Home  »  Company  »  Smruthi Organics  »  Quotes  »  Auditor Report
Enter the first few characters of Company and click 'Go'

Auditor Report of Smruthi Organics Ltd.

Mar 31, 2015

We have audited the accompanying standalone financial statements of Smruthi Organics Limited ("the Company"), which comprise the Balance Sheet as at March 31, 2015, the Statement of Profit and Loss, the Cash Flow Statement for the year ended, and a summary of the significant accounting policies and other explanatory information.

Management's Responsibility for the Standalone 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 of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit.

We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made 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 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. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company's Directors, as well as evaluating the overall presentation of the financial statements.

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

Opinion

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2015, and its loss and its cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order, 2015 ("the Order) issued by the Central Government in terms of sub-section (11) of section 143 of the Act, we give in Annexure a statement on matters specified in paragraphs 3 and 4 of the said order .

2. As required by Section 143 (3) of the Act, we report that:

(a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the 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 the Cash Flow Statement dealt with by this Report are in agreement with the books of account.

(d) In our opinion, the aforesaid standalone 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) In the course of our audit we have not come across any transactions or matters which have any adverse effects on the functioning of the company.

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

(g) In our opinion, the company has adequate internal financial control systems in place and the same are effective and commensurate with the nature of business of the company and the scale of its operations.

(h) With respect to the other matters to be included in the Auditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:

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

ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.

iii. During the year, there has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.

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

(b) The fixed assets of the company have been physically verified by the management at reasonable intervals and no material discrepancies were noticed on such verification.

2. (a) The inventory has been physically verified at reasonable intervals during the year, by the management and internal auditors.

(b) The procedures of physical verification of inventory followed by the management are reasonable and adequate in relation to the size of the company and nature of its business.

(c) The company is maintaining proper records of inventory and according to information and explanations given to us no material discrepancies have been noticed on such physical verification.

3. 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. If so,

4. In our opinion, there are adequate internal control procedures commensurate with the size of the company and the nature of the business with regard to the purchase of the inventory and fixed assets and for the sale of goods and services. During the course of our audit, no major weakness has been noticed in the internal controls.

5. The company has not accepted any deposits from the public.

6. We have broadly reviewed the records maintained by the company pursuant to the rules made by the Central Government for the maintenance of Cost Records under sub-section (1) of Section 148 of the Companies Act, and we are of the opinion that prima facie the prescribed accounts and records have been made and maintained. However, we have not carried out a detailed audit of the same.

7. (a) The company is regular in depositing with appropriate authorities undisputed statutory dues including Provident Fund, Employees State Insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax, Customs Duty, Excise Duty, Cess and other statutory dues applicable to it. No undisputed amounts in respect of these statutory payments were in arrear as on March 31, 2015 for a period of more than six months from the date they became payable except as :

Amount Period to which Name of Nature of Rs in the amount relates the Status the dues Lacs Various years . covering the period

Sales Tax Sales tax refund is reduced 2.48 2009-10 Department on account of tax on deemed export and job work charges

Sales Tax Sales tax refund is reduced 19.35 2011-12 Department on account of tax on deemed export and job work charges

Central Excise Cenvat Credit is obtained 28.72 2007-2011 Department instead of PLA (EOU) 4 Years

Central Excise Cenvat Set off of EOU Unit 28.72 2007-2011 Department is transferred to DTA 4 Years

Central Excise Cenvat credit is not Department considered on purchase 1.09 2009-10

Name of the Status Forum where Pending

Sales Tax Department JCST (Appeal) Solapur

Sales Tax Department JCST (Appeal) Solapur

Central Excise Department Additional Commissioner of Central Excise, Pune

Central Excise Department Additional Commissioner of Central Excise, Pune

Central Excise Department Tribunal, Pune



(b) During the year, there has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.

8 The company does not have any accumulated losses as on 31st March, 2015 and has not suffered any cash losses for the year ended on that date.

9. The company has not defaulted in repayment of dues to financial institution or banks. The company has not issued debentures.

10. The company has not given guarantee for any loans taken by others.

11. The term loans have been applied for the purpose for which they have been obtained. 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.

12. During the course of our examination of the books and records of the company, carried in accordance with the auditing standards generally accepted in India, we have neither come across any instance of fraud on or by the Company noticed or reported during the course of our audit nor have we been informed of any such instance by the Management

ASHOK MADGUNDI & CO. Chartered Accountants F R No. 100668W

Sd/-

Place - Solapur (Ashok D- Madgundi) Place - Solapur Proprietor Date - 10th June, 2015 ICAI M.No. 36983


Mar 31, 2014

We have audited the accompanying financial statements of "Smruthi Organics 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 ended, and a summary of significant accounting policies and other explanatory information.

Management''s Responsibility for the Financial Statements

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 principles generally accepted in India including Accounting Standards referred to in sub-section (3C) of section 211 of The Companies Act, 1956 ("the Act"). 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, the aforesaid financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:

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

b) In the case of the Statement of Profit and Loss, of the 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 ("the Order") issued by the Central Government of India in terms of sub-section (4A) of section 227 of the Act, we give in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the Order.

