Mar 31, 2015
We have audited the accompanying financial statements of Jumbo Bag
Limited ("the company"), which comprise the Balance Sheet as at 31
March 2015, 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 Statement
The Company's Board of Directors is responsible for the matters in
section 134(5) of the Companies Act, 2013 ("the Act") with respect to
the preparation of these financial statements that give a true and fair
view of the financial position, financial performance and cash flows of
the Company in accordance with the accounting principles generally
accepted in India, including the Accounting Standards specified under
Section 133 of the Act, read with Rule 7 of the Companies (Accounts)
Rules, 2014. This responsibility also includes the maintenance of
adequate accounting records in accordance with the provision of the Act
for safeguarding of the assets of the Company and for preventing and
detecting the frauds and other irregularities; selection and
application of appropriate accounting policies; making judgments and
estimates that are reasonable and prudent; and design, implementation
and maintenance of internal financial control, that were operating
effectively for ensuring the accuracy and completeness of the
accounting records, relevant to the preparation and presentation of the
financial statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit.
We have taken into account the provisions of the Act, the accounting
and auditing standards and matters which are required to be included in
the audit report under the provisions of the Act and the Rules made
there under.
We conducted our audit in accordance with the Standards on Auditing
specified under section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor's judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal financial control relevant to the Company's
preparation of the financial statements that give true and fair view 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 Company's Directors, as well as evaluating the
overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the financial
statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements, give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India:
a) In the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2015;
b) In the case of the Statement of Profit and Loss Account, of the Loss
for the year ended on that date;
c) In the case of Cash Flow Statement, of the cash flows for the year
ended on that date.
Emphasis of Matters:
We draw attention to Note No.12 of Schedule 1 forming part of the
financial statements in respect of the status of Insurance Claim which
is self explanatory. Our opinion is not modified in respect of this
matter.
Report on the other Legal and regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2015 ("the
Order") issued by the Central Government of India in terms of
sub-section (11) of section 143 of the Companies Act 2013, We give in
the Annexure 1 on the matters specified in paragraph 3 & 4 of the order.
2. As required by section 143(3) of the Act, we report that:
a) We have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purposes of our audit;
b) In our opinion proper books of account as required by law have been
kept by the Company so far as it appears from our examination of those
books.
c) The Balance Sheet, the Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
d) In our opinion, the aforesaid financial statements comply with the
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014.
e) On the basis of written representations received from the directors
as on 31 March, 2015, taken on record by the Board of Directors, none
of the directors is disqualified as on 31 March, 2015, from being
appointed as a director in terms of Section 164(2) of the Act.
f) With respect to the other matters included in the Auditor's Report
in accordance with Rule 11 of the Companies(Audit and Auditors) Rules,
2014, and to the best of our information and according to the
explanations given to us:
i. The Company does not have any pending litigations which would impact
its financial position.
ii. The Company did not have any long-term contracts including
derivatives contracts for which there were any material foreseeable
losses.
iii. No amount is required to be transferred to the Investor Education
and Protection Fund by the Company as on 31 March, 2015.
ANNEXURE TO INDEPENDENT AUDITORSÂ REPORT
The Annexure referred to in paragraph 1 of the Our Report of even date
to the members of Jumbo Bag Limited on the accounts of the company for
the year ended 31st March, 2015.
On the basis of such checks as we considered appropriate and according
to the information and explanation given to us during the course of our
audit, we report that:
(i) (a)The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets on the basis of information available.
(b) As explained to us, fixed assets have been physically verified by
the management reasonable intervals; no material discrepancies were
noticed on such verification.
(c) In our opinion and according to the information and explanations
given to us, no substantial part of fixed asset has been disposed off
during the year and therefore does not affect the going concern
assumption.
(ii) (a) As explained to us, the inventories have been physically
verified by the management at reasonable intervals during the year. In
our opinion, the frequency of such verification is reasonable having
regard to the size of the Company and the nature of its business.
