Mar 31, 2015
We have audited the accompanying financial statements of SAM INDUSTRIES
LIMITED (The Company), which comprises the Balance sheet as at
31stMarch, 2015 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
The Company's Board of Directors is responsible for matters stated in
Section 134(5) of the Companies Act, 2013 ("The Act") with respect to
the preparation of theses financial statements that give a true and
fair value of the financial positions, financial performance and cash
flows of the company in accordance with the accounting standards
referred to in section 133 of the Act, read with rule 7 of the
Companies (Accounts) Rule, 2014. This responsibility also includes
maintenance of adequate accounting records in accordance with the
provision of act for safeguarding the assets of the Company and for
preventing and detecting frauds and other irregularities; selection and
application of appropriate accounting policies; making judgments and
estimates that are reasonable and prudent; and design, implementation
and maintenance of adequate internal financial controls, that were
operating effectively for ensuring the accuracy and completeness of the
accounting records, relevant to the preparation and presentation of the
financial statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
AUDITOR'S RESPONSIBILITY
Our responsibility is to express an opinion on these financial
statements based on our audit, We have taken into account the
provisions of the Act, the accounting and auditing standards and
matters which are required to be included in the audit report under the
provisions of the Act and the Rules made thereunder.
We conducted our audit in accordance with the standards on Auditing
specified under Section 143(10) of the Act. Those standards require
that we comply with ethical 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 the disclosures in the financial statements. The
procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial control relevant
to the Company's preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing
an opinion on whether the Company has in place an adequate internal
financial controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company's Directors, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the standalone
financial statements.
OPINION
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid standalone financial statements
give the information required by the Act in the manner so required and
give a true and fair view in conformity with the accounting principles
generally accepted in India, of the state of affairs of the Company as
at March 31, 2015, and its Loss and its cash flows for the year ended
on that date.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
1. As required by the Companies (Auditor's Report) order, 2015 ("the
order"), issued by the Central Government of India in terms of
sub-section (11) of section 143 of the Companies Act, 2013 we give in
the annexure a statement on the matters specified in paragraphs 3 and 4
and 5 of the order to the extent applicable.
2. As required by section 143(3) of the Act, we report that:
a. We have sought and obtained all the information and explanations,
which to the best of our knowledge and belief were necessary for the
purpose of our audit.
b. In our opinion, proper books of account as required by law have
been kept by the company so far as appears from our examination of
those books of the Company.
c. The Balance Sheet and statement of Profit and Loss Account and Cash
Flow statement dealt with by these reports are in agreement with the
books of account of the Company.
d. In our opinion, the Balance Sheet and Profit & Loss Account and
Cash Flow statement dealt with by this report comply with the account
standards specified under section 133 of the Act, read with rule 7 of
Companies (Accounts) Rules, 2014.
e. On the basis of written information received from the directors of
the Company and taken on record by the Board of Directors as on 31st
March 2015, and the information and explanations given to us, we report
that none of the directors is disqualified as on 31st March 2015, from
being appointed as a director in terms of subsection (2) of section 164
of the Act.
f. With respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us:
(i) The Company has disclosed the impact of pending litigations on its
financial position in its financial statements as referred to in Note
No. 36 to the financial statements.
(ii) The Company has made provision, as required under the applicable
law or accounting standards, for material foreseeable losses, if any,
and as required on long-term contracts including derivative contracts.
(iii) There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company.
Annexure referred to in our Independent Auditor's Report to the Members
of the Company on the Financial Statements for the year ended 31st
March, 2015 we report that:
i. (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of its fixed
assets.
(b) The fixed assets of the Company have been physically verified by
the management at reasonable intervals. As informed to us, no
discrepancies have been noticed on such verification.
ii. (a) As explained to us, the inventory of the Company has been
physically verified during the year by the management. In our opinion
the frequency of the verification is reasonable.
(b) According to the information and explanation given to us, in our
opinion, the procedures of physical verification of stocks followed by
the management are reasonable and adequate in relation of the size of
the Company and the nature of its business.
(c) In our opinion and information and explanation given to us, the
Company is maintaining proper records of inventory and no material
discrepancies were noticed on verification between the physical stocks
and book records.
iii. According to the information's 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 189 of the Companies Act, 2013, hence the clause 3(iii) does
not apply to the Company
iv. In our opinion and according to the information and explanations
given to us, there are adequate internal control systems commensurate
with the size of the Company and the nature of its business. During
the course of our audit, we have not observed any major weaknesses in
the internal control system.
v. In our opinion and according to the information and explanations
given to us, the company has not accepted deposit from public with the
meaning of Section 73 to 76 or any other relevant provision of the
Companies Act 2013.
vi. According to information and explanations given to us as the
company has discontinue its Soya Manufacturing Activities in Previous
year, hence cost records as prescribed under sub-section (1) of section
148 of the Companies Act does not required to be maintained by the
Company.
vii. (a) According to the information and explanations given to us and
the records of the company examined by us, in our opinion, the company
is regular in depositing statutory dues of Provident Fund, Employee
state Insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax, Custom
duty, Excise duty, Value added Tax, cess and any other statutory dues
with the appropriate authorities. However Service Tax has been
deposited with slight delay and there is no amount outstanding as on
31.03.2015 on account of Service Tax.
