Mar 31, 2015
We have audited the accompanying financial statements of SIDDHARTHA
TUBES LIMITED ("the Company"), which comprise the Balance Sheet as at
31st March 2015, the Statement of Profit and Loss and the Cash Flow
Statement for the year then ended, and a summary of the significant
accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
The Company's Board of Directors is responsible for the matters stated
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 maintenance of adequate
accounting records in accordance with the provisions of the Act for
safeguarding the assets of the Company and for preventing and detecting
frauds and other irregularities; selection and application of
appropriate accounting policies; making judgments and estimates that
are reasonable and prudent; and design, implementation and maintenance
of adequate internal financial controls, that were operating
effectively for ensuring the accuracy and completeness of the
accounting records, relevant to the preparation and presentation of the
financial statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
Auditors' Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit.
We have taken into account the provision of the Act, the accounting and
auditing standards and matters which are required to be included in the
audit report under the provisions of the Act and the Rules made
thereunder.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. Those standards require
that we comply with ethical requirements and plan and perform the audit
to obtain responsible assurance about whether the financial statements
are free from material misstatement. An audit involves performing
procedures to obtain audit evidence about the amounts and the
disclosures in the financial statements. The procedures selected
depend on the auditor's judgment, including the assessment of the risks
of material misstatement of the financial statements, whether due to
fraud or error. In making those risk assessments, the auditor considers
internal financial control relevant to the Company's preparation of the
financial statements that give a true and fair view in order to design
audit procedures that are appropriate in the circumstances, but not for
the purpose of expressing an opinion on the effectiveness of the
Company's internal financial control. An audit also includes evaluating
the appropriateness of the accounting policies used and the
reasonableness of the accounting estimates made by the 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 on the financial
statements.
Basis for Qualified Opinion
1. As stated in Note No. 10: - Fixed Assets. Company has made
provision of depreciation following straight line method, which is not
in accordance with the useful life mentioned in the Schedule II of Co.
Act, 2013. The financial impact is that the Fixed Assets are
overstated, Depreciation is understated and loss is understated to an
extent of Rs.10.82 crore each.
2. As stated in Note No. 13 Note, the Company has concluded negotiated
settlement dues with several lenders, and several installments have
been paid to them till end March 2015. However, further installments
remain payable as per the agreed schedule, and these lenders remain
outstanding on the Company's Books. The said payments made up to
31/03/2015, viz Rs. 28.89 crore (Previous year Rs.25.97 crore) has been
accounted for under Other Non Current Assets, and these will be
adjusted / accounted for against the corresponding outstanding in
Secured Loans after full repayment of the NSD amount, and receipt of No
Dues Certificate from the respective Lender.
3. As stated in Note No. 36(b), the accounts of the Company have been
prepared on going concern basis in spite of the fact that the Company
has become a Sick Company under Sick Industrial Companies (Special
Provisions) Act, 1985.
Qualified Opinion
In our opinion and to the best of our information and according to the
explanations given to us, except for the effects of the matter
described in the Basis for Qualified Opinion paragraph, 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, of the state of
affairs of the Company as at March 31,2015 and its Loss and its cash
flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1 As required by the Companies (Auditors Report) Order, 2015 ("the
Order") issued by the Central Government in terms of Section 143(11) of
the Act, we give in the Annexure a statement on the matters specified
in paragraphs 3 and 4 of the Order.
2 As required by Section 143(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 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 it 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
accounts.
(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) On the basis of the written representations received from the
Directors as on 31March, 2015, and taken on record by the Board, none
of the Director is disqualified as on 31 March, 2015 from being
appointed as a Director in terms of Section 164 (2) of the Act.
(f) With respect to the other matters to be included in the Auditors
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanation given to us:
(i) The Company has disclosed the impact of pending litigations on its
financial position in its Financial Statements at Note no.31.
(ii) The Company has not entered into any long-term contracts including
derivative contracts for which there is any material foreseeable
losses;
(iii) There has been no delay, in transferring amounts, if any required
to be transferred, to the Investor Education and Protection Fund by the
Company.
(Referred to in paragraph 1 under "Report on Other Legal and Regulatory
Requirement "section of our report of even date) (i) In respect of
Fixed Assets:
(a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of Fixed Assets.
(b) Some of the Fixed Assets were physically verified during the year
by the Management in accordance with a programmed of verification,
which in our opinion, provides for physical verification of all the
Fixed Assets at reasonable intervals. According to the information and
explanations given to us no material discrepancies were noticed on such
verification.
(ii) In respect of its inventories:
(a) We are informed that physical verification of inventory has been
conducted at reasonable intervals during the year by the management. In
our opinion the frequency of such verification is reasonable.
(b) In our opinion and according to the information give 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) The Company is maintaining proper records of inventory. No material
discrepancies were noticed on physical verification of inventory as
compared to the book records.
(iii) The Company has not granted any Loans, Secured or Unsecured, to
Companies, Firms or other parties covered in the Register maintained
under Section 189 of the Companies Act, 2013.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control system commensurate
with the size of the Company and the nature of its business for the
purchase of inventory and Fixed Assets and for the sale of goods and
services and during the course of our audit we have not observed any
major weakness in such internal control system.
(v) In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposits from the public
within the meaning of section 73 to 76 of the Companies Act, 2013 and
the rules framed there under.
