Mar 31, 2010
We have audited the attached Balance Sheet of SHREE MAHAGANGA SUGAR
MILLS LIMITED as at 31st March 2010, issued by the Company law board in
terms of section 227(4A) of The Companies Act, 1956 and explanation
given to and the basis of such checks as we consider appropriate. We
enclose in the Annexure statements on the matter specified in the
paragraph 4 and 5 of the said order
Further to our comments in the annexure referred to in paragraph in 1
above, state that,
(a) We have obtained all the information and explanation which to the
best of our knowledge and belief were necessar y for the purpose of the
audit.
(b) In our opinion, the company has kept proper books of accounts as
required by law so far, as appears from examination of such books.
(c) The Balance Sheet, the Profit & Loss Account and the Cash Flow
Statement dealt with by this report are in agreement with the books of
accounts.
(d) In our opinion the Profit & Loss Account, The Balance Sheet and the
Cash Flow Statement dealt with by this report comply with the mandatory
Accounting standards referred to in sub section 211(3C) of The
Companies Act, 1956.
(e) On the basis of written representations received from the Directors
as on March 31, 2010 and taken on record by the Board Of Directors, we
report that none of the Directors are disqualified as on 31st March
2010 from being appointed as Directors in terms of clause (g) of sub
section 274 of the Companies Act 1956.
(f) In our opinion and to the best of our information and according to
explanation given to us, the sais accounts read together with the
Significant Accounting Policies and other notes thereon give the
information required by the Companies Act, 1956, in the manner so
required and give a true and fair view in conformity with the
accounting principles generally accepted in India:
( I ) In case of the Balance Sheet, of the state of affairs of the
company as at 31st March 2010 and
( II ) In case of the Profit & Loss Account, of the loss of the company
for the year ended on that date and
(III) In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
ANNEXURE TO AUDITORÃS REPORT Re SHREE MAHAGANGA SUGAR MILLS LIMITED.
(Referred to in paragraph 1 of our report on even date)
1. The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets. The fixed
assets have been physically verified by the management during the year
and no material discrepancies were noticed on such verification.
2. In our opinion, the Company has not disposed off substantial part
of its fixed assets during the year and the going concern status of the
Company is not affected
3. The Company has maintained proper records of inventory. As
explained to us, there were no material discrepancies noticed on
physical verification of inventory as compared to the book records.
4. In our opinion the rate of interest and other terms and conditions
on which loans have been taken from companies, firms or other parties
listed in the register maintained under section 301 and from companies
under the same management as defined under sub section (1-B) of section
370 of Companies Act,1956 are prima facie not prejudicial to the
interest of the company.
5. The company has not granted any loans to companies, firms or other
listed in register maintained under section 301 of Companies Act, 1956
or to the companies under same management under sub section (1-B) of
section 370 of Companies Act, 1956.
6. There are no interest free advances in the nature of loans given to
employees during the year.
7. In our opinion and according to the information and explanations
given to us there are adequate internal control procedures commensurate
with the size of the Company and the nature of its business for the
purchase of raw materials, components, stores, plant and machinery,
equipment, and other assets and for the sale of goods.
8. In our opinion and according to the information and explanations
given to us, there are no transactions of purchase of goods and
materials and sale of goods, materials and services made.
9. As explained to us there is no unserviceable or damaged stores, raw
materials and finished goods.
10. The Company has not accepted deposits from the public within the
meaning of section 58-A of the Companies Act, 1956 and the rules framed
thereunder.
11. As explained to us, the Company does not have any significant
realisable by-product or scrap.
12. In our opinion, the Company has an internal audit commensurate
with the size of the Company and the nature of the business.
13. To the best of our knowledge and according to the information and
explanation provide to us the Central Government has not prescribed the
maintenance of cost records under section 209(1)(d) of the Companies
Act, 1956.
14. In our opinion, the Company is not a Chit Fund or a nidhi/mutual
benefit fund/ society. Therefore, the provisions of clause 4(xiii) of
the companies (AuditorÃs Report) Order 2003, (as amended) are not
applicable to the company.
15. As explained to us and from our examination of the books of
accounts the Provident Fund and Employees State Insurance Act is not
applicable to the Company.
16. According to the information and explanations given to us, no
undisputed amounts payable in respect of Income-Tax, Wealth Tax,
Customs Duty and Excise Duty, Cess and any other statutory dues, have
been generally regularly deposited with the appropriate authorities
except for the few cases. According to the information and explanations
given to us, no undisputed amounts payable in respect of the aforesaid
dues were outstanding as at 31st March 2010 for a period of more than
six months.
17. As appears from our examination the records and according to the
information and explanations given to us, no personal expenses have
been charged to revenue account other than those payable under
contractual obligation or in accordance with generally accepted
business practice.
18. The company is not a sick industrial company within the meaning of
clause (0) of sub section 3 of the Sick Industrial Companies (Special
Provisions) Act, 1985.
19. Based upon 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 year.
PLACE : Mumbai FOR UDAY PASAD & ASSOCIATES
DATE : 2nd September, 2010 CHARTERED ACCOUNTANTS
Sd/-
(UDAY PASAD)
PROPRIETOR
M.NO.46581
Mar 31, 2009
1. We have audited the attached balance sheet of Shree Mahaganga Sugar
Mills Limited (the Company) as at 31st March, 2009, the profit and
loss account and also the cash flow statement of the Company for the
year ended on that date (all together referred to as the financial
statements). 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 misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditors Report) Order, 2003 (the
said Order) issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Companies Act, 1956 (The Act),
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 in paragraph 4
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, profit and loss account and cash flow statement
dealt with by this report are in agreement with the books of account;
d. in our opinion, the balance sheet, the profit and loss account and
cash flow statement comply with the accounting standards referred to in
sub-section (3C) of section 211 of the Companies Act, 1956;
e. on the basis of the written representations received from the
directors, and taken on record by the board of directors, we report
that none of the directors are disqualified as on March 31, 2009 from
being appointed as a director under clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956;
f. in our opinion and to the best of our information and according to
the explanation given to us, the said financial statements, read with
the notes thereon give the information required by the Companies Act,
1956, in the manner so required give a true and fair view in conformity
with the Accounting Principles Generally Accepted in India;
i. in the case of the balance sheet, of the state of affairs of the
Company as at 31s1 March, 2009;
ii. in the case of the profit and loss account, of the loss of the
Company for the year ended 31st March, 2009; and
iii. In case of the cash flow statement, of the cash flows of the
Company for the year ended on that date.
