Mar 31, 2014
We have audited the accompanying financial statements of TARAI FOODS
LIMITED ("the Company) which comprise the balance sheet as at 31 March
2014, the statement of profit and loss and the cash flow statement for
the year then ended and a summary of significant accounting policies
and other explanatory information which we have signed under reference
to this report.
Management's Responsibility for the Financial Statements
The company's management is responsible for the preparation of these
financial statements that give a true and fair view of the financial
position, financial performance and cash flows of the Company in
accordance with the Accounting Standards referred to in sub-section
(3C) of section 211 of the Companies Act, 1956 ("the Act") read with
the General Circular 15/2013 dated 13 September 2013 of the Ministry of
Corporate Affairs in respect of Section 133 of the Companies Act, 2013.
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 and other applicable authoritative
pronouncements 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, but not for the
purpose of expressing an opinion on the effectiveness of the entity's
internal control, An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of the accounting
estimates made by management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Basis for Qualified Opinion:
1. Clause 12 on Note 22 regarding damage to the cold store building.
2. Clause 9 on Note 22 regarding interest on Term Loan and working
capital default not provided for.
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:
(i) in the case of the balance sheet, of the state of affairs of the
Company as at 31 March 2014;
(ii) in the case of the statement of profit and loss, of the losses for
the year ended on that date; and
(iii) in the case of the cash flow statement, of the cash flows for the
year ended on that date.
Emphasis of Matter
We draw attention to -
1. Clause 10 on Note 22 of the Financial Statement with regard to
continued losses and negative net worth. Considering continued losses,
and negative net worth of the company, the concept of going concern may
be in doubt, its ability to continue as going concern depends upon the
settlement of outstanding dues of secured/ unsecured creditors and
restructuring of operations by considering appropriate business
strategies and financial viabilities. In spite of these uncertainties,
accounts have been prepared on going concern basis and we are unable to
ascertain its impact on the financial statements of the company.
Our opinion is not qualified in respect of the above matter.
Report on Other Legal and Regulatory Requirements
1, As required by the Companies (Auditor's Report) Order, 2003 ("the
Order"), as amended, issued by the Central Government of India in terms
of sub-section (4A) of section 227 of 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.
2. As required by section 227(3) of the Act, we report that;
a. we have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b. In our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books;
c. The Balance Sheet, Statement of Profit and Loss and Cash Flow
statement dealt with by this Report are in agreement with the books of
account; a. In our opinion, the Balance Sheet, Statement of Profit and
Loss and Cash Flow statement comply with the Accounting Standards
referred to in sub-section (3C) of section 211 of the Companies Act,
1956 read with the General Circular 15/2013 dated 13 September 2013 of
the Ministry of Corporate Affairs in respect of Section 133 of the
Companies Act, 2013.; and
b, On the basis of written re presentations received from the directors
as on 31 March 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on 31 March 2014, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956. Sd/-
ANNEXURE TO THE AUDITORS' REPORT
(Referred to in Paragraph (1) of our Report of given date of Tarai
Foods Limited for the period ended 31st March, 2014)
1. a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
b) The fixed assets have been physically verified by the Management
during the year in a phased periodical manner, which in our opinion
reasonable, having regard to the size of the company and nature of its
assets. No material discrepancies were noticed on such physics
verification.
c) In our opinion, the company has not disposed of substantial part of
fixed assets during the year.
2. a) As explained to us, inventories have been physically verified by
the Management at regular intervals during the year.
b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed Management are reasonable and adequate in relation to the size
of the company and the nature of its business.
c) The company has maintained proper records of inventories. There were
no material discrepancies noticed on physical verification of inventory
as compared to the book records.
3. a) The Company has not granted any loans, secured or unsecured, to
companies, firms or other parties covered in the register maintained
u/s 30th of the Act. Consequently, paragraphs 4 iii (b), iii(c) and iii
(d) of the said order are not applicable.
b) The company, has taken interest free unsecured loans from the
Managing Director in earlier years and a company covered in the
register maintained u/s 301 of the Act in the current year as well as
in earlier years.