(vi) We have broadly reviewed the cost records maintained by the
Company pursuant to the Companies (Cost Records and Audit) Rules, 2014,
as amended and prescribed by the Central Government under sub-section
(1) of the Section 148 of the Companies Act, 2013 and are of the
opinion that, prima facie, the prescribed cost records have been made
and maintained. We have, however, not made a detailed examination of
the cost records with a view to determine whether they are accurate or
complete.
(vii) According to the information and explanations given to us, in
respect of Statutory Dues;
(a) The Company has generally been regular in depositing undisputed
statutory dues, including Provident Fund, Employees State Insurance,
Income Tax, Sales Tax, VAT Tax, Wealth Tax, Custom Duty, Excise Duty,
and any other Statutory Dues with the appropriate Authorities.
(b) According to the information and explanation given to us, Statutory
Dues under appeal at various forums aggregating to Rs.634.50 lakh are
as under:
Si
no Name of the
Statute Nature of the Dues Period Amount
1 CESTA Excise & Custom 1998-99 1594141
2006-07 10000000
2007-08 5591632
2008-09 19242228
2009-10 1519095
2010-11 502635
2 Income Tax Income Tax 2009-10 25000000
Name of the Statute Forum where appeal / matter is pending
CESTA
CESTAT, New Delhi DGFT, New Delhi
Commissioner Appeal
CESTAT, New Delhi
Commissioner Appeal
CESTAT, New Delhi
2 Income Commissioner Income Tax Appeal
Total 63449731
(c) The Company is not required to transfer any amount to the Investor
Education and Protection Fund in accordance with the relevant
provisions of the Companies Act, 1956 (1 of 1956) and Rules made there
under.
(viii) As at 31st March 2014 the accumulated losses of the Company are
more than fifty percent of its Net Worth. The Company has incurred an
operating Cash Loss of Rs.1443.49 lacs for the year ended 31st of March
2015 (previous year loss of Rs.488.48 lacs).
(ix) In our opinion based on our Audit procedures & according to the
information & explanation given to us, the Company has defaulted in
repayment of Secured Dues aggregating to Rs.177.84 crores in respect of
Financial Institutions and Banks.
(x) According to the information and explanation given to us, the
Company has not given any Guarantee for loans taken by others from
Banks or Financial Institutions.
(xi) In our opinion and according to the Information and explanations
given to us, the Term Loans have been applied for the purposes for
which they were raised.
(xii) To the best of our knowledge and according to the information and
explanations given to us, no fraud by the Company and no material fraud
on the Company has been noticed or reported during the year.
For Rakesh K. Jain & Associates.,
CHARTERED ACCOUNTANTS FRN - 011019C
RAKESH JAIN
PLACE INDORE PROPRIETOR
DATE : 19th September, 2015 M.NO.401098
Mar 31, 2014
We have audited the accompanying financial statements of SIDDHARTHA
TUBES LIMITED ("the Company"), which comprise the Balance Sheet as at
31st March 2014, the Statement of Profit and Loss and the Cash Flow
Statement for the year then ended, and a summary of the 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 flow of the Company in
accordance with the Accounting Standards referred to in Section 211
(3C) of the Companies Act, 1956 ("the Act") 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 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 the disclosures in the financial statements. The
procedures selected depend on the auditor''s judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the
Company''s preparation and fair presentation of the financial statements
in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Company''s internal control. An audit also includes
evaluating the appropriateness of the accounting policies used and the
reasonableness of the accounting estimates made by the 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,
subject to Note No. 13 & 36(b) regarding preparation of Accounts on a
"Going Concern basis", 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, on the state of affairs of the
Company as at 31 March, 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 Other Legal and Regulatory Requirements
1 As required by the Companies (Auditors Report) Order, 2003 ("the
Order") issued by the Central Government in terms of Section
227(4A) 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 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 it 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
accounts.
(d) In our opinion, the Balance Sheet, the Statement of Profit and
Loss, and Cash Flow Statement comply with the Accounting Standards
referred to in Section 211(3C) of the Act.
(e) On the basis of the written representations received from the
Directors as on 31March, 2014, and taken on record by the Board, none
of the Director is disqualified as on 31 March, 2014 from being
appointed as a Director in terms of Section 274 (l)(g) of the Act.
ANNEXURE TO INDEPENDENT AUDITOR''S REPORT
Referred to in paragraph 1 of our report of even date
i) In respect of Fixed Assets:
a) The Company is maintaining proper records showing full particulars,
including quantitative details and situation of fixed assets on the
basis of available information.
b) We are informed that major portion of the fixed assets have been
physically verified by the management at regular intervals during the
year, which in our opinion is''reasonable having regard to the size of
the Company and the nature of its assets. No material discrepancies
were noticed on such verification.
c) The Company did not dispose off a substantial part of fixed assets
during the year.
ii) In respect of Inventories
a) We are informed that physical verification of inventory has been
conducted at reasonable intervals during the year by the management. In
our opinion the frequency of such verification is reasonable.
b) In our opinion and according to the information given to us, the
procedures of physical verification of inventory followed by the
management is reasonable and adequate in relation to the size of the
Company and the nature of its business.
c) The Company is maintaining proper records of inventory. No material
discrepancies were noticed on physical verification of inventory as
compared to the book records.
iii. The Company has taken loan from persons falling under Section 301.
