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Auditor Report of Shree Ganesh Elastoplast Ltd.

Mar 31, 2015

We have audited the attached Balance Sheet of Shree Ganesh Elastoplast Limited as at 31st March, 2015 and the Profit and Loss Account for the period 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.

Management's Responsibility for the Financial Statements

The Company's Board of Directors is responsible for the matters in section 134(5) of the Companies Act, 2013 ("the Act") with respect to 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 principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes the maintenance of adequate accounting records in accordance with the provision of the Act for safeguarding of the assets of the Company and for preventing and detecting the 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 internal financial control, 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 there under.

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 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 true and fair view 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 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 financial statements.

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, 2015;

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

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

Emphasis of Matters

We draw attention to the following matters in the Notes to the financial statements:

a) Note 2 in the financial statement which indicates that the Company has accumulated losses and its Net worth has been substantially eroded, the Company has incurred a net loss / net cash loss during the current year and previous year(s) and, however, the Company current liabilities does not exceeded its current assets as at the balance sheet date. These conditions, along with other matters, indicate the existence of a material uncertainty that cast significant doubt about the Company's ability to continue as a going concern. However, the financial statements of the Company have been prepared on a going concern basis and there is no doubt about the company's ability to continue as going concern.

b) Please refer to point note 9 of Note 19 forming part of financial statements regarding non appointment of qualified secretary as defined under section 203 of the Companies Act, 2013

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 purposes 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, the 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 aforesaid financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.

e) The going concern matter described in sub-paragraph (a) under the Emphasis of Matters paragraph above, in our opinion, may not have an adverse effect on the functioning of the Company.

f) On the basis of written representations received from the directors as on 31 March, 2015, taken on record by the Board of Directors, none of the directors is disqualified as on 31 March, 2015, from being appointed as a director in terms of Section 164(2) of the Act.

g) With respect to the other matters included in the Auditor's Report and to our best of our information and according to the explanations given to us :

i. The Company does not have any pending litigations which would impact its financial position

ii. The Company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, if any, 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. However, the same is not applicable to the company.

Annexure to the Auditors' Report

(Referred to in paragraph 3 of our Report of even date)

(i) (a) The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets.

(b) The fixed assets of the company are physically verified by the management according to phased program which in our opinion is reasonable having regard to the size of the company and nature of its assets.

Pursuant to program, a physically verification of Data processing equipment was carried out during the period by the management and no material discrepancies between the book records and physically inventory have been noticed.

(ii) (a) As explained to us, the inventories have been verified by the management at reasonable intervals during the year. In our opinion, the frequency of such verification is reasonable having regard to the size of the company and the nature of its business. Further, Commodities held in demate forms are duly certified by the Regulating Authority in lieu of physical verification.

(b) In our opinion and according to the information and explanations given to us, the procedure of physical verification followed by the management is reasonable and adequate in relation to the size of the Company and the nature of its business.

(c) In our opinion, no material discrepancies noticed on verification of stocks, as compared to books records.

(iii) (a) As per the information and explanations given to us, the Company does not have any outstanding loans, secured or unsecured to any company in which, Directors are interested granted to a company under same management and declared sick company being the parties covered in the Register maintained under Section 189 of the Companies Act, 2013.

(b) During the year, Company has taken any loans, secured or unsecured from one party covered in the Register maintained under Section 189 of the Companies Act, 2013

(iv) In our opinion and according to the information and explanations given to us, the company does not has formal internal auditing system. However, looking to the size of the business, the company has sufficient internal control system.

(v) In our opinion and according to the information and explanations given to us, no transactions the particulars of contracts or arrangements referred to in Section 189 of the Companies Act, 2013 need to be entered in the Register maintained under that Section;

(vi) In our opinion and according to the information and explanations given to us, during the period under review the Company has not accepted any deposits from the public under the meaning of Section 73 of The Companies Act, 2013 and rules framed there under.

(vii) The company has not done internal audit.

