Mar 31, 2014
1. We have audited the accompanying financial statements of VIBROS
ORGANICS LIMITED ("the Company"), which comprise the Balance Sheet
as at 31st March, 2014, the Statement of Profit and Loss and the Cash
Flow Statement for the year then ended and a summary of significant
accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
2. 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 13th 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
3. 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.
4. 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.
5. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our audit opinion.
Opinion
6. 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, 2014;
(b) In the case of the Statement of Profit and Loss, of the loss for
the year ended on that date;
(c) In the case of the Cash Flow Statement, of the cash flows of the
company for the year ended on that date.
Emphasis of Matters
7. We draw attention to:
Note 2.18 In view of financial constraints being faced by the company
and disposal of fixed assets the business activity could not be resumed
during the year. The financial statements have been prepared assuming
that the Company will continue as a going concern. Management is
planning a new line of business activity. Our opinion is not qualified
in respect of these matters.
Report on Other Legal and Regulatory Requirements
8. As required under the provisions of 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 Companies Act, 1956,
we give in the Annexure a statement on the matters specified in
paragraphs 4 and 5 of the Order.
9. As required by section 227(3) of the Companies Act, 1956, 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;
d) In our opinion, the Balance Sheet and 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 13th September 2013 of the
Ministry of Corporate Affairs in respect of Section 133 of the
Companies Act, 2013 and
e) On the basis of written representations received from the directors
as on 31st March, 2014 and taken on record by the Board of Directors,
none of the directors is disqualified as on 31st 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.
ANNEXURE TO THE AUDITOR''S REPORT (Referred to in Paragraph 7 of our
report of even date)
1. During the year there is no fixed assets in the company thus para
4(ii) is not applicable to the company.
2. During the year there is no inventory and no purchase sales in the
company thus para 4(ii) is not applicable to the company.
3. (a) During the year company has granted interest free loan to one
party covered in the register maintained under section 301 of the
Companies Act, 1956 (''The Act''). Maximum amount outstanding during
the year was ''2.30 Lacs and year end balance of such loan amounted to
NIL. Other then above Company has not granted and loan, secured or
unsecured, to companies firms or parties covered in the register
maintained under section 301 of the Act.
(b) In our opinion, the rate of interest and other terms and condition
are not prejudicial to the interest of the company.
(c) The loan granted was repayable on demand and has been fully repaid
and has been fully repaid during the year.
(d) The loan granted was repaid during the year. Accordingly there was
no overdue amount of more than rupees one lac in respect of the loan
granted to a body corporate listed in the register maintained under
section 301 of the Act.
(e) The Company has taken unsecured loans outstanding as on 31st March,
2014 77.42 Lacs (Maximum amount outstanding in respect of above loan
''77.42 Lacs during the year) from the two parties covered in the
register maintained under section 301 of the Companies Act 1956 the
terms and condition of the loan are not prejudicial to the interest of
the company.
4. In our opinion and according to the information and explanations
given to us, there is adequate internal control system commensurate
with the size of the Company and nature of its business for purchase of
inventory, fixed assets and with regard to sale of goods and services.
In our opinion there is no continuing failure to correct major weakness
in internal control system. However there is no sale and purchase of
material and of fixed assets during the year.
5. In our opinion and according to the information & explanation given
to us, there is no transaction during the year that need to be entered
in the register maintained under section 301 of the Companies Act, 1956
for 5,00,000/- or more in respect of each such party.
6. The Company has not accepted any deposit from public; accordingly
the provisions of clause (vi) of paragraph 4 of the order are not
applicable to the Company.
7. In our opinion the Company has internal control systems commensurate
with its size with negligible transaction. However there is no internal
audit.
8. The Central Government has not prescribed for the maintenance of
cost records under clause (d) of sub section (I) of section 209 of
Companies Act 1956.
9. (a) According to the information and explanations given to us, there
is no undisputed statutory dues payable in respect of outstanding as at
31st March, 2014 for a period of more than six month from the date they
became payable. As explained to us since there is no business activity
hence no statutory liability was payable during the year under audit.
(b) As per information given to us there is no disputed statutory due
except 1.33 lacs pending in appeal in excise department of earlier
years.
10. The company has accumulated losses of ''608.01 Lacs as on 31st
March, 2014 which is in excess of 50% of the net worth of the Company.
Company has incurred cash loss 1.65 lacs during the year.
11. Based on our examination and on the information and explanations
given by the management, we are of the opinion that the company has not
defaulted in repayment of dues to a financial institution or bank. The
Company has so far not issued any debenture.
12. Based on the documents and records of the company produced before
us, the company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities
13. The company does not carry on the business of a chit fund/ nidhi/
mutual benefit fund/ societies during the year.
