Home  »  Company  »  Reliance Chemote  »  Quotes  »  Auditor Report
Enter the first few characters of Company and click 'Go'

Auditor Report of Reliance Chemotex Industries Ltd.

Mar 31, 2015

NOT AVAILABLE


Mar 31, 2014

We have audited the accompanying financial statements of Reliance Chemotex IndustriesLimited ("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 notified under the Companies Act,1956(the Act) read with the General Circular 15/2013 dated 13th September,2013 of the Ministry of Corporate Affairs in respect of Section 133 of the Companies Act,2013 and in accordance with the accounting principles generally accepted in India. This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

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 orderto design audit proceduresthat are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company''s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by management, as well as evaluating the overall presentation ofthefinancial 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 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 the following notes attached to the financial statements. Our opinion is not qualified in respect of these matters:

Notes l(vi) (c), l(xii), 6and 8(i) (b) in Note 27 regarding the matters referred to therein and likely financial implication thereof.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor''s Report) Order, 2003 ("the Order") issued by the Central Government of India in terms of Section 227(4A) of the Act, and on the basis of such checks as we considered appropriate and according to the information and explanations given to us and the books and records as produced and examined by us in the normal course of audit and to the best of our knowledge and belief, we give in the attached Annexure a Statement on the matters specified in paragraphs 4 and 5 of the said 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, as submitted to us;

d. In our opinion, the Balance Sheet, Statement of Profit and Loss and Cash Flow Statement comply with Accounting Standards notified under the Act read with the General Circular 15/2013 dated 13th September, 2013 of the Ministry of Corporate Affairs in respect of Section 133 of the Companies Act, 2013.

e. On the basis of written representations received from the Directors as on March 31, 2014, and taken on record by the Board of Directors, none of thedirectors 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.

ANNEXURE TO THE AUDITOR''S REPORT (Referred to in above Paragraph (1) on Report on Other Legal and Regulatory Requirements of our Report of even date of RELIANCE CHEMOTEX INDUSTRIES LIMITED asatandforthe year ended 31st March, 2014)


(b) In accordance with the programme of verifying the fixed assets once in three years fixed assets have been physically verified by the management at the year end. The periodicity of physical verification in our opinion is reasonable having regard to the size of the Company and the nature of its business.

(c) In our opinion and according to the information and explanations given to us the fixed assets disposed off during the year were not substantial part of fixed assets so as to effect the going concern status of the Company.

(ii) (a) The inventories lying with the Company have been physically verified by the management at the year end.

(b) In our opinion the procedures of physical verification of inventories followed by the management are reasonable and adequate in relation to the size of the Company and the nature of its business.

(c) In our opinion the Company is maintaining proper records of inventories and according to the records of the Company the discrepancies noticed on physical verification of stocks as compared to books records, which in our opinion were not material in relation to the operation of the Company have been properly dealt with inthe books ofaccounts.

(iii) (a) According to the information and explanations given to us the Company has not during the year granted any loans, secured or unsecured to companies, firms or other parties covered in the register maintained under section 301 of the Companies Act, 1956 and accordingly clauses (Hi) (b) to (Hi) (d) of paragraph 4 of the aforesaid order are not applicable to the Company.

(b) According to the information and explanations given to us, the Company has not taken any fresh loans, secured or unsecured during the year from Companies, firms or other parties covered in the register maintained under section 301 of the Act except unsecured loans of Rs.10,00,000/- from two Directors of the Company. However, unsecured loans of Rs.5,53,00,000/- taken from Companies, firms or other parties covered in the register maintained under such section till previous year are continuing as on 31.03.2014.

(c) In our opinion and according to the information and explanations given to us, the rate of interest and other terms and conditions of unsecured loans as referred to under clause (b) above, taken by the Company during the year are not, prima-facie, prejudicial to the interest of the Company.

(d) In absence of stipulations for repayment of unsecured loans, as referred to under clause (b) above, we have no comments to make as to whether or not the Company is repaying the principal amount as stipulated and is also regular in payment of interest.

(iv) In our opinion and according to the information and explanations given to us and on the basis of test checks carried out by us, and considering the explanations given by the management that alternative sources not being available for certain OEM and other purchases, it appears that there are adequate internal control procedures commensurate with the size of the Company and the nature of its business with regard to major purchases of inventory, 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 by the management and or the internal auditors of the Company of any instance of major weakness in the aforesaid internal control procedures, which would require major corrective action.

(v) (a) According to the information and explanations given to us and on the basis of our examination of the books of accounts, we are of the opinion that the contracts or arrangements that need to be entered in the register maintained in pursuance of section 301 of the Companies Act 1956 have been entered in the said register.

(b) In our opinion and according to the information and explanations given to us, the transactions made in pursuance of such contracts and agreements entered in the register maintained under section 301 of the Companies Act, 1956 and exceeding the value of Rupees five lacs in respect of any party during the year, have been made at prices which are reasonable having regard to the prevailing market prices at the relevanttime.

(vi) In our opinion and according to the Information and explanations given to us, the Company has not accepted any deposits from the public during the year under the provisions of section 58 A and 58AA or any other relevant provisions of the Act.

(vii) In our opinion, the internal audit system is by and large commensurate with the size of the Company and nature of its business.

(viii) We have broadly reviewed the books of accounts maintained by the Company pursuant to rules made by the Central Government for the maintenance of cost records under clause (d) of sub-section (1) of section 209 of the Act and are of the opinion that prima-facie, the prescribed accounts and records have been maintained. However, we have not made a detailed examination of the said records and accounts.

(ix) (a) According to the records of the Company, the Company has generally regularly deposited during the year undisputed statutory dues (to the extent applicable) including provident fund, investor education and protection fund, Employees state insurance, income tax, VAT (Sales Tax), wealth tax, service tax, custom duty, Excise Duty, Cess, and other statutory dues with the appropriate authorities though there has been slight delays in a few cases in depositing dues of works contract tax and tax deducted at source. According to the information and explanations given to us there are no arrears of such outstanding dues which have remained outstanding as at 31st March, 2014 for a period of more than six months from the date they became payable.

