from the directors
as on March 31, 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31,2014, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956;
f) 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.
ANNEXURE REFERRED TO IN PARAGRAPH 1 OF REPORT ON OTHER LEGAL AND
REGULATORY REQUIREMENTS CONTAINED IN INDEPENDENT AUDITORSÂ REPORT OF
EVEN DATE TO THE MEMBERS OF RAGHUNATH INTERNATIONAL LIMITED ON THE
FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2014
(i) (a) The company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) We have been informed that the fixed assets of the company are
physically verified by the management according to a phased program
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. No material discrepancies were noticed on
such verification.
(c) During the year, the Company has not disposed off any Fixed Asset.
(ii) (a) The inventory of the company 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) The company has maintained proper records of inventory. As
explained to us, there were no material discrepancies noticed on
physical verification of inventory as compared to the book records.
(iii) As informed, the company has neither granted nor taken any loan,
secured or unsecured to/from companies, firm or other parties listed in
the register maintained under section 301 of The Companies Act, 1956.
Accordingly, provisions of the paragraphs 4(iii) (a) to (g) of CARO are
not applicable to the company.
(iv) There is adequate internal control system commensurate with the
size of the company and the nature of its business with regard to 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 we been
informed of any continuing failure to correct major weaknesses in the
aforesaid internal control system.
(v) In our opinion and according to the information and explanations
given to us, there are no contracts or arrangements referred to in
section 301 of The Companies Act, 1956 that need to be entered in the
register required to be maintained under that section. Accordingly,
provisions of the paragraphs 4(v) (a) and (b) of CARO are not
applicable to the company.
(vi) As informed, the Company has not accepted any deposits from the
public during the year within the meaning of section 58A and 58AA of
The Companies Act, 1956 and the rules framed there under and no order
in this respect in the case of the company has been passed by the
Company Law Board or Company Law Tribunal or The Reserve Bank of India
or any court or any other tribunal.
(vii) The company has internal audit system commensurate with the size
and nature of its business.
(viii) According to the information and explanation given to us, the
Central Government has not prescribed for the maintenance of cost
records under Section 209(1) (d) of The Companies Act, 1956 for any of
its product. Accordingly, provisions of the paragraphs 4(vii) of CARO
are not applicable to the company.
(ix) (a) According to the books and records as produced and examined by
us in accordance with generally accepted auditing practices in India
and also based on management representations, undisputed statutory
dues, if applicable, in respect of Provident Fund, Investor Education
and Protection Fund, Employees'' State Insurance dues, Income Tax, Sales
Tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess and other
material statutory dues with the appropriate authorities have generally
been regularly deposited by the company subject to the following:.
i) The company has deposited the liability of Service Tax in due time
during the financial year. The company has not produced before us any
statutory record pertaining to service tax such as Service Tax Returns.
However, on the basis of examination of the books of the accounts of
the company, there was no amount remaining outstanding as at the last
day of the financial year, for a period of more than six month from the
date they became payable.
(b) According to the information and explanation given to us, no
undisputed amounts payable in respect of Provident Fund, Employees''
State Insurance dues, Investor Education and Protection Fund, Income
Tax, Wealth Tax, Custom Duty, Excise Duty, Service Tax, VAT, Cess and
other undisputed statutory dues were outstanding, at the year end, for
a period of more than six months from the date they became payable.
(c) According to the information and explanations given to us, the
company has paid all undisputed dues of excise duty. However, the
following are the particulars of disputed dues in respect of Income
Tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty and Cess:
(x) The company does not have accumulated losses as at March 31, 2014,
however, it has incurred cash loss of Rs. Nil out of the total loss of
Rs.123,556.88 during the financial year ended on that date and it has
incurred cash loss of Rs. 684,296.34, out of total loss of Rs.
1,349,141.34 in the immediately preceding financial year.
(xi) In our opinion and according to the information and explanations
given to us, the company has not defaulted in repayment of its dues to
any financial institution or bank. The company has not raised any sum
by issue of debentures.
(xii) In our opinion and according to the information and explanations
given to us, the company has not granted any loans and advances on the
basis of security by way of pledge of shares, debentures and other
securities. Accordingly, provisions of the paragraphs 4(xii) of CARO
are not applicable to the company.