(b) In our opinion and according to the information and explanations
given to us, the physical verification of inventories followed by the
management is reasonable and adequate in relation to the size of the
Company and the nature of the business.
(c) The Company has maintained proper records of inventory. As
explained to us, there was no material discrepancies noticed on
physical verification of stocks, as compared to book records.
(iii) According to the information and explanations given to us and on
the basis of our examination of the books of account, the Company has
not granted any loans, secured or unsecured, to companies, firms or
other parties covered in the register maintained under Section 189 of
the Companies Act, 2013. Consequently, the provisions of clauses iii
(a) and iii (b) of the order are not applicable to the Company.
(iv) In our opinion and according to the information and explanations
given to us, there is generally an adequate internal control procedure
commensurate with the size of the company and the nature of its
business, for the purchase of inventories & fixed assets and for the
sale of goods and services. During the course of our audit, no major
instance of continuing failure to correct any weaknesses in the
internal controls has been noticed.
(v) In our opinion, and according to the information and explanation
given to us, the company has not accepted any deposits; hence, clause
(v) is not applicable to the company. Accordingly, directives issued by
the Reserve Bank of India and the provisions of section 73 to 76 or any
other relevant provisions of the Companies Act and the rules framed
there under are not applicable.
(vi) The Company is not required to maintain cost records pursuant to
the Rules made by the Central Government for maintenance of cost
records under sub-section (1) of section 148 of the Act.
(vii) (a) According to the records of the Company, undisputed statutory
dues including Provident Fund, Employees' State Insurance, Income-tax,
Sales-tax, Wealth Tax, Service Tax, Duty of Custom, Duty of Excise,
Value added tax, cess to the extent applicable and any other statutory
dues have generally been regularly deposited with the appropriate
authorities. According to the information and explanations given to us
there were no outstanding statutory dues as on 31st of March, 2015 for
a period of more than six months from the date they became payable.
(b) According to the information and explanations given to us and the
records of the Company examined by us, the particulars of dues of sales
tax including value added tax and duty of excise as at 31st March of
2015 which have not deposited on account of a dispute, are as follows:
1. EXCISE DUTY/ SERVICE TAX:
Demand Amount
Sl.No. Description (inculding not Present status
penalty) provided
Rs.in.Lakhs
1.1 Whether Value of Deemed 12.69 12.69 Appeal No:1130/
Export shall be considered 03 Appeal filed
for Arriving At DTA Sale with Supreme
Eligibility(Difference Court.
Of Duty For Disallowed
Deemed Export Portion (Appeal Admitted)
1.2 Advance release order 26.55 26.55 Matter remanded
(ARO)-non-payment of to Original
CVD. Authority
(Commissioner),
By CESTAT
1.3 Service Tax on Technical 3.71 3.71 Appeal filed
Know How Fee with The
Commissioner
(Appeals).
1.4 Third Party Export On 2.77 2.77 Appeal filed in
Payment Of Duty Refund the High Court
Sanctioned & Duty at Chennai on
Demanded 6/7/2011
1.5 Cenvat Credit Of Service 0.18 0.18 Appeal filed with
Tax Of Fumigation the Commissioner
services-Unit-1 (Appeal), Chennai
- 34
1.6 Cenvat Credit Of Service 0.06 0.06 Appeal filed with
Tax Of Fumigation the Commissioner
services-Unit-1 (Appeal), Chennai
- 34
1.7 Rebate Claim Original Docs 3.55 3.55 Appeal to be
Missed-Unit-2 filed with the
commissioner
(Appeal),
Chennai -34
1.8 Cenvat Credit of Service 0.12 0.12 Appeal to be
Tax Of Fumigation filed with the
services-Unit-2 commissioner
(Appeal)
Chennai-34
Appeal Filed on
09.05.14
1.9 Cenvat Credit of Service 0.11 0.11 Appeal to be
Tax of Fumigation filed with the
services-Unit-1 commissioner
(Appeal)Chennai
-34 Appeal Filed
on 09.05.14
TOTAL 53.45 53.45
2. INCOME TAX:
Demand
Sl No Description AY (inculding Present Status
Penalty Rs.
in lakhs)
2.1 Penalty levied u/s 271(1) 2005-2006 6.92 Have requested
the Assistant
Commissioner of
IT to adjust the
penalty against
amount to be
received on
account of
refund due from
IT dept. on block
assessment.
