Mar 31, 2014
Report of the Financial Statements
We have audited the accompanying financial statements of SHABA
CHEMICALS LIMITED , 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
The Company''s 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"), 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.
Auditors'' Responsibility
Our responsibility is to express an opiniori 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 Those Standards require that we comply with ethical
requirements and plan and perform the audit to reasonable assurance
about whether the financial statements are free from material
misstatement.
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
far 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 company''
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 aforesaid financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India:
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 of
the Company for the year ended on that date; and
c) in the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
Report on Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the
Annexure a statement on the matters specified in paragraphs 4 and 5 of
the Order.
2. As required by section 227(3) of the Act, we report that:
a) we have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b) in our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books
c) the Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
d) in our opinion, the Balance Sheet, Statement of Profit and Loss, and
Cash Flow Statement comply with the Accounting Standards referred to in
subsection (3C) of section 211 of the Companies Act, 1956; 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 31th 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 AUDITIOR''S REPORT
Annexure referred to in Paragraph 1 under the heading of "report on
other legal and regulatory requirements" of our report of even date to
the members of SHABA CHEMICALS LIMITED. on the accounts for the period
ended 31st March,2014.
On the basis of such checks as we considered appropriate and according
to the information and explanation given to us during the course of our
audit, we report that:
1. (a) The company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets; the same are in the process of being updated.
(b) As explained to us, all the fixed assets have been physically
verified by the management at reasonable intervals in a phased manner
verification programme; no material discrepancies were noticed on such
verification. In our opinion the frequency of such verification is
reasonable having regard to size of the company and nature of its
assets.
(c) In our opinion and according to the information and explanations
given to us. No Major (Material) Fixed assets have been disposed off
during the year and therefore does not affect the going concern
assumption of the company.
2. (a) As explained to us inventories have been physically verified
during the year by the management at reasonable intervals.
(b) In our opinion & according to the information & explanation given
to us the procedures of physical verification of inventory followed by
the management are reasonable and adequate in relation to the size of
the company and the nature of its business.
(c) In our opinion and on the basis of our examination, of the records,
the company is generally maintained proper records of its inventories.
No material discrepancies was noticed on physical verification of
stocks by the management as compared to book records
3. (a) The company has not taken /granted unsecured loans from/to the
companies / firm/individuals or other parties parties listed in the
register maintained under Section 301 of the Companies Act, 1956.
(b) The company has taken unsecured loan from parties covered in the
register maintained under section 301 of the Companies Act 1956 and the
outstanding year end balance of such parties during the year was Rs
14.86 lacs and maximum outstanding balance during the year was Rs 14.86
Lacs.
(c) The rate of interest and other terms and conditions of loan
taken/granted by the company, secured or unsecured, are not prima-facie
prejudicial to the interest of the company;
(d) The Payment of principal amount and interest thereon are regular.
The interest if not paid then it is credited in their respective
accounts. These are repayable / receivable on demand.
4 In our opinion and according to the information and explanations
given to us, there is generally an adequate internal control procedure
commensurate with the size of the company and the nature of its
business, for the purchase of inventories & fixed assets and payment
for expenses & for sale of goods. During the course of our audit, no
major instance of continuing failure to correct any weaknesses in the
internal controls has been noticed.
5. (a) Based on the audit procedures applied by us and according to
the information and explanations provided by the management, that there
is no transaction that need to be entered into register in pursuance of
section 301 of the companies Act.
(b) As per information & explanations given to us and in our opinion,
that there is no transaction that need to be entered aggregating to
Rs.5.00 lacs or more, hence it is not applicable.
6. The company has not accepted deposits from the public but loans
have been raised from family members shareholders and others therefore
the provisions of the clause (vi) of the said Order is not applicable
to the company.
7. In our opinion, the company needs to strengthen the internal audit
system commensurate with its size and nature of its business.