(b) According to the information and explanations given to us, there
are no undisputed statutory dues of Provident Fund, Employee state
Insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax, Custom duty,
Excise duty, Value added Tax, cess and any other statutory dues with
the appropriate authorities except land diversion tax of Rs.6,32,334/-
(Pre. Year Rs.6,32,334/-) outstanding for a period of more than six
months from the date they became payable, as per books of accounts as
at 31st March, 2015.
(c) According to the Information and explanation given to us, there are
no dues of Income Tax, Sales Tax, Wealth Tax, Custom Duty, Excise Duty,
Value Added Tax and Cess which have not been deposited with the
appropriate authorities on account of any dispute.
(d) According to the information and explanations given to us, there is
no amount required to be transferred to investor education and
protection fund in accordance with the relevant provisions of the
Companies Act 2013.
viii. The company does not have accumulated losses as at 31st March,
2015. The Company has incurred Cash Loss during the financial year
covered by our audit; however the company has cash profit in the
immediately preceding financial year.
ix. In our opinion and according to the information and explanations
given to us, the Company did not have any outstanding dues to financial
institutions, banks on debenture holder during the year.
x. According to the information and explanations given to us, the
company has not given any guarantee for loans taken by others from
banks or financial institutions.
xi. To the best of our knowledge and belief, and according to the
information and explanations given to us, the company has not raised
any term-loans during the year under audit. Hence, paragraph 3 (xi) of
the Order is not applicable.
xii. To the best of our knowledge and belief and according to the
information and explanations given to us, we report that no material
fraud on or by the company has been noticed or reported during the
year.
ForM.MEHTA & COMPANY
Chartered Accountants
Firm Regn. No. 000957C
CA P R Bandi
(Partner)
Place: Indore M. No. 016402
Dated: 28.05.2015
Mar 31, 2014
We have audited the accompanying financial statements of Sam Industries
Limited which comprises of the Balance Sheet as at March 31, 2014, and
the Statement of Profit and Loss and the Cash Flow Statement for the
year then ended, and a summary of significant accounting policies and
other explanatory information.
Management''s Responsibility
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position and
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"). 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 order to design audit
procedures that are appropriate in the circumstances but not for the
purpose of expressing an opinion on the effectiveness of the entity''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 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 and
(b) In the case of the Statement of Profit and Loss, of the Profit for
the year ended on that date.
(c) In the case of the Cash Flow Statement, of the Cash Flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("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 the 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
the Cash Flow Statement comply 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
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.
Annexure To The Auditors'' Report
Annexure Referred to in paragraph 1 of our Audit report of even date on
the accounts for the year ended 31st March 2014 of Sam Industries
Limited As required by the companies (Auditors report) order 2003
issued by the Company law Board in the terms of section 227(4A) of the
Companies Act 1956, we have further to report that: -
1. (a) In respect of fixed assets; the Company has maintained proper
records showing full particulars including quantitative details
and situation of fixed assets.
(b) These Fixed Assets have been physically verified by the management,
in accordance with the programme of verification adopted by the
company. In our opinion, the frequency of verification is reasonable
having regard to the size of the company and the nature of its assets.
(c) The fixed assets disposed off/discarded of Soya Division during the
year, in our opinion, do not constitute a substantial part of the fixed
assets of the company and such disposal has, in our opinion, not
affected the going concern status of the company.
2. (a) As explained to us, the inventory of the Company has been
physically verified during the year by the management. In our opinion
the frequency of the verification is reasonable.
(b) According to the information and explanation given to us, in our
opinion, the procedures of physical verification of stocks followed by
the management are reasonable and adequate in relation of the size of
the Company and the nature of its business.
(c) In our opinion and information and explanation given to us, the
Company is maintaining proper records of inventory and no material
discrepancies were noticed on verification between the physical stocks
and book records.
3. (a) 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. Accordingly, the
provisions of clause 4(iii)(a) to (d) of the Companies (Auditor''s
Report) Order, 2003 (as amended) are not applicable to the company and
hence not commented upon.
(b) According to the information and explanations given to us, the
company has not taken any loans, secured or unsecured to companies,
firms or other parties covered in the register maintained under section
301 of the Companies Act, 1956. Accordingly, the provisions of clause
4(iii)(a) to (d) of the Companies (Auditor''s Report) Order, 2003 (as
amended) are not applicable to the company and hence not commented
upon.
4. In our opinion and according to the information and explanation
given to us, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business with regard to purchases of inventory, fixed assets and with
regard to the sale of goods and services. During the course of our
audit, we have not observed any continuing failure to correct major
weaknesses in internal controls.
5. (a) In our opinion and according to the information and
explanations given to us, the particulars of contracts or arrangements
or transactions referred to in section 301 of the Companies Act, 1956
have been entered in the register required to be maintained under
Section 301 of the companies Act, 1956.
(b) In our opinion and according to the information and explanations
given to us, transactions made in pursuance of contracts or
arrangements entered in the Register maintained under Section 301 of
the companies Act, 1956 have been made at prices which are prima facie
reasonable, having regard to prevailing market prices at the relevant
time where such market prices are available.
6. In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposit from public in
contravention with the provisions of Section 58-A and 58AA or any other
relevant provisions of the Act and the Companies (Acceptance of
Deposits) Rules, 1975. No order has been passed by the Company Law
Board or National Company Law Tribunal or Reserve Bank of India or any
Court or any other Tribunal on the Company in respect of any deposits.
7. The Company has an Internal Audit System, which in our opinion is
adequate and commensurate with the size of the Company and nature of
its business.