2.2 Demand and penalty levied 2006-2007 6.91 Appeal made with
CIT
2.3 Penalty levied u/s 271(1) 2007-2008 35.97 Appeal made with
CIT
2.4 Notice u/s 148 2005-2006 39.85 Appeal made with
CIT
2.5 Notice u/s 148 2006-2007 16.24 Appeal made with
CIT
2.6 Notice u/s 143/(3) dt 2011-2012 53.38 Appeal made with
14.03.14 - AY 2011-12 CIT
TOTAL 159.27
According to the information and explanations given to us and the
records of the Company examined by us, there are no dues of income tax,
wealth tax and service tax which have not been deposited on account of
any dispute.
(c) Company does not have any amount required to be transferred to
investor education and protection fund in accordance with the relevant
provisions of the Companies Act, 1956 (1 of 1956) and rules made there
under.
(viii) The company does not have accumulated losses at the end of the
financial year and it has not incurred cash losses during this
financial year and in the immediately preceding financial year.
(ix) Based on our audit procedures and as per 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, bank or debenture holders.
(x) Based on the information and explanations given by the management,
term loans were applied for the purpose for which the loans were
obtained.
(xi) Bases upon the audit procedures performed for the purpose of
reporting the true and fair view of the financial statements and as per
the information and explanations given by the management, we report
that no fraud on or by the management has been noticed or reported
during the year.
For M.SRINIVASAN & ASSOCIATES
Chartered Accountants
FRN No-004050S
Place : Chennai
Date : 26.05.2015 M. SRINIVASAN
Partner, M.No.022959
Mar 31, 2014
We have audited the accompanying financial statements of Jumbo Bag
Limited ("the Company"), which comprise the Balance Sheet as at March
31, 2014, and the Statement of Profit and Loss account and Cash Flow
Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
2. Management''s Responsibility for the Financial Statement
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 presentation of the financial statements that
give a true and fair view and are free from material misstatement,
whether due to fraud or error.
3. Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by management, as
well as evaluating the overall presentation of the financial
statements. We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our audit opinion.
4. 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, 2014,
b) in the case of the Statement of Profit and Loss Account, of the loss
for the year ended on that date; and
c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
5. Emphasis of Matters
We draw attention to Note No.2.19 of the financial statements with
regard to the Claims receivables from the Insurance Companies and
outstanding of Rs. 1099.58 lakhs on the balance sheet date. The
management is confident of recovery of full amount and therefore no
further provision is made. Our opinion is not qualified in respect of
this matter.
6. Report on Other Legal and Regulatory Requirement
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the 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 account, and Cash
Flow Statement dealt with by this Report are in agreement with the
books of account
d) In our opinion, the Balance Sheet, Statement of Profit and Loss
account, and Cash Flow Statement comply with the Accounting Standards
referred to in subsection (3C) of section 211 of the Companies Act,
1956;
e) On the basis of written representation received from the directors,
as at 31st March 2014 and taken on record by the Board of Directors, we
report that none of the directors are disqualified as at 31st March
2014 from being appointed as a director in term of clause (g) of sub
section (1) of section 274 of the companies act 1956 on the said date.
ANNEXURE TO INDEPENDENT AUDITOR''S REPORT
Annexure referred to in paragraph 6 of our report of even date.
(i) (a) In our opinion the Company has maintained proper records
showing full particulars, including
quantitative details and situation of fixed assets.
(b) The Fixed Assets of the Company have been physically verified at
the intervals in a phased manner by the management according to the
program of periodical verification which, in our opinion is reasonable
having regard to the size of the Company and the nature of its assets.
As informed no material discrepancies were noticed on such
verification.