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

a) We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the 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, Statement Profit & Loss, and Cash Flow Statement dealt with by this Report are in agreement with books of account.

d) In our opinion, the Balance Sheet, Statement of Profit and Loss, and Cash Flow Statement comply with 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 as on March 31, 2014, and taken on record by Board of Directors, none of the directors is disqualified as on March 31, 2014, from being appointed as a director in terms of clause (g) of sub-section (1) of Section 274 of The Companies Act, 1956.

Annexure to the Auditor''s Report

Referred to in Paragraph 3 of our report of even date.

i) a) The company has maintained proper records showing full particular including quantitative details and situation of fixed assets.

b) All fixed assets have not been physically verified by the management during the year but there is a regular program of verification 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) There was no disposal of a substantial part of fixed assets during the year.

(ii) a) The management has conducted physical verification of inventory at reasonable intervals during the year.

b) 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) The Company is maintaining proper records of inventory. Discrepancies noted on verification between the physical stocks and the book records were not material and have been properly dealt with in the books of accounts.

(iii) a) According to the information and explanations given to us, the Company has not granted any loans, secured or unsecured to companies, firms or other parties covered in the register maintained under section 301 of the Companies Act, 1956. Accordingly, the provision of clause 4 (iii) (a) to (d) of the Order are not applicable to the company and hence not commented upon.

b) The Company had obtained a loan from Directors covered in the register maintained under section 301 of the Companies Act, 1956.

c) In our opinion, the rate of interest and other terms and conditions on which loans have been taken from/granted to Companies, firms or other parties listed in the register maintained under section 301 of the Companies Act, 1956 are not, prima facie, prejudicial to the interest of company.

d) The company is regular in repaying the principal amount as stipulated and has been regular in the payment of interest. The parties have repaid the principal amounts as stipulated and have been regular in the payment of interest

e) There is no overdue amount of loans taken from or granted to companies, firms or other parties listed in the register maintained under section 301 of the Companies Act, 1956.

(iv) In our opinion and according to the information and explanation given to us, there is an adequate internal control system commensurate with the size of the company and the nature of its business with regard to the purchases of inventory, fixed assets and with regard to the sale of goods. During the course of our audit, we have not observed any major weakness or continuing failure to the correct any major weaknesses in the internal control system of the Company in respect of these areas.

(v) a) According to the information and explanations provided by the management, we are of the opinion that the particulars of contracts or arrangements referred to in section 301 of the Companies Act, 1956 that need to be entered into the register maintained under section 301 have been so entered.

b) In our opinion and according to the information and explanations given to us, the transactions made in pursuance of such contracts or arrangements and exceeding the value of rupees Five Lacs have been entered in to during the financial year at prices which are reasonable and comparable figures are not available having regard to the prevailing market prices at the relevant time.

(vi) The company has not accepted any deposits from public during the year.

(vii) In our opinion, the company has an internal audit system commensurate with the size and nature of its business.

(viii) We have broadly reviewed the books of account maintained by the company pursuant to the Rules made by the Central Government for the maintenance of cost records under section 209(1) (d) of the Companies Act, 1956, and are of the opinion that prima facie the prescribed accounts and records have been made and maintained.

(ix) a) The company is regular in depositing with appropriate authorities undisputed statutory dues including provident fund, employees'' state insurance, income tax, sales tax, service tax, custom duty, excise duty, cess and other material statutory dues applicable to it.

b) According to the information and explanation given to us, no undisputed amounts payable in respect of provident fund, employees'' state insurance, income tax, sales tax, service tax, custom duty, central excise duty, cess and other material statutory dues were outstanding, at the year end, for a period of more than six months from the date they became payable.

Name of Nature of amount the Status the dues (Rs.in Lacs)

Sales Tax Sales tax refund is reduced on 2.48 Department account of tax on deemed export and job work charges

Sales Tax Sales tax refund is reduced on 19.35 export and job work charges

Central Excise Cenvat Credit is obtained 28.72 Department instead of PLA (EOU) 4 Years Central Excise Cenvat Set off of EOU Unit 28.72 Department is transferred to DTA 4 Years

Central Excise Cenvat credit is not Department considered on purchase 1.09

Period to which Name of the amount relates Forum where the Status various years. Pending covering the period

Sales Tax 2009-10 JCST (Appeal) Department Kolhapur

Sales Tax 2011-12 JCST (Appeal) Kolhapur

Central Excise 2007-2011 Additional Department Commissioner of Central Excise, Pune

Central Excise 2007-2011 Additional Department Commissioner of Central Excise, Pune Central Excise Department 2009-10 Tribunal, Pune

(x) The company has not accumulated losses at the end of the financial year and it has incurred cash loss in the current year and not for immediately preceding financial year.

(xi) Based on our audit procedures and as per the information and explanation given by the management, we are of the opinion that the company has not defaulted in repayment of dues to a financial institution / bank. During the year restructuring of working capital limit of Rs. 600.00 lacs is treated as working capital term loan for 5 years considering holiday period for 2 years.