8. Accordingly to the information and explanation given to us, as the
company has discontinue its Soya manufacturing activities during the
year, hence cost records as prescribed u/s 209 1(d) of the Companies
Act 1956 does not require to be maintained by the Company.
9. (a) According to the information and explanations given to us, the
Company is generally regular in depositing provident fund and
employees state insurance with appropriate authorities during the year.
(b) According to the information and explanations given to us, no
undisputed amount payable in respect of income-tax, sales tax,
wealth-tax, service-tax customs duty, excise duty, cess as on 31.3.2014
were outstanding for a period of more than six months from the date
they became payable except land diversion tax of Rs. 632334/- (Previous
Year Rs. 6,32,334/-). However, service tax has been deposited with
slight delays and there is no amount outstanding as on 31.3.2014 on
account of Service Tax.
(c) As on 31st March 2014, According to the records of the company and
the information and explanations given to us, the following are the
particulars of dues on account of Income tax, Excise Duty, Cess, Sales
Tax Service Tax Custom duty and wealth Tax matters that have not been
deposited on account of disputes:-
Sr. Name of the Nature of Dues Amount Forum where
No. Statute Disputed (in Rs.) pending
1 M.P. Commercial Sales tax 6,89,000/- Deputy Commissioner
tax Act 1994 Demand Appeal
2 M.P. Entry Tax Entry Tax 96,000/- Deputy Commissioner
Act demand Appeal
10. The Company has made cash profit during the financial year covered
by our audit and also in the immediately preceding financial year. The
company has no accumulated losses at the end of the financial year.
11. In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to
financial institutions, banks during the year.
12. 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. Therefore,
the other provisions of clause 4 (xii) of the companies (Auditor''s
Report) Order, 2003 are not applicable to the Company.
13. In our opinion and according to the information and explanations
given to us, the Company is not a chit fund or a nidhi/mutual benefit
fund / society. Therefore, the provisions of clause 4(xiii) of the
Companies (Auditor''s Report) Order, 2003 are not applicable to the
Company.
14. The Company has maintained proper records of the transactions and
contracts in respect of dealing or trading in shares, securities,
debentures and other investments and timely entries have been made
therein. All shares, securities, debentures and other investments have
been held by the company in its own name.
15. In our opinion, according to the information and explanations
given to us, the Company is not dealing in or trading in shares,
securities, debentures and other investments.
16. According to the information and explanation given to us, the
Company has not given any guarantees for loans taken by others from
banks or financial institutions during the year.
17. According to the information and explanation given to us, the
company has not taken any term loans during the year.
18. According to the information and explanations given to us and an
overall examination of the Balance Sheet of the company, we report that
funds raised on short-term basis, have been used for short term purpose
only.
19. The Company has not made preferential allotment of share to
parties and Companies covered in the register maintained under Section
301 of the Companies Act, 1956 during the year covered by our audit.
20. The company has not issued any debentures during the year under
review.
21. The company has not raised any money by public issues during the
year under review.
22. To the best of our knowledge and belief and according to the
information and explanation given to us, no fraud on or by the Company
has been noticed or reported during the course of our audit.
For M. Mehta and company
Chartered Accountants
Firm Reg. No.000957C
Place: Indore CA Atul Sharma
Date: 30/05/2014 (Partner)
M. No.075615
Mar 31, 2013
We have audited the accompanying financial statements of Sam Industries
Limited which comprises of the Balance Sheet as at March 31, 2013, and
the Statement of profit and Loss and the Cash Flow Statement for the
year then ended, and a summary of significant accounting policies and
other explanatory information.
Management Responsibility
Management is responsible for the Preparation fo these financial
statements that give a true and fair view of the financial position and
financial performance in accordance with the Accounting standards
referred to in sub-section (3C) of section 211 of the Companies Act,
1956 . This responsibility includes the design,
Implementation and maintenance of internal control relevant to the
preparation and presentation of the financial statements that give a
true and fair view and are free from material misstatement whether due
to fraud or error.
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
Accounts of India. Those Standard require that comply with ethical
requirements and plan and perform the audit to obtain reasonable
assurance about whether the financial statement 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 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 companys preparation and
faire 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
explanation 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 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 and
(b) in the case of the Statement, of Profit and Loss, of the Profit for
the year ended on that date.
(c) in the case of the Cash Flow Statement of the cash flows for the
year ended on that date
1. As required by the Companies (Auditor) issue by the Central
Government of India in terms of sub
selection (4A) of section 227 of the Act, 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 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 the 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
the Cash Flow Statement comply with the Accounting Standard referred to
in subsection (3C) of section 211 of the Companies Act, 1956;
(e) On the basis of written representations received from the directors
as on March 31, 2013, and taken on record by the Board of Directors,
none of the director is disqualified as on March 31, 2013, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956;
Annexure Referred to in paragraph 1 of our Audit report of even date on
the account for the year ended 31st March 2013 of Sam Industries
Limited
As required by the Companies (Auditors Report) Order, 2003 issued by
the Company Law Board in the terms of Section 227 (4A) of the Companies
Act 1956, we have further to report that:- 1. (a) In respect of fixed
assets; the company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) These fixed assets have been physically verified by the management
in accordance with the programme of verification adopted by the
company. In our opinion, the frequency of verification is reasonable
having regard to the size of the company and the nature of its assets.
(c) The fixed assets disposed off during the year, in our opinion, do
not constitute a substantial part of the fixed assets of the company
and such disposal has, in our opinion, not affected the going concern
status of the company.