14. The company is not dealing or trading in shares, securities,
debentures and other investments.
15. The Company has not given any guarantee for loan taken by others
from Banks or Financial Institutions.
16. According to the information and explanations given to us, the
company has not obtained any term loan during the year.
17. According to the information and explanations given to us, company
has not raised any fresh loans from Banks & Financial Institutions
during the year.
18. According to the information and explanations given to us, the
company has not made preferential allotment of shares to companies,
firms or other parties listed in the register maintained under section
301 of the Companies Act, 1956.
19. Since no debentures have been issued during the year, question of
creating securities does not arise.
20. According to the records, the company has not raised any money by
public issue during the year.
21. According to the information and explanations given to us, any
fraud on or by the company has not been noticed or reported during the
year under audit.
For S.K.MEHTA & CO.
Chartered Accountants
Firm Registration No. 000478N
Place: New Delhi Sd/-
Date: 21st May 2014 (B.P.Saxena)
Partner
M. No.010568
Mar 31, 2013
To the Members of VIBROS ORGANICS LIMITED.
Report on the Financial Statements
1. We have audited the accompanying financial statements of VIBROS
ORGANICS LIMITED ("the Company") which comprise the Balance Sheet as at
March 31, 2013. the Statement of Profit and 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
2. 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
tf e 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
3. 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 u: India. Those Standards require that we comply with
ethical requirements and plan and perform the audit ro obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
4 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
6. 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 and Loss, of the profit for
the year ended on that date
(c) hi the case of Cash Flow Statement, of the Cash Flow of the Company
for the year ended on that date.
Emphasis of Matters
We draw attention to:
Note 2.24 of the financial statements, in respect of disposal and
written off of fixed assets of the Company and discontinue of the main
business activity of the Company of manufacturing of NCB/T''NCB. our
opinion is not qualified in respect of these matters.
Report on Other liability and Regulatory Requirements
7. As required under the provisions of 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 Companies Act, 1956, we
give in the Annexure a statement on the matters specified in paragraphs
4 and 5 of the Order.
8. As required by section 227(3) of the Companies Act, 1956, 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 dealt with by this
report are in agreement with the books uf account.
d) In our opinion, the Balance Sheet and 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;
e) On the basis of written representations received from the directors
as on 31« March, 2013 and taken on record by the Board of Directors, we
report that none, of the directors is disqualified as on 31* March
2013, from being appointed as a director in terms of clause (g) of
sub-section (1) of section 274 of the Companies Act, 1956.
ANNEXUKBTO THE AUDITORS REPORT OF VIBROS ORGANICS LIMITED.
(Referred to in Paragraph 7 of our report of even date)
1. (a) The Company has maintained records of fixed assets however the
same need to be updated & reconciled.
(b) As per the information given to us fixed assets of the company have
been physically verified by the management during the year. As per the
information and explanation given to us the fixed assets of the company
were impaired due to not in use since long period and due to chemical
reaction, the same have been written off in the books of accounts at
the year end.
(c) During the year Company has disposed off its Land & Building of the
only Plant at Sikandrabad. Further as per information given to us all
other fixed assets of the company since has been impaired therefore
same has been written off at the year end.
2. (a) As explained to us the Inventory has been physically verified
by the management during the year and since the same was impaired due
to chemical reactions, the same has been written off during the year.
There was no inventory in hand at the year end.
(b) In the absence of updated records, it is not possible to ascertain
and comment on discrepancy between book records and physical inventory
and adjustments to be carried out consequently such verification and
ascertainment of amount thereof.
3. a)During the year company has also given interest free loans to one
party of Rs. 2.30 Ucs (Maximum amount recoverable in respect of above
loan Rs. 2.30 Lacs during the year) covered in the register maintained
under section 301 of the Companies Act, 1956.
b) The Company has taken unsecured loans outstanding as on 31st March,
2013 71.22 Lacs (Maximum amount outstanding in respect of above loan Rs.
-135.46 Lacs during the year) from the two parties 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 condition
arc not prejudicial to the interest of the company.
d) There is no stipulation for the repayment of loan and interest
thereon.
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 nature of its business
with regard to sale of fixed assets. In our opinion there is no
continuing failure to correct major weakness in internal control.
However there is no sale and purchase of material and no purchase of
fixed assets during the year,
5. According to the information & explanation given to us, there is no
transaction during the year that need to be entered in the register
maintained under section 301 of the Companies Act, 1956 for
Rs.5,00,000/- or more in respect of each such party.
6. In our opinion and according to the information and explanation
given to us the Company has not accepted any deposit from public within
the provision of section S8A and 58AA of Companies Act 19S6 and
Companies (Acceptance) rules 1975.