(viii) Maintenance of cost records has not been prescribed by the Central Government under Section 148 of the Companies Act, 2013 for the class of companies to which the Company belongs.

(ix) (a) According to the records of the Company, statutory dues including Provident Fund, Investor Education and Protection Fund, Employees' Insurance, Income Tax, Sales-tax, Customs Duty, Cess, and other statutory dues are not applicable to the company.

(b) According to the information an explanations given to us, there is no any undisputed statutory dues payable which are outstanding as at 31st March, 2015 for a period of more than six months from the date they became payable.

Note: The above amounts are carried forward as per certification made by previous Auditors. No records are available with the party.

(c) The particulars of dues as at the year end, with regard to said items, which have not been paid on account of disputes, are NIL

(x) The company has accumulated losses at the end of the Financial Year and it has incurred cash losses in the current and immediately preceding financial years. The company has registered for the period more than five years and accumulated losses of the company is more than 50% of company's networth.

(xi) As per the information and explanations given to us, the Company has not obtained any financial assistance from financial institutions or banks and hence, the clause is not applicable.

(xii) As per the information and explanations given to us, the Company has not granted any loan or advance on the basis of security by way of pledge of shares, debentures and other securities.

(Xiii) The provisions of any special statute applicable to chit fund/nidhi/mutual benefit fund/societies are not applicable to the Company.

(xiv) The company is not dealing in or trading in shares, securities, debentures and other investments. Accordingly, this clause in not applicable.

(xv) As per the information given to us, the Company has not taken any term loan or given any guarantee for loans taken by others from banks or financial institutions.

(xvi) In our opinion and according to the information and explanations given to us, and on the basis of overall fund flow position, we report that company has not taken any loans during the year under review. Therefore, the comment on its application has not been made.

(xvii) In our opinion and on and overall examination, the balance sheet of the company, we report that no long term funds aggregating have been used for short term purposes.

(xviii) The Company has made during the financial year under review, no preferential allotment to parties covered in the register maintained under Section 189 of the Companies Act, 2013

(xix) The Company has not issued any debentures during the period under review.

(xx) The Company has not raised any money by public issue during the period under review.

(xxi) According to the information and explanations given to us, no fraud on or by the Company has been noticed or reported during the period under review.

FOR SUNIL DAD & Co.

Chartered Accountants

SD/-

SUNIL R. DAD

Partner

M. No. 120702

Date: 25/05/2015

Place: Ahmedabad


Mar 31, 2014

We have audited the accompanying financial statements of Shree Ganesh Elastoplast 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. This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

AUDITOR''S RESPONSIBILITY

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Company''s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

OPINION

In our opinion and to the best of our information and according to the explanations given to us, subject to the following: NIL

The financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:

a) In the case of the Balance Sheet, of the state of affairs of the Company as at March 31, 2014;

b) In the case of the Profit and Loss Account, of the profit/ loss for the year ended on that date;

And

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

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor''s Report) Order, 2003, issued by the Central Government of India in terms of sub-section (4A) of section 227 of the Act, we give in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the Order.

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

a) we have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit;

b) in our opinion proper books of account as required by law have been kept by the Company so far as appears from our examination of those books

c) the 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;

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.

The Annexure referred to in paragraph 1 of the Our Report of even date to the members of Shree Ganesh Elastoplast Limited on the accounts of the company for the year 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 its fixed assets.

(b) As explained to us, fixed assets have been physically verified by the management at reasonable intervals; no material discrepancies were noticed on such verification.

(c) In our opinion and according to the information and explanations given to us, no fixed asset has been disposed during the year and therefore does not affect the going concern assumption.

2. (a) As explained to us, inventories have been physically verified during the year by the management at reasonable intervals.

(b) In our opinion and according to the information and explanations given to us, the procedures of physical verification of inventories followed by the management are reasonable and adequate in relation to the size of the company and the nature of its business.

(c) In our opinion and on the basis of our examination of the records, the Company is generally maintaining proper records of its inventories. No material discrepancy was noticed on physical verification of stocks by the management as compared to book records.