8. As per information & explanations given by the management,
maintenance of cost records has been prescribed by the Central
Government under clause (d) of sub section of section 209 of the Act
and we are of the opinion that prima facie the prescribed accounts and
records have been made and maintained
9. (a) According to the records of the company, undisputed statutory
dues including provident fund, Investor Education and Protection Fund,
Employees state insurance, Service tax, Income tax, VAT Tax, Entry tax,
Wealth tax, Custom Duty, Excise duty, Cess and any other statutory dues
to the extent applicable and any other statutory dues have generally
been regularly deposited with the appropriate authorities. According to
the information and explanations given to us there were no outstanding
statutory dues as on 31st of March, 2014 for a period of more than six
months from the date they became payable.
(b) According to the information and explanations given to us, there is
no amounts payable in respect of income tax, wealth tax, service tax,
sales tax, Entry tax and excise duty which have not been deposited on
account of any disputes.
10. The Company does not have any accumulated loss and has not
incurred cash loss during the financial year covered by our audit and
in the immediately preceding financial vear.
11. Based on our audit procedures and on the information and
explanations given by the management, we are of the opinion that, the
Company has not defaulted in repayment of dues to a financial
institution, bank or debenture holders.
12. According to the information and explanations given to us, the
Company has not granted
loans and advances on the basis of security by way of pledge of shares,
debentures and other securities.
13. The Company is not a chit fund or a nidhi /mutual benefit
fund/society. Therefore, the provision of this clause of the Companies
(Auditor''s Report) Order, 2003 (as amended) is not applicable to the
Company.
14. According to the information & explanation given to us, the
company is not dealing or trading in shares, securities, debentures and
other investment.
15. According to information & explanation given to us, the company
has not given any guarantee for loans taken by others from banks or
financial institutions.
16. Based on our audit procedures and on the information given by the
management, there is no any loans from any Bank.
17. Based on the information and explanations given to us and on an
overall examination of the Balance Sheet of the Company, we report that
no funds raised on short-term basis have been used for long-term
investment.
18. Based on the audit procedures performed and the information-and
explanations given to us by the management, we report that the Company
has not made any preferential allotment of shares during the year.
19. The company has no outstanding debenture hence this clause is not
applicable.
20. The company has not raised any money through public issues.
Therefore the clause of verification of end use of money raised by
public issues is not applicable to the Company.
21. Based on the Audit procedures performed for the purpose of
reporting the true and fair view of the financial statements and as per
the information and explanations given by the management, we report
that no fraud on or by the Company has been noticed or reported during
the course of our Audit.
Date: 11/05/2014 For S. N. KABRA &
Place: Indore Chartered Accountants
(S.N. KABRA)
Partner
Mar 31, 2013
We have audited the Balance Sheet of SHABA CHEMICALS LIMITED as at 31st
March 2013 and also the Profit and Loss Account 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.
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 assurances about whether the financial
statement are free of material misstatement. An audit includes
examining, on text basic, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
As required by the Companies (Auditor''s Report) Order, 2003 (as amended
) issued by the Central Government of India in term of sub-section (4A)
of section 227 of the Companies Act, 1956. We enclosed in the Annexure
a statement on the matter specified in paragraph 4 and 5 of the said
order.
Further to our comments in the Annexure referred to above, we report
that:
1. 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.
2. In our opinion, proper books of accounts as required by law have
been kept by the Company so for as appears from our examination of
these books.
3. The Balance Sheet and Profit and loss account dealt with by this
report are in agreement with the books of account.
4. In our opinion, the Balance Sheet and Profit and Loss Account dealt
with by this report 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 representation received from the directors
as on 31st March 2013, and taken on record by the Board of Director, we
report that none of the directors is disqualified as on 31st March
2012, from being appointed as a director in term of clause (g) of
section 274 of the Companies Act, 1956.