7. During the year there is no business activity. As per information
given to us there arc internal control systems commensurate with its
size with negligible transaction. However There is no internal audit,
8. The Central Government has not prescribed for the maintenance of
cost records under clause (d) of sub section (I) of section 209 of
Companies Act 1956.
9. (a) According to the information and explanations given to us,
there are undisputed statutory dues payable in respect of ESI 1.49 Lacs
and Gratuity 0.30 I.acs outstanding as at 31-03-2013 for a period of
more than six month from the date they became payable. We are informed
that there is no other- statutory liability payable for the year under
audit.
(b) As per information given to us there are no disputed statutory dues
except Rs. l.33 lacs pending in appeal in excise department
10. The company has accumulated losses of Rs. 606.35 Lacs as on
31.3.2013.
11. Based on our examination and on the information and explanations
given by the management, we are of the opinion that the company has not
defaulted in repayment of dues to a financial institution or hank
during the year.
12. Raced on the documents and records of the company produced before
us, the company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities
13. The company does not carry on the business of a chit fund.
14. The company is not dealing or trading in shares, securities,
debentures and other investments.
15. Based on our examination of the records and evaluation of the
related internal controls, we are of the opinion that proper records
have been maintained of the transaction and contracts and timely
entries have been made in those records.
16. According to the information and explanations given to us, the
company has not obtained any term loan during the year.
17. According to the information and explanations given to us, company
has not raised any fresh loans from Banks & Financial Institutions
during the year.
18. According of the information and explanations given to us, the
company has not made preferential allotment of shares to companies,
firms or other parties listed in the register maintained under section
301 of the Companies Act, 1956.
19. Since no debentures have been issued during the year, question of
creating securities does not arise.
20. According to the records, the company has not raised any money by
public issue during the year.
21. According to the information and explanations given to us, any
fraud on or by the company has not been noticed or reported during the
year.
For S.K.Mehta & Co.
Chartered Accountants
(FRN 000478N)
Sd/-
H.P.Saxena
Partner
Place: New Delhi M.No. 10568
Date: 30th May, 2013
Mar 31, 2012
1. We have audited the attached Balance Sheet of Vibros Organics
Limited as at 3'isl March, 2012, the Statement of Profit and Loss and
Cash Flow Statement of the Company for die year ended 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 audit 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 amount 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 a
statement on the matters specified in paragraph 3 and 4 of the said
Order.
4. (i) Further to our comments in the Annexure referred to above, we
report that:
(a) Company has civil work in progress of f 163.40 lacs at cost,
pending commissioning since financial year 1995-96, hi absence of
Technical evaluation of such plant & machinery & constructed structure
we are unable to comment whether such Plant & Machinery cV structure is
unpaired or not. (Refer Note No. 2.19).
(b) Company lias not charged depreciation amounting to ? 2.52 Lacs for
the year on the Fixed Assets (Refer Note. No. 2.25)
(c) Disclosure is not made for discontinuing operations as per AS-24
"Discontinuing Operations", as the company has intended to sell the
land and building of its plant a I Sikandarbad and has already received
advance from prospective buyer. (Refer Note No. 2.26).
(ii) We have obtained all the information and explanation, which to the
best of our knowledge and belief were necessary for the purpose of our
audit.
(iii) 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.
(iv) The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account.
(v) In our opinion, the Balance Sheet, Profit and 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 except AS-28 "impairment of Assets", AS -6
"Depreciation Accounting" and AS-24 "Discontinuing Operations". 14
(vi) We are informed that none of the directors is disqualified as on
31M March 2012 from being appointed as a director in terms of clause
(g) of sub-section ('].) of section 274 of the Companies Act, 1956.
(vii) Going concern; Company could not resume its production activity
during the year (Refer Note No, 2.18).
Company is a sick company within the meaning of section 3 (1) (o) of
the Sick Industrial Companies Act, 1985 and in view of suspension of
manufacturing operations of the company, disposal of plant & machinery
and intended to sell the Laud. and Building of its plant; ioe are
unable to express our opinion on its resuming of production activities
in near future.
(vii) In our opinion and to the best of our information and according
to the explanations given to us, the said accounts read with
Significant Accounting Policies and Notes to accounts thereon, subject
to Para 4(i), 4(vii) consequently the Loss for the current year of the
company has been understated to the extent of ? 2.52 Lacs and to the
extent amount not ascertainable on account of impairment of fixed
assets if any, give the information required by the Companies Act, 1956
in the manner so required and give a true and fair view :-
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 Statement of Profit and Loss of the Loss for the
year ended on that date.
c) In the case of Cash Flow Statement, of the Cash Flow of the Company
for the year ended on that date.