Sr. Name of the Party Loan taken Maximum
No. during the Balance
year during the
year
1 Mr. G.S. Sandhu Nil Rs.112.50
Lacs
2 Tarai Farmlands Rs. 10 lacs Rs. 40
Pvt. Ltd. Lacs
Sr. Name of the Party Outstanding Terms of the
No. as on 31 st Loan
March 2014
1 Mr. G.S. Sandhu Rs. 112.50 Unsecured
Lacs interest free and
repayable on
demand
2 Tarai Farmlands Rs. 40 Lacs Unsecured
Pvt. Ltd. interest free and
repayable on demand
c) in our opinion and according to the information and explanations
given to us, the loans as detailed above are interest free and the
other terms and conditions are not prima fade prejudicial to the
interest of the Company.
d) In respect of loans taken by the company the loan is interest free
and the principal amount Is repayable on demand.
e) In respect of loans taken by the company, these are repayable on
demand which is not demanded as on the date of signing of this report
and thus is not overdue.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business for the purchase of inventory, fixed assets and also for the
sale of goods and Services, During the course of our audit, we have not
observed any Continuing failure to correct major weaknesses in internal
control System.
5. a) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements, that needed to be entered into in 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, there are no such transactions in pursuance of contracts
or arrangements entered in the register maintained under section 301 of
the Companies Act, 1956 aggregating during the year to Rs. 5,00,000/ or
more in respect of any party.
6. The company has not accepted any deposits from the public within
the meaning of Sections 58A and 58AA of the Act and the rules framed
thereunder.
7. in our opinion, the internal audit system of the company is
commensurate with its size and nature of its business,
8. We have broadly reviewed the Books of Accounts maintained by the
Company in respect of the products where pursuant to the rules made by
the Central Government of India, the maintenance of cost records have
been prescribed 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. We have not, however, made a
detailed examination of such records with a view to determine whether
they are accurate and complete.
9. In respect of statutory dues:
a) According to the records of the Company, in the year under review
undisputed statutory dues including Income tax, Wealth Tax, Service
Tax, Custom Duty, Excise Duty, Cess and other statutory dues have been
generally regularly deposited with the appropriate authorities.
Undisputed statutory dues of provident fund of current year under
review and of earlier years and sales tax of earlier years have not
been deposited and there have been serious delays in many cases..
Provident Fund amounting to Rs. 18.53 lacs (including of earlier years)
and sales tax of earlier years amounting to Rs. 8.18 lacs has not been
deposited with the Authorities after they have become due. However,
provision for provident Fund and sales Tax Liability have been made in
Books of Accounts in the earlier years.
According to the Information and explanations given to us, except for
provident fund and Sales Tax, no undisputed amounts payable in respect
of the aforesaid dues in the year under review were outstanding as at
31st March, 2014 for a period of more than six months from the date of
becoming payable.
b) As at 31st March, 2014 according to the records of the Company, the
following are the particulars of disputed dues on account of sales tax,
Income Tax and excise duty matters that have not been deposited:
Name of the Nature of Amount (Rs. Period to
Statute Dues In Lacs) which dues
relate
Central Sales Sales Tax Rs. 0.32 2000-2001
Tax Act and Sales Tax Rs. 2.38 2006-2007
the Local
Sales Tax Act
Central Excise Duty Rs. 0.59 1999- 2000
Excise Act
The Income Income Tax Rs. 129.84 Ass. Yr.
Tax Act, 1961 1996-97
Name of the Forum where
Statute the dispute is
pending
Central Sales Appellate
Tax Act and Authority
the Local Upto
Sales Tax Act Commissioner's
Level
Central Appellate
Excise Act Authority
Upto
Commissioner's
Level
The Income Appellate
Tax Act, 1961 Authority- ITAT
and High COurt
10, The company has accumulated losses which has eroded the net worth
fully and has incurred cash loss during the current financial year
covered by our audit and has not incurred cash loss in the immediately
preceding financial year.
11. In our opinion and based on our audit procedures and according to
the information and explanation given to us, we are of the opinion that
the Company has defaulted in repayment of dues to financial institution
and the bank. The Company has been defaulting to the institutions for
fifteen years to the tune of Rs. 465 lacs towards principal amount As
per the books of accounts maintained by the Company, the default of
unpaid interested the secured lenders is approx. Rs. 40 crores as on
31.03.2014.