(b) On the basis of our examination of the documents produced to us and according to the information and explanation given to us, the dues (to the extent applicable) of income tax, sales tax, wealth tax, service tax, custom duty, excise duty / cess which have not been deposited on account of dispute and the forum where the dispute is pending are as under.

Nature of the Nature Amount Period to which statute of dues Involved it relates to Rs. (Years ended)

Income Tax Act, Income 1,62,59,210 31-03-2011 1961 Tax

Central Excise Excise 23,567 31.03.80 to Act Duty 31.03.92

Service Tax Act Service tax 47,63,158 31.03.2003 to 31.03.2007

Total 2,10,77,175



Nature of the statue Forum Where Dispute Is pending

Income Tax Act 1961 The Commissioner of Income Tax, Appeals, Kolkata

Central Excise Act The Asst. Commissioner Central Excise, Udaipur

Service Tax Act. The Asst. Commissioner(Appeals) Central Excise Jaipur

We have been informed that except as stated above there are no other amounts which have not been deposited on account of disputes.

(x) The Company has no accumulated losses as on 31-03-2014 and has not incurred cash loss in the financial year ended on that date and in the immediately preceding financial year.

(xi) According to the records of the Company and as per the information and explanations given to us the Company has not defaulted in repayment of dues to financial institutions orbanks.

(xii) 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 andothersecurities.

(xiii) In our opinion, the provisions of any special statute applicable to chit fund, nidhi / mutual benefit fund / societies are not applicable to the Company.

(xiv) The Company is not dealing or trading in shares, securities, debenture and other investments.

(xv) According to the information and explanations given to us, the Company has not given any guarantee for loans taken byothersfrom bankorfinancial institutionsduringtheyear.

(xvi) On the basis of review of utilization of Term Loans on overall basis as on 31.03.2014, related information, explanations and statements as mode available to us and as represented to us by the management, the term loans were applied for the purpose for which the loans were obtained.

(xvii) On the basis of review of utilization of funds on overall basis as on 31.03.2014, related information, explanations and statements as made available to us and as represented to us by the management, funds available as short term has not been used for long term application.

(xviii) During the year the Company has made preferential allotment of Equity and Preference Shares to parties and companies covered in the register maintained under Section 301 of the Companies Act, 1956 at the price which is not prejudicial to the interest of the Company.

(xix) The Company has not issued any debentures during the year.

(xx) The Company has not raised any money by way of public issueduringtheyear.

(xxi) During the course of our examination of the books of account 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 such case by the management and or the internal auditors of the Company.

Above Laxmi Dharm Kanta, For: G.P. Kejriwal & Co.

Hawa Sadak, 22 Godown, Chartered Accountants

Jaipur - 302 006 Firm Reg. No. 001036 C

(C.P. JAIN)

Dated : 30th May, 2014 Partner

Camp : Mumbai M.N. 70156


Mar 31, 2013

Report on the Financial Statements

We have audited the accompanying financial statements of Reliance Chemotex Industries Ltd. ("the Company"), which comprise the Balance Sheet as at 31.03.2013 and the Statement of Profit and Loss and cash flow statement for the year ended and a summary of significant accounting policies and other explanatory information. Management''s Responsibility for the Rnancial 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 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 statement, whether due to fraud or error. In making those risk assessments the auditor considers internal control relevant to the Companies preparation and fair presentation of the financial statement in order to design audit procedure 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 statement. 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 subject to Clause no. 1 (xii) B (c) of Note 26 regarding accounting treatment of premium/discount on forward contract, give a true and fair view in conformity with the accounting principle 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 Statement of Profit and Loss, of the profit/loss 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.

Emphasis of Matter

Without qualifying our report, we draw attention to Note 3 regarding reclassification of unsecured loans and Clause 6 of note 26 regarding temporarily lending of funds of the Company. 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 Companies Act 1956. We give in the Annexure a '' statement on the matters specified in Paragraph 4 and 5 of the order

2. As required by section 227(3) of the Act, we report that:

a. We have obtained ail the information and explanations, which to the best of our knowledge and belief were necessary for the purpose of our audit.

b. Inouropinion proper books of account as required by law have been kept by the Company so far as appears from our examination of the books.

c. The Balance Sheet, Statement of Profit & 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 subject to Clause no. 1 (xii) B (c) of Note 26 regarding accounting treatment premium/discount on forward contracts, comply with the accounting standards referred to in sub-section (3C) of section 211 of the Companies Act 1956.

e. On the basis of Written Representation received from the Directors as on 3191 March, 2013 and taken on record by the Board of Directors, none of the Directors is disqualified as on 31st March, 2013 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.

(Referred to in Paragraph (1) of our Report of even date of RELIANCE CHEMOTEX INDUSTRIES LTD. as at and for the year ended 31sl March, 2013)

On the basis of such checks as we considered appropriate and according to the information and explanations given to us during the course of our audit, we report that:

i. (a) The Company is in our opinion maintaining proper records showing full particulars including quantitative details and situation of fixed assets.

(b) In accordance with the programme of verifying the fixed assets once in three years Fixed Assets are reported to have been physically verified by the management during the year ended 31.03.2011. The periodicity of physical verification in our opinion is reasonable having regard to the size of the Company and the nature of its business.

(c) In our opinion and according to the information and explanations given to us the fixed assets have been disposed off during the year were not substantial part of fixed assets so as to effect the going concern status of the Company.

ii. (a) The inventories lying with the Company are reported to have been physically verified by the management at the year end.

(b) In our opinion the procedures of physical verification of inventories followed by the management are reasonable and adequate in relation to the size of the Company and the nature of its business.