ANNEXURE TO THE AUDITORS REPORT OF VIBROS ORGANICS LIMITED. (Referred
to in Paragraph 3 of our report of even date)
1. (a) The Company lias maintained records of fixed assets however the
same need to be updated & reconciled.
(b) The fixed assets are physically verified by the management during
the year.
(c) Company has not disposed off its substantias amount of Fixed
Assets; however as per information and explanation given to us, Company
has intended to sell its Land and Building of plant at Sikandrabad
since earlier year and received advance from the prospective buyer
however the ownership of that Land & Buildings has not been vested to
buyer therefore the said assets are still appearing in the books of
account of the company.
2. (a) As explained to us the Inventory has been physically verified
by the management at the vear end.
(b) In the absence of updated records, it is not possible to ascertain
and comment on discrepancy between book records and physical inventory
and adjustments to be earned out consequently to such verification and
ascertainment of amount thereof.
3. The Company has taken unsecured loans outstanding as on 3P1 March,
2012 ? 218.85 Lacs ( Maxirnun amount outstanding in respect of above
loan ? 218.85 Lacs during the year) from the six parties covered in the
register maintained under section 301 of the Companies Act 1956 the
terms and condition are not prejudicial to the interest of the company.
During the year company has also given interest free loans to two
parties of? 106.72 Lacs (Maxirnun amount recoverable in respect of
above loan ? 115.04 Lacs during the year) covered in the register
maintained under section 301 of the Companies Act, 1956
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 nature of its business
with regard to sale of fixed assets. In our opinion there is no
continuing failure to correct major weakness in internal control.
However there is no sale and purchase of material and no purchase of
fixed assets during the year.
5. According to the information & explanation given to us, there is no
transaction during the year that sieed to be entered in the register
maintained under section 301 of the Companies Act, 1956 for
Rs.5,00,000/- or more in respect of each such party.
6. In our opinion and according to the information and explanation
given to us the Company has not accepted any deposit from public within
the provision of section 58A and 58AA of companies Act 1956 and
companies (Acceptance) rules 1975.
7. During the year there is no business activity. As per information
given to us there are proper internal control systems commensurate with
its size and negligible business transaction. However there is no
internal audit.
8. The Central Government has not prescribed for the maintenance of
cost records under clause (d) of sub section (I) of section 209 of
Companies Act 1956.
9. (a) According to the information and explanations given to us,
there arc undisputed statutory dues payable in respect of ESI f 7.49
Lacs and Gratuity ?2.0'1 Lacs outstanding as at 31-03-2012 for a period
of more than six month from the date they became payable. We are
informed that there is no other statutory liability payable for the
year under audil.
(b) As per information given to us there are no disputed statutory dues
except ^1.33 Lacs pending in appeal in excise department. 16
10. The company has accumulated losses of ?713.46 Lacs as on
31.3.2012.
11. Based on our examination and on the information and explanations
given by the management, we are of the opinion that the company has not
defaulted in repayment of dues to a financial institution or bank.
12. Based on the documents and records of the company produced before
us, the company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities
13. The company does not carry on the business of a chit fund.
14. The company is not dealing or trading in shares, securities,
debentures and other investments.
15. Based on our examination of the records and evaluation of the
related internal controls, we are of the opinion that proper records
have been maintained of the transaction and contracts and timeiy
entries have been made in those records.
16. According to the information and explanations given to us, the
company has not obtained any term loan during the year.
17. According to the information and explanations given to us, company
has not raised any fresh loans from Banks & Financial Institutions
during the year
IS. According to the information and explanations given to us, the
company has not made preferential allotment of shares to companies,
firms or other parties listed in the register maintained under section
301 of the Companies Act, 1956.
19. Since no debentures have been issued during the year, question of
creating securities does not arise,
20. According to the records, the company has not raised any money by
public issue during the year.
21. According to the information and explanations given to us, any
fraud on or by the company has not been noticed or reported during the
year
For S.K.Mehla & Co.
Chartered Accountants
(FRN 000478N)
Sd/-
Place: New Delhi (B.P.Saxena)
Date: 01/09/2012 M.No. 10568
Partner
Mar 31, 2011
1. We have audited the attached Balance Sheet of Vibros Organics
Limited as at 31st March, 2011, the Profit and Loss Account and Cash
Flow Statement of the Company for the year ended 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 audit 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 amount 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 a
statement on the matters specified in paragraph 3 and 4 of the said
Order.
4. (i) Further to our comments in the Annexure referred to above, we
report that:
(a) Company has civil work in progress of Rs. 163.40 lacs at cost, pending
commissioning since financial year 1995-96. In absence of Technical
evaluation of such plant & machinery & constructed structure we are
unable to comment whether such Plant & Machinery & structure is
impaired or not, as per AS-28 "Impairment of Assets".
