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Auditor Report of Umred Agro Complex Ltd. Company
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Auditor Report of Umred Agro Complex Ltd.

Mar 31, 2013

We have audited the accompanying financial statements of Umred Agro Complex Ltd. ("The Company"), which comprise the Balance sheet as at March 31, 2013, and The Statement of Profit & Loss and Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information. Management''s Responsibility for the Financial Statements

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"). This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation and fair presentation of the financial statements that are fee from material misstatement, whether due to fraud or error. Auditors'' Responsibility Our responsibility is to express a 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 select 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.

Opinion

In our opinion and to the best of our information and according to the explanations given to us, the financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:

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

b) In the case of the statement of Profit & Loss, of the Loss for the year ended on that date; and

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

Report on Other 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 statements 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 & Loss and Cash Flow Statements dealt with by this Report are in agreement with the books of account;

d) In our opinion, the Balance Sheet, Statement of Profit & Loss and Cash Flow Statement comply with the accounting standards referred to in sub - section (3C) of section 211 of the Act;

e) On the basis of written representations received from the directors as on March 31, 2013, and taken on record by the Board of Directors, none oj 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 Act.

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

1. In respect of its Fixed Assets:

a) The Company has maintained records showing particulars regarding quantitative details and situation of Fixed Assets. However the format for this purpose differs from the one suggested under CARO-2003.

b) According to the information and explanations given to the fixed assets have been physically verified by the management at reasonable interval of time. In our opinion, the frequency of verification is reasonable having regard to the size of the company and the nature of fixed assets. To the best of our knowledge, no material discrepancies were noticed on such verification.

c) During the year company has not disposed off substantial part of fixed assets. Accordingly the provisions of clause 4(i) (c) of the companies (Auditor''s Report) order 2003 are not applicable to the company.

2 In respect of its inventories:

a) As explained to us, the inventory has been physically verified during the year by the management. In our opinion the frequency of verification is reasonable

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

c) In our opinion and according to information and explanations given to us, the company is maintaining proper records of inventory. According to the information and explanation furnished to us, list of physical inventory is taken at the year-end and no material discrepancy noticed on such verification.

3. The company has not granted or taken any loans, secured or unsecured to/from companies, firms or other parties covered in the register maintained under section 301 of the companies act, 1956.

4. In our opinion and according to information and explanations given to us, there are adequate internal control systems 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. During the course of our audit, no major weaknesses have been noticed in the internal control. 5 In respect of the contracts or arrangements referred to in Section 301 of the Companies Act, 1956:

a) In our opinion and according to information and explanation given to us, the transactions that need to be entered in to the register maintained under section 301 of the Companies Act 1956 have been so entered.

b) In our opinion and according to information and explanations given to us, the transactions made in pursuance of contracts or arrangements entered in the register maintained under section 301 and exceeding the value of Five Lac Rupees 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. According to the information and explanations furnished to us, the company has not accepted any public deposits within the meaning of section 58 A and 58 AA of the Companies Act 1956.

7 According to the information and explanations given to us, the company has an internal audit system commensurate with the size and nature of its business. During the year under audit internal audit was carried out departmentally under the supervision of a Chartered Accountant.

8. The Central Government has prescribed maintenance of cost records under section 209 (1) (d) of the Companies Act, 1956 in respect of certain manufacturing activities of the Company. We have broadly reviewed .the accounts and records of the company in this connection and are of the opinion, that prima facie, the prescribed accounts and records are have been maintained. We have not, however, made a detailed examination of the same.