(c) In our opinion the Company is maintaining proper records of inventories and according to the records of the Company the discrepancies noticed on physical verification of stocks as compared to books records, which in our opinion were not material in relation to the operation of the Company which have been properly dealt with in the books of accounts.

iii (a) (i) According to the information and explanation given to us the Company has not granted any loans, secured or unsecured to Companies firm or other Parties covered in the register maintained under section 301 of the Companies Act, 1956 and accordingly clauses (iii)(b) of paragraph 4 of the aforesaid order are in our opinion not applicable to the Company.

(ii) According to the information and explanations given to us the Company has during the year taken unsecured loan of Rs. 795.00 lacs from a party covered in the register maintained under section 301 of the Companies act 1956.

(b) In our opinion and according to the information and explanation given to us, the rates of interest and other terms and conditions of unsecured loans taken by the Company during the year are not, prima-facie, prejudicial to the interest of the Company.

(c) In absence of stipulation for repayment of unsecured loans to certain parties, we have no comments to make as to whether or not the Company repaying the principal amount as stipulated and is also regular in payment of interest and whether or not there is any overdue amount more than one lacs for which steps need to be taken by the Company for payment of principal amount and interest there on. iv) In our opinion and according to the information and explanations given to us and on the basis of test checks carried out by us, and considering the explanations given by the management that alternative sources not being available for certain OEM and other purchases, it appears that there are adequate internal control procedures commensurate with the size of the Company and the nature of its business with regard to major purchases of inventory, Fixed Assets and for the Sale of goods and services. Further, on the basis of our-examinations 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 by the management or the Internal Auditors of the Company of any instance of major weakness in the aforesaid interna! control procedures, which would require major corrective action. v) (a) According to the information and explanations given to us and on the basis of our examination of the books of accounts, we are of the opinion that the contracts or arrangements that need to be entered in the register maintained in pursuance of section 301 of the Companies Act 1956 have been entered in the said register. (b) in our opinion and according to the information and explanations given to us, the transactions made in pursuance of such contracts and agreements entred in the register maintained under section 301 of the Companies Act, 1956 and exceeding the value of Rupees five lacs in respect of any party during the year, have been made at prices which are reasonable having regard to the prevailing market prices at the relevant time. vi) In our opinion and according to the Information and explanations given to us, the Company has not accepted any deposits from the Public during the year under the provisions of section 58 A and 58AA or any other relevant provisions of the Act. Therefore the provisions of clause (vi) of the aforesaid order are not applicable to the Company.

vii) In our opinion, the internal audit system is by and large commensurate with the size of the Company and nature of its business except that formal internal audit systems need to be introduced at Mumbai branch with proper scope and adequate coverage.

viii) We have broadly reviewed the books of accounts maintained by the Company pursuant to rules made by the central government for the maintenance of cost record under clause (d) of the sub-section (1) of section 209 of the Companies act 1956 and are of the opinion that prima-facie, the prescribed accounts and record have been maintained. However, we have not made a detailed examination of the said records and accounts.

ix (a) According to the records of the Company has regularly deposited during the year undisputed statutory dues (to the extent applicable) including Provident Fund, Investor Education and Protection Fund, Employees State Insurance, Income Tax, VAT (Sales Tax), Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess, and other statutory dues with the appropriate authorities though there has been some delays in depositing dues of Works Contract Tax TDS and ESI.

According to the information and explanations given to us there are no undisputed amounts payable in respect of such statutory dues which have remained outstanding as at 31st March, 2013 for a period more than 6 months from the date they become payable. (b) On the basis of our examination of the document produced to us and according to the information and explanations given to us the dues (to the extent applicable) of Excise Duty and Service Tax which have not been deposited on account of dispute and the forum where the dispute is pending are as under:

Nature of Nature of Amount Period to Forum where the statute the dues involved which it dispute is Rs. relates to pending (years ended)

Central Excise duty 23,567 31.03.80 The Asst Commr- Excise issioner, Central Act 31.03.92 Excise, Udaipur

Service Service 47,63,158 31.03.03 The Asst Commi- Tax Act Tax issioner(Appeals), 31.03.07 Central Excise,

Total 47,86,7251 Jaipur

We have been informed that except as stated above no other amounts which have not been deposited on account of disputes.

(x) The Company has no accumulated losses as on 31-03-2013 and has not incurred cash loss in the financial year ended on that date and in the immediately preceding financial year.

(xi) According to the records of the Company as per the information and explanations give to us the Company has not defaulted in repayment of dues to financial institution or banks.

(xii) 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.

(xiii) In our opinion the provisions of any special statute applicable to Chit Fund, Nidhi or Mutual Benefit Fund/Societies are not applicable to the Company.

(xiv) The Company is not dealing or trading in shares, securities, debenture and other investment.

(xv) According to the information and explanations given to us, the Company has not given any guarantee for loans taken by others from banks and financial institutions during the year.

(xvi) In our opinion and according to information and explanations given to us on an overall basis, the Term Loan have been applied for the purpose for which they were obtained.

(xvii) On the basis of review of utilization of fund on overall basis as on 31.03.2013 and related information explanation and statement as made available to us and as represented to us by the management no funds raised on short term basis have been used for long term application.

(xviii) During the year the Company has made preferential allotment of Equity and Preference Shares at the price of Shares which is not prejudicial to the interest of the Company to parties covered fn the register maintained under section 301 of the Companies act 1956.

(xix) The Company has neither issued nor had any outstanding debentures during the year.

(xx) The Company has not raised any money by way of public issue during the year.

(xxi) During the course of our examination of the books of account and records of the Company, carried out according 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 notice and reported during the year nor have we been informed of such case by the management or the Internal Auditors of the Company.



Above Laxmi Dharam Kanta, For G.P. KEJRIWAL & CO.

Hawa Sadak, 22 Godown, Chartered Accountants

Jaipur - 302 006 Firm Reg. No. 001036C



Dated : 25th May, 2013 (C. P. JAIN)

Camp: Mumbai Partner

M.N. 70156


Mar 31, 2012

1. We have audited the attached Balance Sheet of Reliance Chemotex industries Ltd. as at 31.03,2012 , and also the Statement of Profit and Loss and the. cash flow; statement; for the year ended On the 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 disclosure in the financial statement. An audit also include assessing the accounting principle used and significant estimate made by Management, as well as evaluating the overall financial statement presentation, we believe that pur audit provides a reasonable basis for our opinion.