(xiii) In our opinion, considering the nature of activities carried on
by the company during the year, the provisions of any special statute
applicable to Chit Fund/ Nidhi/ Mutual Benefit Fund/ Society are not
applicable to it. Accordingly, provisions of the paragraphs 4(xiii) of
CARO are not applicable to the company.
(xiv) According to the information and explanations given to us, the
company has not dealing or trading in shares, securities, debentures
and other investments. However the company has investment in the shares
of two private limited companies amounting to Rs. 76,91,000/- and
proper records have been maintained of the transactions and contracts
and timely entries have been made therein; also the shares have been
held by the company, in its own name.
(xv) According to the information and explanations given to us, the
company has not given guarantees for loans taken by others from banks
or financial institutions. Accordingly, provisions of the paragraphs
4(xv) of CARO are not applicable to the company.
(xvi) In our opinion and according to the information and explanations
given to us, term loans availed by the company were, prima facie,
applied for the purpose for which they were obtained, other than
temporary deployment pending application.
(xvii) In our opinion and according to the information and explanations
given to us, and on an overall examination of the balance sheet of the
company, funds raised on short-term basis have, prima facie, not been
used during the year for long-term investment and no funds raised on
long-term basis have been used for short-term investment.
(xviii) According to the information and explanations given to us, the
company has not made any preferential allotment of shares to parties
and companies covered in the register maintained under section 301 of
The Companies Act, 1956. Accordingly, provisions of the paragraphs
4(xviii) of CARO are not applicable to the company.
(xix) According to the information and explanations given to us, during
the period covered by out audit report, the company had not issued any
debentures and has not created any security in respect of debentures.
Accordingly, provisions of the paragraphs 4(xix) of CARO are not
applicable to the company.
(xx) In our opinion and according to the information and explanations
given to us, the company has not raised any money from the public issue
during the year.
(xxi) To the best of our knowledge and belief 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.
For Kumar Piyush & Co.
Chartered Accountants
Firm Registration No.: 005120N
Sd/-
VIRENDRA KUMAR GOEL,
PARTNER
Membership Number: 083705
Place: New Delhi
Date: May 30th, 2014
Mar 31, 2012
1. We have audited the attached Balance Sheet of Raghunath
International Limited as at March 31, 2012, also the Profit and Loss
Account and Cash Flow Statement for the year ended on that date annexed
thereto. These financial statements are the responsibility of the
company's management. Our responsibility is to express an opinion on
these financial statements based on our audit.
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 misstatement An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditors' Report) Order, 2003, as
amended by the Companies (Auditor's Report) (Amendment Order 2004
(together the 'order') 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 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 4 and 5
of the said Order to the extent applicable to the company.
4. Further to our comments in the Annexure referred to above, 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 purposes of our
audit;
ii) In our opinion, proper books of account as required by law have
been kept by the company so far as appears from our examination of
those books;
(iii) The Balance Sheet, the Profit and Loss Account and Cash Flow
Statement dealt with by this report are in agreement with the books of
account;.
iv) In our opinion, the Balance Sheet, the Profit and Loss Account and
Cash Flow Statement dealt from this report comply with the accounting
standards referred to in sub-section (3C) of section 211 of the
Companies Act, 1956;
v) On the basis of written representations received from the directors,
as on March 31, 2012 and taken on records by the Board of Directors, we
report that none of the directors in disqualified as on March 31, 2012
from being appointed as a director in terms of clause (g) of
sub-section (1) of section 274 of the Companies Act, 1956;
vi) In our opinion and to the best of our information and according to
the explanations given to us and subject to para number 13 of the notes
on accounts regarding non-provision of liability of gratuity as per
AS-15 issued by The ICAI, the said accounts give the information
required by the Companies Act, 1956, in the manner so required and give
a true and failure view in conformity with the accounting principles
generally accepted in India:
(a) In the cases of the Balance Sheet, of the state of affairs of the
company as at March 31, 2012;
(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 Cash Flow Statement, of the cash flows for the year
ended on that date.