2. (a) As explained to us, the inventory of the Company has been
physically verified during the year by the management.
In our opinion the frequency of the verification reasonable.
(b) According to the information and explanation given to us in our
opinion, the procedures of physical verification of stocks followed by
the management are reasonable and adequate in relation of the size of
the Company and the nature of its business
(c) In our opinion and information and explanation given to us, the
Company is maintaining proper record or inventory and no material
discrepancies were noticed on verification between the physical Stock
and book records except evaporation of Hexane of Rs. 11,88,770/- which
has been adjusted by debiting to Loss on Shortage Account.
3. (a) 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. Accordingly, the provisions of clause
4 (iii) (a) to (d) of the companies (Auditors Report) Order, 2003 (as
amended) are not applicable to the company and hence not commented
upon.
(b) According the information and explanations given to us, the company
has not taken any loans secured of unsecured to companies firms or
other parties covered in the register maintained under section 301 of
the companies Act, 1956. Accordingly, the provisions of clause 4 (iii)
(a) to (d) of the Companies (Auditors Report) Order, 2003 (as amended)
are not applicable to the company ans hence not commented upon.
4. In our opinion and according to the information and explanation
given to us, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business with regard to purchases of inventory, fixed assets and with
regards to the sale of goods and services. During the course of our
audit, we have not observed any continuing failure to correct major
weaknesses in internal controls.
5. (a) In our opinion and according to the information and
explanations given to us, the particulars of contracts or arrangements
or transactions referred in section 301 of the companies Act., 1956
have been entered in the register required to be maintained under
section 301 of the companies act, 1956.
(b) In our opinion and according to the information and explanation
given to us, transactions made in pursuance of contracts or
arrangements entered in register maintained under Section 301 of the
Companies Act. 1956 have been made at prices which are prima facie
reasonable, having regard to prevailing market prices at the relevant
time where such market prices are available.
6. In our opinion and according to the information and explanation
given to us, the Company has not accepted any deposit from public in
contravention with the provision of Section 58-A and 58AA or any other
relevant provision of the Act and the companies (Acceptance of
Deposits) Rules 1975. No order has been passed by the Company Law Board
or National Company Law Tribunal or Reserve Bank of India or any Court
or any other Tribunal on the Company in respect of a ny deposits.
7. The Company has an Internal Audit System, which in our opinion is
adequate and commensurate with the size of the Company and nature of
its business.
8. We have broadly reviewed the Cost Records maintained by the Company
pursuant to the Companies (Cost According Records) Rules, 2011
prescribed by the Central Government u/s 209 (1) (d) of the companies
Act 1956 and are of the opinion that prima facie the prescribed Cost
Records have been maintained wherever applicable. We have, however not
made a detailed examination of the Cost Records with a view to
determine whether they are accurate or complete
9. (a) According to the information and explanation given to us. the
Company is generally regular in depositing provident fund and employees
state insurance with appropriate authorities during the year.
10. The Company has made cash profit during the financial year covered
by our audit and also in the immediately preceding financial year. The
company has no accumulated losses at the end of the financial year.
11. in our opinion and according to the information and explanations
given to us, the company has not defaulted in repayment of dues to
financial institutions, banks during the year.
1t 2. According to the information and explanations givenh to us, the
Company has not granted any loans and advances o ne basis of security
by way of pledge of shares, debentures and other securities. Therefore
the other provision of clause 4 (Xii) of the companies (Auditors
Report) Order, 2003 are not applicable to the Company.
13. In our opinion and according to the information and explanations
given to us, the company is not a chit fund or a nidhi benefit fund /
society. Therefore, the provision of clause 4 (Xiii) of the companies
(Auditors Report) Order, 2003 are not applicable to the Company.
14. In our opinion, according to the information and explanations
given to us, the company is not dealing in or trading in shares,
securities, debentures and other investments.
15. According to the information and explanation given to us, the
company has not given any guarantees of loans taken by others from
banks or financial institutions during the year.
16. According to the information and explanation given to us, company
has not taken any term loans during the year.
17. According to the information and explanations given to us and an
overall examination of the Balance Sheet of the company, we report that
fund raised on short-term basis, have been used for short term purpose
only.
18. The company has not made preferential allotment of share to
parties and Companies covered in the register maintained under Section
301 of the Companies Act, 1956 during the year Covered by our audit.
19. The Company has not issued any debentures during the year under
review.
20. The Company has not raised any money by public issues during the
year under review.
21. To the best of our knowledge and belief and according to the
information and explanation given to us, no fraud on or by the company
has been noticed or reported during the course of our audit.
For M. Mehta and Company
Chartered Accountants
Firm Reg. No. 000957C
Place: Indore CA Nitin Bandi (Partner)
Date: The 30th day of May 2013 M.No. 400394
Mar 31, 2012
1. We have audited the attached Balance Sheet of Sam Industries
Limited (the Company) as at 31st March 2012, 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 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 the Management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
3. As required by the Companies (Auditor's Report) Order, 2003 issued
by the Central Government of India in terms of sub- section (4A) of
section 227 of the Companies Act, 1956, we enclose in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the said
Order to the extent applicable.