(xii) According to the information and explanations given to us and based on the documents and records produced, the company has not granted loans and advances 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 (Auditor''s Report) Order, 2003 (as amended) 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 (Auditor''s Report) Order, 2003 (as amended) are not applicable to the company.

(xv) According to the information and explanations given to us, the company has not given any guarantees for loans taken by others from banks or financial institutions.

(xvi) Based on the information and explanations given to us by the management, term loan were applied and sanctioned for the purpose for which the loans were obtained. Not Applicable.

(xvii) According to the information and explanation given to us and on an overall examination of the balance sheet of the company, we report that no funds raised on short-term basis have been used for long term investment

(xviii) The company has not made any preferential allotment of shares to parties or companies covered in the register maintained under section 301 of the Companies Act, 1956.

(xix) The company has not issued any debentures during the year.

(xx) The company has not raised any money by public issue during year.

(xxi) 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.

ASHred Accountants F R No. 100668W

sd/- Place : Solapur (Ashok D- Madgundi) p|ace : Solapur Proprietor Date : 9th Aug 2014 M.No.36983


Mar 31, 2013

We have audited the accompanying financial statements of "Smruthi Organics 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 ended, and a summary of significant accounting policies and other explanatory information.

Management''s Responsibility for the Financial Statements

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 principles generally accepted in India including Accounting Standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956 ("the Act"). 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, 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, 2013;

(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.

Report on Other Legal and Regulatory Requirements

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

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

(a) We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the 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, Statement Profit & Loss, and Cash Flow Statement dealt with by this Report are in agreement with books of account.

(d) In our opinion, the Balance Sheet, Statement of Profit and Loss, and Cash Flow Statement comply with 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 as on March 31, 2013, and taken on record by 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.

Annexure to the Auditor''s Report

Referred to in Paragraph 3 of our report of even date.

i) a) The company has maintained proper records showing full particular including quantitative details and situation of fixed assets.

b) All fixed assets have not been physically verified by the management during the year but there is a regular program of verification 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) There was no disposal of a substantial part of fixed assets during the year.

(ii) a) The management has conducted physical verification of inventory at reasonable intervals during the year.

b) 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) The Company is maintaining proper records of inventory. Discrepancies noted on verification between the physical stocks and the book records were not material and have been properly dealt with in the books of accounts.

(iii) a) According to the information and explanations given to us, the Company has not granted any loans, secured or unsecured to companies, firms or other parties covered in the register maintained under section 301 of the Companies Act, 1956. Accordingly, the provision of clause 4 (iii) (a) to (d) of the Order are not applicable to the company and hence not commented upon.

b) The Company had obtained a loan from Directors covered in the register maintained under section 301 of the Companies Act, 1956.

c) In our opinion, the rate of interest and other terms and conditions on which loans have been taken from/granted to Companies, firms or other parties listed in the register maintained under section 301 of the Companies Act, 1956 are not, prima facie, prejudicial to the interest of company.

d) The company is regular in repaying the principal amount as stipulated and has been regular in the payment of interest. The parties have repaid the principal amounts as stipulated and have been regular in the payment of interest

e) There is no overdue amount of loans taken from or granted to companies, firms or other parties listed in the register maintained under section 301 of the Companies Act, 1956.

(iv) In our opinion and according to the information and explanation given to us, there is an adequate internal control system commensurate with the size of the company and the nature of its business with regard to the purchases of inventory, fixed assets and with regard to the sale of goods. During the course of our audit, we have not observed any major weakness or continuing failure to the correct any major weaknesses in the internal control system of the Company in respect of these areas.

(v) a) According to the information and explanations provided by the management, we are of the opinion that the particulars of contracts or arrangements referred to in section 301 of the Companies Act 1956 that need to be entered into the register maintained under section 301 have been so entered.

b) In our opinion and according to the information and explanations given to us, the transactions made in pursuance of such contracts or arrangements and exceeding the value of rupees Five Lacs have been entered in to during the financial year at prices which are reasonable and comparable figures are not available having regard to the prevailing market prices at the relevant time.

(vi) The company has not accepted any deposits from public during the year.

(vii) In our opinion, the company has an internal audit system commensurate with the size and nature of its business.

(viii) We have broadly reviewed the books of account maintained by the company pursuant to the Rules made by the Central Government for the maintenance of cost records under section 209(1) (d) of the Companies Act, 1956, and are of the opinion that prima facie the prescribed accounts and records have been made and maintained.

(ix) a) The company is regular in depositing with appropriate authorities undisputed statutory dues including provident fund, employees'' state insurance, income tax, sales tax, service tax, custom duty, Excise duty, Cess and other material statutory dues applicable to it.

b) According to the information and explanation given to us, no undisputed amounts payable in respect of provident fund, employees'' state insurance, income tax, sales tax, service tax, custom duty, Excise duty, Cess and other material statutory dues were outstanding, at the year end, for a period of more than six months from the date they became payable.