6. In our opinion and the best of our information and according to the
explanation given to us, the said Balance Sheet and Profit and Loss
Account, with notes thereon given the information required by the
Companies Act, 1956 in the manner so required, and give a true and fair
view:
In so far as it relates to the Balance Sheet of the state of affairs of
the Company at 31st March 2013.
i) In so far it relates to the Profit and Loss Account of the loss for
the year ended on the date, and
ii) In the case of cash flow statement of the cash flows of the Company
for the year ended on that date.
(1) The Company is not holding any fixed assets on the date of Balance
Sheet.
(2) The Company has ceased to carry on its manufacturing activities and
as such the provisions of clause (ii) (a), (ii)(c) & (vii) par 4 of the
Companies (Auditors Report) order, 2003 in so for as they relate to the
purchase sale and stock of stores, raw material, finished goods and
spare parts are considered not applicable to the Company.
(3) a) The Company has taken unsecured interest free loans from the
parties covered in the register maintained under section 301 of the Act
amounting to Rs.2,65,082/-. There are no stipulations as to the rate of
interest or terms and conditions of such loans.
b) The company has not given loans secured or unsecured to companies,
firms or other parties listed in the register maintain under section
301 of the Companies Act, 1956.
(4) In our opinion and according to the information and explanation
given to us, there are no transaction for the purchase of inventory and
sale of goods hence the adequacy of the internal control procedures
commensurate with the size of the Company and the nature of its
business is considered to be not applicable.
(5) Based on the audit procedures applied by us and according the
information and explanation provided by the management, there are no
contract and arrangements, transaction exceeding five lakh rupees with
any party that need to be entered into the register maintained under
section 301.
(6) The Company had not accepted any deposits from the public to which
the provision of section 58A and 58AA of the Companies Act, 1956 and
any other relevant provision of the Act and the Companies (Acceptance
of Deposits) Rules, 1975 would apply. The Company Law Board or National
Company Law Tribunal or RBI or any Court or Tribunal has passed no
order.
(7) The Company is listed Company, the paid up capital and reserves of
the Company is also exceeding Rs. 50 lakhs and the company have an
internal audit system which is commensurate with the size and nature of
the business.
(8) There being no Provident Fund Scheme and ESIC Scheme for the
employee in force, the provisions regarding regular deposit of the same
are considered to be not applicable. Further the company is regularly
in depositing income tax, sales tax, wealth tax, service tax, cess and
any other statutory dues with the appropriate authorities. Accordingly
information and explanation given to us, there are no undisputed
arrears of Statutory dues which have remained outstanding as at
31.03.2013 for the period of more than six months from the date they
become payable.
(9) The Company has accumulated losses of Rs. 30730639/- at and up to
the end of the financial year. The company has incurred no cash losses
during the financial year.
(10) In our opinion and according to the information and explanation
given to us, the company has not defaulted in repayment of due to
banks. The company has not taken any loans from financial institutions
nor has it issued any debentures.
(11) According to the information and explanation given to us, the
company has not granted any loans advances on the basis of security by
way of pledge of shares, debentures and other securities.
(12) The Company is not a chit fund or a nidhi / mutual benefit fund/
society. Therefore the provisions of clause 4(xiii) of the said Order
are not applicable to the Company.
(13) In our opinion and according to the information and explanation
given to us the Company has not given guarantees for loan taken by
others from banks or financial institutions.
(14) In our opinion and according to the information and explanation
given to us, no term loans have been applied for the purpose for which
they were raised.
(15) According to the information and explanation given to us overall
examination of the balance sheet of the company, we report that no
funds raised on short-term basis have been used for long Âterm
investment. Also no long-term fund has been used to finance short-term
assets except permanent working capital.
(16) The company has not made any preferential allotment of share to
parties and companies covered in the register mentioned under section
301 of the Companies Act, 1956. According, the question of reporting on
whether the prices at which such shares have been issued in prejudicial
to the interest of the Company does not arise.