3. As required by the Companies (Auditor's Report) order; 2003 as amended by the Companies (Auditor's Report)(Amended) Order, .2004 (together the "Order") issued by the Central Government of India in terms of Section 227(4A) of the Companies Act 1956 on the basis books and records examined by us in the norrnal course of audit and on the basis of such checks as we considered appropriate and according to the information and explanation given to us and to the best of our: Knowledge and belief. We set out in the attached Annexure a statement On the matters specified in paragraph 4 and 5 of the said order.

4. The aggregate impact on matters as referred to in Para 1 (vii), 1 (ix) of note 26 on result for the year and year end assets and liabilities have not been ascertained and stated.

5. Attention is drawn to note no. 1 (xvii) of attached Note 26 as per which unsecured loans of Rs. 12,88,50,000/- have been considered as long term borrowings within the meaning of the provision of revised schedule VI of the Companies Act., .1956, inspite of the fact that part of these loans were repaid during the year and , there were no stipulations regarding repayment of such unsecured loans as mentioned in para 111(C) to the Annexure to the Audit Report: As these loans have been considered as long term borrowings; the short term borrowings have been understated and long term borrowings have been overstated by the aforesaid amount.

6. Subject to our comments in the Annexure stated in paragraph 3 & 5 above.

(i) We have obtained all the information and explanation, which to the best of our knowledge and belief were necessary for the purpose of our audit.

(ii) In our opinion subject to note 1(ix) in note 26 proper books of account as required by law have been kept by the Company so far as it appears from our examination of the 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 account as submitted to us.

(iv) In our Opinion subject to Para 1 (ix) in note 26. The Balance Sheet, Statement of Profit and Loss 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.

(v) On the basis of Written Representation received from the Directors as on 31st March 2012 and taken on record by the Board of Directors, we report that none of the Director is disqualified as on 31st March2011-12 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, the said accounts subject to and read together with the note 26 and the "NOTES" and "OBSERVATION" thereon and-attached thereto 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 principle generally accepted in India.

a) In the case of the Balance Sheet of the State of affairs of the Company as at 31st March, 2012;

b) In the case of Statement of Profit and Loss of the profit for the year ended on that date;

and

c) In the ease of the Cash Flow .Statement, of the cash flows for the year ended on that date.

ANNEXURE TO THE AUDITORS' REPORT

(Referred to in Paragraph (1) of our Report of even date of RELIANCE CHEMOTEX INDUSTRIES LTD. as at and for the year ended 31st March, 2012),

i. (a) The Company is in our opinion maintaining proper records, showing full particulars including quantitative details and situation of fixed assets.

(b) In accordance with the programme of verifying the fixed assets once in three years Fixed Assets are reported to have been physically verified by the Management during the year ended 31.03.2012, the periodicity of physical verification in our opinion is reasonable having regard to the size of the Company and the nature' of it's business. "

(c) In our opinion and according to the information and explanation given to us the fixed assets disposed off during the year were not substantial part of fixed assets so as to effect the going concern status of the Company.

ii. (a) The inventories lying with the Company are reported to have been physically verified by the Management at the year end.

(b) In our opinion the procedures of physical verification of inventories followed by the Management are reasonable and adequate in relation to the size of the Company and the nature of its business.

(c) In our opinion the Company is maintaining proper records of inventories and according to the records of the Company the discrepancies noticed on physical verification of stocks as compared to books records, which in our opinion were not material in relation to the operation of the Company have been properly dealt with in the books of accounts.

iii. (a) (i) According to the information and explanation given to us the Company has hot granted any loans, secured or unsecured to Companies, firms or other parties' covered in the register maintained under Section 301 of the Companies Act, 1956 and accordingly Clauses (iii)(b) of paragraph 4 of the aforesaid order are in our opinion not applicable.

(ii) According to the information and explanations given to us the Company has during the year taken unsecured loan of Rs.795.00, lacs from a party covered in the register maintained under Section 301 of the Companies Act, 1956.

(b) In our opinion and according to the information arid explanation given to us, the rates of interest and other terms and conditions of unsecured loans taken by the Company during the year are not, prima-facie, prejudicial to the interest of the Company.

(c) In absence of stipulation for repayment of unsecured loans to concerned parties, we have no comments to make whether or not the Company is repaying the principal amount whether or not is regular in payment of Interest and whether or not there is any over due amount more than one lakh for which steps need to be taken by the Company for payment of principal amount and interest thereon.

iv) In our opinion and according to the information and explanation given to us and on the basis of test checks carried out by us, and considering the explanations given by the Management that alternative sources not being available, for certain OEM and other purchases, it appears that there are adequate Internal control procedures Commensurate with the size of the Company and the nature of its business with regard to major purchases of inventory, Fixed Assets and for the Sale of goods and services/ Further, on the basis of our examinations 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 by the Management or the internal Auditors of the Company of any instance of major weakness in the aforesaid internal control procedures, which would require major corrective action.

v) (a) According to the .information and explanations given to us and on the basis of our examination of the books of accounts, we are of the opinion that the contracts or arrangements that need to be entered in the register maintained in pursuance of Section 301 of the Companies Act 1956 have been entered in the said register.