Period to which the amount Name of Nature of Amount Forum where relates various years covering the Statu the dues (Rs. in Lacs) Pending the period

Sales Tax Sales Tax dues JCST (Appeal) 26.87 2004-05 Department (incl.Interest & Penalty) Kolhapur

Sales Tax Sales Tax dues CST (Appeal) 56.12 2005-06 Department (incl.Interest & Penalty) Kolhapur

Sales Tax Sales Tax dues JCST (Appeal) 36.95 2006-07 Department (incl.Interest & Penalty) Kolhapur

Stay for recovery of sales tax is ordered by Joint CST Kolhapur against order passed by Deputy CST Solapur for the above period. The company has filled the writ petition with H''ble High Court, Mumbai for availing total sales tax benefit under PSI 1993 scheme.

(x) The company has no accumulated losses at the end of the financial year and it has not incurred cash losses in the current and immediately preceding financial year.

(xi) Based on our audit procedures and as per the information and explanation given by the management, we are of the opinion that the company has not defaulted in repayment of dues to a financial institution / bank.

(xii) According to the information and explanations given to us and based on the documents and records produced, the company has not granted loans and advances 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 (Auditor''s Report) Order, 2003 (as amended) 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 (Auditor''s Report) Order, 2003 (as amended) are not applicable to the company.

(xv) According to the information and explanations given to us, the company has not given any guarantees for loans taken by others from banks or financial institutions.

(xvi) Based on the information and explanations given to us by the management, term loan were applied and sanctioned for the purpose for which the loans were obtained.

(xvii) According to the information and explanation given to us and on an overall examination of the balance sheet of the company, we report that no funds raised on short-term basis have been used for long term investment

(xviii) The company has not made any preferential allotment of shares to parties or companies covered in the register maintained under section 301 of the Companies Act, 1956.

(xix) The company has not issued any debentures during the year.

(xx) The company has not raised any money by public issue during year.

(xxi) 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.

Ashok Madgundi & Co. Chartered Accountants

F.R.No.: 100668W.

Sd/

(Ashok D. Madgundi)

Place : Solapur

Proprietor

Date : 25th May, 2013 M. No. 36983


Mar 31, 2012

1. We have audited the attached balance sheet of Smruthi Organics Limited Solapur as on 31.03.2012 and the Profit and Loss account and also the cash flow statement for the year 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 misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosure 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 statements presentation. We believe that our audit provides a reasonable basis for our opinion.

3. As required by the Companies [Auditor's Report ] Order, 2003 issued by the Central Government of India in terms of sub Section 4A of Section 227 of the Companies Act, 1956, we enclose in the annexure a statement on the matters specified in Paragraphs 4 & 5 of the said order.

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

I) We have obtained all the information and explanation, 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 those books (and proper returns adequate for the purposes of our audit have been received from the branches not visited by us. The Branch Auditors Report(s) have been forwarded to us and have been appropriately dealt with- Not Applicable).

III) The balance sheet, profit & loss account and cash flow statement dealt with by this report are in agreement with books of accounts.

IV) In our opinion, the balance sheet, profit & loss account and cash flow statement dealt with by this report comply with the Accounting Standards referred to in sub Section (3C) of Section 211 of the Companies Act,1956.

V) On the basis of written representations received from the Directors, as on 31st March 2012 and taken on record by Board of Directors, we report that none of the Directors is disqualified as on 31st March, 2012 from being appointed as a Director in terms of Clause (g) of sub-Section (1) of Section 274 of the Companies Act, 1956.

VI) In our opinion and to the best of our information and according to the explanations given to us , the said accounts give the information required by the Companies Act, 1956, in the manner so required and give true and fair view the conformity with accounting principles generally accepted in India.

a) in the case of the balance sheet, of the state of affairs of the Company as at 31st March, 2012.

b) in the case of the profit & loss account, of the profit for the year ended on that date.

c) in the case of cash flow statement, of the cash flows for the year ended on that date.

ANNEXURE TO THE AUDITOR'S REPORT

Referred to in Paragraph 3 of our report of even date.

1) a) The Company has maintained proper records showing full particular including quantitative details and situation of fixed assets.

b) All fixed assets have not been physically verified by the management during the year but there is a regular program of verification 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) There was no disposal of a substantial part of fixed assets during the year.

2) a) The management has conducted physical verification of inventory at reasonable intervals during the year.

b) 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) The Company is maintaining proper records of inventory. Discrepancies noted on verification between the physical stocks and the book records were not material and have been properly dealt with in the books of accounts.

3) a) According to the information and explanations given to us, the Company has not granted any loans, secured or unsecured to companies, firms or other parties covered in the register maintained under Section 301 of the Companies Act, 1956. Accordingly, the provision of Clause 4 (iii) (a) to (d) of the Order are not applicable to the Company and hence not commented upon.

b) The Company had obtained a loan from Directors covered in the register maintained under Section 301 of the Companies Act, 1956.

c) In our opinion, the rate of interest and other terms and conditions on which loans have been taken from/granted to Companies, firms or other parties listed in the register maintained under Section 301 of the Companies Act, 1956 are not, prima facie, prejudicial to the interest of Company .

d) The Company is regular in repaying the principal amount as stipulated and has been regular in the payment of interest. The parties have repaid the principal amounts as stipulated and have been regular in the payment of interest

e) There is no overdue amount of loans taken from or granted to companies, firms or other parties listed in the register maintained under Section 301 of the Companies Act, 1956.