The terms of the same are not prejudicial to the interest of the
Company.
iv. In our opinion and according to the information and explanation
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business, for purchase of inventory and fixed assets and for the sale
of goods. Further during the course of audit we have not observed any
major weaknesses in the internal control;
v. In respect of transactions covered under Section 301 of the
Companies Act, 1956:
a) Based on the audit procedures applied by us and according to the
information and explanation provided by the management, we are of the
opinion that all the transactions that need to be entered into a
register in pursuance of section 301 of the Act have been so entered.
b) These transaction have been made at prices which are reasonable
having regard to the prevailing market prices at the relevant time.
vi. In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposits from the public
within the meaning of section 58A and 58AA of the Companies Act, 1956
and the rules framed thereunder.
vii In our opinion the internal audit system of the Company is
commensurate with its size and nature of its business.
viii The Central Government has prescribed the maintenance of Cost
records under section 209 (1) (d) of the Companies Act 1956 in respect
of manufacturing activities of the Company. We have broadly reviewed
the cost records maintained by the Company and are of the opinion that
prima-facie the prescribed accounts and records are made and
maintained.
ix In respect of Statutory dues :
a) According to the records examined by us, the Company is generally
regular in depositing undisputed Statutory dues including Provident
Fund, Employees State Insurance, Income Tax, Sales Tax, VAT Tax, Wealth
Tax, Custom Duty, Excise Duty and any other Statutory dues with the
appropriate authorities,
b) According to the information and explanation given to us, Statutory
dues under appeal at various forums aggregating to Rs.634.50 lacs are
as under:
S. No Name of Nature of the Period Amount Forum where
the Statute Dues appeal / matter is
pending
1 CESTA Excise & Custom 1998-99 1594141 CESTAT, New Delhi
2006- 07 10000000 Add. DGFT, New Deihi
2007- 08 5591632 Commissioner Appeal
2008- 09 19242228 CESTAT, New Delhi
2009- 10 1519095 Commissioner Appeal
2010- 11 502635 CESTAT, New Delhi
2 Income Tax Income Tax 2009-10 25000000 Commissioner Income
Tax Appeal
Total 63449731
x) As at 31st March 2014 the accumulated losses of the Company are more
than fifty percent of its net worth. The Company has incurred an
operating cash Loss of Rs.488.48 lacs for the year ended 31st of March
2014 (previous year loss of Rs.1343.38 lacs).
xi) In our opinion based on our audit procedures & according to the
information & explanation given to us, the Company has defaulted in
repayment of Secured Dues aggregating to Rs. 180.77 crores in respect
of Financial Institutions and Banks.
xii) In our opinion and according to the information and explanation
given to us, no loans and advances have been granted by the Company on
the basis of security by way of pledge of shares, debentures and other
securities.
xiii) In our opinion the Company is not a chit fund or a nidhi mutual
benefit fund/ society. Therefore the provisions of clause 4 (xiii) of
the companies (Auditors report) Order 2003 are not applicable to the
Company.
xiv) In our opinion the Company is not dealing in or trading in shares,
securities, debentures and other investments. Accordingly the
provisions of clause 4(xiv) of the companies (Auditors Report) Order
2003 are not applicable to the Company.
xv) According to the information and explanation given to us, the
Company has not given any guarantee'' for loans taken by others from
banks or financial institutions.
xvi) In our opinion & according to the information & explanation given
to us on an overall basis, the term loans have been applied for the
purpose for which they were raised.
xvii) According to 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
investments.
xviii) During the year the Company has not made any preferential
allotment of shares to parties and companies covered in the Register
maintained under Section 301 of the Companies Act 1956.
xix) The Company did not issue any debenture during the year.
xx) The Company has not raised any money by way of public issue during
the year.
xxi) Based on audit procedures performed and information & explanations
given by the management, we report that no fraud on or by the Company
has been noticed or reported during the year that causes the financial
statements to be materially misstated.
For Rakesh K. Jain ft Associates.,
CHARTERED ACCOUNTANTS
FRN - 011019C
RAKESH JAIN
PROPRIETOR
PLACE : INDORE M. NO.401098
DATE : 30th May, 2014
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of SIDDHARTHA
TUBES LIMITED ("the Company"), which comprise the Balance Sheet as at
31st March 2013, the Statement of Profit and Loss and the Cash Flow
Statement for the year then ended, and a summary of the 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 flow of the Company in
accordance with the Accounting Standards referred to in Section 211
(3C) of the Companies Act, 1956 ("the Act") 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 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 the disclosures in the financial statements. The
procedures selected depend on the auditor''s judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the
Company''s preparation and fair presentation of the financial statements
in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Company''s Internal control. An audit also includes
evaluating the appropriateness of the accounting policies used and the
reasonableness of the accounting estimates made by the 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,
subject to Note No. 13 & 36(b) regarding preparation of Accounts on a
"Going Concern braise", 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, on the state of affairs of the
Company as at 31 March, 2013:
(b) in the case of the Statement of Profit and Loss, of the Loss 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 Other Legal and Regulatory Requirements
1 As required by the Companies (Auditors Report) Order, 2003 ("the
Order") issued by the Central Government in terms of Section 227(4A) 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 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 it 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 Balance Sheet, the Statement of Profit and
Loss, and Cash Flow Statement Comply with the Accounting Standards
referred to in Section 211(3C) of the Act.
(e) On the basis of the written representations received from the
directors as on 31March, 2013 taken on record by the Board of
Directors, none of the directors is disqualified as on 31 March, 2013
from being appointed as a director in terms of Section 274 (l)(g) of
the Act.
i) In respect of Fixed Assets:
a) The Company is maintaining proper records showing full particulars,
including quantitative details and situation of fixed assets on the
basis of available information.
b) We are informed that major portion of the fixed assets have been
physically verified by the management at regular intervals during the
year, which in our opinion is reasonable having regard to the size of
the Company and the nature of its assets. No material discrepancies
were noticed on such verification.
c) The Company did not dispose off a substantial part of fixed assets
during the year.
ii) In respect of Inventories
a) We are informed that physical verification of inventory has been
conducted at reasonable intervals during the year by the management. In
our opinion the frequency of such verification is reasonable.
b) In our opinion and according to the information 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) The Company is maintaining proper records of inventory. No material
discrepancies were noticed on physical verification of inventory as
compared to the book records.
iii. The Company has taken loan from persons falling under Section 301.