4. Further to our comments in the Annexure referred to in paragraph 3
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 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.
iv) In our opinion, the Balance Sheet, Profit and Loss Account and Cash
Flow Statement dealt with by this report comply with the accounting
standards referred to in sub-section (3C) of Section 211 of the
Companies Act, 1956;
v.) On the basis of written representations received from the
directors, as on 31st March 2012, and taken on record by the Board of
Directors, we report that none of the directors is disqualified as on
31st March 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, the said accounts give the information
required by the Companies Act, 1956, in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India:
vii) In the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March 2012;
viii) In the case of the Profit and Loss Account, of the profit for the
year ended on that date; and
ix) In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
ANNEXURE TO THE AUDITOR'S REPORT Annexure Referred to in paragraph 1 of
our Audit report of even date on the accounts for the year ended 31st
March 2012 of Sam Industries Limited
As required by the companies (Auditors report) order 2003 issued by the
Company law Board in the terms of section 227(4A) of the Companies Act
1956, we have further to report that: -
1. (a) In respect of fixed assets; the Company has maintained proper
records showing full particulars including quantitative details and
situation of fixed assets.
(b) These Fixed Assets have been physically verified by the management,
in accordance with the program of verification adopted by the company.
In our opinion, the frequency of verification is reasonable having
regard to the size of the company and the nature of its assets.
(c) During the year, in our opinion, no substantial part of fixed
assets has been disposed off by the company.
2. (a) As explained to us, the inventory of the Company has been
physically verified during the year by the management. In our opinion
the frequency of the verification is reasonable.
(b) According to the information and explanation given to us, in our
opinion, the procedures of physical verification of stocks followed by
the management are reasonable and adequate in relation of the size of
the Company and the nature of its business.
(c) In our opinion and information and explanation given to us, the
Company is maintaining proper records of inventory and no material
discrepancies were noticed on verification between the physical stocks
and book records.
3. (a) The Company has not granted unsecured loans to parties covered
in the Register maintained under Section 301 of the Companies Act,
1956, hence clause (a) to (c) does not apply.
(b) The Company has Outstanding unsecured loans, from one of the Ex -
directors and the company has taken fresh loan from ane of the
directors during the year. The Outstanding year - end balance was Rs.
19,50,000/- and the maximum Outstanding balance during the year was Rs.
49,00,000/- (c ) In our opinion, the terms of this loan is prima facie
not prejudicial to the interest of the company and is free of interest.
(d) The loan taken from the aforesaid party covered in the register u/s
301 of the companies Act is repayable on demand.
4. In our opinion and according to the information and explanation
given to us, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business with regard to purchases of inventory, fixed assets and with
regard to the sale of goods and services. During the course of our
audit, we have not observed any continuing failure to correct major
weaknesses in internal controls.
5. (a) In our opinion and according to the information and
explanations given to us, the particulars of contracts or arrangements
or transactions referred to in section 301 of the Companies Act, 1956
have been entered in the register required to be maintained under
Section 301 of the companies Act, 1956.
(b) In our opinion and according to the information and explanations
given to us, transactions made in pursuance of contracts or
arrangements entered in the Register maintained under Section 301 of
the companies Act, 1956 have been made at prices which are prima facie
reasonable, having regard to prevailing market prices at the relevant
time where such market prices are available.
6. In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposit from public in
contravention with the provisions of Section 58-A and 58AA or any other
relevant provisions of the Act and the Companies (Acceptance of
Deposits) Rules, 1975. No order has been passed by the Company Law
Board or National Company Law Tribunal or Reserve Bank of India or any
Court or any other Tribunal on the Company in respect of any deposits.
7. The Company has an Internal Audit System, which in our opinion is
adequate and commensurate with the size of the Company and nature of
its business.
8. The Central Government has prescribed the maintenance of cost
records under Section 209 (1) (d) of the Companies Act 1956 in respect
of refining activities of the Company. We are informed that no such
accounts and records were required to be maintained as the refining
activities have already been closed during the pervious year.
9. (a) According to the information and explanations given to us, the
Company is generally regular in depositing provident fund and employees
state insurance with appropriate authorities during the year.
(b) According to the information and explanations given to us, no
undisputed amount payable in respect of income-tax, sales tax,
wealth-tax, service-tax customs duty, excise duty, cess as on 31.3.2012
were outstanding for a period of more than six months from the date
they became payable except land diversion tax of Rs. 6,32,334/-
(Previous Year Rs. 12,64,668/-)
(c) As on 31St March 2012, According to the records of the company and
the information and explanation s given to us, the following are the
particulars of dues on account of Income tax, Excise Duty, Cess, Sales
Tax Service Tax Custom duty and wealth Tax matters that have not been
deposited on account of disputes:-
Sr.
No. Name of the
Statute Nature of Dues
Disputed Amount (In Rupees) Forum where
pending
Deputy
Commissioner
1 M.P. Commercial
tax Act, 1944 Sales Tax Demand 6,89,000/- Appeal
Deputy
Commissioner
2 M.P. Entry
Tax Act Entry Tax Demand 9,60,000/- Appeal
10. The Company has made cash profit during the financial year covered
by our audit and also in the immediately preceding financial year. The
company has no accumulated losses at the end of the financial year.
11. In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to
financial institutions, banks during the year.
12. 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. Therefore,
the other provisions of clause 4 (xii) of the companies (Auditor's
Report) Order, 2003 are not applicable to the Company.
13. In our opinion and according to the information and explanations
given to us, the Company is not a chit fund or a nidhi/mutual benefit
fund / society. Therefore, the provisions of clause 4(xiii) of the
Companies (Auditor's Report) Order, 2003 are not applicable to the
Company.