(Refer Notes to Accounts Para 4 in Schedule 11).
(b) Company has not charged depreciation amounting to Rs. 2.52 Lacs for
the year on the Fixed Assets as required to be charged as per AS-6
"Depreciation Accounting".
(Refer Notes to Accounts Para 10 in Schedule 11)
(c) Disclosure is not made for discontinuing operations as per AS-24
"Discontinuing Operations", as the company has intended to sell the
land and building of its plant at Sikandarbad and has already received
advance from prospective buyer. (Refer Notes to Accounts Para 11 in
Schedule 11).
(ii) We have obtained all the information and explanation, which to the
best of our knowledge and belief were necessary for the purpose of our
audit.
(iii) 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. (iv) The Balance Sheet, Profit and Loss Account and Cash
Flow Statement dealt with by this report are in agreement with the
books of account.
(v) In our opinion, the Balance Sheet, Profit and 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 except AS-28 "Impairment of Assets", AS -6
"Depreciation Accounting" and AS-24 "Discounting Operations".
(vi) We are informed 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.
(vii) Going concern: Company could not resume its production activity
during the year (Refer Notes to Accounts Para 3 in Schedule 11).
Company is a sick company within the meaning of section 3 (1) (o) of
the Sick Industrial Companies Act, 1985 and in view of suspension of
manufacturing operations of the company, disposal of plant & machinery
and intended to sell the Land and Building of its plant; we are unable
to express our opinion on its resuming of production activities in near
future.
(viii) In our opinion and to the best of our information and according
to the explanations given to us, the said accounts read with
Significant Accounting Policies and Notes to accounts thereon, subject
to Para 4(i), 4(vii) consequently the Loss for the current year of the
company has been understated to the extent of Rs. 2.52 Lacs and to the
extent amount not ascertainable on account of impairment of fixed
assets and discontinuing operations, if any, give the information
required by the Companies Act, 1956 in the manner so required and give
a true and fair view :-
a) In the case of the Balance Sheet of the state of affairs of the
Company as at 3 Is' March, 2011.
b) In the case of the Profit and Loss Account of the Loss for the year
ended on that date and
c) In the case of Cash Flow Statement, of the Cash Flow of the Company
for the year ended on that date.
ANNEXURE TO THE AUDITORS REPORT OF VIBROS ORGANICS LIMITED.
(Referred to in Paragraph 3 of our report of even date)
1. (a) The Company has maintained records of fixed assets however the
same need to be updated & reconciled.
(b) The fixed assets are physically verified by the management during
the year.
(c) Company has not disposed off its substantial amount of Fixed
Assets; however as per information and explanation given to us, Company
has intended to sell its Land and Building of plant at Sikandrabad
since earlier year and received advance from the prospective buyer
however the ownership of that Land & Buildings has not been vested to
buyer therefore the said assets are still appearing in the books of
account of the company.
2. (a) As explained to us the Inventory has been physically verified
by the management at the year end. * (b) In the absence of updated
records, it is not possible to ascertain and comment on discrepancy
between book records and physical inventory and adjustments to be
carried out consequently to such verification and ascertainment of
amount thereof.
3. The Company has taken unsecured loans outstanding as on 3T' March,
2011 X 218.85 Lacs ( Maximum amount outstanding in respect of above
loan Rs. 218.85 Lacs during the year) from the six parties covered in the
register maintained under section 301 of the Companies Act 1956.
Company has also given interest free loans to two parties outstanding
at the year end 115.04 Lacs (Maximum amount recoverable in respect of
above loan Rs. 115.04 Lacs during the year) covered in the register
maintained under section 301 of the Companies Act, 1956. In our opinion
terms and conditions are not prejudicial to the interest of the
company.
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 nature of its business
with regard to sale of fixed assets. In our opinion there is no
continuing failure to correct major weakness in internal control.
However there is no sale and purchase of material and no purchase of
fixed assets during the year.
5. According to the information & explanation given to us, there is no
transaction during the year that need to be entered in the register
maintained under section 301 of the Companies Act, 1956 for
Rs.5,00,000/- or more in respect of each such party.
6. In our opinion and according to the information and explanation
given to us the Company has not accepted any deposit from public within
the provision of section 58A and 58AA of companies Act 1956 and
companies (Acceptance) rules 1975.
7. During the year there is no business activity. As per information
given to us there are proper internal control systems commensurate with
its size and negligible business transaction. However there is no
internal audit.
8. The Central Government has not prescribed for the maintenance of
cost records under clause (d) of sub section (I) of section 209 of
Companies Act 1956.