Annexure to Auditors Report
(Referred to in paragraph 4 of our report to the members of SHREE
MAHAGANGA SUGAR MILLS LIMITED for the year ended on 31st March, 2009)
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) The fixed assets have been physically verified by the management at
reasonable intervals, which in our opinion, is considered reasonable
having regard to the size of the Company and the nature of its assets.
No material discrepancies were noticed on such verifications.
(c) The Company has not disposed off a substantial part of fixed assets
during the year, and accordingly, going concern is not affected.
(ii) The Company has a policy of treating motion pictures under
production as inventory till the date of release/agreement whichever is
earlier. Consequently, there is no tangible inventory carried by the
Company. Accordingly, the provisions of Paragraph 4(ii) of the said
Order are not applicable to the Company.
(iii) According to the information and explanations given to us, the
Company has not taken any loan, secured or unsecured from companies,
firms or other parties listed in the register maintained under section
301 of the Companies Act 1956. Accordingly, Paragraph 4(iii) of the
said Order is not applicable to the Company.
(iv) In our opinion, and according to the information and explanations
given to us, the Companys internal control procedures for the purchase
of inventory and for the sale of goods and services needs to be further
strengthened so as to be commensurate with the size of the Company and
nature of its business. In respect of purchase of fixed assets, the
Company has adequate internal control procedures commensurate with the
size of the Company and nature of its business. During the course of
our audit, we have not observed any continuing failure to correct major
weakness in internal control system.
(v) In our opinion and according to the information and explanations
given to us, there are no transactions that need to be been entered in
the register required to the maintained U/s. 301.
(vi) The Company has not accepted any deposits from the public to which
the directives issued by the Reserve Bank of India and the provisions
of section 58A, 58AA and any other relevant provisions of the Companies
Act, 1956 and the rules framed there under are applicable.
Accordingly, the provisions of Paragraph 4(vi) of the said Order are
not applicable to the Company. *
(vii) The Company does not has an internal audit system, commensurate
with the size of the Company and the nature of its business.
(viii) As informed to us, the 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 in respect of the
activities of the Company. Accordingly the provisions of Paragraph
4(viii) of the said Order are not applicable to the Company.
(ix) (a) According to the information and explanations given to us,
except for delays in depositing tax deducted at source, the Company is
generally regular in depositing undisputed statutory dues including
provident fund, investors education and protection fund, employees
state insurance, income-tax, service tax, excise duty, custom duty,
cess and any other statutory dues as applicable, with the appropriate
authorities during the year and there are no arrears of outstanding
statutory dues as at the last day of the financial year concerned, 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
are no dues of sales tax, income-tax, wealth tax, service tax, custom
duty, excise duty and cess which have not been deposited on account of
any dispute.
(x) After considering the effect of quantified qualification as stated
in paragraph 3 of our report, in our opinion and according to the
information and explanations given to us, the accumulated losses of the
Company at the end of the financial year does not exceeds fifty percent
of its net worth. The Company also does not incurred cash losses during
the current financial year and also in the immediately preceding
financial year.
(xi) In our opinion, and on the basis of our examination and according
to the information and explanations given to us, the Company has not
defaulted in repayment of its dues to financial institutions :
(xii) In our opinion, and on the basis of our examination and according
to the information and explanations given to us, the Company has not
granted any loans and advances on the basis of security by way of
pledge of shares, debentures and other securities. Accordingly the
provisions of Paragraph 4(xii) of the said Order are not applicable to
the Company.
(xiii) In our opinion, the Company is not a chit fund or a nidhi/mutual
benefit fund/society.
Accordingly, the provisions of Paragraph 4(xiii) of the said Order are
not applicable to the Company.
(xiv) The Company is not dealing in or trading in shares, securities,
debentures and other investments. Accordingly, the provisions of
Paragraph 4(xiv) of the said Order are not applicable to the Company.
(xv) According to the information and explanations given to us, the
Company has given guarantee to the Company as reflected in Note no 3 to
Schedule S.
(xvi) According to the information and explanations given to us and
records examined by us, the term loans have been applied for the
purpose for which they were raised.
(xvii) On the basis of an overall examination of the balance sheet of
the Company, in*our opinion and according to the information and
explanations given to us, there are no funds raised on short-term
basis, which have been used for long-term purposes.
(xviii) The Company has not made preferential allotment of shares to
the parties covered in the register maintained under section 301 of the
Companies Act, 1956. Accordingly, the provisions of Paragraph 4(xviii)
of the said Order are not applicable to the Company.
(xix) The Company has not issued any debentures during the year.
Accordingly, the provisions of Paragraph 4(xix) of the said Order are
not applicable to the Company.
(xx) To the best of our knowledge and belief, and according to the
information and explanations given to us, there have been no cases of
fraud on or by the Company noticed or reported during the year.
For UDAY PASAD & ASSOCIATES,
Chartered Accountants
S/d
(UDAY PASAD)
Proprietor
M. No F-46581
Place: MUMBAI
Date:01/09/2009
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