ANNEXURE REFERRED TO IN PARAGRAPH 3 OF AUDITOR'S REPORT OF EVEN DATE TO
THE MEMBERS OF RAGHUNATH INTERNATIONAL LIMITED ON THE FINANCIAL
STATEMENTS FOR THE YEAR ENDED MARCH 31, 2012
(i) (a) The company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) We have been informed that the fixed assets of the company are
physically verified by the management according to a phased program
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. No material discrepancies were noticed on
such verification.
(c) Fixed assets amounting to Rs. 3,27,681.10 disposed off during the
year, in our opinion it do not constitute a substantial part of fixed
assets of the company and such disposal has not affected the going
concern status of the company.
(ii) (a) The inventory of the company 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) The company has maintained proper records of inventory. As
explained to us, there were no material discrepancies noticed on
physical verification of inventory as compared to the book records.
(iii) As informed, the company has neither granted nor taken any loan,
secured or unsecured to/from companies, firm or other parties listed in
the register maintained under section 301 of The Companies Act, 1956.
Accordingly, provisions of the paragraphs 4(iii) (a) to (g) of CARO are
not applicable to the company.
(iv) There is adequate internal control system commensurate with the
size of the company and the nature of its business with regard to 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 we been
informed of any continuing failure to correct major weaknesses in the
aforesaid internal control system.
(v) In our opinion and according to the information and explanations
given to us, there are no contracts or arrangements referred to in
section 301 of The Companies Act, 1956 that need to be entered in the
register required to be maintained under that section. Accordingly,
provisions of the paragraphs 4(v) (a) and (b) of CARO are not
applicable to the company.
(vi) As informed, the Company has not accepted any deposits from the
public during the year within the meaning of section 58A and 58AA of
The Companies Act, 1956 and the rules framed there under and no order
in this respect in the case of the company has been passed by the
Company Law Board or Company Law Tribunal or The Reserve Bank of India
or any court or any other tribunal.
(vii) The company does not have internal audit system commensurate with
the size and nature of its business.
(viii) According to the information and explanation given to us, the
Central Government has not prescribed for the maintenance of cost
records under Section 209(1) (d) of The Companies Act, 1956 for any of
its product. Accordingly, provisions of the paragraphs 4(vii) of CARO
are not applicable to the company.
(ix) (a) According to the books and records as produced and examined by
us in accordance with generally accepted auditing practices in India
and also based on management representations, undisputed statutory
dues, if applicable, in respect of Provident Fund, Investor Education
and Protection Fund, Employees' State Insurance dues, Income Tax, Sales
Tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess and other
material statutory dues with the appropriate authorities have generally
been regularly deposited by the company subject to the following:
i) The company has not deposited the liability of Service Tax in due
time during the financial year. The company has not produced before us
any statutory record pertaining to service tax such as Service Tax
Returns. However, on the basis of examination of the books of the
accounts of the company, there was no amount remaining outstanding as
at the last day of the financial year, for a period of more than six
month from the date they became payable.
(b) According to the information and explanation given to us no
undisputed amounts payable in respect of Provident Fund, Employees'
State Insurance dues, Investor Education and Protection Fund, Income
Tax, Wealth Tax, Custom Duty, Excise Duty, Service Tax, VAT, Cess and
other undisputed statutory dues were outstanding, at the year end, for
a period of more than six months from the date they became payable.
(c) According to the information and explanations given to us, the
company has paid all undisputed dues of excise duty. However, the
following is the particulars of dispute/dues in respect of Income Tax,
Sales Tax, Wealth Tax, Service Tax, Custom Duty and Cess.
Name of statute Nature of Amount Period to which
The Dues (Rupees In Lakh) the amount relates
Rs. 24.69 (Demand
Central Excise Excise was Rs. 32.86 Lakh Assessment Year
and Customs Act Rs. 8.17 Lakh has 2003-2004
already been
deposited under
protest)
Rs. 6891.57 (Demand
Central Excise Excise was Rs. 7191.57 Lakh Till the date of
and Customs Act Rs. Search
300.00 Lakh has i.e. 09.05.2008
already been
deposited under
protest)
Name of statute Forum where the dispute is pending
Central Excise The Deputy Commissioner Central Excise,
and Customs Act Kanpur, Uttar Pradesh (The matter is under
subjudice)
Central Excise The Commissioner of Central Excise, Kanpur,
and Customs Act Uttar Pradesh (The matter is under subjudice)
(x) The company has not accumulated losses as at March 31, 2012 however
it has incurred cash loss of Rs. 8,13,430.13 out of loss of Rs.