3. (a) According to the information and explanations given to us and on the basis of our examination of the books of account, the Company has not given any loan to any party covered in the Register maintained under section 301 of Companies Act, 1956. Hence this clause is not applicable (b) According to the information and explanations given to us and on the basis of our examination of the books of account, the Company has taken loans from one party listed in the register maintained under Section 301 of the Companies Act, 1956 amounting to Rs. 138.67 Lacs. The Outstanding amount at the year end amounts to Rs. 21.75 Lacs.

4. In our opinion and according to the information and explanations given to us, there is formal 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. However looking to the size of Business, the company has sufficient Internal Control System. During the course of our audit, no major instance of continuing failure to correct any weaknesses in the internal controls has been noticed.

5. a) Based on the audit procedures applied by us and according to the information and explanations provided by the management, the particulars of contracts or arrangements referred to in section 301 of the Act have been entered in the register required to be maintained under that section.

b) As per information & explanations given to us and in our opinion, the transaction entered into by the company with parties covered u/s 301 of the Act, in case where it exceeds five lacs rupees in a financial year, seems to be reasonable as compared to the market comparison.

6. The Company has not accepted any deposits from the public covered under section 58A and 58AA of the Companies Act, 1956.

7. The company has yet not set up internal audit system.

8. As per information & explanation given by the management, maintenance of cost records has been prescribed by the Central Government under clause (d) of sub-section (1) 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, Income-tax, Sales-tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, cess to the extent applicable and any other statutory dues have generally been regularly deposited with the appropriate authorities. According to the information and explanations given to us there were no outstanding statutory dues as on 31st of March, 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, the undisputed statutory dues payable which are outstanding as at 31st March, 2014 for the period more than six months from the date they became payable.

Name of the Nature of the Amount Other particulars statue dues (Rs.)

Central Sales Tax Sales Tax 1,92,882 Period: Earlier Years Due date: Not ascertainable Date of payment: Not paid

Central Sales Tax Sales Tax 1,23,594 Period: Earlier Years Due date: Not ascertainable Date of payment: Not paid

Note: The above amounts are carried forward as per certification made by previous Auditors. No records are available with the party.

10. The Company has accumulated loss at the end of the Financial Year and it has incurred cash loss during the current financial year covered by our audit and in the immediately preceding financial year. The company has registered for the period more than five years and accumulated losses of the company is more than 50% of company''s networth.

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 information and explanations given to us, the Company is trading in Shares, Mutual funds & other Investments. Proper records & timely entries have been maintained in this regard & further investments specified are held in their own name.

15. According to the information and explanations given to us, the Company has not given any guarantees for loan taken by others from a bank or financial institution.

16. Based on our audit procedures and on the information given by the management, we report that the company has not raised any term loans during the year.

17. Based on the information and explanations given to us and on an overall examination of the Balance Sheet of the Company as at 31st March, 2014, we report that no funds raised on short-term basis have been used for long-term investment by the Company.

18. Based on the audit procedures performed and the information and explanations given to us by the management, we report that the Company has not made any preferential allotment of shares during the year.

19. The Company has no outstanding debentures during the period under audit.

20. The Company has not raised any money by public issue during the year.

21. Based on the audit procedures performed and the information and explanations given to us, we report that no fraud on or by the Company has been noticed or reported during the year, nor have we been informed of such case by the management.

For Sunil Dad & Co. Chartered Accountants

SD/- Praveen Toshniwal (Partner) Membership No. : 121017

Place: Ahmedabad Date: 19th May, 2014


Mar 31, 2013

Report on the Financial Statements

We have audited the accompanying financial statements of Shree Ganesh Elastoplast Limited, which comprise the Balance Sheet as at March 31, 2013, and the Statement of Profit and Loss and Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information.