(17) The Company has not issued any debentures, According, the question
of creating a security of disclosures of end use of such monies does
not arise.
(18) The company has not arisen any money by public issued during the
year. According, the question of disclosure of end use of such monies
does not arise.
(19) 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.
Date: 11/05/2013 For S. N. KABRA & CO.
Place: Indore Chartered Accountants
(S.N. KABRA)
Partner
Mar 31, 2011
We have audited the Balance Sheet of SHABA CHEMICALS LIMITED as at 31st
March 2011 and also the Profit and Loss Account 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.
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 assurances about weather the financial
statement are free of material misstatement. An audit includes
examining, on text basic, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis
for our opinion.
As required by the Companies (Auditor's Report) Order, 2003 (as amended
) issued by the Central Government of India in term of sub-section (4A)
of section 227 of the Companies Act, 1956. We enclosed in the Annexure
a statement on the matter specified in paragraph 4 and 5 of the said
order.
Further to our comments in the Annexure referred to above, we report
that:
1. 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.
2. In our opinion, proper books of accounts as required by law have
been kept by the Company so for as appears from our examination of
these books.
3. The Balance Sheet and Profit and loss account dealt with by this
report are in agreement with the books of account.
4. In our opinion, the Balance Sheet and Profit and Loss Account dealt
with by this report 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 representation received from the directors
a on 31st March 2011, and taken on record by the Board of Director, we
report that none of the directors is disqualified as on 31st March
2011, from being appointed as a director in term of clause (g) of
section 274 of the Companies Act, 1956.
6. In our opinion and the best of our information and according to the
explanation given to us, the said Balance Sheet and Profit and Loss
Account, with notes thereon given the information required by the
Companies Act, 1956 in the manner so required, and give a true and fair
view:
In so as it relates to the Balance Sheet of the state of affairs of the
Company at 31st March 2011.
i) In so far it relates to the Profit and Loss Account of the loss for
the year ended on the date, and
ii) In the case of cash flow statement of the cash flows of the Company
for the year ended on that date.
ANNEXURE REFERRED TO THE AUDITORS REPORTS ON THE ACCOUNTS FOR THE YEAR
2010-2011 OF SHABA CHEMICALS LIMITED, INDORE
(1) The Company is not holding any fixed assets on the date of Balance
Sheet.
(2) The Company has ceased to carry on its manufacturing activities and
as such the provisions of clause (ii) (a), (ii)(c) & (vii) par 4 of the
Companies (Auditors Report) order, 2003 in so for as they relate to the
purchase sale and stock of stores, raw material, finished goods and
spare parts are considered not applicable to the Company.
(3) a) The Company has taken unsecured interest free loans from the
parties covered in the register maintained under section 301 of the Act
amounting to Rs. 2,55,082/-. There are no stipulations as to the rate
of interest or terms and conditions of such loans.
b) The company has not given loans secured or unsecured to companies,
firms or other parties listed in the register maintain under section
301 of the Companies Act, 1956.
(4) In our opinion and according to the information and explanation
given to us, there are no transaction for the purchase of inventory and
sale of goods hence the adequacy of the internal control procedures
commensurate wit the size of the Company and the nature of its business
is considered to be not applicable.
(5) Based on the audit procedures applied by us and according the
information and explanation provided by the management, there are no
contract and arrangements, transaction exceeding five lakh rupees with
any party that need to be entered into the register maintained under
section 301.
(6) The Company had not accepted any deposits from the public to which
the provision of section 58A and 58AA of the Companies Act, 1956 and
any other relevant provision of the Act and the Companies (Acceptance
of Deposits) Rules, 1975 would apply. The Company Law Board or National
Company Law Tribunal or RBI or any Court or Tribunal has passed no
order.
(7) The Company is listed Company, the paid up capital and reserves of
the Company is also exceeding Rs. 50 lakhs and the company have an
internal audit system which is commensurate with the size and nature of
the business.