13,02,111.95 during the financial year ended on that date and it has
incurred Rs. 9,18,760.42 cash loss out of total loss of Rs.
17,94,858.40 in the immediately preceding financial year.
(xi) In our opinion and according to the information and explanations
given to us, the company has not defaulted in repayment of its dues to
any financial institution or bank. The company has not raised any sum
by issue of debentures.
(xii) In our opinion and according to the information and explanations
given to us, the company has not granted any loans and advances on the
basis of security by way of pledge of shares, debentures and other
securities. Accordingly, provisions of the paragraphs 4(xii) of CARO
are not applicable to the company.
(xiii) In our opinion, considering the nature of activities carried on
by the company during the year, the provisions of any special statute
applicable to Chit Fund/ Nidhi/ Mutual Benefit Fund/ Society are not
applicable to it. Accordingly, provisions of the paragraphs 4(xiii) of
CARO are not applicable to the company.
(xiv) According to the information and explanations given to us, the
company has not given guarantees for loans taken by others from banks
or financial institutions. Accordingly, provisions of the paragraphs
4(xv) of CARO are not applicable to the company.
(xv) In our opinion and according to the information and explanations
given to us, term loans availed by the company were, prima facie,
applied for the purpose for which they were obtained, other than
temporary deployment pending application.
(xvi) In our opinion and according to the information and explanations
given to us, and on an overall examination of the balance sheet of the
company, funds raised on short-term basis have, prima facie, not been
used during the year for long-term investment and no funds raised on
long-term basis have been used for short-term investment.
(xvii) According to the information and explanations given to us, the
company has not made any preferential allotment of shares to parties
and companies covered in the register maintained under section 301 of
The Companies Act, 1956. Accordingly, provisions of the paragraphs
4(xviii) of CARO are not applicable to the company.
(xviii) According to the information and explanations given to us,
during the period covered by out audit report, the company had not
issued any debentures and has not created any security in respect of
debentures. Accordingly, provisions of the paragraphs 4(xix) of CARO
are not applicable to the company.
(xix) In our opinion and according to the information and explanations
given to us, the company has not raised any money from the public issue
during the year.
(xx) To the best of our knowledge and belief 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.
For Kumar Piyush & Co.
Chartered Accountants
Firm Registration No.: 005120N
Sd/-
Virendra Kumar Goel
Partner
Membership No.: 083705
Place: New Delhi
Date : May 30, 2012
Mar 31, 2010
1. We have audited the attached Balance Sheet of Raghunath
International Limited as at March 31, 2010, also the Profit a Loss
Account and Cash Flow Statement for the year ended on that date annexed
thereto. These financial statements are t responsibility of the
companys management. Our responsibility is to express an opinion on
these financial statements bas on our audit.
2. We conducted our audit in accordance with the auditing standards
generally accepted in India. Those Standards require tr we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of mater misstatement: An audit includes
examining, on a test basis, evidence supporting the amounts and
disclosures In the financ statements. An audit also includes assessing
the accounting principles used and significant estimates made by
manageme as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis I
our opinion.
3. As required by the Companies (Auditors Report) Order, 2003, as
amended by the Companies (Auditors Report) (Amendmei Order 2004
(together the order) issued by the Central Government of India in
terms of sub-section (4A) of section 227 of tl Companies Act, 1956, and
on the basis of such checks as we considered appropriate, and according
to the information ai explanations given to us, we give in the Annexure
a statement on the matters specified in paragraphs 4 and 5 of the said
Ord to the extent applicable to the company.
4. Further to our comments in the Annexure referred to above, we
report that;
(i) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary I the purposes of our
audit;
(ii) In our opinion, proper books of account as required by law have
been kept by the company so far as appears from examination of those
books;
(iii) The Balance Sheet, the Profit and Loss Accountand Cash Flow
Statement dealt with by this report are in agreement wi the books of
account;.