4) In our opinion and according to the information and explanation given to us, there is an adequate internal control system commensurate with the size of the Company and the nature of its business with regard to the purchases of inventory, fixed assets and with regard to the sale of goods. During the course of our audit, we have not observed any major weakness or continuing failure to the correct any major weaknesses in the internal control system of the Company in respect of these areas.

5) a) According to the information and explanations provided by the management, we are of the opinion that the particulars of contracts or arrangements referred to in Section 301 of the Companies Act 1956 that need to be entered into the register maintained under Section 301 have been so entered.

b) In our opinion and according to the information and explanations given to us, the transactions made in pursuance of such contracts or arrangements and exceeding the value of Rupees Five Lakhs have been entered in to during the Financial Year at prices which are reasonable having regard to the prevailing market prices at the relevant time.

6) The Company has not accepted any deposit from public during the year.

7) In our opinion, the Company has an internal audit system commensurate with the size and nature of its business.

8) We have broadly reviewed the books of account maintained by the Company pursuant to the Rules made by the Central Government for the maintenance of cost records under Section 209(1) (d) of the Companies Act, 1956, and are of the opinion that prima facie the prescribed accounts and records have been made and maintained.

9) a) The Company is regular in depositing with appropriate authorities undisputed statutory dues including provident fund, employees' state insurance, income tax, sales tax, service tax, custom duty, Excise duty, Cess and other material statutory dues applicable to it.

b) According to the information and explanation given to us, no undisputed amounts payable in respect of provident fund, employees' state insurance, income tax, sales tax, service tax, custom duty, Excise duty, Cess and other material statutory dues were outstanding, at the year end, for a period of more than six months from the date they became payable.

Period to which the amount Name of Nature of Amount Forum where relates various years covering the Status the dues (Rs. in Lacs) the Pending period

-- NIL --

10) The Company has no accumulated losses at the end of the Financial year and it has not incurred cash losses in the current and immediately preceding Financial year.

11) Based on our audit procedures and as per the information and explanation given by the management, we are of the opinion that the Company has not defaulted in repayment of dues to a Financial institution / bank.

12) According to the information and explanations given to us and based on the documents and records produced, the Company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

13) 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 (Auditor's Report) Order, 2003 (as amended) are not applicable to the Company .

14) In our opinion, the Company is not dealing in or trading in shares, securities, debentures and other investments. Accordingly the provisions of Clause 4 (xiv) of the Companies (Auditor's Report) Order, 2003 (as amended) are not applicable to the Company .

15) According to the information and explanations given to us, the Company has not given any guarantees for loans taken by others from banks or Financial institutions.

16) Based on the information and explanations given to us by the management, term loan were applied and sanctioned for the purpose for which the loans were obtained.

17) According to the information and explanation given to us and on an overall examination of the balance sheet of the Company , we report that no funds raised on short-term basis have been used for long term investment

18) The Company has not made any preferential allotment of shares to parties or Companies covered in the register maintained under Section 301 of the Companies Act, 1956.

19) The Company has not issued any debentures during the year.

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

21) 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.



Ashok Madgundi & Co.

Chartered Accountants

Sd/-

A. D. Madgundi

Place : Solapur Proprietor

Date : 22nd May, 2012 M.No. 100-36983


Mar 31, 2011

1. We have audited the attached balance sheet of Smruthi Organics Limited Solapur as on 31.03.2011 and the profit and loss account and also the cash flow statement for the year 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 onouraudit.

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 disclosure 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 statements presentation. We believe that our audit provides a reasonable basis for our opinion.

3. As required by the Companies [Auditors Report ] Order, 2003 issued by the Central Government of India in terms of sub section 4A of section 227 of the Companies Act, 1956, we enclose in the annexure a statement on the matters specified in Paragraphs4&5ofthesaidorder.

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

I) We have obtained all the information and explanation, 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 those books (and proper returns adequate for the purposes of our audit have been received from the branches not visited by us. The Branch Auditors Report(s) have been forwarded to us and have been appropriately dealt with- Not Applicable).

III) The balance sheet, profit & loss account and cash flow statement dealt with by this report are in agreement with books of accounts.

IV) In our opinion, the balance sheet, profit & loss account and cash flow statement dealt with by this report comply with the Accounting Standards referred to in sub section (3C) of section 211 of the Companies Act,1956.

V) On the basis of written representations received from the Directors, as on 31st March 2011 and taken on record by Board of Directors, we report that none of the directors is disqualified as on 31st March 2011 from being appointed as a Director in terms of clause (g) of sub-section (1) of section 274 of the Companies Act 1956.