(c) The Company has not disposed off substantial part of its Fixed
Assets during the year.
(ii) (a) In our opinion the inventories have been physical verified
during the year by the management at
reasonable intervals.
(b) In our opinion the procedures of physical verification of the
inventory 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 explanations given to us, the
Company is maintaining proper records of its inventories. The
discrepancies noticed on physical verification were not material and
properly dealt with in the books of accounts.
(iii) (a) According to information and explanations given to us the
Company has not granted any loans,
secured or unsecured, to companies, firms or other parties covered in
the register maintained under Section 301 of the Companies Act, 1956.
However, the Company has taken loan from 1 party covered in the
register maintained under Section 301 of the Companies Act, 1956,
aggregating to Rs.96 lacs (Maximum balance outstanding during the year
Rs.96 lacs).
(b) The rate of interest and other terms and conditions on which the
loans have been taken by the company are not, prima facie, prejudicial
to the interest of the company. The company has not granted any loans
during the year.
(c) In respect of such other loans given by the company, where
stipulations have been made, they have generally repaid the principal
amounts as stipulated and have been regular in payment of interest,
wherever applicable.
(d) In respect of such loans given by the company, there are no overdue
amounts more than Rs.100000
(iv) (a) In our opinion and according to information and explanations
given to us, there is an adequate
internal control procedure commensurate with the size of the Company
and the nature of its business, for the purchase of inventory and fixed
assets and for the sale of goods and services. Further, on the basis
of our examination of the books and records of the company, we have
neither come across nor have been informed of any continuing failure to
correct major weakness in the aforesaid internal control procedure.
(v) (a) The transactions made pursuance of contracts or arrangement
that need to be entered in the
register maintained under Section 301 of the Companies Act, 1956 have
been entered in the register.
(b) In our opinion and according to information and explanations given
to us, certain transactions made in pursuance of such contracts or
arrangements exceeding rupees five lakhs each have been made at prices,
which are reasonable having regards to prevailing market prices at
relevant time.
(vi) In our opinion, the company has complied with the provision of
Section 58A and 58AA or any other
relevant provision of the act and the companies (Acceptance of Deposit)
rules, 1975 with regard to
deposits accepted form public.
(vii) The Company has an internal audit system commensurate with its
size and nature of business.
(viii) We have broadly reviewed the books of accounts maintained by the
company pursuant to the rules
prescribed by the Central Government for maintenance of cost records
under section 209 (1) (d) of the
Companies Act, 1956 and are of the opinion that prima facie, the
prescribed accounts and records have been made and maintained. However
we have not made a detailed examination of the records.
(ix) (a) According to the information and explanations given to us and
on the basis of our examination of
the records of the Company, amounts deducted or accrued in the books of
account in respect of undisputed statutory dues including Provident
fund, Employees state Insurance, Income-tax, Sales tax, Service tax,
Customs duty, and other material statutory dues have been generally
regularly deposited, during the year by the Company with the
appropriate authorities. As explained to us, the company did not have
any dues on account of Investor Education and Protection Fund, Employee
State Insurance, Excise Duty and Wealth Tax.
(b) According to the information and explanations given to us, no
undisputed amount payable in respect of Income Tax, service tax ,
Customs Duty, Sales Tax and other material statutory dues that were in
arrears as at 31st March 2014 for the period of more than six months
from the date they become payable.
(c) Details of dues towards sales tax, income tax and excise duty that
have not been deposited on account of dispute are as stated in Note 13
of notes to accounts and forming part of the financial statement.
(x) The company has no accumulated losses at the end of the financial
year and it has not incurred cash losses in the current and immediately
preceding financial year.
(xi) In our opinion, the company has not defaulted in repayment of its
dues to bank and the company has not issued any debentures during the
year.
(xii) In our opinion the Company has not granted any loans and advances
on the basis of security by way of pledge of shares, debentures and
other securities.
(xiii) In our opinion the company is not a chit fund or a nidhi/mutual
benefit fund/society. Therefore the provisions of clause 4(xiii) of the
Companies ( Auditor''s Report) Order 2003(as amended) are not applicable
to the company.
