Mar 31, 2011
1. We have audited the attached Balance Sheet of B.K. Duplex Board
Limited as at 31.03.2011 and also Profit & Loss Account for 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 conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free 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 the 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 in terms of Section 227 (4A) of the Companies
Act, 1956, and on basis of such checks of the books and records of the
company, as we considered appropriate, we enclose in the Annexure, a
statement on the matters specified in the said Order.
4. Further to our comments in the annexure referred to in paragraph
(1) above, we report that:
(i) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the 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
such books.
(iii) The Balance Sheet and Profit and Loss Account dealt
with by this report are in agreement with the Books of Account.
(iv)Inour opinion and to the best of our information and according to the
explanations give to us, the said accounts, read together with
Significant Accounting Polices and Notes on Accounts thereon, comply
with accounting standards referred to in section 211(3C) of Companies
Act, 1956 and give the information required by the Companies Act, 1956
in the manner so required and give a true and fair view. (
v) On the basis of the written representation received from the directors and
taken on record by the company, we report that none of the directors is
disqualified, as on the balance sheet date, from being appointed as a
director in terms of section 274 (I) (g) of the Companies Act, 1956.
(vi) In our opinion and to the best of our information and according to
the explanation give to us, the said statement of accounts, read
together with notes thereon, give the information required by the
Companies
Act, 1956 in the manner so required and give true & fair view: -
a) In the case of the Balance Sheet of the state of affairs of the
Company as at 31.03.2011 and
b) In the case of the Profit & Loss Account of the Company for the year
ended on that date.
c) In the case of the Cash Flow Statement, of the Cash flow for the
year ended on that date.
ANNEXURE TO AUDITOR'S REPORT (REFER TO PARA ONE OF OUR REPORT OF EVEN
DATE)
1. (a) The company has maintaining proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) According to the information and explanation give to us, the
Management has not verified the fixed assets during the year under
review. Therefore we are unable to comment whether there is any serious
discrepancies in fixed assets during the year under review.
(c) In our opinion and according to the information and explanations
given to us, the company has not made any substantial disposals during
the year.
2. According to information and explanations given to us, the
inventories have not been physically verified during the year by the
management. Therefore we are unable to comment whether there was any
material discrepancies during the year under review.
3. (a) According to the information and explanation provided to us and
on basis of examination of the books of the account, the company has
granted unsecured loan of Rs.91.72 Lacs as on 31.03.2011 to a company
covered in the register maintained under section 301 of the Act.
(b) According to the information and explanation provided to us and on
the basis of examination of the books of account , the company has not
taken any unsecured loan from parties covered in the register
maintained under section 301 of the Act during the period under review.
(c) According to information and explanation given to us and on the
basis of examination of the books of the account , we are of the
opinion that the terms and conditions of such loans granted are not
prima facie prejudicial to the interest of the company.
(d) There is no overdue amount in respect of loan granted by the
company.
4. In our opinion and according to the information and explanations
give to us, there were adequate internal control procedures
commensurate with the size of the company and the nature of its
business for purchase of inventory and fixed assets and also for the
sale of goods.
5. (a) To the best of our knowledge and belief and according to the
information and explanations given to us, the transactions that need to
be entered into a register maintained under section 301 of the
Companies Act, 1956 have been so entered.
(b) In our opinion and according to information and explanation given
to us, the transactions made in pursuance of such contracts or
arrangements entered in the register exceeding the value of rupees five
lakhs in respect of any party during the year have been made at prices
which are reasonable having regard to the prevailing market prices at
relevant time.
6. The company has not accepted any deposits as defined under section
58A and 58AA of the Companies Act, 1956 and the Companies (Acceptance
of Deposits) rules 1975.
7. In our opinion, the company has an internal audit system
commensurate with its size and nature of the business.
8. We have broadly reviewed the books of accounts relating to
materials, labour and other items of cost maintained by the company
pursuant to the rules made by the Central government for the maintance
of cost records under section 209 (I) (d) of the Companies Act, 1956
and we are of the opinion that prima facie the prescribed accounts and
records have been made and maintained.
9. (a) According to the information and explanations given to us, no
undisputed amounts payable in respect of income tax, wealth tax,
service tax , sales tax, custom duty , excise duty and cess were
outstanding as on 31.03.2011 for a period of more than six months from
the date these became payable.
(b) According to the information and explanations given to us there are
no dues in respect of P.F. , E.S.I., Income Tax, Sales Tax , Wealth Tax
, Custom Duty, Excise Duty, Cess and other statutory dues that have not
been deposited on account of any dispute.
10. The company has been registered for a period of not less than five
years; its accumulated losses are Rs.34.92 lacs which are less than
fifty percent of its net worth at the end of the financial year under
review. The company has incurred cash losses of Rs.0.44 Lacs during the
current year. However the company has not incurred any cash losses
during the immediate preceding financial year.
11. Based on our audit procedures and on the information and
explanations given by the management, we are of the opinion that the
company has defaulted in the repayment of loan taken from Director of
Industries, Chandigarh amounting to Rs.25.37 Lacs.
12. According to information and explanations given to us, the company
has not given any loans and advances on the basis of security by way of
pledge of shares, debentures and other securities.
13. The company is not a chit fund or a nidhi / mutual
benefit/society. Therefore, the provisions of clause 4(xiii) of the
Companies (Auditor's Report) Order, 2003 is not applicable to this
company.
14. According to the explanations given to us, the company is not
dealing in or trading 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 explanations given to us, the company has given
corporate guarantee for credit facilities availed by M/s B.K.Krafts
Limited, M/s B.K. Coated Board Ltd and M/s. A.S.T. Paper Mills Ltd from
State Bank of India. On the basis of information provided to us we are
of the opinion that the term and conditions of such guarantees are not
prejudicial to the interest of the company.
16. On the basis of our examinations of records and as per the
explanations given to us, the company has not availed any fresh term
loan during the year under review.
17. According to records examined by us and information and
explanations given to us, on an overall basis, funds raised on short
term basis have, prime facie, not been used during the year for long
term investment (fixed assets etc.) and vice versa.
18. According to the information and explanations given to us, the
company has not made any preferential allotment to parties and
companies covered in the register maintained under section 301 of the
Companies Act, during the year.
19. No debenture has been issued / outstanding during the year hence
the provision of clause (xix) of the said order is not applicable.
20. According to the information and explanations given to us, the
company has not made any allotment of shares during the year under review.
21. To the best of our knowledge and belief and according to the
information and explanations given to us, no fraud on or by the company
was noticed or reported during the year.
FOR SUMAT GUPTA & CO.
CHARTERED ACCOUNTANTS
FIRM REG.NO.010288N
DATED: 28.05.2011 SUMAT GUPTA
PLACE: LUDHIANA PARTNER
(M.NO.086000)
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