Management''s Responsibility for the Financial 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. This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Auditor''s Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Company''s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

In our opinion and to the best of our information and according to the explanations given to us, subject to the following:

a) Information regarding outstanding liability of Small Scale Industries, required to be disclosed as per Notification No. GSR 129(E) dated 22nd February, 1999 issued by the department of Company Affairs, Ministry of Law, Justice and Company Affairs, has not been disclosed for want of details.

b) No provision has been made in books of account for Retirement Benefit of employees as per Accounting Standard – 15. Liability of the same not determined

c) No provision has been made in books of account for deferred taxation as per Accounting Standard – 22.

the financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:

a) in the case of the Balance Sheet, of the state of affairs of the Company as at March 31, 2013;

b) in the case of the Profit and Loss Account, of the profit/ loss for the year ended on that date; and

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

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor''s Report) Order, 2003, issued by the Central Government of India in terms of sub- section (4A) of section 227 of the Act, we give in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the Order.

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

a) we have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit;

b) in our opinion proper books of account as required by law have been kept by the Company so far as appears from our examination of those books

c) the 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;

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 directors is disqualified as on March 31, 2013, from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the Companies Act, 1956.

The Annexure referred to in paragraph 1 of the Our Report of even date to the members of Shree Ganesh Elastoplast Limited on the accounts of the company for the year ended 31st March, 2013.

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

1. (a) The company has maintained proper records showing full particulars including quantitative details and situation of its fixed assets.

(b) As explained to us, fixed assets have been physically verified by the management at reasonable intervals; no material discrepancies were noticed on such verification.

(c) In our opinion and according to the information and explanations given to us, no fixed asset has been disposed during the year and therefore does not affect the going concern assumption.

2. (a) As explained to us, inventories have been physically verified during the year by the management at reasonable intervals.

(b) In our opinion and according to the information and explanations given to us, the procedures of physical verification of inventories followed by the management are reasonable and adequate in relation to the size of the company and the nature of its business.

(c) In our opinion and on the basis of our examination of the records, the Company is generally maintaining proper records of its inventories. No material discrepancy was noticed on physical verification of stocks by the management as compared to book records.

3. (a) According to the information and explanations given to us and on the basis of our examination of the books of account, the Company has outstanding loans, secured or unsecured, amounting to Rs. 1, 03, 99, 969/- (Including Interest Receivable on Loans as per Books) one company in which, Directors are interested granted to a company under same management and declared sick company being the parties covered in the Register maintained under section 301 of Companies Act, 1956. No interest has been charged on above said loan since 01/04/2008 as per the accounting practice followed by the company. As the said loan has become doubtful of recovery, the principal as well as interest charged in the books upto 01/04/1998 has become prejudicial to the interest of the company. The said amount has been written off as bed debt and not recoverable. Consequently, the provisions of clauses iii (b), iii(c) and iii (d) of the order are applicable to the Company.

(b) According to the information and explanations given to us and on the basis of our examination of the books of account, the

Company has taken loans from companies, firms or other parties listed in the register maintained under Section 301 of the Companies Act, 1956 amounting to Rs. 40.84 Lacs. The Outstanding amount at the year end amounts to Rs. 11.04 Lacs.

4. In our opinion and according to the information and explanations given to us, there is no formal 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. However looking to the size of Business, the company has sufficient Internal Control System. During the course of our audit, no major instance of continuing failure to correct any weaknesses in the internal controls has been noticed.

5. a) Based on the audit procedures applied by us and according to the information and explanations provided by the management, the particulars of contracts or arrangements referred to in section 301 of the Act have been entered in the register required to be maintained under that section.

b) As per information & explanations given to us and in our opinion, the transaction entered into by the company with parties covered u/s 301 of the Act does not exceeds five lacs rupees in a financial year therefore requirement of reasonableness of transactions does not arises.

6. The Company has not accepted any deposits from the public covered under section 58A and 58AA of the Companies Act, 1956.

7. The company has yet not set up internal audit system.

8. As per information & explanation given by the management, maintenance of cost records has been prescribed by the Central Government under clause (d) of sub-section (1) 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. According to the records of the company, undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Employees'' State Insurance, Income-tax, Sales-tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, cess to the extent applicable and any other statutory dues have generally been regularly deposited with the appropriate authorities. According to the information and explanations given to us there were no outstanding statutory dues as on 31st of March, 2012 for a period of more than six months from the date they became payable.