9 a) According to the information and explanations furnished to us, during the year, undisputed statutory dues including provident fund,- employees state insurance, income tax, excise duty, and other material statutory dues applicable to it have generally been regularly deposited with appropriate authorities though there has been slight delay in few months.

b) According to the information and

Sr. Name of the Nature of Dues Amount No Institution Status (Rs. In Lacs)

1 Sales Tax Assessed Interest & Penalty_ 52.28

2 Sales Tax Assessed Tax, Interest & Penalty 115.10

3 Sales Tax Assessed Interest & Penalty 11.22

4 Sales Tax Assessed Tax, lnterest& Penalty 81.49

5 Sales Tax Assessed Tax, Interests Penalty 31.37

6 Sales Tax Assessed Interests Penalty 0.28

7 Sales Tax Assessed Interests Penalty 0.99

8 Sales Tax Assessed Interests Penalty 0.50

9 Sales Tax Assessed Tax, Interests Penalty 298.20

10 Sales Tax Assessed Tax, Interests Penalty 437.15

11 Sales Tax Assessed Tax, Interests Penalty 394.98

12 Sales Tax Assessed Tax, Interests Penalty 142.86

13 Sales Tax Assessed Interest & Penalty 1.77



Name of the Period to which Forurn where Institution the amount relates dispute is pending

Salse Tax 1991-92 Sales Tax Dept.

Sales Tax 1992-93 Joint Comm. Sales Tax

Sales Tax 1993-94 Sales Tax Dept

Sales Tax 1994-95 Joint Comm. SalesTax

Sales Tax 1996-97 Tribunal Sales Tax

Sales TAX 1997-98 Sales Tax Dept

Sales TAX 1998-99 Sales Tax Dept.

Sales Tax 1999-00 Sales Tax Dept.

Sales Tax 2000-01 Appellate Authority

Sales Tax 2001-02 Appellate Authority

Sales TAX 2002-03 Appellate Authority

Sales TAX 2003-04 Appellate Authority

Sales Tax 2004-05 SalesTax Dept.

explanations given to us, the details of disputed dues as at the year end, are as above.

10 The accumulated losses of the company are more than fifty percent of its paid up capital and free reserves. The company has incurred cash losses during the financial year covered by our audit.

The company is a sick industrial company within the meaning of Clause (O) of Sub section (1) of the Section 3 of the Sick industrial Companies (Special Provisions) Act 1985 (SICA).The company is implementing rehabilitation scheme sanctioned by BIFR on 24th November 2004.

11 In our opinion and according to the information and explanation given to us there are no over dues payables to Financial Institutions/Banks as on31sl March 2013.

12 According to the information and explanations furnished to us, the company has not granted any loans or advances on the basis of security by way of pledge of shares, debentures and other securities. Accordingly the provision of clause 4 (xii) of the Companies (Auditor''s Report) order 2003 are not applicable to the company.

13.According to the information and explanations given to us, the company is not a chit fund or a nidhi mutual benefit fund / society. Accordingly the provision of clause 4 (xiii) of the Companies (Auditor''s Report) order 2003 are not applicable to the company.

14.According to the information and explanations given to us, the company is not dealing in shares, securities, debentures and other investments. Accordingly the provision of clause 4 (xiv) of the Companies (Auditor''s Report) order 2003 are not applicable to the company.

15 According to the information and

explanations given to us, the company has not given any guarantee for loans taken by others from bank or financial institution.

16. According to the information and explanations furnished 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.

17. The company has not made any preferential

allotment of shares to parties and companies covered in the register maintained u/s 301 of the Act, during the year.

18. According to the information and explanations furnished to us, the company has not issued any debentures and hence the provision of clause 4 (xix) of the Companies (Auditor''s Report) order 2003 are not applicable to the company.

19. The Company has not raised any monies by way of public issue during the year.

20. To the best of our knowledge and belief and according to the information and explanations given to us, no frauds on or by the company has been noticed or reported during the course of our audit.

Place: Nagpur For Anil Mardikar & Co.

Date: 31slAugust, 2013 Chartered Accountants

(Anil B. Mardikar)

Partner

Mem.No.32778

FRN-100454W


Mar 31, 2011

1. We have audited the attached Balance Sheet of Umred Agro Complex Ltd., as at 31st March 2011 and also the Profit and Loss Account and the Cash flow statement for the year elided 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 have conducted our audit in accordance with the auditing standards generally accepted in India. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

3. As required by the Companies (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 hereto a statement on the matters specified in paragraphs 4 and 5 of the said Order to the extent applicable.