The terms of the same are not prejudicial to the interest of the
Company.
iv. In our opinion and according to the information and explanation
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business, for purchase of inventory and fixed assets and for the sale
of goods. Further during the course of audit we have not observed any
major weaknesses in the internal control;
v. In respect of transactions covered under Section 301 of the
Companies Act, 1956:
a) Based on the audit procedures applied by us and according to the
information and explanation provided by the management, we are of the
opinion that all the transactions that need to be entered into a
register in pursuance of section 301 of the Act have been so entered.
b) These transaction have been made at prices which are reasonable
having regard to the prevailing market prices at the relevant time.
vi. In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposits from the public
within the meaning of section 58A and 58AA of the Companies Act, 1956
and the rules framed there under.
vii In our opinion the internal audit system of the Company is
commensurate with its size and nature of its business.
viii The Central Government has prescribed the maintenance of Cost
records under section 209 (1) (d) of the Companies Act 1956 in respect
of manufacturing activities of the Company. We have broadly reviewed
the cost records maintained by the Company and are of the opinion that
prima-facie the prescribed accounts and records are made and
maintained.
ix In respect of Statutory dues :
a) According to the records examined by us, the Company is generally
regular in depositing undisputed Statutory dues including Provident
Fund, Employees State Insurance, Income Tax, Sales Tax, VAT Tax, Wealth
Tax, Custom Duty, Excise Duty and any other Statutory dues with the
appropriate authorities,
b) According to the information and explanation given to us, Statutory
dues under appeal at various forums aggregating to Rs.659.57 lacs are
as under:
S.
No Name of the
Statute Nature of
the Dues Period Amount Forum where
appeal / matter
is pending
1 CESTA Excise &
Custom 1998-99 1594141 CESTAT, New Delhi
2006-07 10000000 Add. DGFT, New
Delhi
2007-08 5591632 Commissioner
Appeal
2008-09 19242228 CESTAT, New Delhi
2009-10 2316150 Commissioner
Appeal
2010-11 502635 CESTAT, New Delhi
2012-13 1710250 Commissioner
Appeal
2 Income Tax Income Tax 2009-10 25000000 Commissioner
Income Tax
Appeal
Total 65957036
x) As at 31st March 2013 the accumulated losses of the Company are more
than fifty percent of its net worth. The Company has incurred cash Loss
of Rs. 1343.38 lacs for the year ended 31st of March 2013 (previous
year profit of Rs.230.53lacs).
xi) In our opinion based on our audit procedures & according to the
information & explanation given to us, the Company has defaulted in
repayment of secured dues aggregating to Rs.89.29 crores in respect of
Financial Institutions and Banks.
xii) In our opinion and according to the information and explanation
given to us. No loans and advances have been granted by the Company on
the basis of security by way of pledge of shares, debentures and other
securities.
xiii) In our opinion the Company is not a chit fund or a nidhi mutual
benefit fund/ society. Therefore the provision of clause
4 (xiii) of the companies (Auditors report) Order 2003 are not
applicable to the Company.
xiv) In our opinion the Company is not dealing in or trading in shares,
securities, debentures and other investments. Accordingly the
provisions of clause 4(xiv) of the companies (Auditors Report) Order
2003 are not applicable to the Company.
xv) According to the information and explanation given to us, the
Company has not given any guarantee for loans taken by others from
banks or financial institutions.
xvi) In our opinion & according to the information & explanation given
to us on an overall basis, the term loans have been applied for the
purpose for which they were raised.
xvii) According to the information and explanation given to us on an
overall examination of the Balance Sheet of the Company we are of the
opinion that the Company has not utilized funds raised from short-term
sources towards repayment of long- term borrowings and acquisition of
fixed assets.
xviii) During the year the Company have not made any preferential
allotment of shares to parties and companies covered in the Register
maintained under Section 301 of the Companies Act 1956.
xix) The Company did not issue any debenture during the year.
xx) The Company has not raised any money by way of public issue during
the year.
xi) Based on audit procedures performed and information & explanation
given by the management, we report that no fraud on or by the Company
has been noticed or reported during the year that causes the financial
statements to be materially misstated.
For Rakesh K. Jain & Associates.,
CHARTERED ACCOUNTANTS
FRN - 011019C
RAKESH JAIN
PROPRIETOR
PLACE : INDORE M.NO.401098
DATE : 07-09-2013
Mar 31, 2012
1. We have audited the attached Balance Sheet of SIDDHARTHA TUBES
LIMITED, as at 31st March 2012 and also the Profit and Loss Account for
the year ended on that date annexed thereto and Cash Flow Statement for
the year ended on that date. 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. These Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free from any 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 presentation of the
financial statements. We believe that our audit provides a reasonable
basis for our opinion.