(b) According to the information and explanations given to us, the Company has. not entered into any transactions exceeding the value of five lacs rupees in respect of any party during the year that need to be entered in the register in pursuance of Section.301 of the Companies Act, 1956 and therefore, Clause v (b) of paragraph 4 of the aforesaid order, is in bur opinion, hot applicable to the Company for the current year.

vi) In pur opinion-and according to the Information and explanations given to us, the Company has not accepted any deposits from the Public during the year under the provisions of Section 58A, 58AA or any other relevant provisions of the Act. Therefore the provisions of Clause (vi) of the aforesaid order are not applicable to the Company.

vii) in our opinion, the internal audit system is by and large,commensurate with the size of the Company. and nature of its business except that formal internal audit systems need to be introduced at Mumbai branch with proper scope and adequate coverage.

viii) On. the basis of the records produced, we are ol the opinion that prima-facie the cost accounts and records as prescribed by. the Central Government under Clause (d) of sub-section (1) of Section 209 of the Companies Act, 1956. However we have not carried out a detailed examination of the said accounts and records.

ix {a) According to the records of the Company has regularly deposited during the year undisputed statutory dues (to the extent applicable) including Provident Fund, Investor Education and Protection Fund, Employees State Insurance, Income Tax, VAT (Sales Tax), Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess, other statutory dues with the appropriate authorities though there has been delays in depositing dues of Works Contract Tax, TDS, and ESI.

According to the information and explanations given to us there are no undisputed amounts payable in respect of such statutory dues which ¦ have remained outstanding as at 31st March, 2012 for a period more than 6 months from the date the become payable. (b) On the basis of our examination of the document produced to us and according to. the information and explanation given to us the dues (to the extent applicable) of Income Tax/ Sale Tax/ Wealth Tax/Excise Duty/Custom Duty/Cess which,have not been deposited on account of dispute and the forum where the dispute is pending are as under:

Nature of Nature of Amount Period to Forum where the statute the dues involved which it dispute is Rs. relates to pending (years ended)

Central Excise duty. 23,567 31.03.80 The Asst Commi- Excise to issioner, Centra Act 31.03.92 Excise, Udaipur

Service Service 2,40,837 31.03.03 The Asst. Commi- Tax Act Tax 45,22,321 to issioner (Appeals)] 31,03.07 Central Excise, Jaipur

We have been informed that except as stated above no other amounts which have not been deposited on account of disputes.

(x) The Company has no accumulated losses as on 31-03-2012 and has not incurred cash loss in the financial year ended on that date and in the immediately proceeding the financial year.

(xi) According to the records of the Company as per the information and explanation give to us the Company has not defaulted in repayment of dues to financial institution or bank or debenture holders.

(xii) According to the information and explanation 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:

(xiii) In our opinion the provisions of any special statute applicable to Chit Fund, Nidhi or Mutual Benefit Fund /Societies are not applicable to the Company.

(xiv) The Company is not dealing or trading in shares, securities, debenture and other investment.

(xv) 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.

(xvi) On the basis of review of utilization of funds pertaining to term loans overall basis as on 31.03.2012 and related information, explanations and statements as made available to us and as represented to us by the Management, that no long term loans taken by the Company during the year. .

(xvii) On the basis of review of utilization of fund on overall basis as on 31.03,2012 and related information explanation and statement as made available to us and as represented to us by the Management no funds raised on short term basis have been used for long term application.

(xviii) During the year the Company has not made Preferential Allotment of Shares to parties; covered in the register maintained under Section 301 of the Companies Act, 1956.

(xix) The Company has not issued any debenture during the year. .,'¦"¦

(xx) The Company has not raised any money by way of public issue during the year.

(xxi) During the course of our examination of the books of account and records of the Company, carried out according with the generally accepted auditing practices in India and according to the information and explanation-given to us we have neither come across any instance of material fraud on or by the Company notice and reported during the year nor have we been informed of such case by the Management or the Internal Auditors of the Company.

Above Laxmi Dharam Kanta, For G.P. KEJRIWAL & CO. Hawa Sadak, 22 Godown, Chartered Accountants

Jaipur - 302 006 Firm Reg. No. 001036C

Dated :26th May, 2012 (C.P.JAIN)

Camp: Mumbai Partner

M.N. 70156


Mar 31, 2011

1. We have audited the attached Balance Sheet of Reliance Chemotex Industries Limited, as at 31st March, 2Q11 and also the Profit and Loss account and the 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 (Auditor's 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 section 227 (4A) of the Companies Act, 1956 and on the basis of books and records examined by us in the normal course of audit and on the basis of such checks as we considered appropriate and according to the information and explanation &given to us and to the best of our knowledge and belief, we set out in the attached Annexure a statement on the matters specified in paragraphs 4 and 5 of the said order.

4. The aggregate impact on matters as referred to in Note 1(ix) in Schedule 23, on results for the year and year end Assets and Liabilities have not been ascertained and stated.

5. The Managing Director has not signed the attached Balance Sheet, Profit and Loss Account alongwith Schedules and the Cash flow Statement, as he is reported to have been not present within the territory of India at the relative time and had not attended the Board Meeting in which such Accounts were approved. The Company has been advised that the Managing Director need not sign the Accounts if he is not present within the territory of India at the necessary time of signing the Accounts and does not attend the relative Board Meeting. The Accounts have been authenticated by two Directors of the Company and the Company has been advised that the same is sufficient compliance of the provisions of section 215 of the Companies Act 1956, as long as a statement is appended to the Balance Sheet, and the Profit and Loss account explaining the reason for the absence of the Managing Director.

6. Attention is drawn to Note 7(xiv) in schedule 23 regarding declaration and payment of Interim Dividend only on part of Redeemable Preference Shares.

7. Further to our comments in the Annexure referred to in paragraph 3 above.

(i) We have obtained all the information and explana- tions which to the best of our knowledge and belief were necessary for the purposes of our audit.

(ii) In our opinion subject to Note 1(ix) in schedule 23, proper books of account, as required by law, have been kept by the Company so far as it appears from our examination of the books.

(iii) The Balance Sheet, Profit and Loss Account and Cash Flow statement dealt with by this report are in agreement with the books of Account as submitted to us; -

(iv) in our opinion subject to Notes 1(ix), 1(xii) and '. 7(xiv) in Schedule 23 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;

(v) On the basis of written representation received from the Directors, as on 31st March, 2011 and taken on record by the Board of Directors, we report that none of the Directors is disqualified as on 31st March, 2011 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 trie explanations given to us, the said accounts subject to and read together with the NOTES in schedule 23, Notes (b) to (f) in Schedule "1" of share capital regarding issue and redemption of preference shares and the "NOTES" and "OBSERVATIONS" thereon and attached thereto, give the information required by the Companies Act, T956, 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 31st March, 2011;

b) in the case of 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.