12 In our opinion and according 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.
13 The company is not a chit fund or a nidhi/mutual benefit
fund/society. Therefore, clause (xiii) of paragraph 4 of the Companies
(Auditor's Report) Order 2003 is not applicable to the company.
14. The company is not dealing in or trading in securities, debentures
and other investments.
15. The company has not given guarantees for loans taken by others from
banks or financial institutions.
16. The company has not raised any new term loans during the year.
17. According to the information and explanations given to us and on an
overall examination of the financial statements of the company, we are
of the opinion that no funds raised on short term basis have been used
for long term investment.
18. 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.
19. The company has not issued any debentures and hence question of
creation of securities or charge in respect of debentures issued does
not arise.
20 The company has not raised any money by way of public issue during
the year.
21. During the course of our examination of the books and records of
the Company, carried out in accordance with the generally accepted
auditing practices in India and according to the information and
explanations given to us, we have neither come across any instance of
fraud on or by the Company, noticed or reported during the year, nor
have we been informed of such case by the Management.
For RATTAN ANIL & CO.
Chartered Accountants
Place : Rudrapur Firm Regn. No.: 009414N
Date :30th May 2014 Sd/-
Rattan Bansal
Partner
Membership No.: 083929
Mar 31, 2013
1. We report that we have audited the Balance Sheet of TARAI
FOODS-LIMITED as at 31st March, 2013 and the relative Profit and loss
Account for the period ended on that date and the Cash Flow statement
for the period 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 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 from material mis-statement. 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 the management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
3. In our opinion, and to the best of our information and according to
the explanations given to us, the Balance Sheet and the Profit and loss
Account and the Cash Flow statement together with the significant
accounting policies and notes thereon and attached thereto give in the
prescribed manner, the information required by the Companies Act, 1956
and also give, subject to note 3.1 to 3.2 below, respectively, a true
and fair view of the state of the Company''s affairs as at 31st
March,2013 in case of Balance Sheet and of the profit for the period
ended on that date in case of the Profit & loss Account and of the cash
flows for the period ended on that date in case of the Cash Flow
Statement.
1. Clause 14 on Note 22 regarding damage to the cold store building.
2. Clause lion Note 22 regarding interest on Term Loan and working
capital default not provided for.
4. Considering continued losses, and negative net worth of the
company, the concept of going concern may be in doubt, Its ability to
continue as going concern depends upon the settlement of outstanding
dues of secured/ unsecured creditors and restructuring of operations by
considering appropriate business strategies and financial viabilities.
In spite of these uncertainties, accounts have been prepared on going
concern basis and we are unable to ascertain its impact on the
financial statements of the company. (Clause 12 on Note 22).
5. As required by the Companies (Auditor''s Report) Order, 2003, as
amended by the Companies (Auditors Report Amendment) order, 2004 (The
Order) issued by the Central Government of India in terms of Section
227 (4A) of the Companies Act, 1956 (The Act) 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 our audit, we enclose
in the Annexure a statement on the matters specified in Paragraphs 4
and 5 of the said order.
6. Further to our comments in the Annexure referred to in Paragraph 3
& 4 above, we report that:
a) We have obtained all the information and explanations which, to the
best of our knowledge and belief, were necessary for our audit;
b) In our opinion; proper books of account have been kept as required
by law so far as appears from our examination of those books;
c) The Balance Sheet, Profit & loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of accounts;
d) In our opinion the Balance Sheet and Profit and 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;
e) In our opinion, and based on the information and explanations given
to us, none of the directors of the Company, is disqualified as on
March 31,2013 from being appointed as a directors in terms of clause
(g) of sub-section (1) of Section 274 of the Companies Act, 1956.
ANNEXURE TO THE AUDITORS'' REPORT
(Referred to in Paragraph (1) of our Report of given date of Tarai
Foods Limited for the period ended 31st March, 2013)
1. a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets. b) The fixed assets have been physically verified by the
Management during the year in a phased periodical manner, which in our
opinion is reasonable, having regard to the size of the company and
nature of its assets. No material discrepancies were noticed on such
physical verification. c) In our opinion, the company has not disposed
of substantial part of fixed assets during the year.