Note: The above amounts are carried forward as per certification made by previous Auditors. No records are available with the party.

10. The Company has accumulated loss at the end of the Financial Year and it has incurred cash loss during the current financial year covered by our audit and in the immediately preceding financial year. The company has registered for the period more than five years and accumulated losses of the company is more than 50% of companies Net worth.

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 information and explanations given to us, the Company is trading in Shares, Mutual funds & other Investments. Proper records & timely entries have been maintained in this regard & further investments specified are held in their own name.

15. According to the information and explanations given to us, the Company has not given any guarantees for loan taken by others from a bank or financial institution.

16. Based on our audit procedures and on the information given by the management, we report that the company has not raised any term loans during the year.

17. Based on the information and explanations given to us and on an overall examination of the Balance Sheet of the Company as at 31st March, 2012, we report that no funds raised on short-term basis have been used for long-term investment by the Company.

18. Based on the audit procedures performed and the information and explanations given to us by the management, we report that the Company has not made any preferential allotment of shares during the year.

19. The Company has no outstanding debentures during the period under audit.

20. The Company has not raised any money by public issue during the year.

21. Based on the audit procedures performed and the information and explanations given to us, we report that no fraud on or by the Company has been noticed or reported during the year, nor have we been informed of such case by the management.

For, Sunil Dad & Co.,

Chartered Accountants

(Praveen Toshniwal)

Partner

M. No. 121017

Place: Ahmedabad

Date: 30.05.2013


Mar 31, 2012

1. We have audited the attached Balance Sheet of Shree Ganesh Elastoplast Limited as at 31st March, 2012 and the Profit and Loss Account for the period ended on that date annexed thereto. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audit.

2. We conducted our audit in accordance with the auditing standards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatements. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

3. As required by the Companies (Auditor's Report) Order, 2003 as amended by the Companies (Auditor's Report) Amended order 2004, issued by the Government of India in terms of sub-section (4A) of section 227 of the Companies Act, 1956, and on the basis of such checks as we considered appropriate and according to the information and explanation given to us, we enclose in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the said Order.

4. Further to our comments in the Annexure referred to above, we report that :

(a) we have obtained all the information and explanations which, to the best of our knowledge and belief, were necessary for the purposes of our audit;

(b) in our opinion, proper books of 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 and the Profit and Loss Account dealt with by this report are in agreement with the books of account;

(d) in our opinion, the Balance Sheet and the 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;

(e) On the basis of written representations received from the directors of the Company as on 31st March, 2012 and taken on record by the Board of Directors, none of the Directors of the Company is disqualified from being appointed as a Director in terms of clause (g) of sub- section (1) of section 274 of the Companies Act, 1956;

5. In our opinion and to the best of our information and according to the explanations given to us, the said accounts read together with the significant accounting policies and notes to the accounts, subject to the following:

a) Information regarding outstanding liability of Small Scale Industries, required to be disclosed as per Notification No. GSR 129(E) dated 22nd February, 1999 issued by the department of Company Affairs, Ministry of Law, Justice and Company Affairs, has not been disclosed for want of details.

b) No provision has been made for doubtful debts/loans & advances aggregating to Rs. 1,89,60,309/-.

c) Non provision of obsolete stock of Rs. 12,30,000/-

give the information required by the Companies Act, 1956 in the manner so required and gives 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 2012; and

(ii) in the case of the Profit and Loss Account, of the losses of the Company for the period ended on that date.

(iii) in case of the Cash Flow Statement, of the cash flows for the year ended on that date.

Annexure to the Auditors' Report

(Referred to in paragraph 3 of our Report of even date)

(i) (a) The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets.