(8) There being no Provident Fund Scheme and ESIC Scheme for the
employee in force, the provisions regarding regular deposit of the same
are considered to be not applicable. Further the company is regularly
in depositing income tax, sales tax, wealth tax, service tax, cess and
any other statutory dues with the appropriate authorities. Accordingly
information and explanation given to us, there are no undisputed
arrears of Statutory dues which have remained outstanding as at
31.03.2011 for the period of more than six months from the date they
become payable.
(9) The Company has accumulated losses of Rs. 3,07,56,380.18 at and up
to the end of the financial year. The company has incurred no cash
losses during the financial year.
(10) In our opinion and according to the information and explanation
given to us, the company has not defaulted in repayment of due to
banks. The company has not taken any loans from financial institutions
nor has it issued any debentures.
(11) According to the information and explanation given to us, the
company has not granted any loans advances on the basis of security by
way of pledge of shares, debentures and other securities.
(12) The Company is not a chit fund or a nidhi / mutual benefit fund/
society. Therefore the provisions of clause 4(xiii) of the said Order
are not applicable to the Company.
(13) In our opinion and according to the information and explanation
given to us the Company has not given guarantees for loan taken by
others from banks or financial institutions.
(14) In our opinion and according to the information and explanation
given to us, no term loans have been applied for the purpose for which
they were raised.
(15) According to the information and explanation given to us overall
examination of the balance sheet of the company, we report that no
funds raised on short-term basis have been used for long Ãterm
investment. Also no long-term fund has been used to finance short-term
assets except permanent working capital.
(16) The company has not made any preferential allotment of share to
parties and companies covered in the register mentioned under section
301 of the Companies Act, 1956. According, the question of reporting
on whether the prices at which such shares have been issued in
prejudicial to the interest of the Company does not arise.
(17) The Company has not issued any debentures, According, the question
of creating a security of disclosures of end use of such monies does
not arise.
(18) The company has not arisen any money by public issued during the
year. According, the question of disclosure of end use of such monies
does not arise.
(19) 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.
Date: 11.05.2011 For S. N. KABRA & CO.
Place: Indore Chartered Accountants
(S.N. KABRA)
Partner
Mar 31, 2010
We have audited the Balance Sheet of SHABA CHEMICALS LIMITED as at 31
st March 2010 and also the Profit and Loss Account for the year ended
on that date annexed thereto. These financial statements are the
responsibility of the Companys management. Our responsibility is to
express an 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 assurances about weather the financial
statement are free of material misstatement. An audit includes
examining. on text basic, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
As required by the Companies (Auditors Report) Order. 2003 (as amended
) issued by the Central Government of India in term of sub-section (4A)
of section 227 of the Companies Act. 1956. We enclosed in the Annexure
a statement on the matter specified in paragraph 4 and 5 of the said
order.
Further to our comments in the Annexure referred to above, we report
that:
1. 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.
2. In our opinion, proper books of accounts as required by law have
been kepi by the Company so for as appears from our examination of
these books.
3. The Balance Sheet and Profit and loss account dealt with by this
report are in agreement with the books of account.
4. In our opinion, the Balance Sheet and Profit and Loss Account dealt
with by this report comply with the Accounting Standards referred to in
sub-section (30 of section 211 of the Companies Act. 1956.
5. On the basis of written representation received from the directors
a on 31 st March 2010, and taken on record by the Board of Director,
we report thai none of the directors is disqualified as on 31 st March
2010. from being appointed as a director in term of clause (g) of
section 274 of the Companies Act. 1956.
6. In our opinion and the best of our information and according to the
explanation given to us, the said Balance Sheet and Profit and Loss
Account, with notes thereon given the information required by the
Companies Act. 1956 in the manner so required, and give a true and fair
view:
In so far as it relates to the Balance Sheet of the state of affairs of
the Company at 31st March 2010.
i) In so far it relates to the Profit and Loss Account of the loss for
the Near ended on the date, and
ii) In the case of cash flow statement of the cash flows of the Company
for the year ended on that date.