2. a) As explained to us, inventories have been physically verified by
the Management at regular intervals during the year.
b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by Management are reasonable and adequate in relation to the
size of the company and the nature of its business.
c) The company has maintained proper records of inventories. There were
no material discrepancies noticed on physical verification of inventory
as compared to the book records.
In our opinion and according to the information and explanations
given to us, the loans as detailed above are interest free and the
other terms and conditions are not prima facie prejudicial to the
interest of the Company.
d) In respect of loans taken by the company the loan is interest free
and the principal amount is repayable on demand.
e) In respect of loans taken by the company, these are repayable on
demand which is not demanded as on the date of signing of this report
and thus is not overdue.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business for the purchase of inventory, fixed assets and also for the
sale of goods and Services, During the course of our audit, we have not
observed any Continuing failure to correct major weaknesses in internal
control System.
5. a) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements, that needed to be entered into in 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, there are no such transactions in pursuance of contracts
or arrangements entered in the register maintained under section 301 of
the Companies Act, 1956 aggregating during the year to Rs. 5,00,000/-or
more in respect of any party.
6. The company has not accepted any deposits from the public.
7. In our opinion, the internal audit system of the company is
commensurate with its size and nature of its business,
8. The Central Government has prescribed maintenance of Cost Records
under Section 209 (1) (d) of the Companies Act, 1956.
9. In respect of statutory dues:
According to the records of the Company, in the year under review
undisputed statutory dues including Income tax, Wealth Tax, Service
Tax, Custom Duty, Excise Duty, Cess and other statutory dues have been
generally regularly deposited with the appropriate authorities except
for provident fund of Rs. 21.75 lacs (including of earlier years) and
Sales Tax of Rs. 10.56 Lacs (including of earlier years) which are due
for more than six months after they have become payable. Provision of
Sales Tax Liability of Rs. 10.56 lacs had not made in Books of
Accounts. According to the Information and explanations given to us,
except for provident fund and Sales Tax, no undisputed amounts payable
in respect of the aforesaid dues in the year under review were
outstanding as at 31st March, 2013 for a period of more than six months
from the date of becoming payable.
10. The company has accumulated losses and has not incurred cash Loss
during the current financial year covered by our audit and has incurred
cash loss in the immediately preceding financial year.
11. In our opinion and based on our audit procedures and according to
the information and explanation given to us, we are of the opinion that
the Company has defaulted in repayment of dues to financial
institutions and the bank. The Company has been defaulting to the
institutions for fifteen years to the tune of Rs. 465 lacs towards
principal amount As per the books of accounts maintained by the
Company, the default of unpaid interest to the secured lenders is
approx. Rs. 40 crores as on 31.03.2013.
12. 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.
13 The company is not a chit fund or a nidhi/mutual benefit
fund/society. Therefore, clause (xiii) of paragraph 4 of the Companies
(Auditor''s Report) Order 2003 is not applicable to the company.
14. The company is not dealing in or trading in securities, debentures
and other investments.
15. The company has not given guarantees for loans taken by others
from banks or financial institutions.
16. The company has not raised any newterm loansduringtheyear.
17. According to the information and explanations given to us and on
an overall examination of the financial statements of the company, we
are of the opinion that no funds raised on short term basis have been
used for long term investment.
18. 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.
19. The company has not issued any debentures and hence question of
creation of securities or charge in respect of debentures issued does
not arise.
20 The company has not raised any money by way of public issue during
the year.
21. In our opinion and according to the information and explanations
given to us, 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 RATTAN ANIL & CO.