ANNEXURETOTHE AUDITORS' REPORT

(Referred to in Paragraph (1) of our Report of even date of RELIANCE CHEMOTEX INDUSTRIES LTD. as at and for the year ended 31st March, 2011)

i. (a) The Company is, in our opinion, maintaining proper records showing full particulars, including quantitative details and situation of fixed assets.

(b) In accordance with a programme, of verifying the Fixed Assets once in three years, Fixed Assets are reported to have been physically verified by the Management during the year ended 31.3.2011 and the discrepancies noticed on such physical verification, which in our opinion, were not material, in relation to the operations of the Company, had been properly dealt with in the books of accounts. The periodicity of physical verification, in our opinion, is reasonable having regard to the size of the Company and the nature of its business.

(c) In our opinion and according to the information and explanations given to us, the fixed assets disposed off during the year were not substantial part of fixed assets so as to effect the going concern status of the Company.

ii. (a) The inventories lying with the Company are reported to have been physically verified by the management at the year end.

(b) In our opinion the procedures of physical verification of inventories followed by the management are reasonable and adequate in relation to the size of the Company and the nature of its business.

(c) In our opinion, the Company is maintaining proper records of inventories and according to the records of the Company, the discrepancies noticed on physical verification of stocks as compared to book records, which in our opinion, were not material, in relation to the operations of the Company, have been properly dealt with in the books of accounts.

iii (a) (i) According to the information and explanations given to us , the Company has not granted any loans, secured or unsecured, to companies, firms or other parties covered in the register maintained under section 301 of the Companies Act, 1956 and accordingly clauses (iii)(b) to (d) of paragraph 4 of the aforesaid order, are in our opinion, not applicable.

(ii) According to the information and explanations given to us, the Company has during the year taken unsecured loans of Rs.1,073.50 Lacs from a party covered in the register maintained under section 301 of the Companies Act, 1956.

(b) In our opinion, and according to the information and explanations given to us, the rates of interest and other terms and conditions of unsecured loans taken by the Company during the year are not, prima- facie, prejudicial to the interest of the Company.

(c) In absence of stipulations, we have no comments to make as to whether or not the Company is repaying the principal amount as stipulated and is also regular in payment of interest and whether there is any overdue amount of more than one lakh for which steps need to be taken by the Company for payment of the principal amount and interest thereon.

iv) In our opinion and according to the information and explanations given to us and on the basis of test checks carried out by us, and considering the explanations given by the management that alternative sources not being available for certain OEM and other purchases, it appears that there are adequate internal control procedures commensurate with the size of the Company and the nature of its business with regard to major purchases of inventory, 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 by the management or the Internal Auditors of the Company of any instance of major weaknesses in the aforesaid internal control procedures, which would require major corrective action.

v) (a) According to the information and explanations given to us and on the basis of our examination of the books of accounts, we are of the opinion that the contracts or arrangements that need to be entered in the register maintained in pursuance of section 301 of the Companies Act 1956 have been entered in the said register.

(b) According to the information and explanations given to us, the Company has not entered into any transactions exceeding the value of five lakh rupees in respect of any party during the year that need to be entered in the register in pursuance of section 301 of the Companies Act, 1956 and therefore, Clause v (b) of paragraph 4 of the aforesaid order, is in our opinion, not applicable to the Company for the current year.

vi) In our opinion and according to the information and explanations given to us, the Company has not accepted any deposits from the Public during the year under the provisions of sections 58A, 58AA or any other relevant provisions of the Act. Therefore the provisions of clause (vi) of the aforesaid order are not applicable to the Company.

vii) In our opinion, the internal audit system is by and large commensurate with the size of the Company and nature of its business except that formal internal audit system need to be introduced at Mumbai branch with proper scope and adequate coverage.

viii) On the basis of the records produced, we are of the opinion that prima-facie, the cost accounts and records as prescribed by the Central Government under Clause (d) of Sub-Section (1) of Section 209 of the Companies Act, 1956. However, we have not carried out a detailed examination of the said accounts and records.

ix (a) According to the records of the Company, the Company has regularly deposited during the year undisputed statutory dues (to the extent applicable) including Provident Fund, Investor Education and Protection Fund, Employees' State Insurance, Income Tax, VAT (Sales Tax), Wealth Tax, Service Tax, Customs Duty, Excise Duty, Cess and other statutory dues with the appropriate authorities though there has been delays in depositing dues of Service Tax, Works Contract Tax and Dividend Tax.

According to the information and explanations given to us, there are no undisputed amounts payable in respect of such statutory dues, which have remained outstanding as at 31.03.2011 for a period of more than six months from the date they became payable.

(b) On the basis of our examination of the documents produced to us and according to the information and explanations given to us, the dues (to the extent applicable) of income tax/ sales tax/ wealth tax/ service tax/ customs duty/ excise duty/ cess which have not been deposited on account of disputes and the forum where the dispute is pending are as under;

Nature of Nature Amount Period Forum where the of the involved to dispute is statute dues Rs. which pending it relates to (years ended)

Central Excise 23,567 31.03.80 The Asst. Excise Act. duty Comm- 31.03.92 issioner. Central Excise, Udaipur

Service 2,40,837 31.03.03 The Asst. Tax Commissioner 45.22,321 31.03.07 Appeals, Central Excise, Jaipur

Rajsthan Various, 90,300 31.03.02 Tax Tribunal, Sales Tax additional Ajmer Act sales tax demands

Income F.B.T. 1,10,830 31.03.08 Deputy Tax Act Commissioner 1961 of income tax, Kolkata

Income 7,20,58,480 31.3.08 Commissioner Tax of L Tax Appeals XII Calcutta

We have been informed that except as stated above there are no other amounts which have not been deposited on account of disputes.