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

a) We have obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the 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 and profit and loss account dealt with by this report are in agreement with the books of account.

d) In our opinion, the Balance Sheet and Profit and Loss account 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 to the extent applicable except

i) Treatment of employees benefits as per Accounting Standerd-15 (Revised 2005), as stated in serial no. 10 of significant accounting policies - Schedule 17.

ii) Stock of Bye- Products, which is valued at Net Realizable Value.

e) On the basis of written representations received from the directors, as on 31st March 2011 and taken on record by the 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;

f) Subject to our observations in Para 4 (d) above, In our opinion to the best of our information and according to the explanations given to us, the said accounts read together with the Significant Accounting Policies and other notes thereon give the information required by the Companies Act, 1956, in the manner- so required, and present a true and fair view in conformity with the accounting principles generally accepted in India:

i) In so far as it relates to Balance Sheet, of the state of affairs of the Company as on March 31,2011;

ii) In so far as relates to the Profit & Loss Account, of the profit of the Company for the year ended on that date; and

iii) In so far as it relates to the Cash Flow Statement, of the cash flow of the Company for the year ended on that date.

ANNEXURETO AUDITOR'S REPORT (Referred to in paragraph (3) of our report of even date)

1. In respect of its Fixed Assets:

a) The Company has maintained records showing particulars regarding quantitative details and situation of Fixed Assets. However the format for this purpose differs from the one suggested under CARO-2003.

b) According to the information and explanations given to the fixed assets have been physically verified by the management at reasonable interval of time. In our opinion, the frequency of verification is reasonable having regard to the size of the company and the nature of fixed assets. To the best of our knowledge, no material discrepancies were noticed on such verification.

c) During the year company has not disposed off substantial part of fixed assets. Accordingly the provisions of clause 4(i) (c) of the companies (Auditor's Report) order 2003 are not applicable to the company.

2. In respect of its inventories:

a) As explained to us, the inventory has been physically verified during the year by the management. In our opinion the frequency of verification is reasonable.

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

c) In our opinion and according to information and explanations given to us, the company is maintaining proper records of inventory. According to the information and explanation furnished to us, list of physical inventory is taken at the year-end and no material discrepancy noticed on such verification.

3. a) The company has not granted or taken any loans, secured or unsecured to/from companies, firms or other parties covered in the register maintained under section 301 of the companies act, 1956.

4. In our opinion and according to information and explanations given to us, there are adequate internal control systems 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. During the course of our audit, no major weaknesses have been noticed in the internal control.

5. In respect of the contracts or arrangements referred to in Section 301 of the Companies Act, 1956:

a) In our opinion and according to information and explanation given to us, the transactions that need to be entered in to the register maintained under section 301 of the Companies Act 1956 have been so entered.

b) In our opinion and according to information and explanations given to us, the transactions made in pursuance of contracts or arrangements entered in the register maintained under section 301 and exceeding the value of Five Lac Rupees 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. According to the information and explanations furnished to us, the company has not accepted any public deposits within the meaning of section 58 A and 58 AA of the Companies Act 1956.

7. According to the information and explanations given to us, the company has an internal audit system commensurate with the size and nature of its business. During the year under audit internal audit was carried out departmentally under the supervision of a Chartered Accountant.

8. The Central Government has prescribed maintenance of cost records under section 209 (1) (d) of the Companies Act, 1956 in respect of certain manufacturing activities of the Company. We have broadly reviewed the accounts and records of the company in this connection and are of the opinion, that prima facie, the prescribed accounts and records are have been maintained. We have not, however, made a detailed examination of the same.