ANNEXURE REFERRED TO IN THE AUDITORS REPORTS ON THE ACCOUNTS FOR THE
YEAR 2009-2010 OF SHABA CHEMICALS LIMITED, INDORE
(1) The Company is not holding any fixed assets on the date of Balance
Sheet.
(2) The Company has ceased to carry on its manufacturing activities and
as such the provisions of clause (ii) (a), (ii)(c) & (vii) par 4 of the
Companies (Auditors Report) order. 2003 in so for as they relate to
the purchase sale and stock of stores, raw material, finished goods and
spare parts are considered not applicable to the Company.
(3) a) The Company has taken unsecured interest free loans from the
parties covered in the register maintained under section 301 of the Act
amounting to Rs. 2.55.082/-. There are no stipulations as to the rate
of interest or terms and conditions of such loans.
b) The company has not given loans secured or unsecured to companies,
firms or other parties listed in the register maintain under section
301 of the Companies Act. 1956.
(4) In our opinion and according to the information and explanation
given to us. there are no transaction for the purchase of inventory and
sale of goods hence the adequacy of the internal control procedures
commensurate wit the size of the Company and the nature of its business
is considered to be not applicable.
(5) Based on the audit procedures applied by us and according the
information and explanation provided by the management, there are no
contract and arrangements transaction exceeding five lakh rupees with
any party that need to be entered into the register maintained under
section 301.
(6) The Company had not accepted any deposits from the public to which
the provision of section 58A and 58AA of the Companies Act. 1956 and
any other relevant provision of the Act and the Companies (Acceptance
of Deposits) Rules. 1975 would apply, i he Company Law Board or
National Company Law Tribunal or RBI or any Court or Tribunal has
passed no order.
(7) The Company is listed Company, the paid up capital and reserves of
the Company is also exceeding Rs. 50 lakhs and the company have an
internal audit system which is commensurate with the size and nature of
the business.
(8) There being no Provident Fund Scheme and ES1C Scheme for the
employee in force, the provisions regarding regular deposit of the same
are considered to be not applicable. Further the company is regularly
in depositing income tax. sales tax. wealth tax. service tax. cess and
any other statutory dues with the appropriate authorities. Aecordingh
information and explanation given to us. there are no undisputed
arrears of Statutory dues which have remained outstanding as at
31.03.2010 for the period of more than six months from the date they
become payable.
(9) The Company has accumulated losses of Rs. 3,07.65.739.11 at and up
to the end of the financial vear. The company has incurred no cash
losses during the financial vear.
(10) In our opinion and according to the information and explanation
given to us. the company has not defaulted in repayment of due to
banks. The company has not taken any loans from financial institutions
nor has it issued any debentures.
(11) According to the information and explanation given to us. the
company has not granted any loans advances on the basis of security by
way of pledge of shares, debentures and other securities.
(12) The Company is not a chit fund or a nidhi / mutual benefit fund.
society. Therefore the provisions of clause 4(xiii) of the said Order
are not applicable to the Compam.
(13) In our opinion and according to the information and explanation
given to us the Compam has not given guarantees for loan taken by
others from banks or financial institutions.
(14) In our opinion and according to the information and explanation
given to us. no term loans have been applied for the purpose for which
they were raised.
(15) According to the information and explanation given to us overall
examination of the balance sheet of the company, we report that no
funds raised on short-term basis have been used for long -term
investment. Also no long-term fund has been used to finance short-term
assets except permanent working capital.
(16) The company has not made any preferential allotment of share to
parties and companies covered in the register mentioned under section
301 of the Companies Act. 1956. According, the question of reporting
on whether the prices at which such shares have been issued in
prejudicial to the interest of the Company does not arise.