3. As required by Companies (Auditors' Report) Order, 2003, as amended
by the Companies (Auditor's Report) (Amendment) Order, 2004 (together
the "Order"), issued by the Central Government of India in terms of
sub-section (4A) of Section 227 of 'The Companies Act, 1956' of India
(the 'ACT') and on the basis of such checks of the books and records of
the Company as we considered appropriate and according to the
information and explanations given to us we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
4. Further to our comments in the Annexure referred to in paragraph 3
above, we report that: -
(i) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
(ii) In our opinion, proper books of accounts, as required by law, have
been kept by the Company so far as appears from our examination of the
books of accounts of the Company;
(iii) The Balance Sheet and Profit & Loss Account and Cash Flow
Statement dealt with by this report are in agreement with the books of
accounts of the Company;
(iv) In our opinion, the Balance Sheet and the Profit & Loss Account
and Cash Flow Statement dealt with by this report comply with the
mandatory Accounting Standards referred to in Sub - Section (3C) of
Section 211 of the Companies Act, 1956.
(v) In our opinion and based on information and explanation given to
us, none of the Directors is, as at 31st March, 2012, prima-facie
disqualified from being appointed as a director in terms of clause (g)
of sub- section (1) of Section 274 of the Companies Act, 1956;
(vi) In our opinion and to the best of our information and according to
the explanation given to us, the said financial statements, read
together with the notes thereon, give the information required by the
Companies Act, 1956 in the manner so required and present a true and
fair view in conformity with the accounting principles generally
accepted in India; subject to Note No. 13 & 37 (b) regarding
preparation of Accounts on a "Going Concern basis".
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March 2012,
And
b) in the case of the Profit and Loss Account, of the Profit of the
Company for the year ended on that date,
c) in case of Cash flow statement of the Cash flows for the year ended
on that date.
ANNEXURE TO AUDITOR'S REPORT
Referred to in paragraph 2 of our report of even date
i) In respect of Fixed Assets:
a) The Company is maintaining proper records showing full particulars,
including quantitative details and situation of fixed assets on the
basis of available information.
b) We are informed that major portion of the fixed assets have been
physically verified by the management at regular intervals during the
year, which in our opinion is reasonable having regard to the size of
the Company and the nature of its assets. No material discrepancies
were noticed on such verification
c) The Company did not dispose off a substantial part of fixed assets
during the year.
ii) In respect of Inventories
a) We are informed that physical verification of inventory has been
conducted at reasonable intervals during the year by the management. In
our opinion the frequency of such verification is reasonable.
b) In our opinion and according to the information give to us, the
procedures of physical verification of inventory followed by the
management is reasonable and adequate in relation to the size of the
Company and the nature of its business.
c) The Company is maintaining proper records of inventory. No material
discrepancies were noticed on physical verification of inventory as
compared to the book records.
iii. The Company has taken loan from persons falling under Section 301.
The terms of the same are not prejudicial to the interest of the
Company.
iv. In our opinion and according to the information and explanation
given to us there are adequate internal control procedures commensurate
with the size of the Company and the nature of its business, for
purchase of inventory and fixed assets and for the sale of goods.
Further during the course of audit we have not observed any major
weaknesses in the internal control;
v. In respect of transactions covered under Section 301 of the
Companies Act, 1956:
a) Based on the audit procedures applied by us and according to the
information and explanation provided by the management, we are of the
opinion that all the transactions that need to be entered into a
register in pursuance of section 301 of the Act have been so entered.
b) These transaction have been made at prices which are reasonable
having regard to the prevailing market prices at the relevant time.
vi. In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposits from the public
within the meaning of section 58A and 58AA of the Companies Act, 1956
and the rules framed thereunder.
vii In our opinion the internal audit system of the Company is
commensurate with its size and nature of its business.
viii The Central Government has prescribed the maintenance of Cost
records under section 209 (1) (d) of the companies act 1956 in respect
of certain manufacturing activities of the Company. We have broadly
reviewed the cost records maintained by the Company and are of the
opinion that prima-facie the prescribed accounts and records are made
and maintained.
ix In respect of statutory dues :
a) According to the records examined by us the Company is generally
regular in depositing undisputed statutory dues including Provident
Fund, Employees State Insurance, Income Tax, Sales Tax, VAT Tax, Wealth
Tax, Custom Duty, Excise Duty, and any other statutory dues with the
appropriate authorities.
b) According to the information and explanation given to us, statutory
dues under appeal at various forums aggregating to Rs.428.34 lakh are as
under:
S.
No Name of the Nature of the Period Amount Forum where appeal /
matter is pending
Statute Dues
1 CESTA Excise &
Custom 1998-99 1594141 CESTAT, New Delhi
2004-05 3000000 Commissioner Appeal
2005-06 586755 CESTAT, New Delhi
2006-07 10000000 Add. DGFT, New Delhi
2007-08 5591632 Commissioner Appeal
2008-09 19242228 CESTAT, New Delhi
2009-10 2316150 Commissioner Appeal
2011-11 502635 CESTAT, New Delhi
Total 42833541
x) As at 31st March 2012 the accumulated losses of the Company are more
than fifty percent of its net worth. The Company has incurred cash
profit of Rs.230.53 lacs for the year ended 31st of March 2012 (previous
year profit of Rs.215.22 lacs).
xi) In our opinion based on our audit procedures & according to the
information & explanation given to us, the Company has defaulted in
repayment of dues aggregating to Rs.232.24 crores in respect of Financial
Institutions and Banks.
xii) In our opinion and according to the information and explanation
given to us. No loans and advances have been granted by the Company on
the basis of security by way of pledge of shares, debentures and other
securities.
xiii) In our opinion the Company is not a chit fund or a nidhi mutual
benefit fund/ society. Therefore the provision of clause 4 (xiii) of
the companies (Auditors report) Order 2003 are not applicable to the
Company.