9. (a) According to the information and explanations given to us,
there are undisputed statutory dues payable in respect foes Rs. 1.49
Lacs, Sales Tax Rs. 1.00 Lac and Gratuity Rs. 2.01 Lacs outstanding as at
31 -03-2011 for a period of more than six month from the date they
became payable. We are informed that there is no other statutory
liability payable for the year under audit.
(b) As per information given to us there are no disputed statutory dues
except" 1.33 Lacs pending in appeal in excise department.
10. The company has accumulated losses of Rs.695.93 Lacs as on 31.3.2011.
11. Based on our examination and on the information and explanations
given by the management, we are of the opinion that the company has not
defaulted in repayment of dues to a financial institution or bank.
12. Based on the documents and records of the company produced before
us, the company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities
13. The company does not carry on the business of a chit fund.
14. The company is not dealing or trading in shares, securities,
debentures and other investments.
15. Based on our examination of the records and evaluation of the
related internal controls, we are of the
opinion that proper records have been maintained of the transaction and
contracts and timely entries have been made in those records.
16. According to the information and explanations given to us, the
company has not obtained any term loan during the year.
17. According to the information and explanations given to us, company
has not raised any fresh loans from
Banks & Financial Institutions during the year.
18. According to the information and explanations given to us, the
company has not made preferential allotment of shares to companies,
Firms or other parties listed in the register maintained under section
301 of the Companies Act, 1956.
19. Since no debentures have been issued during the year, question of
creating securities does not arise.
20. According to the records, the company has not raised any money by
public issue during the year.
21. According to the information and explanations given to us, any
fraud on or by the company has not been
noticed or reported during the year
For S.K.Mehta & Co.
Chartered Accountants
(FRN000478N)
Sd/-
Place: New Delhi (B.P.Saxena)
Date: 02/09/2011 M.No. 10568
Partner
Mar 31, 2010
We have audited the attached Balance Sheet of M/s Vibros Organics
Limited as at 31st March, 2010, the Profit and Loss Account and Cash
Flow Statement of the Company for the year ended 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.
1. We have conducted our audit in accordance with audit 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 amount 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.
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 paragraph 4 and 5 of the said Order.
2, Further to our comments in the Annexure referred to above, we report
that:
(a) The company has not charged depreciation amounting to Rs.2.52 Lacs
for the year on the Fixed Assets. (Refer Note No.13)
(b)The Company has civil work in progress of Rs.163.40 lacs pending
since financial year 1995-96 at cost. In absence of Technical
evaluation of such plant & machinery & constructed structure we are
unable to comment whether such Plant & Machinery & structure is
impaired or not. (Refer Note No.4)
(c) Secured loans are not confirmed / reconciled.
(d) During the year loan payable to a Bank i.e. State Bank of Bikaner &
Jaipur Rs.53.57 Lacs appearing in the books of account has been written
back, for which formal settlement approval is not received from the
Bank (Refer Note No. 12)
3.
(i) We have obtained all the information and explanation, which to the
best of our knowledge and belief were necessary for the purpose of our
audit.
(ii) 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.
(iii) The Balance Sheet, Profit and Loss Account and Cash Flow
Statement dealt with by this report are in agreement with the books of
account.
(iv) In our opinion, the Balance Sheet, Profit and 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 except AS-28 Impairment of Assets, AS-6
Depreciation on Fixed Assets.
(v) We are informed 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) Going concern: Company could not resume its production activity
during the year (refer note 4).
Company is a sick company within the meaning of section 3 (1) (O) of
the Sick Industrial Companies Act, 1985 and in view of suspension of
manufacturing operations of the company, and disposal of plant &
machinery; we are unable to express our opinion on its resuming of
production activities in near future.
(vii) In our opinion and to the best of our information and according
to the explanations given to us, the said accounts read with
Significant Accounting Policies and Notes to accounts thereon, subject
to para 2(a) to 2 (d), 3(iv) & 3(vi), consequently the Profit for the
current year of the company has been overstated to the extent of
Rs.2.52 lacs and to the extent amount not ascertainable on account of
impairment of fixed assets, give the information required by the
Companies Act, 1956 in the manner so required and give a true and fair
view :-
(1) In the case of the Balance Sheet of the state of affairs of the
Company as at 31st March, 2010 and
(2) In the case of the Profit and Loss Account of the Profit for the
year ended on that date.
(3) In the case of Cash Flow Statement, of the Cash Flow of the Company
for the year ended on that date.
ANNEXURE TO THE AUDITORS REPORT OF M/s VIBROS ORGANICS LIMITED.
{Referred to in Paragraph III of our report of even date)
1.