Chartered Accountants
Place: Rudrapur
Date : 30th May 2013 Sd/-
Rattan Ban sal
Partner
Membership No.: 083929
Firm Regn. No.: 009414IN
Mar 31, 2011
1. We report that we have audited the Balance Sheet of TARAI FOODS
LIMITED as at 31st March, 2011 and the relative Profit and loss Account
for the period ended on that date and the Cash Flow statement for the
period 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.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free from material mis-statement. 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 the management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
3. In our opinion, and to the best of our information and according to
the explanations given to us, the Balance Sheet and the Profit and loss
Account and the Cash Flow statement together with the significant
accounting policies and notes thereon and attached thereto give in the
prescribed manner, the information required by the Companies Act, 1956
and also give, subject to note 3.1 to 3.4 below, respectively, a true
and fair view of the state of the Companys affairs as at 31st
March,2011 in case of Balance Sheet and of the loss for the period
ended on that date in case of the Profit & loss Account and of the cash
flows for the period ended on that date in case of the Cash Flow
Statement.
1. Note6(b)toSchedulel9regardingvaluationofgratuity.
2. Note 5 on Schedule 20 regarding details of amount refundable
towards share application money.
3. Note 13 on Schedule 20 regarding damage to the cold store building.
4. Note 10 on Schedule 20 regarding interest on Term Loan and working
capital default not provided for.
4. Considering continued losses, and negative net worth of the
company, the concept of going concern may be in doubt, Its ability to
continue as going concern depends upon the settlement of outstanding
dues of secured/ unsecured creditors and restructuring of operations by
considering appropriate business strategies and financial viabilities.
Inspite of these uncertainties, accounts have been prepared on going
concern basis and we are unable to ascertain its impact on the
financial statements of the company. (Note 11 on Schedule 20).
5. As required by the Companies (Auditors Report) Order, 2003, as
amended by the Companies (Auditors Report Amendment) order, 2004 (The
Order) issued by the Central Government of India in terms of Section
227 (4A) of the Companies Act, 1956 (The Act) 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 our audit, we enclose
in the Annexure a statement on the matters specified in Paragraphs 4
and 5 of the said order.
6. Further to our comments in the Annexure referred to in Paragraph 3
& 4 above, we report that:
a) We have obtained all the information and explanations which, to the
best of our knowledge and belief, were necessary for our audit;
b) In our opinion, proper books of account have been kept as required
by law so far as appears from our examination of those books;
c) The Balance Sheet, Profit & loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of accounts;
d) In our opinion the Balance Sheet and Profit and loss account and
Cash Flow statement dealt with by this report comply with the Mandatory
Accounting Standards referred to in sub-session 3C of session 211 of
the Companies Act, 1956;
e) In our opinion, and based on the information and explanations given
to us, none of the directors of the Company, is disqualified as on
March 31,2011 from being appointed as a directors in terms of clause
(g) of sub-section (1) of Section 274 of the Companies Act, 1956.
ANNEXURE TO THE AUDITORS REPORT
(Referred to in Paragraph (1) of our Report of given date of Tarai
Foods Limited for the period ended 31st March, 2011)
1. a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
b) The fixed assets have been physically verified by the Management
during the year in a phased periodical manner, which in our opinion is
reasonable, having regard to the size of the company and nature of its
assets. No material discrepancies were noticed on such physical
verification.
c) In our opinion, the company has not disposed of substantial part of
fixed assets during the year.
2. a) As explained to us, inventories have been physically verified by
the Management at regular intervals during the year.
b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by Management are reasonable and adequate in relation to the
size of the company and the nature of its business.
c) The company has maintained proper records of inventories. There were
no material discrepancies noticed on physical verification of inventory
as compared to the book records.
3. a) The Company has not granted any loans, secured or unsecured, to
companies, firms or other parties covered in the register maintained
u/s 301 of the Act. Consequently, paragraphs iii (b), iii(c) and iii
(d) of the said order are not applicable.
b) The company had taken interest free unsecured loans from the
Managing Director and a company covered in the register maintained u/s
301 of the Act in earlier years.