9. a) According to the information and explanations furnished to us, during the year, undisputed statutory dues including provident fund, employees state insurance, income tax, excise duty, and other material statutory dues applicable to it have generally been regularly deposited with appropriate authorities though there has been slight delay in few months.

b) According to the information and explanations given to us, the following are be details of disputed dues as at the year end are as follows:

Statement of Disputed Dues

Sr. Name of the Nature of Dues Amount No Institution Status (Rs. In Lacs)

1 Sales Tax Assessed Interests Penalty 52.02

2 Sales Tax Assessed Tax, Interests 115.10 Penalty

3 Sales Tax Assessed Interests Penalty 10.95

4 Sales Tax Assessed Tax, Interests 81.49 Penalty

5 Sales Tax Assessed Tax, Interests 31.37 Penalty

6 Sales Tax Assessed Interests & Penalty 1.48

7 Sales Tax Assessed Interests & Penalty 1.59

8 Sales Tax Assessed Interests & Penalty 0.90

9 Sales Tax Assessed Tax, Interests 298.20 Penalty

10 Sales Tax Assessed Tax, Interests 367.51 Penalty

11 Sales Tax Assessed Tax, Interests 276.26 Penalty

12 Sales Tax Assessed Tax, Interests 142.86 Penalty

13 Sales Tax Assessed Interests & 3.02 Penalty

Name of the Period to which Forum where Institution the amount relates dispute is pending Sales Tax 1991-92 Sales Tax Dept.

Sales Tax 1992-93 Joint Comm .Sales Tax

Sales Tax 1993-94 Sales Tax Dept

Sales Tax 1994-95 Joint Comm. Sales Tax

Sales Tax 1996-97 Tribunal Sales Tax

Sales Tax 1997-98 Sales Tax Dept

Sales Tax 1998-99 Sales Tax Dept.

Sales Tax 1999-00 Sales Tax Dept.

Sales Tax 2000-01 Appellate Authority Sales Tax 2001-02 Appellate Authority

Sales Tax 2002-03 Appellate Authority

Sales Tax 2003-04 Appellate Authority Sales Tax 2004-05 Sales Tax Dept.

10. The accumulated losses of the company are more than fifty percent of its paid up capital and free reserves. The company has not incurred cash losses during the financial year covered by our audit and the immediate preceding financial year.

The company is a sick industrial company within the meaning of Clause (O) of Sub section (1) of the Section 3 of the Sick industrial Companies (Special Provisions) Act 1985 (SICA). The company is implementing rehabilitation scheme sanctioned by BIFR on 24th November 2004.

11. In our opinion and according to the information and explanation given to us there are no dues payables to Financial Institutions/Banks as on 31st March 2011.

12. According to the information and explanations furnished to us, the company has not granted any loans or advances on the basis of security by way of pledge of shares, debentures and other securities. Accordingly the provision of clause 4 (xii) of the Companies (Auditor's Report) order 2003 are not applicable to the company.

13. According to the information and explanations given to us, the company is not a chit fund or a nidhi mutual benefit fund / society. Accordingly the provision of clause 4 (xiii) of the Companies (Auditor's Report) order 2003 are not applicable to the company.

14. According to the information and explanations given to us, the company is not dealing in shares, securities, debentures and other investments. Accordingly the provision of clause 4 (xiv) of the Companies (Auditor's Report) order 2003 are not applicable to the company

15. According to the information and explanations given to us, the company has not given any guarantee for loans taken by others from bank orfinancial institution.

16. In our opinion and according to the information and explanations given to us by the management, the Company has obtained & utilized Term loan of Rs. 37.50 Lacs during the year.

17. According to the information and explanations furnished 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.

18. The company has not made any preferential allotment of shares to parties and companies covered in the register maintained u/s 301 of the Act, during the year.

19. According to the information and explanations furnished to us, the company has not issued any debentures and hence the provision of clause 4 (xix) of the Companies (Auditor's Report) order 2003 are not applicable to the company.

20. The Company has not raised any monies by way of public issue during the year.

21 . To the best of our knowledge and belief and according to the information and explanations given to us, no frauds on or by the company has been noticed or reported during the course of our audit.