VI) In our opinion and to the best of our information and according to the explanations given to us , the said accounts give the information required by the Companies Act, 1956, in the manner so required and give true and fair view the conformity with accounting principles generally accepted in India.

a) in the case of the balance sheet, of the state of affairs of the Company as at 31st March, 2011.

b) in the case of the profit & loss account, of the profit for the year ended on that date and

c) in the case of 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.

1) a) The company is maintaining proper records showing full particular including quantitative details and situation of fixed assets.

b) All the assets have not been physically verified by the management during the year but there is a regular program of verification 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) During the year, the company has not disposed off a major part of plant & machinery.

2) a) The Inventory has been physically verified during the year by the management.

In our opinion, the frequency of verification is reasonable.

b) 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) The Company is maintaining proper records of inventory. The discrepancies noticed on verification between the physical stocks and the book records were not material.

3) a) The Company had obtained a loan from Directors covered in the register maintained under section 301 of the Companies Act, 1956.

b) In our opinion, the rate of interest and other terms and conditions on which loans have been taken from/granted to Companies, firms or other parties listed in the register maintained under section 301 of the Companies Act, 1956 are not, prima facie, prejudicial to the interest of company.

c) The company is regular in repaying the principal amount as stipulated and has been regular in the payment of interest. The parties have repaid the principal amounts as stipulated and have been regular in the payment of interest

d) There is no overdue amount of loans taken from or granted to companies, firms or other parties listed in the register maintained under section 301 of the Companies Act, 1956.

4) In our opinion and according to the information and explanation given to us, there are adequate internal control procedures commensurate with the size of the company and the nature of its business with regard to purchases of inventory, fixed assets and with regard to the sale of goods. During the course of our audit, we have not observed any continuing failure to correct major weaknesses in internal controls.

5) a) According to the information and explanations given to us, we are of the opinion

that the transactions that need to be entered into the register maintained under section 301 of the Companies Act, 1956 have been so entered.

b) In our opinion and according to the information and explanations given to us, the transactions made in pursuance of contracts or arrangements entered in the register maintained under section 301 of the Companies Act, 1956 and exceeding the value of rupees five lakhs in respect of any party during the year have been made at prices which are reasonable having regard to prevailing market prices at the relevant time.

6) The company has not accepted any deposit from public during the year.

7) In our opinion, the company has an internal audit system commensurate with the size and nature of its business.

8) We have broadly reviewed the books of account relating to material., labour and other items of cost maintained by the company pursuant to the Rules made by the Central Government for the maintenance of cost records under section 209(1) (d) of the Companies Act, 1956 and we are of the opinion that prima facie the prescribed accounts and records have been made and maintained.

9) a) The company is regular in depositing with appropriate authorities undisputed statutory dues including provident fund, employees state insurance, income tax, sales tax, custom duty, Cenvat and other material statutory dues applicable to it.

b) According to the information and explanation given to us, no undisputed amounts payable in respect of income tax, sales tax, custom duty and Cenvat were in arrears as at 31st March 2011 for a period of more than six months from the date they became payable. Period to which the amount Forum where

Name of Nature of Amount relates various years covering

the Status the dues (Rs.in Lacs) Pending the period

- NIL -

10) The company does not have accumulated losses as at 31st March 2011 and also not incurred cash losses during the financial year covered by our audit and not forthe immediately preceding financial year.

11) In our opinion and according to the information and explanation given to us, the company has not defaulted in repayment of dues to a financial institution / bank during the year.

12) The company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

13) In our opinion, considering the nature of activities carried on by the company during the year, the provisions of any special statute applicable to chit fund or a nidhi/ mutual benefit fund/society a re not applicable to the company.

14) In our opinion, the company is not dealing in or trading in shares, securities, debentures and other investments.

15) The company has not given any guarantees for loans taken by others from banks orfinancial institutions.

16) In our opinion, the term loans have been applied for the purpose for which they were raised. - Not applicable as no loan is obtained during the year.

17) According to the information and explanation given to us and on an overall examination of the balance sheet of the company, we report that the funds raised on short-term basis have not been used for long term investment and vice-versa.

18) The company has not made preferential allotment of shares to parties and companies covered in the register maintained under section 301 of the Act.

19) The company has not issued any debentures during the year.

20) The company has not raised any money by public issue during year.

21) According to the information and explanation given to us, no fraud on or by the company has been noticed or reported during the course of our audit.

Ashok Madgundi & Co.

Chartered Accountants

sd/-

A.D. Madgundi

Place : Mumbai Proprietor.

Date : 28th April 2011 M.No.100-36983


Mar 31, 2010

1. We have audited the attached balance sheet of Smruthi Organics Limited Solapur as on 31.03,2010 and the profit and loss account and also the cash flow statement for the year 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 misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosure 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 statements presentation. We believe that our audit provides a reasonable basis for our opinion.

3. As required by the Companies [Auditors Report ] Order , 2003 issued by the Central Government of India in terms of sub section 4A of section 227 of the Companies Act, 1956, we enclose in the annexure a statement on the matters specified in Paragraphs4&5 of the said order.