14. In our opinion, according to the information and explanations
given to us, the Company is not dealing in or trading in shares,
securities, debentures and other investments.
15. According to the information and explanation given to us, the
Company has not given any guarantees for loans taken by others from
banks or financial institutions during the year.
16. According to the information and explanation given to us, the
company has not taken any term loans during the year.
17. According to the information and explanations given to us and an
overall examination of the Balance Sheet of the company, we report that
funds raised on short-term basis, have been used for short term purpose
only.
18. The Company has not made preferential allotment of share to
parties and Companies covered in the register maintained under Section
301 of the Companies Act, 1956 during the year covered by our audit.
19. The company has not issued any debentures during the year under
review.
20. The company has not raised any money by public issues during the
year under review.
21. To the best of our knowledge and belief and according to the
information and explanation given to us, no fraud on or by the Company
has been noticed or reported during the course of our audit.
For M. Mehta and company
Chartered Accountants
FirMreg. No.000957C
(P. R. Bandi)
Place: Indore
(Partner)
Date: The 28th day of May, 2012 M. No.16402
Mar 31, 2010
1. We have audited the attached Balance Sheet of Sam Industries
Limited (the Company) as at 31st March 2010, 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 Companys Management. Our responsibility is to express an opinion
on these financial statements based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. 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 the Management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
3. As required by the Companies (Auditors Report) Order, 2003 issued
by the Central Government of India in terms of subsection (4A) of
section 227 of the Companies Act, 1956, we enclose in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the said
Order to the extent applicable.
4. Further to our comments in the Annexure referred to in paragraph 3
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 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.
iv) In our opinion, the Balance Sheet, Profit and Loss Account and Cash
Flow Statement dealt with by this report comply with the a ccounting
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 31st March 2010, and taken on record by the Board of Directors,
we report that none of the directors is disqualified as on 31st March
2010 from being appointed as a director in terms of clause (g) of
sub-section (1) of Section 274 of the Companies Act, 1956; and
vi) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts give the information
required by the Companies Act, 1956, in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India:
vii) In the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March 2010;
viii) In the case of the Profit and Loss Account, of the profit for the
year ended on that date; and
ix) In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
ANNEXURE TO THE AUDITORS REPORT
Annexure Referred to in paragraph 1 of our Audit report of even date on
the accounts for the year ended 31st March 2010 of Sam Industries
Limited.
As required by the companies (Auditors report) order 2003 issued by the
Company law Board in the terms of section 227(4A) of the Companies Act
1956, we have further to report that :-
1. (a) In respect of fixed assets; the Company has maintained proper
records showing full particulars including quantitative details and
situation of fixed assets.
(b) These Fixed Assets have been physically verified by the management,
in accordance with the programme of verification adopted by the
company. In our opinion, the frequency of verification is reasonable
having regard to the size of the company and the nature of its assets.
(c) During the year, in our opinion, no substantial part of fixed
assets has been disposed off by the company.
2. (a) As explained to us, the inventory of the Company has been
physically verified during the year by the management. In our opinion
the frequency of the verification is reasonable.
(b) According to the information and explanation given to us, in our
opinion, the procedures of physical verification of stocks followed by
the management are reasonable and adequate in relation of the size of
the Company and the nature of its business.
(c) In our opinion and information and explanation given to us, the
Company is maintaining proper records of inventory and no material
discrepancies were noticed on verification between the physical stocks
and book records.
3. (a) The Company has not granted unsecured loans to parties covered
in the Register maintained under Section 301 of the Companies Act,
1956, hence clause (a) to (c) does not apply.
(b) The Company has taken unsecured loans, from one of the directors.
The outstanding year end balance was Rs. 49,00,000 and the maximum
outstanding balance during the year is Rs. 49,00,000/-.
(c) In ou. opinion, the terms of this loan is prima facie not
prejudicial to the interest of the company and is free of interest.
(d) The loan taken from the aforesaid party covered in the register u/s
301 of the companies Act is repayable on demand.
4. In our opinion and according to the information and explanation
given to us, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business with regard to purchases of inventory, fixed assets and with
regard to the sale of goods and services. During tile course of our
audit, we have not observed any continuing failure to correct major
weaknesses in internal controls.
5. (a) In our opinion and according to the information and
explanations given to us, the particulars of contracts or arrangements
or transactions referred to in section 301 of the Companies Act, 1956
have been entered in the register required to be maintained under
Section 301 of the companies Act, 1956.
(b) In our opinion and according to the information and explanations
given to us, transactions made in pursuance of contracts or
arrangements entered in the Register maintained under Section 301 of
the companies Act, 1956 have been made at prices which are prima facie
reasonable, having regard to prevailing market prices at the relevant
time where such market prices are available.
6. In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposit from public in
contravention with the provisions of Section 58-A and 58AA or any other
relevant provisions of the Act and the Companies (Acceptance of
Deposits) Rules, 1975. No order has been passed by the Company Law
Board or National Company Law Tribunal or Reserve Bank of India or any
Court or any other Tribunal on the Company in respect of any deposits.
7. The Company has an Internal Audit System, which in our opinion is
adequate and commensurate with the size of the Company and nature of
its business.
8. The Central Government has prescribed the maintenance of cost
records under Section 209 (1) (d) of the Companies Act 1956 in respect
of refining activities of the Company. We are informed that such
accounts and records have been maintained. However, we have not made a
detailed examination of such accounts and records with a view to
determine whether they are accurate or complete.