Sr. Name of the Party Loan taken Maximum Outstanding Terms of
No. during the Balance as on 31st the Loan
year during March 2011
the year
1 Mr. G.S. Sandhu Nil Rs. 25.50 Rs. 25.50 Unsecured
Lacs Lacs interest
free and
repayable
on demand
2 Tarai Farmlands
Pvt. Ltd. Nil Rs. 30 Rs. 30 Unsecured
Lacs Lacs interest
free and
repayable
on demand
c) In our opinion and according to the information and explanations
given to us, the loans as detailed above are interest free and the
other terms and conditions are not prima facie prejudicial to the
interest of the Company.
d) In respect of loans taken by the company the loan is interest free
and the principal amount is repayable on demand.
e) In respect of loans taken by the company, these are repayable on
demand which is not demanded as on the date of signing of this report
and thus is not overdue.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business for the purchase of inventory, fixed assets and also for the
sale of goods and Services, During the course of our audit, we have not
observed any Continuing failure to correct major weaknesses in internal
control System.
5. a) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements, that needed to be entered into in 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, there are no such transactions in pursuance of contracts
or arrangements entered in the register maintained under section 301 of
the Companies Act, 1956 aggregating during the year to Rs. 5,00,000/-
or more in respect of any party.
6. The company has not accepted any deposits from the public.
7. In our opinion, the internal audit system of the company is
commensurate with its size and nature of its business,
8. The Central Government has not prescribed maintenance of Cost
Records under Section 209 (1) (d) of the Companies Act, 1956.
9. In respect of statutory dues:
a) According to the records of the Company, in the year under review
undisputed statutory dues including Income tax, Wealth Tax, Service
Tax, Custom Duty, Excise Duty, Cess and other statutory dues have been
generally regularly deposited with the appropriate authorities except
for provident fund of Rs. 16.87 lacs (including of earlier years) and
Sales Tax of Rs. 3.25 Lacs(including of earlier years) which are due
for more than six months after they have become payable. According to
the Information and explanations given to us, except for provident fund
and Sales Tax, no undisputed amounts payable in respect of the
aforesaid dues in the year under review were outstanding as at 31st
March, 2011 for a period of more than six months from the date of
becoming payable.
b) As at 31st March, 2011 according to the records of the Company, the
following are the particulars of disputed dues on account of sales tax,
Income Tax and excise duty matters that have not been deposited:
Name of the statute Amount Rs. in Lacs Forum Where dispute is
pending
Sales Tax (Financial Year 0.32 Appellate Authority Ã
2000-01) Upto Commissioners
Level
Excise Duty (Fin. Year 0.59 Appellate Authority
1999-2000) Upto Commissioners
Level
Income Tax 129.84 Appellate Authority Ã
(Ass. Year 1996-97) Appellate Tribunal
10. The company has accumulated losses and has not incurred cash Loss
during the current financial year covered by our audit and in the
immediately preceding financial year.
11. In our opinion and based on our audit procedures and according to
the information and explanation given to us, we are of the opinion that
the Company has defaulted in repayment of dues to financial
institutions and the bank. The Company has been defaulting to the
institutions for a period of more than ten years to the tune of Rs. 465
lacs towards principal amount and in respect of working capital loans
from bank, to the tune of Rs. 190 lacs as principal amount for last ten
years. As per the books of accounts maintained by the Company, the
default of unpaid interest to the secured lenders is approx. Rs. 4498
lacs as on 31.03.2011, subject to reconciliation of accounts.
12. 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.
13. The company is not a chit fund or a nidhi/mutual benefit
fund/society. Therefore, clause (xiii) of paragraph 4 of the Companies
(Auditors Report) Order 2003 is not applicable to the company.
14. The company is not dealing in or trading in securities, debentures
and other investments.
15. The company has not given guarantees for loans taken by others
from banks or financial institutions.
16. The company has not raised any new term loans during the year.
17. According to the information and explanations given to us and on
an overall examination of the financial statements of the company, we
are of the opinion that no funds raised on short term basis have been
used for long term investment.
18. 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.
19. The company has not issued any debentures and hence question of
creation of securities or charge in respect of debentures issued does
not arise.
20 The company has not raised any money by way of public issue during
theyear.
21. In our opinion and according to the information and explanations
given to us, 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 RATTAN ANIL & CO.