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

i) We have obtained all the information and explanation, 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 those books (and proper returns adequate for the purposes of our audit have been received from the branches not visited by us. The Branch Auditors Report(s) have been forwarded to us and have been appropriately dealt with- Not Applicable).

iii) The balance sheet, profit & loss account and cash flow statement dealt with by this report are in agreement with books of accounts.

iv) In our opinion, the balance sheet, profit & loss account and cash flow statement dealt with by this report comply with the Accounting Standards referred to in sub section (3C) of section 211 of the Companies Act,1956.

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

vi) In our opinion and to the best of our information and according to the explanations given to us , the said accounts give the information required by the Companies Act, 1956, in the manner so required and give true and fair view the conformity with accounting principles generally accepted in India.

a. in the case of the balance sheet, of the state of affairs of the Company as at 31st March, 2010.

b. in the case of the profit & loss account, of the profit for the year ended on that date and

c. in the case of 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.

1) a) The company is maintaining proper records showing full particular including quantitative details and situation of fixed assets.

b) All the assets have not been physically verified by the management during the year but there is a regular program of verification 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) During the year, the company has not disposed off a major part of plant &. machinery.

2) a) The Inventory has been physically verified during the year by the management.

In our opinion, the frequency of verification is reasonable.

b) 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) The Company is maintaining proper records of inventory. The discrepancies noticed on verification between the physical stocks and the book records were not material.

3) a) The Company had obtained a loan from Directors covered in the register maintained under section 301 of the Companies Act, 1956.

b) In our opinion, the rate of interest and other terms and conditions on which loans have been taken from/granted to Companies, firms or other parties listed in the register maintained under section 301 of the Companies Act, 1956 are not, prima facie, prejudicial to the interest of company.

c) The company is regular in repaying the principal amount as stipulated and has been regular in the payment of interest. The parties have repaid the principal amounts as stipulated and have been regular in the payment of interest

d) There is no overdue amount of loans taken from or granted to companies, firms or other parties listed in the register maintained under section 301 of the Companies Act, 1956.

4) In our opinion and according to the information and explanation given to us, there are adequate internal control procedures commensurate with the size of the company and the nature of its business with regard to purchases of inventory, fixed assets and with regard to the sale of goods. During the course of our audit, we have not observed any continuing failure to correct major weaknesses in internal controls.

5) a) According to the information and explanations given to us, we are of the opinion that the transactions that need to be entered into the register maintained under section 301 of the Companies Act, 1956 have been so entered.

b) In our opinion and according to the information and explanations given to us, the transactions made in pursuance of contracts or arrangements entered in the register maintained under section 301 of the Companies Act, 1956 and exceeding the value of rupees five lakhs in respect of any party during the year have been made at prices which are reasonable having regard to prevailing market prices at the relevant time.

6) The company has not accepted any deposit from public during the year.

7) In our opinion, the company has an internal audit system commensurate with the size and nature of its business.

8) We have broadly reviewed the books of account relating to material., labour and other items of cost maintained by the company pursuant to the Rules made by the Central Government for the maintenance of cost records under section 209(1) (d) of the Companies Act, 1956 and we are of the opinion that prima facie the prescribed accounts and records have been made and maintained.

9 a) The company is regular in depositing with appropriate authorities undisputed statutory dues including provident fund, employees state insurance, income tax, sales tax, custom duty, Cenvat and other material statutory dues applicable to it.

b) According to the information and explanation given to us, no undisputed amounts payable in respect of income tax, sales tax, custom duty and Cenvat were in arrears as at 31st March 2010 for a period of more than six months from the date they became payable.

Period to which the amount Forum where Name of Nature of Amount the the dues relates various years Pending covering Status (Rs. in Lacs) the period

- NIL -

10) The company does not have accumulated losses as at 31st March 2010 and also not incurred cash losses during the financial year covered by our audit and not forthe immediately preceding financial year.

11) In our opinion and according to the information and explanation given to us, the company has not defaulted in repayment of dues to a financial institution / bank during the year.

12) The company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

13) In our opinion, considering the nature of activities carried on by the company during the year, the provisions of any special statute applicable to chit fund or a nidhi / mutual benefit fund / society are not applicable to the company.

14) In our opinion, the company is not dealing in or trading in shares, securities, debentures and other investments.

15) The company has not given any guarantees for loans taken by others from banks orfinancial institutions.

16) In our opinion, the term loans have been applied for the purpose for which they were raised.

17) According to the information and explanation given to us and on an overall examination of the balance sheet of the company, we report that the funds raised on short-term basis have not been used for long term investment and vice-versa.

18) The company has not made preferential allotment of shares to parties and companies covered in the register maintained under section 301 of the Act which has been approved by the members, in Extra Ordinary General Meeting dt.21st May 2009. (Refer Notes to Accounts)

19) The company has not issued any debentures during the year.

20) The company has not raised any money by public issue during year.

21) According to the information and explanation given to us, no fraud on or by the company has been noticed or reported during the course of our audit.