(b) The fixed assets of the company are physically verified by the management according to phased program designed to cover all the items once in period of three years which in our opinion is reasonable having regard to the size of the company and nature of its assets. Pursuant to program, a physically verification of Data processing equipments and vehicles was carried out during the period by the management and no material discrepancies between the book records and physically inventory have been noticed.

(c) The Company has not disposed of any substantial part of its fixed assets during the period as would affect its going concern status.

(ii) (a) As explained to us, the inventories (also which are in dematerialized form) have been physically verified by the management at reasonable intervals during the year. In our opinion, the frequency of such verification is reasonable having regard to the size of the company and the nature of its business.

(b) In our opinion and according to the information and explanations given to us, the procedure of physical verification followed by the management is reasonable and adequate in relation to the size of the Company and the nature of its business.

(c) In our opinion, no material discrepancies noticed on physical verification of stocks, as compared to books records.

(iii) (a) As per the information and explanations given to us, the Company has outstanding loans, secured or unsecured, amounting to Rs. 1,03,99,969/- (including interest receivable on loans as per books) to one company in which, Directors are interested granted to a company under same management and declared sick company being the parties covered in the Register maintained under Section 301 of the Companies Act, 1956. No interest has been charged on above said loan since 01/04/2008 as per the accounting practice followed by the company. As the said loan has become doubtful of recovery, the principal as well as interest charged in books upto 01/04/1998 has become prejudicial to the interest of the company.

(b) During the year, Company has taken loans, secured or unsecured, amounting to Rs. 24,11,845/- from one party covered in the Register maintained under Section 301 of the Companies Act, 1956.

(iv) In our opinion and according to the information and explanations given to us, the question of comment on internal control does not arises in view of suspension of activities by company.

(v) In our opinion and according to the information and explanations given to us, no transactions the particulars of contracts or arrangements referred to in Section 301 of the Companies Act, 1956 need to be entered in the Register maintained under that Section;

(vi) In our opinion and according to the information and explanations given to us, during the period under review the Company has not accepted any deposits from the public under the meaning of Section 58A and 58AA of The Companies Act, 1956 and rules framed there under.

(vii) The company has yet not set up internal audit system. Further, there was no activity conducted during the year under review.

(viii) Maintenance of cost records has not been prescribed by the Central Government under clause (d) of sub-section (1) of Section 209 of the Companies Act, 1956 for the class of companies to which the Company belongs.

(ix) (a) According to the records of the Company, statutory dues including Provident Fund, Investor Education and Protection Fund, Employees' Insurance, Income Tax, Sales-tax, Customs Duty, Cess, and other statutory dues are not applicable to the company.

(b) According to the information an explanations given to us, the undisputed statutory dues payable which are outstanding as at 31st March, 2012 for a period of more than six months from the date they became payable.

Name of the statue Nature of the Amount Other particulars dues (Rs.)

Central Sales Tax Sales Tax 192882 Period: Earlier Years Due date: Not ascertainable Date of payment: Not paid Central Sales Tax Sales Tax 123594 Period: Earlier Years Due date: Not ascertainable Date of payment: Not paid

(c) The particulars of dues as at the year end, with regard to said items, which have not been paid on account of disputes, are NIL

(x) The company has accumulated losses at the end of the Financial Year and it has incurred cash losses in the current and immediately preceding financial years. However, the accumulated losses of the company does not exceed its share capital as at the end of the financial year.

(xi) As per the information and explanations given to us, the Company has not obtained any financial assistance from financial institutions or banks and hence, the clause is not applicable.

(xii) As per the information and explanations given to us, the Company has not granted any loan or advance on the basis of security by way of pledge of shares, debentures and other securities.

(Xiii) The provisions of any special statute applicable to chit fund/nidhi/mutual benefit fund/societies are not applicable to the Company.

(xiv) The company is not dealing in or trading in shares, securities, debentures and other investments. Accordingly, this clause in not applicable.

(xv) As per the information given to us, the Company has not taken any term loan or given any guarantee for loans taken by others from banks or financial institutions.