(17) The Company has not issued any debentures. According, the question
of creating a security of disclosures of end use of such monies does
not arise.
(18) The company has not arisen any money by public issued during the
year. According, the question of disclosure of end use of such monies
does not arise.
(19) 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 S. N. KABKA & CO.
Chartered Accountants
(S.N. KABRA)
Partner
Date: 27.06.2010
Place: Indore
Mar 31, 2009
We have audited the Balance Sheet of SHABA CHEMICALS LIMITED as at 31st
March 2009 and also the Profit and Loss Account for the year ended on
that date annexed thereto. These financial statements are the
responsibility of the Companys management. Our responsibility is to
express an 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 assurances about weather the financial
statement are free of material misstatement. An audit includes
examining. on text basic, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
As required by the Companies (Auditors Report) Order, 2003 (as amended
) issued by the Central Government of India in term of sub-section (4A)
of section 227 of the Companies Act. 1956. We enclosed in the Annexure
a statement on the matter specified in paragraph 4 and : of the said
order.
Further to our comments in the Annexure referred to above, we report
that:
v 1. 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.
2. In our opinion/proper books of accounts as required by law have
been kept by the Company so for as appears from our examination of
these books.
3. The Balance Sheet and Profit and loss account dealt with by this
report are in agreement with the books of account.
4. In our opinion, the Balance Sheet and Profit and Loss Account dealt
with by this report 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 representation received from the directors
a on 31st March 2009, and taken on record by the Board of Director, we
report that none of the directors is disqualified as on 31st March
2009, from being appointed as a director in term of clause (g) of
section 274 of the Companies Act, 1956.
6. In our opinion and the best of our information and according to the
explanation given to us, the said Balance Sheet and Profit and Loss
Account, with notes thereon given the inforrriation required by the
Companies Act, 1956 in the manner so required, and give a true and fair
view:
In so far as it relates to the Balance Sheet of the state of affairs of
the Company at 31 st March 2009.
i) In so far it relates to the Profit and Loss Account of the loss for
the year ended on the date, and
ii) In the case of cash flow statement of the cash flows of the Company
for the year ended on that date.
which have remained outstanding as at 31 .03.2009 for the period of
more than six months from the date they become payable.
(9) The Company has accumulated losses of Rs. 3.07,89,660.77/-/- at and
up to the end of the financial year. The corpparry has incurred no cash
losses during the financial year.
(10) In our opinion and according to the information and explanation
given to us, the company has not defaulted in repayment of due to
banks. The company has not taken any loans from financial institutions
nor has it issued any debentures.
(11) According to the information and explanation given to us, the
company has not granted any loans advances on the basis of security by
way of pledge of shares, debentures and other securities.
(12) The Company is not a chit fund or a nidhi / mutual benefit fund/
society. Therefore the provisions of clause 4(xiii) of the said Order
are not applicable to the Company.
(13) In our opinion and according to the information and explanation
given to us the Company has not given guarantees for loan taken by
others from banks or financial institutions.
(14) In our opinion and according to the information and explanation
given to us. no term loans have been applied for the purpose for which
they were raised.
(15) According to the information and explanation given to us overall
examination of the balance sheet of the company, we report that no
funds raised on short-term basis have been used for long -term
investment. Also no long-term fund has been used to finance short-term
assets exceptvpermanent working capital.
(16) The company has not made any preferential allotment of share to
parties and companies covered in the register mentioned under section
301 of the Companies Act, 1956. According, the question of reporting
on whether the prices at which such shares have been issued in
prejudicial to the interest of the Company does not arise.
(17) The Company has not issued any debentures. According, the question
of creating a security of disclosures of end use of such monies does
not arise.
(18) The company has not arisen any money by public issued during the
year. According, the question of disclosure of end use of such monies
does not arise.
(19) 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.
Date: 27.06.2009
Place: Indore
For S. N. KABRA & CO.
Chartered Accountants
(S.N. KABRA)
Partner