9. (a) According to the information and explanations given to us, the
Company is generally regular in depositing provident fund and employees
state insurance with appropriate authorities during the year.
(b) According to the information and explanations given to us, no
undisputed amount payable in respect of income-tax, sales tax,
wealth-tax, service-tax customs duty, excise duty, cess as on 31.3.2010
were outstanding for a period of more than six months from the date
they became payable except land diversion tax of Rs. 9,48,501/-
(Previous Year Rs.6,32,334/-)
(c) As on 31St March 2010, According to the records of the company and
the information and explanation s given to us, the following are the
particulars of dues on account of Income tax, Excise Duty, Cess, Sales
Tax Service Tax Custom duty and wealth Tax matters that have not been
deposited on account of disputes:-
Sr.
No. Name of the
Statute Nature of Dues
Disputed Amount (Rs. In
lacs) Forum where
pending
1 M.P. Commercial tax
Act, 1944 Sales Tax Demand 6.89
Deputy Com
missioner
Appeal
2 M.P. Entry Tax Act Entry Tax Demand 0.96 Deputy Com
missioner
Appeal
10. The Company has made cash profit during the financial year covered
by our audit and also in the immediately preceding financial year. The
company has no accumulated losses at the end of the financial year.
11. In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to
financial institutions, banks during the year.
12. 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. Therefore,
the other provisions of clause 4 (xii) of the companies (Auditors
Report) Order, 2003 are not applicable to the Company.
13. In our opinion and according to the information and explanations
given to us, the Company is not a chit fund or a nidhi/mutual benefit
fund / society. Therefore, the provisions of clause 4(xiii) of the
Companies (Auditors Report) Order, 2003 are not applicable to the
Company.
14. In our opinion, according to the information and explanations
given to us, the Company is not dealing in or trading in shares,
securities, debentures and other investments.
15. According to the information and explanation given to us, the
Company has not given any guarantees for loans taken by others from
banks or financial institutions during the year.
16. According to the information and explanation given to us, the
company has not taken any term loans during the year.
17. According to the information and explanations given to us and an
overall examination of the Balance Sheet of the company, . we report
that funds raised on short-term basis, have been used for short term
purpose only.
18. The Company has not made preferential allotment of share to
parties and Companies covered in the register maintained . under
Section 301 of the Companies Act, 1956 during the year covered by our
audit.
19. The company has not issued any debentures during the year under
review.
20. The company has not raised any money by public issues during the
year under review.
21. To the best of our knowledge and belief and according to the
information and explanation given to us, no fraud on or by the Company
has been noticed or reported during the course of our audit.
For M. Mehta and company
Chartered Accountants
(Nitin Bandi)
Place: Indore (Partner)
Date: The 28th day of May, 2010 Firm Reg. No. 000957C M. No.400394
Mar 31, 2009
We have audited the attached Balance Sheet of Sam Industries Limited as
at 31st March 2009, 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 Companys
Management. Our responsibility is to express an opinion on these
financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally
accepted in India. Those Standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by the Management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
As required by the Companies (Auditors Report) Order, 2003 issued by
the Central Government of India in terms of sub-section (4A) of section
227 of the Companies Act, 1956, we enclose in the Annexure a statement
on the matters specified in paragraphs 4 and 5 of the said Order to the
extent applicable.
Further to our comments in the Annexure referred to in paragraph 3
above, we report that:
1) 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;
2) in our opinion, proper books of account as required by law have been
kept by the Company so far as appears from our examination of the
books.
3) the Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account.
4) in our opinion, the Balance Sheet, Profit and Loss Account and Cash
Row Statement dealt with by this report subject to notes on accounts at
Schedule 25, comply with the accounting standards referred to in
sub-section (3C) of Section 211 of the Companies Act, 1956;
5) on the basis of written representations received from the directors,
as on 31st March 2009, and taken on record by the Board of Directors,
we report that none of the directors is disqualified as on 31st March
2009 from being appointed as a director in terms of clause (g) of
sub-section (1) of Section 274 of the Companies Act, 1956; and
6) in our opinion and to the best of our information and according to
the explanations given to us, the said accounts give the information
required by the Companies Act, 1956, in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India:
i) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March 2009;
ii) in the case of the Profit and Loss Account, of the profit for the
year ended on that date; and
iii) in the case of the Cash Flow Statement, of tne cash flows for the
year ended on that date.
ANNEXURE TO THE AUDITORS REPORT
Annexure Referred to in paragraph 1 of our Audit report of even date on
the accounts for the year ended 31st March 2009 of Sam Industries
Limited
As required by the companies (Auditors report) order 2003 issued by the
Company law Board in the terms of section 227(4A) of the Companies Act
1956, we have further to report that: -
1. (a) In respect of fixed assets; the Company has maintained proper
records showing full particulars Including quantitative details and
situation of fixed assets.
(b) These Fixed Assets have been physically verified by the management,
in accordance with the programme of verification adopted by the
company. In our opinion, the frequency of verification is reasonable
having regard to the size of the company and the nature of Its assets.
(c) During the year, in our opinion, no substantial part of fixed
assets has been disposed off by the company.
2. (a) As explained to us, the inventory of the Company has been
physically verified during the year by the management. In our opinion
the frequency of the verification is reasonable.
(b) According to the information and explanation given to us, in our
opinion, the procedures of physical verification of stocks followed by
the management are reasonable and adequate in relation of the size of
the Company and the nature of its business.