(iv) In our opinion, the Balance Sheet, the Profit and Loss Account and
Cash Flow Statement dealt from this report comp with the accounting
standards referred to in sub-section (3C) of section 211 of the
Companies Act, 1956;
(v) On the basis of written representations received from the
directors, as on March 31, 2010 and taken on records by tlBoard of
Directors, we report that none of the directors in disqualified as on
March 31, 2010 from being appointed as director in terms of clause (g)
of sub-section (1) of section 274 of the Companies Act, 1956;
(vi) In our opinion and to the best of our information and according to
the explanations given to us and subject to para numb 12 of the notes
on accounts regarding non-provision of liability of gratuity as per
AS-15 issued by The ICAI, the said a counts give the information
required by the Companies Act, 1956, in the manner so required and give
a true and fair vie in conformity with the accounting principles
generally accepted in India:
(a) In the cases of the Balance Sheet, of the state of affairs of the
company as at March 31,2010;
(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 Cash Flow Statement, of the cash flows for the year
ended on that date.
ANNEXURE REFERRED TO IN PARAGRAPH 3 OF AUDITORS REPORT OF EVEN DATE TO
THE MEMBERS OF RAGHUNATH INTERNATIONAL LIMITED ON THE FINANCIAL
STATEMENTS FOR THE YEAR ENDED MARCH 31, 2010
(i) (a) The company has maintained proper records showing full
particulars, including quantitative details and situa- tion of fixed
assets.
(b) We have been informed that the fixed assets of the company are
physically verified by the management ac- cording to a phased program
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. No material discrepancies were noticed on
such verification.
(c) The fixed assets disposed off during the year, in our opinion, do
not constitute a substantial part of fixed assets of the company and
such disposal has, in our opinion, not affected the going concern
status of the company.
(ii) (a) The inventory of the company 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) The company has maintained proper records of inventory. As
explained to us, there were no material discrep- ancies noticed on
physical verification of inventory as compared to the book records
(iii) As informed, the company has neither granted nor taken any loan,
secured or unsecured to/from companies, firm or other parties listed in
the register maintained under section 301 of The Companies Act, 1956.
Accordingly, provisions of the paragraphs 4(iii) (a) to (g) of CARO are
not applicable to the company.
(iv) There is adequate internal control system commensurate with the
size of the company and the nature of its business with regard to 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 we been
informed of any continuing failure to correct major weaknesses in the
aforesaid Internal control system.
(v) In our opinion and according to the information and explanations
given to us, there are no contracts or arrangements referred to in
section 301 of The Companies Act, 1956 that need to be entered in the
register required to be main- tained under that section. Accordingly,
provisions of the paragraphs 4(v) (a) and (b) of CARO are not
applicable to the company.
(vi) As informed, the Company has not accepted any deposits from the
public during the year within the meaning of sec- tion 58A and 58AA of
The Companies Act, 1956 and the rules framed there under and no order
in this respect in the case of the company has been passed by the
Company Law Board or Company Law Tribunal or The Reserve Bank of India
or any court or any other tribunal.
(vii) The company does not have internal audit system commensurate with
the size and nature of its business.
(vii) According to the information and explanation given to us, the
Central Government has not prescribed for the main- tenance of cost
records under Section 209(1) (d) of The Companies Act, 1956 for any of
its product. Accordingly, provisions of the paragraphs 4(vii) of CARO
are not applicable to the company.
(ix) (a) According to the books and records as produced and examined by
us in accordance with generally accepted auditing practices in India
and also based on management representations, undisputed statutory
dues, if ap- plicable, in respect of Provident Fund, Investor Education
and Protection Fund, Employees State Insurance dues, Income Tax, Sales
Tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess and other
material statutory dues with the appropriate authorities have generally
been regularly deposited by the company sub- ject to the following:
i) The company has not deposited the liability of Service Tax in due
time during the financial year. The company has not produced before us
any statutory record pertaining to service tax such as Service Tax
Returns. However, on the basis of examination of the books of the
accounts of the company, there was no amount remaining outstanding as
at the last day of the financial year, for a period of more than six
month from the date they became payable.
ii) In respect of the construction division of the company, an amount
of Rs. 720,731/- on account of VAT paid by the company at the time of
purchases of materials has been booked in purchases and at the same
time the said amount has also been claimed as input claim while filing
the return of VAT with The Department of Commercial Taxes, Haridwar,
Uttarakhand. Hence, the profit of the company during the year has been
under rep6rted to the extent of VAT input claim of Rs. 720,731/-.