(xvi) In our opinion and according to the information and explanations given to us, and on the basis of overall fund flow position, we report that company has not taken any loans during the year under review. Therefore, the comment on its application has not been made.

(xvii) In our opinion and on and overall examination, the balance sheet of the company, we report that long term funds aggregating have been used for short term purposes as well as financing losses.

(xviii) The Company has made during the financial year under review, no preferential allotment to parties covered in the register maintained under Section 301 of the Companies Act, 1956.

(xix) The Company has not issued any debentures during the period under review.

(xx) The Company has not raised any money by public issue during the period under review.

(xxi) According to the information and explanations given to us, no fraud on or by the Company has been noticed or reported during the period under review.

FOR SUNIL DAD & Co. Chartered Accountants

SD/-

PRAVEEN TOSHNIWAL Partner Mem. No. 121017

Place : Ahmedabad Date : 16.07.2012


Mar 31, 2010

1. We have audited the attached Balance Sheet of Shree Ganesh Elastoplast Limited as at 31st March, 2010 and the Profit and Loss Account for the period 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 the auditing standards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatements. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

3. As required by the Companies (Auditors Report) Order, 2003 as amended by the Companies (Auditors Report) Amended order 2004, issued by the Government of India in terms of sub-section (4A) of section 227 of the Companies Act, 1956, and on the basis of such, checks as we considered appropriate and according to the information and explanation given to us, we enclose in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the said Order.

4. Further to our comments in the Annexure referred to above, we report that :

(a) we have obtained all the information and explanations which, to the best of our knowledge and belief, were necessary for the purposes of our audit;

(b) in our opinion, proper books of 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 and the Profit and Loss Account dealt with by this report are in agreement with the books of account;

(d) in our opinion, the Balance Sheet and the 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;

(e) On the basis of written representations received from the directors of the Company as on 31st March, 2010 and taken on record by the Board of Directors, none of the Directors of the Company is disqualified from being appointed as a Director in terms of clause (g) of sub- section (1) of section 274 of the Companies Act, 1956;

5. In our opinion and to the best of our information and according to the explanations given to us, the said accounts read together with the significant accounting policies and notes to the accounts , subject to the following:

Information regarding outstanding liability of Small Scale Industries, required to be disclosed as per Notification No. GSR 129(E) dated 22nd February, 1999 issued by the department of Company Affairs, Ministry of Law, Justice and Company Affairs, has not been disclosed for want of details.

b) No provision has been made for doubtful debts I loans & advances aggregating to Rs. 1,89,60309/-.

c) Acquisition of shares in earlier year of a company being sick company under the same management for Rs. 28,30,459/-.

d) Non provision of obsolete stock of Rs. 12,30,000/- as well as diminution in value of shares Rs. 42,46,459/-.

give the information required by the Companies Act, 1956 in the manner so required and gives 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 2010;

and

(ii) in the case of the Profit and Loss Account, of the losses of the Company for the period ended on that date.

(iii) in case of the Cash Flow Statement, of the cash flows for the yearended on that date.

Annexure to the Auditors Report (Referred to in paragraph 3 of our Report of even date)

(i) (a) The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets.

(b) The fixed assets of the company are physically verified by the management according to phased program designed to cover all the items once in period of three years which in our opinion is reasonable having regard to the size of the company and nature of its assets. Pursuant to program, a physically verification of Data processing equipments and vehicles was carried out during the period by the management and no material discrepancies between the book records and physically inventory have been noticed.

(c) The Company has not disposed of any substantial part of its fixed assets during the period as would affect its going concern status.

(ii) (a) As explained to us, the inventories (also which are in dematerialized form) have been physically verified by the management at reasonable intervals during the year. In our opinion, the frequency of such verification is reasonable having regard to the size of the company and the nature of its business.

(b) In our opinion and according to the information and explanations given to us, the procedure of physical verification followed by the management is reasonable and adequate in relation to the size of the Company and the nature of its business.

(c) In our opinion, no material discrepancies noticed on physical verification of stocks, as compared to books records.