(c) In our opinion and information and explanation given to us, the
Company is maintaining proper records of inventory and no material
discrepancies were noticed on verification between the physical stocks
and book records.
3. (a) The Company has granted unsecured loans to one Company covered
in the Register maintained under Section 301 of the Companies Act,
1956. The maximum amount involved in the year was Rs. 10,23,721/- (Rs.
10,23,721/-) and the year-end balance was Rs. NIL(Rs. 10,23,721/-)
(b) As per Information & explanation given to us, no interest has been
charged on the Loans given to company covered in the Register
maintained under Section 301 of the Companies Act, 1956.
(c) In respect of loans granted, there are no stipulations with regard
to repayment of principal amounts. These loans are repayable on demand.
Hence we are unable to comment on the overdue status of such loans.
(d) The Company has taken unsecured loans, from one of the directors.
The outstanding year end balance was Rs. 49,00,000 and the maximum
outstanding balance during the year is Rs. 51,63,842/-.
(e) In our opinion, the terms of this loan is prima facie not
prejudicial to the interest of the company and is free of interest. (0
The loan taken from the aforesaid party covered in the register u/s 301
of the companies Act is repayable on demand.
4. In our opinion and according to the information and explanation
given to us, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business with regard to purchases of inventory, fixed assets and with
regard to the sale of goods and services. During the course of our
audit, we have not observed any continuing failure to correct major
weaknesses in internal controls.
5. (a) In our opinion and according to the information and
explanations given to us, the particulars of contracts or arrangements
or transactions referred to in section 301 of the Companies Act, 1956
have been entered in the register required to be maintained under
Section 301 of the companies Act, 1956.
(b) In our opinion and according to the information and explanations
given to us, transactions made in pursuance of contracts or
arrangements entered in the Register maintained under Section 301 of
the companies Act, 1956 have been made at prices which are prima fade
reasonable, having regard to prevailing market prices at the relevant
time where such market prices are available.
6. In our opinion and according to the Information and explanations
given to us, the Company has not accepted any deposit from public in
contravention with the provisions of Section 58-A and 58AA or any other
relevant provisions of the Act and the Companies (Acceptance of
Deposits) Rules, 1975. No order has been passed by the Company Law
Board or National Company Law Tribunal or Reserve Bank of India or any
Court or any other Tribunal on the Company in respect of any deposits.
7. The Company has an Internal Audit System, which in our opinion is
adequate and commensurate with the size of the Company and nature of
its business.
8. The Central Government has prescribed the maintenance of cost
records under Section 209 (1) (d) of the Companies Act 1956 in respect
of refining activities of the Company. We are informed that such
accounts and records have been maintained. However, we have not made a
detailed examination of such accounts and records with a view to
determine whether they are accurate or complete.
9. (a) According to the information and explanations given to us, the
Company is generally regular in depositing provident fund and employees
state insurance with appropriate authorities during the year.
(b) According to the information and explanations given to us, no
undisputed amount payable in respect of income-tax, sales tax,
wealth-tax, service-tax customs duty, excise duty, cess as on 31.3.2009
were outstanding for a period of more than six months from the date
they became payable except Commercial Tax amounting to Rs. 30,870/- and
land diversion tax of Rs.6,32,334/-
(c) As on 31st March 2009, According to the records of the company and
the information and explanations given to us, the following are the
particulars of dues on account of Income tax, Excise Duty, Cess, Sales
Tax Service Tax Custom duty and wealth Tax matters that have not been
deposited on account of any dispute:
Sr.
No. Name of the
Statute Nature of Dues Disputed Amount
(Rs. In lacs) Forum where
pending
Deputy Commissioner
1 M.P. Commercial
tax Act, 1944 Sales Tax Demand 6.89 Appeal
Deputy Commissioner
2 M.P. Entry Tax
Act Entry Tax Demand 0.96 Appeal
10. The Company has made cash profit during the financial year covered
by our audit and also in the immediately preceding financial year. The
company has no accumulated losses at the end of the financial year.
11. In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to
financial institutions, banks during the year.
12. 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. Therefore,
the other provisior.3 of clause 4 (xii) of the companies (Auditors
Report) Order, 2003 are not applicable to the Company.
13. In our opinion the Company is not a chit fund or a nidhi/mutual
benefit fund / society. Therefore, the provisions of clause 4(xiii) of
the Companies (Auditors Report) Order, 2003 are not applicable to the
Company.
14. In our opinion, the Company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the Companies (Auditors Report) Order,
2003 are not applicable to the Company.
15. According to the information and explanation given to us, the
Company has not given any guarantees for loans taken by others from
banks or financial institutions during the year, the terms and
conditions whereof are prejudicial to the interest of the Company.
16. According to the information and explanation given to us, the
company has not taken any term loans during the year.
17. According to the information and explanations given to us and an
overali examination of the Balance Sheet of the company, we report that
funds raised on short-term basis, have been used for short term purpose
only.
18. The Company has not made preferential allotment of share to
parties and Companies covered In the register maintained under Section
301 of the Companies Act, 1956 during the year covered by our audit.
19. The company has not issued any debentures during the year under
review.
20. The company has not raised any money by public issues during the
year under review.
21. To the best of our knowledge and belief and according to the
information and explanation given to us, no fraud on or by the Company
has been noticed or reported during the course of our audit.
For M. Mehta and company
Chartered Accountants
(P.R.Bandi)
Place: Indore
(Partner)
Date: The 21st day of August, 2009 M.No.16402