(xiv) In our opinion, the Company is not dealing or trading in shares,
securities, debentures and other investments. Accordingly the
provisions of clause 4 (xiv) of the companies (Auditors Report) order
2003(as amended) are not applicable to the company.
(xv) In our opinion, the Company has not given any guarantee for loans
taken by others from banks or financial institutions. Therefore the
provisions of clause 4(XV) of the order are not applicable.
(xvi) In our opinion, term loan availed by the company were prima facie
applied for the purpose for which they were obtained, other than
temporary deployment pending application.
(xvii) On an overall examination of the financial statements of the
company funds raised on short term basis have, prima facie, not been
used during the year for long-term investment and vice versa.
(xviii) The Company has not made preferential allotment of shares to
parties and companies listed in the register maintained under Section
301 of the Companies Act, 1956.
(xix) Since the Company has not issued any debentures, the provisions
of Clause 4(xix) of the companies (Auditors report) order 2003 as
amended are not applicable to the company.
(xx) The Company has not raised any money through public issues during
the year.
(xxi) In our opinion, considering the size and nature of the company''s
operations, no fraud of material significance on or by the Company has
been noticed or reported during year.
For M Srinivasan & Associates
Chartered Accountants
FRN : 004050S
M. Srinivasan
Place : Chennai (Partner)
Date: 13.08.2014 M No : 022959
Mar 31, 2012
1. We have audited the attached balance sheet of Jumbo Bag Limited
("the Company") as at 31st March 2012, the profit and loss account and
also the cash flow statement for the year ended on that date annexed
thereto. These financial statements are the responsibility of the
CompanyÃs 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 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 (AuditorÃs Report) Order, 2003, as
amended, issued by the Ministry of Corporate Affairs in terms of
sub-section (4A) of Section 227 of the Companies Act, 1956, we enclose
in the Annexure a statement on the matters specified in paragraphs 4
and 5 of the said Order.
Further to our comments in the Annexure referred to in para 3 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 purposes of our
audit;
b. In our opinion, proper books of account as required by law have
been kept by the Company so far as appears from our examination of
those books;
c. The Balance Sheet, Statement 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, Statement of Profit and Loss 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;
e. On the basis of written representations received from the
directors, as at 31st March 2012 and taken on record by the Board of
Directors, we report that none of the directors are disqualified
as at 31st March 2012 from being appointed as a director in terms of
clause (g) of sub-section (1) of Section 274 of the Companies Act, 1956
on the said date;
f. In our opinion and to the best of our information and according to
the explanations given to us, the said financial statements together
with the statement of significant accounting policies and notes
thereon, give the information required by the Companies Act, 1956, in
the manner so required and give a true and fair view in conformity with
the accountin principles generally accepted in India.
i. In the case of the balance sheet, of the state of affairs of the
Company as at 31st March 2012;
ii. In the case of the statement of profit and loss, of the profit of
the Company for the year ended on that date; and
iii. In the case of the cash flow statement, of the cash flows of the
Company for the year ended on that date.
ANNEXURE TO THE AUDITOR'S REPORT
Annexure referred to in paragraph 3 of our report of even date
(i) a. In our opinion, the company has maintained proper records
showing full Particulars including quantitative details and situation
of fixed assets.
b. The Company has a regular programme of physical verification of its
fixed assets by which all fixed assets are annually verified. In our
opinion, this periodicity of physical verification is reasonable having
regard to the size of the Company and the nature of its assets. No
material discrepancies were noticed on such verification.
c. The company has not disposed off substantial part of its Fixed
Assets during the year.
(ii) a. In our opinion, inventories have been physically verified
during the year by the management at reasonable intervals.
b. In our opinion, the procedures of physical verification of the
inventory 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 explanations given to us, the Company
is maintaining proper records of its inventories. The discrepancies
noticed on physical verification were not material and properly dealt
with in the books of accounts.