xiv) In our opinion the Company is not dealing in or trading in shares,
securities, debentures and other investments. Accordingly the
provisions of clause 4(xiv) of the companies (Auditors Report) Order
2003 are not applicable to the Company.
xv) According to the information and explanation given to us, the
Company has not given any guarantee for loans taken by others from
banks or financial institutions.
xvi) In our opinion & according to the information & explanation given
to us on an overall basis, the term loans have been applied for the
purpose for which they were raised.
xvii) According to the information and explanation given to us on an
overall examination of the Balance Sheet of the Company we are of the
opinion that the Company has not utilized funds raised from short-term
sources towards repayment of long-term borrowings and acquisition of
fixed assets.
xviii) During the year the Company have not made any preferential
allotment of shares to parties and companies covered in the Register
maintained under Section 301 of the Companies Act 1956.
xix) The Company did not issue any debenture during the year.
xx) The Company has not raised any money by way of public issue during
the year.
xi) Based on audit procedures performed and information & explanation
given by the management, we report that no fraud on or by the Company
has been noticed or reported during the year that causes the financial
statements to be materially misstated.
For: RAKESH K. JAIN & ASSOCIATES.,
CHARTERED ACCOUNTANTS
FRN-011019C
RAKESH JAIN
PLACE: INDORE PROPRIETOR
DATE: 07-09-2012 M.NO.401098
Mar 31, 2011
We have audited the attached Balance Sheet of SIDDHARTHA TUBES LIMITED,
as at 31st March 2011 and also the Profit and Loss Account for the year
ended on that date annexed thereto and Cash Flow Statement for the year
ended on that date. 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.
1. We conducted our audit in accordance with the auditing standards
generally accepted in India. These Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free from any 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 presentation of the
financial statements. We believe that our audit provides a reasonable
basis for our opinion.
2. As required by Companies (Auditors' Report) Order, 2003, issued by
the Central Government of India in terms of Section 227(4A) of the
Companies Act, 1956, we enclose in the Annexure hereto a statement on
the matters specified in paragraphs 4 and 5 of the said Order.
3. Further to our comments in the Annexure referred to above, we
report that: -
(i) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
(ii) In our opinion, proper books of accounts, as required by law, have
been kept by the Company so far as appears from our examination of the
books of accounts of the Company;
(iii) The Balance Sheet and Profit & Loss Account and Cash Flow
Statement dealt with by this report are in agreement with the books of
accounts of the Company;
(iv) In our opinion, the Balance Sheet and the Profit & Loss Account
and Cash Flow Statement dealt with by this report comply with the
mandatory Accounting Standards referred to in Sub - Section (3C) of
Section 211 of the Companies Act, 1956.
(v) In our opinion and based on information and explanation given to
us, none of the Directors is, as at 31st March, 2011, prima-facie
disqualified from being appointed as a director in terms of clause (g)
of sub-section (1) of Section 274 of the Companies Act, 1956;
(vi) In our opinion and to the best of our information and according to
the explanation given to us, the said financial statements, read
together with the notes thereon, give the information required by the
Companies Act, 1956 in the manner so required and present a true and
fair view in conformity with the accounting principles generally
accepted in India; subject to Note No. 7 & 11
(b) of Schedule 18 regarding preparation of Accounts on a "Going
Concern basis".
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March 2011,
And
b) in the case of the Profit and Loss Account, of the Loss of the
Company for the year ended on that date,
c) in case of Cash flow statement of the Cash flows for the year ended
on that date.
ANNEXURE TO AUDITOR'S REPORT
Referred to in paragraph 2 of our report of even date
i) In respect of
Fixed Assets:
a) The Company is maintaining proper records showing full particulars,
including quantitative details and situation of fixed assets on the
basis of available information.
b) We are informed that major portion of the fixed assets have been
physically verified by the management at regular intervals during the
year, which in our opinion is reasonable having regard to the size of
the Company and the nature of its assets. No material discrepancies
were noticed on such verification
c) The Company did not dispose off a substantial part of fixed assets
during the year.
ii) In respect of Inventories
a) We are informed that physical verification of inventory has been
conducted at reasonable intervals during the year by the management. In
our opinion the frequency of such verification is reasonable.
b) In our opinion and according to the information given to us, the
procedures of physical verification of inventory followed by the
management is reasonable and adequate in relation to the size of the
Company and the nature of its business.
c) The Company is maintaining proper records of inventory. No material
discrepancies were noticed on physical verification of inventory as
compared to the book records.
iii. The Company has taken loan from persons falling under Section
301. The terms of the same are not prejudicial to the interest of the
Company.
iv. In our opinion and according to the information and explanation
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business, for purchase of inventory and fixed assets and for the sale
of goods. Further during the course of audit we have not observed any
major weaknesses in the internal control;
v. In respect of transactions covered under Section 301 of the
Companies Act, 1956:
a) Based on the audit procedures applied by us and according to the
information and explanation provided by the management, we are of the
opinion that all the transactions that need to be entered into a
register in pursuance of section 301 of the Act have been so entered.
b) These transaction have been made at prices which are reasonable
having regard to the prevailing market prices at the relevant time.
vi. In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposits from the public
within the meaning of section 58A and 58AA of the Companies Act, 1956
and the rules framed there under. vii In our opinion the internal
audit system of the Company is commensurate with its size and nature of
its business. viii The Central Government has prescribed the
maintenance of Cost records under section 209 (1) (d) of the Companies
Act 1956 in respect of certain manufacturing activities of the Company.