(a) The Company has maintained records of fixed assets however the same
need to be updated & reconciled.
(b) The fixed assets are physically verified by the management during
the year.
(c) Company has not disposed off its substantial amount of Fixed
Assets, however during the year Company has intended to sell its Land
and Building of plant at Sikandrabad and received advance from the
prospective buyer.
2.
(a) As explained to us the Inventory has been physically verified by
the management at the year end.
(b) In the absence of updated records, it is not possible to ascertain
and comment on discrepancy between book records and physical inventory
and adjustments to be carried out consequently to such verification and
ascertainment of amount thereof. However company has written off its
inventory during the year due to the reason that the same had lost its
intrinsic value and had no realizable value,
3. The Company has taken unsecured loans from the six Companies and
other parties covered in the register maintained under section 301 of
the Companies Act 1956 of Rs.218.85 Lacs and the terms and condition
are not prejudicial to the interest of the company. During the year
company has also given interest free loans to two companies of Rs.113
Lacs covered in the register maintained under section 301 of the
Companies Act 1956
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 nature of its business
with regard to sale of fixed assets. In our opinion there is no
continuing failure to correct major weakness in internal control.
However there is no sale and purchase of material and no purchase of
fixed assets during the year.
5. According to the information & explanation given to us, there is no
transaction during the year that need to be entered in the register
maintained under section 301 of the Companies Act, 1956 for
Rs.5,00,000/- or more in respect of each such party.
6. In our opinion and according to the information and explanation
given to us the Company has not accepted any deposit from public within
the provision of section 58A and 58AA of companies Act 1956 and
companies (Acceptance) rules 1975.
7. During the year there is no business activity. As per information
given to us there are proper internal control systems commensurate with
its size and negligible business transaction. However there is no
internal audit.
8. The Central Government has not prescribed for the maintenance of
cost records under clause (d) of sub section (I) of section 209 of
Companies Act 1956.
9. (a) According to the information and explanations given to us, there
are undisputed statutory dues payable in respect of ESI Rs.1.48 lacs
and sales tax Rs.1.00 lac outstanding as at 31-03-2010 for a period of
more than six month from the date they became payable. We are informed
that there is no other statutory liability payable for the year under
audit.
(b) As per information given to us there are no disputed statutory
dues.
10. The company has accumulated losses of Rs.693.71 Lacs as on
31.3.2010.
11. According to the information and explanation given to us, the
company has defaulted in repayment of dues to a bank of Rs.0.70 lac as
on 31.3.2010 outstanding as per books of accounts of the company.
12. Based on the documents and records of the company produced before
us, the company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities
13. The company does not carry on the business of a chit fund.
14. The company is not dealing or trading in shares, securities,
debentures and other investments.
15. According to the information and explanations given to us, the
company has not obtained any term loan during the year.
16. According to the information and explanations given to us, company
has not raised any fresh loans from Banks & Financial Institutions
during the year.
17. According to the information and explanations given to us, the
company has not made preferential allotment of shares to companies,
firms or other parties listed in the register maintained under section
301 of the Companies Act, 1956.
18. Since no debentures have been issued during the year, question of
creating securities does not arise.
19. According to the records, the company has not raised any money
by public issue during the year.
20. According to the information and explanations given to us, any
fraud on or by the company has not been noticed or reported during the
year
For S.K.MEHTA&CO.
Chartered Accountants
(Firm Reg. No.00478 N)
Place; New Delhi
Dated: 2/09/2010
(JYOTI BAGGA)
Partner
M.No.87002
Mar 31, 2009
We have audited the attached Balance Sheet of M/s Vibros Organics
Limited as at 31st March, 2009 and also the Profit and Loss Account for
die year ended 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.
1. We have conducted our audit in accordance with audit 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 amount 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.
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 paragraph 4 and 5 of the said Order. j
2. Further to our comments in the Annexure referred to above, we
report that: ;
(a) The Company has not made provision for interest payable on loan to
SBBJ and PICUP-amount not ascertainable. (Refer Note No.11)
(b) The company has not charged depreciation amounting to Rs. 6.37 Lacs
for the year on the Fixed assets. (Refer Note No.14)
(c) The Company has not amortised public issue expenses Rs.10.20 lacs.
I (Refer Note No. 13).
(d) The Company has civil work in Progress of Rs.163.40 lacs pending
since financial year 1995-96 at cost . In absence of Technical
evaluation of such construction we are unable to comment whether such
structure is usable or not. (Refer Note No.4)
(e) Secured loans are not confirmed / reconciled.
(i) We have obtained all the information and explanation, which to the
best of our knowledge and belief were necessary for the purpose of
our audit.
(ii) 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.