(iii) (a) As per the information and explanations given to us, the Company has granted loans, secured or unsecured, amounting to Rs. 1,03,99,969/- (including interest receivable on loans as per books) to one company in which, Directors are interested granted to a company under same management and declared sick company being the parties covered in the Register maintained under Section 301 of the Companies Act, 1956. No interest has been charged on above said loan since 01/04/2008 as per the accounting practice followed by the company. As the said loan has become doubtful of recovery, the principal as well as interest charged in books upto 01/04/1998 has become prejudicial to the interest of the company.

(b) During the year, Company has not taken loans, secured or unsecured, from companies, firms or other parties covered in the Register maintained under Section 301 of the Companies Act, 1956.

(iv) In our opinion and according to the information and explanations given to us, the question of comment on internal control does not arises in view of suspension of activities by company.

(v) In our opinion and according to the information and explanations given to us, no transactions the particulars of contracts or arrangements referred to in Section 301 of the Companies Act 1956 need to be entered in the Register maintained under that Section;

(vi) In our opinion and according to the information and explanations given to us, during the period under review the Company has not accepted any deposits from the public under the meaning of Section 58A and 58AA of The Companies Act, 1956 and rules framed there under.

(vii) The company has yet not set up internal audit system. Further, there was no activity conducted during the year under review.

(viii) Maintenance of cost records has not been prescribed by the Central Government under clause (d) of sub-section (1) of Section 209 of the Companies Act, 1956 for the class of companies to which the Company belongs.

(ix) (a) According to the records of the Company, statutory dues including Provident Fund, Investor Education and Protection Fund, Employees Insurance, Income Tax, Sales-tax, Customs Duty, Cess, and other statutory dues are not applicable to the company.

(b) According to the information an explanations given to us, the undisputed statutory dues payable which are outstanding as at 31st March, 2010 for a period of more than six months from the date they became payable.

Name of the statue Nature of Amount (Rs.) Other particulars the dues

Central Sales Tax Sales Tax 192882 Period: Earlier Years Due date: Not ascertainable Date of payment: Not paid

Central Sales Tax Sales Tax 123594 Period: Earlier Years Due date: Not ascertainable Date of payment: Not paid

(c) The particulars of dues as at the year end, with regard to said items, which have not been paid on account of disputes, are NIL

(x) The company has accumulated losses at the end of the Financial Year and it has incurred cash losses in the current and immediately preceding financial years. However, the accumulated losses of the company does not exceed its share capital as at the end of the financial year.

(xi) As per the information and explanations given to us, the Company has not obtained any financial assistance from financial institutions or banks and hence, the clause is not applicable.

(xii) As per the information and explanations given to us, the Company has not granted any loan or advance on the basis of security byway of pledge of shares, debentures and other securities.

(Xiii) The provisions of any special statute applicable to chit fund/nidhi/mutual benefit fund/societies are not applicable to the Company.

(xiv) The company is not dealing in or trading in shares, securities, debentures and other other investments. Accordingly, this clause in not applicable.

(xv) As per the information given to us, the Company has not taken any term loan or given any guarantee for loans taken by others from banks or financial institutions.

(xvi) In our opinion and according to the information and explanations given to us, and on the basis of overall fund flow position, we report that company has not taken any loans during the year under review. Therefore, the comment on its application has not been made.

(xvii) In our opinion and on and overall examination, the balance sheet of the company, we report that long term funds aggregating to Rs. 4,43,77,281/- have been used for short term purposes as well as financing losses.

(xviii) The Company has made during the financial year under review, no preferential allotment to parties covered in the register maintained under Section 301 of the Companies Act, 1956.

(xix) The Company has not issued any debentures during the period under review.

(xx) The Company has not raised any money by public issue during the period under review.

(xxi) According to the information and explanations given to us, no fraud on or by the Company has been noticed or reported during the period under review.



FOR SUNIL DAD & Co. Chartered Accountants

SUNIL R. DAD Partner Mem. No. 120702

Place: Ahmedabad Date : 31.05.2010

 
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