Chartered Accountants
Sd/-
RattanBansal
Partner
Membership No.:083929
Firm Regn. No.:009414N
Place: Rudrapur
Date : 30th May 2011
Mar 31, 2010
1. We report that we have audited the Balance Sheet of TARAI
FOODS-LIMITED as at 31st March, 2010 and the relative Profit and Loss
Account for the period ended on that date and the Cash Flow statement
for the period 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.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free from material mis-statement. 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 the management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
3. In our opinion, and to the best of our information and according to
the explanations given to us, the Balance Sheet and the Profit and Loss
Account and the Cash Flow statement together with the significant
accounting policies and notes thereon and attached thereto give in the
prescribed manner, the information required by the Companies Act, 1956
and also give, subject to note 3.1 to 3.3 below, respectively, a true
and fair view of the state of the Companys affairs as at 31st
March,2010 in case of Balance Sheet and of the Loss for the period
ended on that date in case of the Profit & Loss Account and of the cash
flows lor the period ended on that date in case of the Cash Plow
Statement.
1. Note 5 on Schedule 20 regarding details of amount refundable
towards share application money.
2. Note 13 on Schedule 20 regarding damage to the cold store building.
3. Note 10 on Schedule 20 regarding interest not provided for.
4. Considering continued losses, and negative net worth of the
company, the concept of going concern may be in doubt, Its ability to
continue as going concern depends upon the settlement of outstanding
dues of secured/ unsecured creditors and restructuring of operations by
considering appropriate business strategies and financial viabilities.
Inspita of these uncertainties, accounts have been prepared on going
concern basis and we are unable to ascrertain its impact on the
financial statments of the company. (Note 11 on sechedule 20).
5. As required by the Companies (Auditors Report) Order, 2003, as
amended by the Companies (Auditors Report Amendment) order, 2004 (The
Order) issued by the Central Government of India in terms of Section
227 (4A) of the Companies Act, 1956 (The Act) 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 our audit, we enclose
in the Annexure a statement on the matters specified in Paragraphs 4
and 5 of the said order.
6. Further to our comments in the Annexure referred to in Paragraph 3
& 4 above, we report that:
a) We have obtained all the Information and explanations which, to the
best of our knowledge and belief, were necessary for our audit;
b) In our opinion, proper books of account have been kept as required
by law so far as appears from our examination of those books ;
c) The Balance Sheet, Profit & Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of accounts ;
d) In our opinion the Balance Sheet and Profit and Loss account and
Cash Flow statement dealt with by this report comply with the Mandatory
Accounting Standards referred to in sub-session 3C of session 211 of
the Copanies Act, 1956;
e) In our opinion, and based on the information and explanations given
to us, none of the directors of the Company is disqualified as on March
31, 2010 from being appointed as a directors in terms of clause (g) of
sub-section (1) of Section 274 of the Companies Act, 1S56.
ANNEXURE TO THE AUDITORS REPORT
(Referred to in Paragraph (1) of our Report of given date of Tarai
Foods Limited for the period ended 31st March, 2010)
1. a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
b) The fixed assets have been physically verified by the Management
during the year in a phased periodical manner. which in our opinion is
reasonable, having regard to the size of the company and nature of its
assets. No material discrepancies were noticed on such physical
verification.
c) In our opinion, the company has not disposed of substantial part of
fixed assets during the year.
2. a) As explained to us, inventories have been physically verified by
the Management at regular intervals during the year.
b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by Management are reasonable and adequate in relation to the
size of the company and the nature of its business.
c) The company has maintained proper records of inventories. There were
no material discrepancies noticed on phy;cal verification of inventory
as compared to the book records.
3. a) The Company has not granted any loans, secured or unsecured, to
companies, firms or other parties covered in the register maintained
u/s 301 of the Act. Consequently, paragraphs iii (b), iii(c) and iii
(d) of Ihe said order are not applicable.
b) The company, has taken interest free unsecured loans from the
Mananging Director and a company covered in the register maintained u/s
301 of the Act.
Sr.
No. Name of the
Party Loan taken Maximum
Balance Outstanding
as on Terms of
the Loan
during the
year during
the year 31st March.