(iii) The Balance Sheet and Profit- and Loss Account dealt with by this
report are in agreement with the books of account.
(iv) In our opinion, the Balance Sheet and Profit and Loss Account
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) We are informed that none of the directors is disqualified as on
31st March 2009 from being appointed as a director in terms of clause
(g) of sub-section (1) of section 274 of the Companies Act, 1956.
(vi) Going concern
Company could not resume its production activity during the year (refer
note 4) and has sold its plant & machinery.
(vii) Company is a sick company within the meaning of section 3 (1) (O)
of the Sick Industrial Companies Act, 1985 and in view of suspension of
manufacturing operations of the company, and disposed of plant &
machinery; we are unable to express our opinion on its resuming of
production activities in near future.
(viii) In our opinion and to the best of our information and according
to the explanations given to us, the said accounts read with
Significant Accounting Policies and Notes to accounts thereon , subject
to para 2(a) to 2 (f), 3(iv) & 3(vi) consequently the loss for the
current year of the company has been understated to the extent of Rs.
16.57 lacs and to the extent amount not ascertainable give the
information required by the Companies Act, 1956 in the manner so
required and give a true and fair view :- ,/
(1) In the case of the Balance Sheet of the state of affairs of the
Company as at 31st March, 2009 and
(2) In the case of the Profit and Loss Account of the Loss for the year
ended on that date.
ANNEXURE TO THE AUDITORS REPORT OF M/s VIBROS ORGANICS LIMITED.
(Referred to in Paragraph III of our report of even date)
(a) The Company has maintained proper records of fixed assets however
the same need to be updated & reconciled..
(b) The fixed assets are physically verified by the management during
the year.
2.
(a) As explained to us that the Inventory has been physically verified
by the management at the year end.
(b) In the absence of updated records, it is not possible to ascertain
and comment on discrepancy between book records and physical inventory
and adjustments to be carried out consequently to such verification and
ascertainment of amount thereof. However company has written off its
inventory during the year due to the reason that the same had lost its
intrinsic value and had no realizable value.
3. The Company has taken unsecured loans from the Companies and other
parties covered in the register maintained under section 301 of the
Companies Act 1956 of Rs.224,45 Lacs and the terms and condition are
not prejudicial to the interest of the company.
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 nature of its business
with regard to sale of fixed assets. In our opinion there is no
continuing failure to correct major weakness in internal control.
However there is no sale and purchase of material and no purchase of
fixed assets during the year.
5. According to the information & explanation given to us, there is no
transaction during the year that need to be entered in the register
maintained under section 301 of the Companies Act, 1956 for Rs.5,00,000
or more in respect of each such party.
6. In our opinion and according to the information and explanation
given to us the Company has not accepted any deposit from public within
the provision of section 58A and 58 AA of companies Act 1956 and
companies (Acceptance) rules 1975.
7. During the year there is no business activity. As per information
given to us there are proper internal control systems commensurate with
its size and negligible business transaction. However there is no
internal audit.
8. The Central Government has not prescribed for the maintenance of
cost records under clause (d) of sub section (I) of section 209 of
Companies Act 1956.
9. (a) According to the information and explanations given to us,
there are undisputed statutory dues payable in respect of ESI
Rs.1.48 lacs and sales tax Rs. 1 lac outstanding as at 31-03-2009
for a period of more than six month from the date they became
payable. We are informed that there is no other s statutory liability
payable for the year under audit.
(b) As per information given to us there are no disputed statutory
dues.
10. The company has accumulated losses of Rs 720.32 lacs as on
31.3.2009.
11. According to the information and explanation given to us, the
company has defaulted in repayment of dues to a bank of Rs.129.57 lacs
and Rs. 111.88 lacs to a financial institution as on 31.3.2009
outstanding as per books of accounts of the company.
12. Based on the documents and records of the company produced before
us, the company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities .
13. The company does not carry on the business of a chit fund.
14. The company is not dealing or trading in shares, securities,
debentures and other investments.
15. According to the information and explanations given to us, the
company has not obtained any term loan during the year.
16. According" to the information and explanations given to us,
company has not raised any fresh loans from Banks & Financial
Institutions during the year.
17. According to the information and explanations given to us, the
company lias made no preferential allotment of shares to companies,
firms or other parties listed in the register maintained under section
301 of the Companies Act, 1956.
18. Since no debentures have been issued during the year, question of
creating securities does not arise.
19. According to records, the company has not raised any money by
public issue during the year.
20. According to the information and explanations given to us, any
fraud on or by the company has not been noticed or reported during the
year.
For S.K.MEHTA & CO.
Chartered Accountants
Place: New Delhi J. BAGGA
Date: 18/08/2009
M. No.: 87002