(iii) a. The company has not granted any loan, secured or unsecured, to
companies, firms or other parties covered in the register under 301 Of
the Act. However the company has taken loan from one party covered in
the register maintained under sec 301 of the Companies Act 1956,
aggregating to Rs. 164 Lakhs (Maximum balance outstanding during the
year Rs. 164 Lakhs)
b. The rate of interest and other terms and conditions on which the
loans have been taken by the company are not, prima facie, prejudicial
to the interest of the company. The company has not granted any loans
during the year.
c. In respect of such other loans given by the company, where
stipulations have been made, they have generally repaid the principal
amounts as stipulated and have been regular in payment of interest,
wherever applicable.
d. In respect of such loans given by the company, there are no overdue
amounts more than Rs. 100000.
(iv) In our opinion, there is an adequate internal control procedure
commensurate with the size of the company and the nature of its
business for the purchase of inventory and fixed assets and for sale of
goods and services. Further, on the basis of our examination of the
books and records of the company, we have neither come across nor have
been informed of any continuing failure to correct major weakness in
the aforesaid internal control procedure.
(v) a. The transactions made in pursuance of contracts or arrangements
that need to be entered in the register maintained under section 301 of
the Companies Act 1956 have been entered in the register.
b. In our opinion and according to information and explanations given
to us, the transactions exceeding rupees five lakh each have been made
at prices, which are reasonable having regard to prevailing market
prices at the relevant time.
(vi) In our opinion, the company has complied with the provisions of
section 58A and 58AA or any other relevant provisions of the Act and
the Companies (Acceptance of Deposit) rules, 1975 with regard to
deposits accepted from public.
(vii) The company has an internal audit system commensurate with its
size and nature of business.
(viii) The Central Government has not prescribed maintenance of cost
records under section 209(1)(d) of the Companies Act 1956, for any of
the products manufactured or services rendered by the company.
(ix) a. According to the information and explanations given to us and
on the basis of our examination of the records of the company, amounts
deducted or accrued in the books of accounts in respect of undisputed
statutory dues including Provident fund, Income tax, Sales Tax, Customs
Duty, Service Tax and other material statutory dues have been generally
regularly deposited during the year by the Company with the appropriate
authorities. As explained to us, the Company did not have any dues on
account of Investor Education and Protection Fund, Employees State
Insurance, Excise Duty and Wealth Tax.
b. According to the information and explanations given to us, no
undisputed amounts payable in respect of Income Tax, Service Tax,
Customs Duty, Sales Tax and other material statutory dues that were in
arrears as at 31st of March 2012 for a period of more than six months
from the date they become payable.
c. Details of dues towards sales tax, income tax and excise duty that
have not been deposited on account of dispute are as stated in Note 13
of Notes to the accounts forming part of the financial statements.
(x) The company does not have any accumulated losses as at March 31,
2012 and has not incurred any cash losses in the financial year ended
on that date or in the immediately preceding financial year.
(xi) In our opinion, the company has not defaulted in repayment of its
dues to bank during the year.
(xii) In our opinion the company has not granted any loans and advances
on the basis of security by way of pledge of shares, debentures and
other securities.
(xiii) The provisions of any special statute applicable to a chit fund,
nidhi, mutual benefit fund / societies are not applicable to the
company.
(xiv) In our opinion, the company is not dealing or trading in shares,
securities, debentures and other investments. Accordingly the
provisions of clause 4 (xiv) of the companies (Auditors report) order
2003 are not applicable to the company.
(xv) In our opinion, the company has not given any guarantee for the
loans taken by others from banks or financial institutions.
(xvi) In our opinion, the term loans availed by the company during the
year were, prima facie, applied for the purpose for which they were
obtained, other than temporary deployment pending application.
(xvii) On an overall examination of the financial statements of the
company, funds raised on short-term basis have, prima facie, not been
used during the year for long-term investment and vice-versa.
(xviii) The company has made preferential allotment of shares to
parties and a company listed in the register maintained under Sec 301
of the Companies Act, 1956.