2010
1. Mr. G. S.
Sandhu Rs. 5 Lacs Rs. 25.50
Lacs Rs. 25.50
Lacs Unsecured,
interest
free and
repayable
on demand
2. Tarai
Farmlands Rs. 30 Lacs Rs. 30 Lacs Rs. 30 Lacs - do -
Pvt. Ltd.
c) In our opinion and according to the information and explanations
given to us, the loans as detailed above are interest free and the
other terms and conditions are not prima facie prejudicial to the
interest of the Company.
d) In respect of loans taken by the company the loan is interest free
and the principal amount is repayable on demand.
e) In respect of loans taken by the company, these are reapaybte on
demand which is not demanded as on the date of signing of this report
and thus is not overdue.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the company and the nature of Its
business for the purchase of inventory, fixed assets and also for the
sale of goods and Services. During the course of our audit, we have not
observed any Continuing failure to correct major weaknesses in internal
control System.
5. a) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements, that needed to be entered into in 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, there are no such transactions In pursuance of contracts or
arrangements entered in the register maintained under section 301 of
the Companies Act, 1956 aggregating during the year to Rs. 5.00,0007-
or more in respect of any party.
6. The company has not accepted any deposits from the public.
7. In our opinion, the internal audit system of the company is
commensurate with its size and nature of its business.
8. The Central Government has not prescribed mainlenance of Cost
Records under Section 209 (1) (d) of the Companies Act. 1956.
9. In respect of statutory dues :
a) According to the records of the Company, in the year under review
undisputed statutory dues including Income tax, Wealth Tax, Service
Tax, Custom Duty, Excise Duty. Cess and other statutory dues have been
generally regularly deposited with the appropriate authorities except
for provident fund of Rs. 12.88 lacs, and Sales Tax of Rs. 3.25 Lacs,
which are due for more than six months after they have become payable.
According to the Information and explanations given to us, except for
provident fund and Sales Tax , no undisputed amounts payable in respect
of the aforesaid dues in the year under review were outstanding as at
31 st March, 2010 for a period of more than six months from the date of
becoming payable. /
b) As at 31st March. 2010 according to the records of the Company, the
following are the particulars of disputed dues on account of sales tax,
income Tax and excise duty matters that have not been deposited :
Name of the
statute Amount Rs. in lacs Forum where dispute Is
pending
Sales tax 0.32 Appellate Authority-Upto
Commissioners level
Excise Duty 0.59 AppellateAuthority Upto
Commissioners level
Income Tax 129-84 AppellateAuthority-
Appellate
Tribunal
10. The company has accumulated losses and has not incurred cash Loss
during the current fianancial year covered by our audit and in the
immediately preceding financial year.
11. In our opinion and based on our audit procedures and according to
the information and explanation given to us, we are of the opinion that
the Company has defaulted in repayment of dues to financial
institutions and the bank. The Company has been defaulting to the
Institutions for a period of more than fen years to the tune of Rs. 465
lacs towards principal amount and in respect of working capital loans
from bank, to the tune of Rs. 190 lacs as principal amount for last
Nine years. As per the books of accounts maintained by the Company, The
default of unpaid interest to the secured lenders is approx, Rs. 4498
as on 31.03.2010. Subject to reconciliation of accounts.
12. 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 snares, debentures and other
securities.
13. The company is not a chit fund or a nidhi/mutual benefit
fund/society. Therefore, clause (xiii) of paragraph 4 of the Companies
(Auditors Report) Order 2003 is not applicable to the company.
14. The company is not dealing in or trading in securities, debentures
and other investments.
15. The company has not given guarantees for loans taken by others
from banks or financial institutions.
16. The company has not raised any new term loans during the year.
17. According to the information and explanations given to us and on
an overall examination of the financial statements of the company, we
are of the opinion that no funds raised on short term basis have been
used for long term investment.
18. 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,
19- The company has not issued any debentures and hence question of
creation of securities or charge in respect of debentures issued does
not arise.
20. The company has not raised any money by way of public issue during
the year.
21. In our opinion and according to the information and explanations
given to us, no fraud on or by the company has been noticed or reported
during the year, that causes he financial statements to be materially
misstated
For JOLLY & OBEROI
Chartered Accountant
Place : Rudrapur Sd/
Date :28th May, 2010 K.S. Oberoi
Partner
Membership No.: 85893
Firm No.: 001723N