We have broadly reviewed the cost records maintained by the Company and
are of the opinion that prima-facie the prescribed accounts and records
are made and maintained. ix In respect of Statutory dues :
a) According to the records examined by us, the Company is generally
regular in depositing undisputed Statutory dues including Provident
Fund, Employees State Insurance, Income Tax, Sales Tax, VAT Tax, Wealth
Tax, Custom Duty, Excise Duty and any other Statutory dues with the
appropriate authorities. b) According to the information and
explanation given to us, Statutory dues under appeal at various forums
aggregating to Rs.431.84 lacs are as under:
S.
No Name
of the
Statute Nature of
the Dues Period Amount Forum where
appeal / matter
is pending
1 CESTA Excise &
Custom 1996-97 350000 M.P. High Court,
Bench Indore
1998-99 1594141 CESTAT, New Delhi
2004-05 3000000 Commissioner
Appeal
2005-06 586755 CESTAT,
New Delhi
2006-07 10000000 Add. DGFT, New
Delhi
2007-08 5591632 Commissioner
Appeal
2008-09 19242228 CESTAT, New
Delhi
2009-10 2316150 Commissioner
Appeal
2010-11 502635 CESTAT,
New Delhi
Total 43183541
x) As at 31st March 2011 the accumulated losses of the Company are more
than fifty percent of its net worth. The Company has earned cash profit
of Rs.210.68 lacs for the year ended 31st of March 2011 (previous year
loss of Rs. 76.44 Lacs).
xi) In our opinion based on our audit procedures & according to the
information & explanation given to us, the Company has defaulted in
repayment of dues aggregating to Rs.199.40 crores in respect of
Financial Institutions and Banks.
xii) In our opinion and according to the information and explanations
given to us, no loans and advances have been granted by the Company on
the basis of security by way of pledge of shares, debentures and other
securities.
xiii) In our opinion the Company is not a chit fund or a nidhi mutual
benefit fund/ society. Therefore the provision of clause
4 (xiii) of the Companies (Auditors report) Order 2003 are not
applicable to the Company. xiv) In our opinion the Company is not
dealing in or trading in shares, securities, debentures and other
investments.
Accordingly the provisions of clause 4(xiv) of the Companies (Auditors
Report) Order 2003 are not applicable to the Company.
xv) According to the information and explanation given to us, the
Company has not given any guarantee for loans taken by others from
Banks or Financial Institutions.
xvi) In our opinion & according to the information & explanation given
to us on an overall basis, the term loans have been applied for the
purpose for which they were raised.
xvii) According to the information and explanation given to us on an
overall examination of the Balance Sheet of the Company we are of the
opinion that the Company has not utilized funds raised from short-term
sources towards repayment of long- term borrowings and acquisition of
fixed assets.
xviii) During the year the Company have not made any preferential
allotment of shares to parties and companies covered in the Register
maintained under Section 301 of the Companies Act 1956.
xix) The Company did not issue any Debenture during the year.
xx) The Company has not raised any money by way of public issue during
the year.
xxi) Based on audit procedures performed and information & explanation
given by the management, we report that no fraud on or by the Company
has been noticed or reported during the year that causes the financial
statements to be materially misstated.
For RAJENDRA RAJPOOT & CO.,
CHARTERED ACCOUNTANTS
FRN - 09196C
RAKESH JAIN
Partner
PLACE : INDORE M.NO 401098
DATE : 07-09-2011
Mar 31, 2010
We have audited the attached Balance Sheet of SIDDHARTHA TUBES LIMITED,
as at 31st March 2010 and also the Profit and Loss Account for the year
ended on that date annexed thereto and Cash Flow Statement for the year
ended on that date. 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.
i. We conducted our audit in accordance with the auditing standards
generally accepted in India. These Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free from any 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 presentation of the
financial statements. We believe that our audit provides a reasonable
basis for our opinion.
2. As required by Companies (Auditors Report) Order, 2003, issued by
the Central Government of India in terms of Section 227(4A) of the
Companies Act, 1956, we enclose in the Annexure hereto a statement on
the matters specified in paragraphs 4 and 5 of the said Order.
3. Further to our comments in the Annexure referred to above, we
report that: -
(i) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
(ii) In our opinion, proper books of accounts, as required by law, have
been kept by the Company so far as appears from our examination of the
books of accounts of the Company;
(ill) The Balance Sheet and Profit & Loss Account and Cash Flow
Statement dealt with by this report are in agreement with the books of
accounts of the Company;
(iv) In our opinion, the Balance Sheet and the Profit & Loss Account
and Cash Flow Statement dealt with by this report comply with the
mandatory Accounting Standards referred to in Sub - Section (3C) of
Section 211 of the Companies Act, 1956.
(v) In our opinion and based on information and explanation given to
us, none of the Directors is, as at 31st March, 2010, prima-facie
disqualified from being appointed as a director in terms of clause (g)
of sub-section (1) of Section 274 of the Companies Act, 1956;
(vi) In our opinion and to the best of our information and according to
the explanation given to us, the said financial statements, read
together with the notes thereon, give the information required by the
Companies Act, 1956 in the manner so required and present a true and
fair view in conformity with the accounting principles generally
accepted in India; subject to Note Nos 8 & 12 (b) of Schedule 18
regarding payments made under settlements reached with lenders and
preparation of Accounts on a "Going Concern basis".