(x) The Company has no accumulated losses as on 31.03.2011 and has not incurred cash losses in the financial year ended on that date and in the immediately preceding financial year.

{xi) According to the records of the Company and as per the information and explanations given to us, the Company has not defaulted in repayment of dues to financial institution or bank or debenture holders.

(xii) According to the information and explanations given to Us, the Company has not granted any loans or 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 or mutual benefit fund/societies are not applicable to the Company.

(xiv) The Company is not dealing 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 bank or financial institutions during the year.

(xvi) On the basis of review of utilisation of funds pertaining to term loans on overall basis as on 31/ 03/2011 and related information, explanations and statements as made available to us and as represented to us by the management, the term loans taken by the Company during the year were applied during the year for the purpose for which the loans were obtained.

(xvii) On the basis of review of utilisation of funds on overall basis as on 31/03/2011, related information, explanations and statements as made available to us and as represented to us by the management, no funds raised on Short Term basis have been used for Long Term application.

(xviii) The Company has made preferential allotment of Preference Shares to parties and Companies covered in the register maintained under Section 301 of the Act during the year and according to the information and explanations given to us, the price at which such Preference Shares have been issued are not prejudicial to the interest of the Company.

(xix) The Company has not issued any debentures during the year.

(xx) The Company has not raised any money by way of public issues during the year.

(xxi) During the course of our examination of the books of account 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 such case by the management or the Internal Auditors of the Company.

Above Laxmi Dharam Kanta, For G. P. KEJRIWAL & CO.

Hawa Sadak, 22 Godown, Chartered Accountants

Jaipur - 302 006 Firm Reg. No. 001036C

Dated: 26th May, 2011 (C. P. JAIN)

Camp: Mumbai Partner

M.N. 70516














Mar 31, 2010

1) We have audited the attached Balance Sheet of Reliance Chemotex Indstries Limited, as at 31st march, 2010 and also the Profit and Loss account and the Cahs Flow statment for the year ended on that date annexed thereto. These financial statements are the resposibility of the Companys. management Our respondiblity is to expresss an oplion on these financial stements based on our audit.

2. We conducted our audit in accordance with the auditing standards generally accepled 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 lest basle. eyidence supporting the amounts and disclousres in the financial statments An audit also Includes nisessing the accounting principles used and sinificant estlthetes made by management, as well as evaluating the overal financial statement presention. 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 (Auditors Repprt) (Amondment) Order, 2004 (together the "Order") lssued by the Central Govenment of India In torms of section 227 (4A) of the Companies. Act 1956 and on the basis of books and records examined by us in the nothei vourse of audit and on the basis of such checks as we considered appropirate and neeording to the Information and explantions given to us and to the bost of our knowledge and belraf, we set out In the attached Annexure a statment on the matters specified In prahraphs 4 and 5 of the sald order.

4. Further to our comments In the Annexure referred to In paragraph 3 above.

(i) We have obtained all the inforthetion and explanations which to the best of our knowfedge and beilef were necessary for the purposes of our audit.

(ii) In our opinlon subject to Note 1(x) in schedule 23 proper books of account, as requred by law, have beem le[t by the Company so far as it appears from our examination of the books.

(iii) The Balance Sheet, Profit and Loss Account and Cash Flow statement dealt with by this report are in agreement with the books of Account as submitted to us:

(iv) In our opinion subhect to Notes 1(ix) , 1(xii) and 7 (xiii) in Schedule 23 the Balance Sheet, Profit and Loss account and Cash Flow statement deait with by this report comply with the accounting standards referred to in sub section (3C) of section 211 of the Copanies Act, 1956;

(v) On the basis of writen representation received from the Directrs, as on 31st March, 2010 and taken on record by the Board of Directors, we report that none of the Directors is disqualfied as on 31st march, 2010 from eing appolinted as a Director in terms of clause (g) of sub section (1) of section 274 of the Companles Act, 1956;

(vi) In our ipinion and to the best of our inforthetion and according to the explanations given to us, the said accounts subject to and rad together with the NOTES in schiedule 23 and the attached thereto, give the inforthetions 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 31st march 2010;

b) In the cast of Profit and Loss account, of the profit for the year ended on that date; and

c) In the cast of the Cash Flow staterment, of the cash flows for the year ended on that date.

ANNEXURE TO THE AUDITORS REPPORT

(Referred in Paragraph (1) of our Report of even date of RELIANCE CHEMOTEX INDUSTMIES LTD. as at and for the year anded 31st therch, 2010)

1. (a) The Company Rs. In our opinion, maintaining proper records showing full parficulars, Including quntiative deails and situation of fixed anssets.

(b) In accordance with a programme, at verifying the Fixed Assers once In threa years, Fixed Assets are reported to have been physically venified by the management at the year end and the disorepancies noiced on such phusical verification, which In our opinion, were not material, In relation to the operations of the Company, have been properly deait with in the books of accounts The peilodicly of physical benfication, In our opinion, is reasonable having regard to the size of the Company and the nature of its business.

(c) In our opinion and according ot the Inforthention and explanations given to us, the fixed assets disposed off during the year were not subsiantial part of fixed assets so as to effect the going conern status of the Company,

ii) (a) The inventories lying with the Company are reported to have been physically verfied by the management at the year end.

(b) In our opinion the procedures of physical berrfication of invenriories followed by the management are reasonable and adequate in relation to the size of the Company and the nature of is business.

(c) In our opinion,of the Company is the lntatining proper records of inventiries and according to the records of the Company, the discrepancies noticed on physical verication of sticks as comparad to book records, which In our opinlion were not material, in relation to the operations of the Company, have been properly dealt with in the bocks of accounts.

iii (a) (I) According to the information and expinanations given to us, the Company has not granted any loans, secured or unsecured, to Companies, films or other parlies convered In the regRster theintained under section 301 of the Companies, Act, 1956 and accoudingly clauses (iii) (b) to (d) of paragraph 4 of the aforesald order, are in our opinion, not applicable.