Ashok Madgundi & Co. Chartered Accountants

sd/-

A. D. Madgundi

Place : Solapur proprietor

Date : 27th April 2010 M.No. 100-36983


Mar 31, 2000

We have audited the attached Balance Sheet of SMRUTHI ORGANICS LIMITED as at 31st March 2000, and also the Profit & Loss Account of the Company for the year ended on that date annexed thereto and report that :

As required by the Manufacturing and Other Companies (AuditorsReport) Order, 1988 issued by the Company Law Board in terms of Section 227 (4A) of the Companies Act, 1956, and on the basis of such checks as we considered appropriate and according to the information and explanations given to us during the course of audit, we further state that :

1) 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;

2) 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 such books of accounts;

3) The Balance Sheet and Profit & Loss Account dealt with by this report are in agreement with the books of accounts;

4) In our opinion, the said Balance Sheet and Profit & Loss Account comply with the Accounting Standards referred to in Section 211 (3C) of the Companies Act, 1956 (thereinafter referred to as the "Act");

5) In our opinion and to the best of information and according to the explanations given to us, the said accounts read together with notes thereon and notes in Schedule of" Significant Accounting Policies and Notes to Accounts" and those appearing elsewhere in the reports, give the information required by the Act in the manner so required and give a true and fair view;

i) In case of the Balance Sheet, of the state of affairs of the company as at 31st March 2000.

ii) In case of the Profit & Loss Account, of the profit of the company for the year ended on that date.

ANNEXURE TO THE AUDITORS REPORT

Annexure referred to in our report to even date.

1. The Company has maintained proper records showing full particulars including quantitative details and situation of the fixed assets. As informed, the fixed assets have been physically verified by the management at reasonable intervals during the year. We are informed that no material discripencies have been noticed by the man- agement on such verification.

2. According to explanation given to us, none of the Fixed Assets have been revalued during the year under audit.

3. As explained to us, the stock of raw material, work-in-process, stores, spare parts, finished goods have been physically verified by the management at reasonable intervals during the year.

A. In our opinion and according to the information and explanation given to us, the procedure for physical verification of stock followed by the management are reasonable and adequate in relation to the size of the Company and nature of its business.

5. According to explanation given to us, the discrepancies noticed on physically verification of stock were not material and the same have been properly dealt with in the books of accounts.

6. On the basis of our examination of stock records, in our opinion, the valuation of stock is fair and proper in accordance with the normally accepted accounting principles and is on the same basis as in the preceding year.

7. In our opinion, the Company has not obtained any loans from Company, in which relative of Directors is a Director and Member. There are no loans from Companies under the same management as defined under Section 370 (1B) of the Companies Act, 1956.

8. As per the information and explanation given to us the Company has not granted any loans to a Company in which Directors are interested. There are no loans to the Companies under the same management as defined under Section 370 (1B) of the Company Act, 1956.

9. The party (including employees) to whom loans or advances in the nature of loans have been given by the Company are generally repaying the principle amount either as stipulated or has rescheduled.

10. In our opinion, and according to the information and explanations given to us having regard to the explanation that some of items purchased and sold are of special na- ture and suitable alternate sources do not exist for obtaining comparable quotations there are adequate internal control procedures, commensurate with the size of the Company and nature of its business with regard to purchase of fixed assets, other assets, raw materials, consumable items and for the sale of goods.

11. In our opinion and having regard to our comments in Para 10 above, and according to the information and expianatians given to us, the transaction of purchase of goods and materials and sale of goods, materials and services made in pursuance of contracts or arrangements entered in the Register maintained under Section 301 of the Companies Act, 1956 and aggregating during the period to Rs. 50,000/- or more in respect each party have been made at the prevailing market price.

12. As explained to us, the Company has a system of determining un-serviceable or damaged stock with the Company.

13. As explained to us, the Company has maintained reasonable record for sale and disposal of realisable materials.

14. In our opinion the Company has an internal audit system, in general, commensurate with its size and nature of its business.

15. As informed the Central Government has not prescribed for the maintenance of the cost records as required under Section 209 (1) (a), of the Company Act, 1956.

16. The Company has not accepted any deposits to which provisions of Section 58 A of the Companies Act 1956, are applicable.

17. According to the record of the Company, the Employees Provident Fund and Employees State Insurance dues have generally been regularly deposited with the appropriate authorities.

18. According to the information & explanation given to us, there were no undisputed amounts payable in respect of Sales Tax, Excise Duty (refer clause 1 (b) Notes to Accounts) and Income Tax outstanding as on last day of the financial year concerned.

19. During the course of our examination of books of accounts carried out in accordance with generally accepted auditing practices, we have not come across any personal expenses other than those payable under contractual obligations with the Companys employees / directors or generally accepted business practices with have been charged to revenue account.

20. The Company is not a Sick Industrial Company within the meaning of Section 3 (1) (o) of the Sick Industrial Companies (Special Provisions) Act, 1985.

PLACE : SOLAPUR ASHOK MADGUNDI & CO.

CHARTERED ACCOUNTANTS, DATE : 03/07/2000

Sd/- (Shri. A. D. Madgundi) Proprietor



 
Subscribe now to get personal finance updates in your inbox!