For Anil Mardikar & Co. Chartered Accountants FRN-100454W (Anil B. Mardikar) Partner Mem.No.32778

Place : Nagpur Date : 13 August 2011


Mar 31, 2010

1. We have audited the attached Balance Sheet of Umred Agro Complex Ltd., as at 31st March 2010 and also the Profit and Loss Account and the Cash flow statement for the year ended on that date annexed thereto. These financial statements are the responsibility of the companys management. Our responsibility is to express an opinion on these financial statements based on our audit.

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

3. As required by the Companies (Auditors Report) Order, 2003 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 hereto a statement on the matters specified in paragraphs 4 and 5 of the said Order to the extent applicable.

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

a) We have obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the 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 and profit and loss account dealt with by this report are in agreement with the books of account.

d) In our opinion, the Balance Sheet and Profit and Loss account 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 to

the extent applicable except

i) Treatment of employees benefits as per Accounting Standerd-15 (Revised 2005), as stated in serial no.10 of significant accounting policies - Schedule 19.

ii) Stock of Bye- Products, which is valued at Net Realizable Value.

iii) Interest on sales tax dues as per the order dated 29th April 2006 of Maharashtra Sales Tax Tribunal for the year 1991-92 and 1993- 94 is not provided for Rs. 63.00 lacs and shown as contingent liabilities pending waiver application is moved with The Sales Tax Authorities on dated 30th March 2007.

e) On the basis of written representations received from the directors, as on 31st March 2010 and taken on record by the Board of Directors, we report that none of the directors is disqualified as on 31 st 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;

f) Subject to our observations in Para 4 (d) above, In our opinion to the best of our information and according to the explanations given to us, the said accounts read together with the Significant Accounting Policies and other notes thereon give the information required by the Companies Act, 1956, in the manner so required, and present a true and fair view in conformity with the accounting principles generally accepted in India:

i) In so far as it relates to Balance Sheet, of the state of affairs of the Company as on March 31,2010;

ii) In so far as relates to the Profit & Loss Account, of the profit of the Company for the year ended on that date; and

iii) In so far as it relates to the Cash Flow Statement, of the cash flow of the Company for the year ended on that date.

ANNEXURE TO AUDITORS REPORT (Referred to in paragraph (3) of our report of even date)

1. In respect of its Fixed Assets:

a) The Company has maintained records showing particulars regarding quantitative details and situation of Fixed Assets. However the format for this purpose differs from the one suggested under CARO-2003.

b) According to the information and explanations given to the fixed assets have been physically verified by the management at reasonable interval of time. In our opinion, the frequency of verification is reasonable having regard to the size of the company and the nature of fixed assets. To the best of our knowledge, no material discrepancies were noticed on such verification.

c) During the year company has not disposed off substantial part of fixed assets. Accordingly the provisions of clause 4(i) (c) of the companies (Auditors Report) order 2003 are not applicable to the company.

2. In respect of its inventories:

a) As explained to us, the inventory has been physically verified during the year by the management. In our opinion the frequency of verification is reasonable.

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

c) In our opinion and according to information and explanations given to us, the company is maintaining proper records of inventory. According to the information and explanation furnished to us, list of physical inventory is taken at the year-end and no material discrepancy noticed on such verification.

3. a) The company has not granted or taken any loans, secured or unsecured to/from companies, firms or other parties covered in the register maintained under section 301 of the companies act, 1956.

4. In our opinion and according to information and explanations given to us, there are adequate internal control systems 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. During

the course of our audit, no major weaknesses have been noticed in the internal control.

5. In respect of the contracts or arrangements referred to in Section 301 of the Companies Act, 1956:

a) In our opinion and according to information and explanation given to us, the transactions that need to be entered in to the register maintained under section 301 of the Companies Act 1956 have been so entered.

b) In our opinion and according to information and explanations given to us, the transactions made in pursuance of contracts or arrangements entered in the register maintained under section 301 and exceeding the value of Five Lac Rupees 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. According to the information and explanations furnished to us, the company has not accepted any public deposits within the meaning of section 58 A and 58 AA of the Companies Act 1956.