(b) According to the information and explanation given to us no
undisputed amounts payable in respect of Provi-
dent Fund, Employees State Insurance dues, Investor Education and
Protection Fund, Income Tax, Wealth Tax, Custom Duty, Excise Duty,
Service Tax, VAT, Cess and other undisputed statutory dues were
outstanding, at the year end, for a period of more than six months from
the date they became payable.
(c) According to the information and explanations given to us, the
company has paid all undisputed dues of excise duty. However, the
following is the particulars of dispute/dues in respect of Income Tax,
Sales Tax, Wealth Tax, Service Tax, Custom Duty and Cess.
Name of statute Nature of The Amount Period to
which the Forum where
the dispute is
Dues (Rupees
In Lakh) amount
relates pending
Rs.24.69
(Actual Demand
Central Excise Excise was Rs. 32.86
Lakh and Rs. Assessment
Year The Deputy
Commissioner
and Customs Act 8.17 Lakh has
already been 2003-2004 Central,
Kanpur
deposited)
Rs. 6891.57 Till the The
(Actual Demand date of Commissioner
Central Excise search of Cen
Excise was Rs. 71 91 i.e. 09.05 tral Excise,
and Customs Act 2008 Kanpur, Uttar
.57 Lakh and Pradesh
Rs. 300.00 Lakh
has already
been deposited)
(x) The company has neither accumulated losses as at March 31, 2010,
nor has it incurred any cash fosses either during the financial year
ended on that date or in the immediately preceding financial year.
(xi) In our opinion and according to the information and explanations
given to us, the company has not defaulted in repayment of its dues to
any financial institution or bank. The company has not raised any sum
by issue of debentures.
(xii) In our opinion and according to the information and explanations
given to us, the company has not granted any loans and advances on the
basis of security by way of pledge of shares, debentures and other
securities. Accordingly, provi- sions of the paragraphs
(xii) ofCARO are not applicable to the company.
(xiil) In our opinion, considering the nature of activities carried on
by the company during the year, the provisions of any special statute
applicable to Chit Fund/ Nidhi/ Mutual Benefit Fund/ Society are not
applicable to it. Accordingly, provisions of the paragraphs 4(xiii) of
CARO are not applicable to the company.
(xiv) The company has not invested, dealt or traded in shares,
securities, debentures and other investments during the year.
Accordingly, provisions of the paragraphs 4(xiv) of CARO are not
applicable to the dbmpany.
(xv) According to the information and explanations given to us, the
company has not given guarantees for loans taken by others from banks
or financial institutions. Accordingly, provisions of the paragraphs
4(xv) of CARO are not applicable to the company.
(xvi) In our opinion and according to the information and explanations
given to us, term loans availed by the company were, prima facie,
applied for the purpose for which they were obtained, other than
temporary deployment pending application.
(xvii) In our opinion and according to the information and explanations
given to us, and on an overall examination of the balance sheet of the
company, funds raised on short-term basis have, prima facie, not been
used during the year for long-term investment and no funds raised on
long-term basis have been used for short-term investment.
(xviii) According to the information and explanations given to us, the
company has not made any preferential allotment of shares to parties
and companies covered in the register maintained under section 301 of
The Companies Act, 1956. Accordingly, provisions of the paragraphs
4(xviii) of CARO are not applicable to the company
(xix) (According to the information and explanations given to us,
during the period covered by out audit report, the com- pany had not
issued any debentures and has not created any security in respect of
debentures. Accordingly, provi- sions of the paragraphs 4(xix) of CARO
are not applicable to the company
(xx) In our opinion and according to the information and explanations
given to us, the company has not raised any money from the public issue
during the year.
(xxi) To the best of our knowledge and belief 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.
For Kumar Piyush & Co.
Chartered Accountants
Firm Registration No.: 005120N
Virendra Kumar Goel
Partner.
Membership Number: 83705
Place: New Delhi
Date: May 29, 2010