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March 2010, And
b) in the case of the Profit and Loss Account, of the Loss of the
Company for the year ended on that date,
c) in case of Cash flow statement of the Cash flows for the year ended
on that date.
ANNEXURE TO AUDITORS REPORT
Referred to in paragraph 2 of our report of even date
i) In respect of Fixed Assets:
a) The Company is maintaining proper records showing full particulars,
including quantitative details and situation of fixed assets on the
basis of available information.
b) We are informed that major portion of the fixed assets have been
physically verified by the management at regular intervals during the
year, which in our opinion Is reasonable having regard to the size of
the Company and the nature of its assets. No material discrepancies
were noticed on such verification
c) The Company did not dispose off a substantial part of fixed assets
during the year.
ii) In respect of Inventories
a) We are informed that physical verification of inventory has been
conducted at reasonable intervals during the year by the management. In
our opinion the frequency of such verification is reasonable.
b) In our opinion and according to the information given to us, the
procedures of physical verification of inventory followed by the
management is reasonable and adequate in relation to the size of the
Company and the nature of its business.
c) The Company is maintaining proper records of inventory. No material
discrepancies were noticed on physical verification of inventory as
compared to the book records.
iii. The Company has taken loan from persons falling under Section
301. The terms of the same are not prejudicial to the interest of the
Company.
iv. In our opinion and according to the information and explanation
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business, for purchase of inventory and fixed assets and for the sale
of goods. Further during the course of audit we have not observed any
major weaknesses in the internal control;
v. In respect of transactions covered under Section 301 of the
Companies Act, 1956:
a) Based on the audit procedures applied by us and according to the
information and explanation provided by the management, we are of the
opinion that all the transactions that need to be entered into a
register in pursuance of section 301 of the Act have been so entered.
b) These transaction have been made at prices which are reasonable
having regard to the prevailing market prices at the relevant time.
vi. In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposits from the public
within the meaning of section 58A and 58AA of the Companies Act, 1956
and the rules framed there under.
vii In our opinion the internal audit system of the Company is
commensurate with its size and nature of its business.
viii The Central Government has prescribed the maintenance of Cost
records under section 209 (1) (d) of the Companies Act 1956 in respect
of certain manufacturing activities of the Company. We have broadly
reviewed the cost records maintained by the Company and are of the
opinion that prima-facie the prescribed accounts and records are made
and maintained.
ix In respect of Statutory dues :
a) According to the records examined by us, the Company is generally
regular in depositing undisputed statutory dues including Provident
Fund, Employees State Insurance, Income Tax, Sales Tax, VAT Tax, Wealth
Tax, Custom Duty, Excise Duty, and any other Statutory dues with the
appropriate authorities.
b) According to the information and explanation given to us, Statutory
dues under appeal at various forums aggregating to Rs.428.21 lacs are
as under:
S.
No Name of the
Statute Nature of
the Dues Period Amount Forum where
appeal / matter
is pending
1 CESTA Excise &
Custom 1996-97 350000 M.P. High Court,
Bench Indore
1998-99 1594141 CESTAT, New Delhi
2002-03 148222 CESTAT, New Delhi
2004-05 3000000 Commissioner
Appeal
2005-06 586755 CESTAT, New Delhi
2006-07 10000000 Add. DGFT, New
Delhi
2007-08 5591632 Commissioner
Appeal
2008-09 19242228 CESTAT, New Delhi
2009-10 2308150 Commissioner
Appeal
Total 42821128
x) As at 31st March 2010 the accumulated losses of the Company are more
than fifty percent of its net worth. The Company has earned cash profit
of Rs.76.44 lacs for the year ended 31st of March 2010 (previous year
loss of Rs. 4.98 Crores).
xi) In our opinion based on our audit procedures & according to the
information & explanation given to us, the Company has defaulted in
repayment of dues aggregating to Rs.222.87 crores In respect of
Financial Institutions and Banks.
xii) In our opinion and according to the information and explanation
given to us, no loans and advances have been granted by the Company on
the basis of security by way of pledge of shares, debentures and other
securities.
xiii) In our opinion the Company is not a chit fund or a nidhl mutual
benefit fund/ society. Therefore the provision of clause 4 (xiii) of
the Companies (Auditors report) Order 2003 are not applicable to the
Company.
xiv) In our opinion the Company is not dealing In or trading in shares,
securities, debentures and other investments. Accordingly the
provisions of clause 4(xiv) of the Companies (Auditors Report) Order
2003 are not applicable to the Company.
xv) According to the information and explanation given to us, the
Company has not given any guarantee for loans taken by others from
Banks or Financial Institutions.
xvi) In our opinion & according to the information & explanation given
to us on an overall basis, the term loans have been applied for the
purpose for which they were raised.
xvii) According to the information and explanation given to us on an
overall examination of the Balance Sheet of the Company we are of the
opinion that the Company has not utilized funds raised from short-term
sources towards repayment of long- term borrowings and acquisition of
fixed assets.
xviii) During the year the Company have not made any preferential
allotment of shares to parties and companies covered in the Register
maintained under Section 301 of the Companies Act 1956.
xix) The Company did not issue any Debenture during the year.
xx) The Company has not raised any money by way of public issue during
the year.
xxi) Based on audit procedures performed and information . &
explanation given by the management, we report that no fraud on or by
the Company has, been noticed or reported during the year that causes
the financial statements to be materially misstated.
For RAJENDRA RAJPOOT & CO.,
CHARTERED ACCOUNTANTS
RAKESH JAIN
PARTNER
PLACE : INDORE M.NO.401098
DATE : 07-09-2010