(ii) According to the Information and explanation given to us, the Company has during the year taken unsecured loans of Rs. 83 Lacs from a Director of the Company and of Rs. 131 Lacs from a party convered in the register maintained under section 301 of the Companies Act, 1956

(b) In our opinion and according to the information and explanations given to us, the rates of interest and other terms and conditions of unsecrured lans taken by the Company during the year are not, primafal., proludical to the interest of the Company.

(c) In abence of stipulations, we have no corrments to make as to whether or not the Company is repaying the principal amount as siputated and is also reguar in payment of interos and whether there is any everdue amount of more than one laks for which steps need to be taken by the Cothepny for payment of the principal amount and interest thereeon.

iv) In our opinion and accorfing to the information and explanations given to us and on the basis of test checks carried out by us, and considering the explanations given by the management that attemative souces not being abailable for ceration OEM and other purchases it appears that there are adequate internal Cothepny and the Sature of its businoss with tegard to major purchases of internal control proccedures commentiate with the size of the Company and the sature of its business with regard to thejor purchases of inventory, Fixed Asseats and for the sale of goods, Further, on the basis of our examination of the books and records of the Cothepny and according to the inforthetion and explanations given to us, we have neither come across nor have we been informed by the management of the internal Auditors of the Company of any instance of thejor weakness as in the aforesald internal control procedures, which would required major correcitive acrion.

v) (a) According to the Information and expianations given to us and on the basis of our examination of the books of accounts, we are of the opinion that the contracts or arrangements that need to be entned in the register maintained in pursuance of section 301 of the Companies Act, 1956 have been entered in the said register.

(b) According ot the information and explanations given to us, the Company has not entered into any transactions exceeding the value of five taken rupees in resepct of any party during the year that need ot be entered in the register in pursuance of section 301 of the Cothepnies Act, 1956 and uneredore, Clause V (b) of paragraph 4 of the aforesald order, is in our opinion not applicable to the Cothepny for the current year.

vi) In our opinion and according to the information and explanations given to us, the Company has not accapted any devisits from the Pubic during the year under the provisions of sections 5BA, 58AA or any previsions of clause (vi) of the aforeeald order are not applicable to the Company.

vii) In our opinlon the internal audit system is by and large commensurate with the size of hte Company and nature of its business.

viii) On the basis of the records produced, we are of the opinion that prithe-facie, the cost accounts and records as prescibed by the Central Goverment under Clauss (d) of Sub-Section (1) of Section 209 of the Companies Act, 1956 have been thede and maintained However, we have not carried out a detalled examination of the subit amounts and records.

ix (a) According to the records of the Company, the Company has regusarly depesited during hte year undisputed statutory deposited during the year undispited statutoury dues (to the exient applicable) Incloking Provedent Fund, Incerstor Education and Protection Fund, Employees State Insurance, Income Tax, VAT (Sales Tax), Wealth Tax, Scrvice Tax, Custorms Dury, ExcRse Duty, Cess andother statutory dues with the apporprlate authourilles though dues with the approprlate authouttles though there has been delays In depositing dues of Service Tax, VAT and Tax deducted at source. According to the information and explanations given to us, there are no undisputed amounts, payable In respect of such statutory dues, which have remained outstanding as at 31.03.2010 for a period of more than. siz months from the date they becaries payabie.

(b) On the basis of our examination of the doucuments produced to us and according to the informations and explantions given to us, the dues (to the extent applicable ) of Income fax/sales tax/wealth tax/service tax.customs duty/excRse duty/cess which have not been deposited on account of disputes and the forrum where the dispute is pending are as under.

Tabal is a not visible

We have been informed that except as stated above there are no ohter amounts which have not been deposited on sccount of disputes.

(x) The Company has no accummlated losses as on 31.03.2010 and has not incurred cash losses in the financial year ended on that date and in the immediately proceding finacial year.

(xi) According to the records of the Company and as pan the information and explanations given to us, the Company has not detaulted In repayment of dues to financial institution or bank or debenture holders.

(xii) According to the information and explanations given to us. the Company has not granted any loans or advances on the basis of decunity by way of pledge of shareth debentutes and other securities.

(xiii) In our opinlon, the provisions of any special statues applicable to Chit Fund, Niahl or mutual beneit fund societal are not applicable to the Company.

(xiv) The Company as not dealing or trading in shares, securifies, debentures and other investments.

(xv) Accarding to the information and explantions given to us, the Company has not given any guarantee for loand taken by others from bank or finacial insitutions during the year.

(xvi) On the basRs of review of utlasation at funds pertaining ot term loars on overall basis as on 31/03/2010 and ralated information, Explanaions and statements as made avilable to us and as represented to us by the management, the term loans taken by the Company during the year were appried during the year for the purpose for which the loans were obtained.

(xvii) On the basis of rebiew of utalasation of funds on eberall basis as on 31/03/2010, realted information. explanations and statements as thede avillable to no funds raised on Short Term basis have been used for Long Term application.

(xviii) The Company has not the any preferential allotment of Shareas to parites and Companies covered in the register maintaned under Setion 301 of the Act. During the year.

(xix) The Company has not raised any money by way of public issuas during the year.

(xxi) During the coutse of our examination of the books of account and records of the Company. carried out in accordance with the generally accepted auditing pactces in india, and according to the information and explanations given to us, we have nether come across any instance of material fraud on or by the Company, noticed or reportod during the year, not have we been informed of such case by the management or the internel Auditors of the Compnay.

Above laxthel Dharam Kanta, For G.P KEJRIWAL & CO.

Hawa Sadak.22 Godown, Charlered Accountants

Jhipar 302 005 Film Reg No 00 1036C

Date: 19th they,2010 (K.K, SINGHAL)

Camp: Mumbai Partner

M.N. 050 140

 
Subscribe now to get personal finance updates in your inbox!