7. According to the information and explanations given to us, the company has an internal audit system commensurate with the size and nature of its business. During the year under audit internal audit was carried out departmentally under the supervision of a Chartered Accountant.

8. The Central Government has prescribed maintenance of cost records under section 209 (1) (d) of the Companies Act, 1956 in respect of certain manufacturing activities of the Company. We have broadly reviewed the accounts and records of the company in this connection and are of the opinion, that prima facie, the prescribed accounts and records are have been maintained. We have not, however, made a detailed examination of the same.

9. a) According to the information and explanations furnished to us, during the year, undisputed statutory dues including provident fund, employees state insurance, income tax, excise duty, and other material statutory dues applicable to it have generally been regularly deposited with appropriate authorities though there has been slight delay in few cases.

b) According to the information and explanations given to us, the following are the details of disputed dues as at the year end:

Details of Disputed Sales Tax dues (In Rs. Lacs) :

Year Amount Nature Remarks

1991-92 52.05 Interest Pending recalculation of interest as per New

Industrial Policy 2006 of Govt, of Maharashtra.

1992-93 115.10 Principal & Interest Assessment in process

1993-94 10.95 Interest Pending recalculation of interest as per New

Industrial Policy 2006 of Govt, of Maharashtra

1994-95 81.49 Principal & Interest Appeal Pending before first Appellate Authority

1996-97 31.37 Principal & Interest Appeal Pending before first Appellate Authority

2001-02 224.15 Principal Appeal Pending before first Appellate Authority 213.00 Interest

2002-03 247.08 Principal Appeal Pending before first Appellate Authority 147.90 Interest

2003-04 72.83 Principal Appeal Pending before first Appellate Authority





10. The accumulated losses of the company are more than fifty percent of its paid up capital and free reserves. The company has not incurred cash losses during the financial year covered by our audit and the immediate preceding financial year.

The company is a sick industrial company within the meaning of Clause (O) of Sub section (1) of the Section 3 of the Sick industrial Companies (Special Provisions) Act 1985 (SICA). The company is implementing rehabilitation scheme sanctioned by BIFR on 24th November 2004.

11. In our opinion and according to the information and explanation given to us there are no dues payables to Financial Institutions/Banks as on 31st March 2010

12. According to the information and explanations furnished to us, the company has not granted any loans or advances on the basis of security by way of pledge of shares, debentures and other securities. Accordingly the provision of clause 4 (xii) of the Companies (Auditors Report) order 2003 are not applicable to the company.

13. According to the information and explanations given to us, the company is not a chit fund or a nidhi mutual benefit fund / society. Accordingly the provision of clause 4 (xiii) of the Companies (Auditors Report) order 2003 are not applicable to the company.

14. According to the information and explanations given to us, the company is not dealing in shares, securities, debentures and other investments. Accordingly the provision of clause 4 (xiv) of the Companies (Auditors Report) order 2003 are not applicable to the company

15. According to the information and explanations given to us, the company has not given any guarantee for loans taken by others from bank orfinancial institution.

16. In our opinion and according to the information and explanations given to us by the management, the Company has not obtained & utilised any term loan during the year.

17. According to the information and explanations furnished 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.

18. The company has not made any preferential allotment of shares to parties and companies covered in the register maintained u/s 301 of the Act, during the year.

19. According to the information and explanations furnished to us, the company has not issued any debentures and hence the provision of clause 4 (xix) of the Companies (Auditors Report) order 2003 are not applicable to the company.

20. The Company has not raised any monies by way of public issue during the year.

21. To the best of our knowledge and belief and according to the information and explanations given to us, no frauds on or by the company has been noticed or reported during the course of our audit.

Place: Nagpur For Anil Mardikar & Co.

Date:14hAugust 2010 Chartered Accountants

(Anil B. Mardikar) Partner

M. No.32778

 
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