(xix) Since the company has not issued any debentures, the provisions
of clause 4(xix) of the Companies (Auditors report) order 2003 are not
applicable to the company.
(xx) The company has not raised any money by way of public issues
during the year.
(xxi) In our opinion, considering the size and nature of the companyÃs
operations, no fraud of material signifcance on or by the company has
been noticed or reported during the year.
For M.SRINIVASAN & ASSOCIATES
Chartered Accountants
FRN No. 004050S
R.MOHAN
Partner
M. No. 022460
Place : Chennai
Date : 29.05.2012
Mar 31, 2010
1. We have audited the attached Balance sheet of JUMBO BAG LIMITED as
at March 31, 2010, the Profit and Loss Account and the Cash Flow
statement for the year ended on that date, annexed thereto, signed by
us under reference to this report. 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 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.
3.1 We have obtained all the information and explanations, which to the
best of our Knowledge and belief, were necessary for the purposes of
our audit.
3.2 In our opinion, proper books of account, as required by law, have
been maintained by the company so far as appears from our examination
of those books.
3.3 The financial statements dealt with by this report are in agreement
with the books of account.
3.4 In our opinion, the aforesaid financial statements comply in all
material respects with the applicable Accounting Standards issued by
the Institute of Chartered Accountants of India referred to in section
211(3C)oftheAet.
3.5 On the basis of written representations received from the
directors, and taken on record by the Board of Directors, We report
that none of the directors is prima facie disqualified as on March 31,
2010 from being appointed as a Director in terms of section 274 (1) (g)
of the Act.
3.6 In our opinion and to the best of our information and according to
the explanations given to us, the aforesaid financial statements read
with the statement on significant Accounting Policies and Notes to the
Accounts, give the information required by the Companies Act 1956, (the
Act) in the manner so required and also 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 the affairs of the
company as at March 31, 2010;
b. In the case of the Profit and Loss Account of the profit for the
year ended on that date; and
c. In the case of the Cash Flow Statement, of the Cash Flows for the
year ended on the date.
4. As required by the Companies (Auditors Report) Order, 2003 issued
by the Government of India in terms of section 227(4A) of the companies
Act, 1956, and on the basis of such checks as we considered appropriate
and according to the information and explanations given to us, we
further report that:
4.1 a. In our opinion, the company is maintaining proper records
showing full Particulars including quantitative details and situation
of fixed assets.
b. The fixed assets have been physically verified under a phased
programme of verification, which, in our opinion, is reasonable, and no
material discrepancies have been noticed on such verification.
c. The company has not disposed off substantial part of its fixed
assets during the year.
4.2 a. In our opinion, inventories have been physically verified
during the year by the management at reasonable intervals.
b. In our opinion, the procedures of physical verification of the
inventory 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, on the basis of examination of inventory records
the Company is maintaining proper record of its inventories and no
material discrepancies were noticed on physical verification.
4.3 a. The company has neither granted nor taken any loans, secured or
unsecured, to and from companies, firms or other parties covered in the
register maintained under section 301 of the Act.
b. Since the company has neither granted nor taken any loans, secured
or unsecured, to and from companies, firms or other parties covered in
the register under 301 Of the Act, reporting under this clause does not
arise.
c. In respect of such other loans given by the company, where
stipulations have been made, they have generally repaid the principal
amounts as stipulated and have been regular in payment of interest,
wherever applicable.
d. In respect of such loans given by the company, there are no overdue
amounts more than Rs. 100000.
4.4 services. Further, on the basis of our examination of the books and
records of the company, we have neither come across nor have been
informed of any continuing failure to correct major weakness in the
aforesaid internal control procedure.
4.5 a. The transactions made in pursuance of contracts or arrangements
that need to be entered in the register maintained under section 301 of
the Companies Act 1956 have been entered in the register.
b. In our opinion and according to information and explanations given
to us, the transactions exceeding rupees five lakh each have been made
at prices, which are reasonable having regard to prevailing market
prices at the relevant time.
4.6 In our opinion, the company has complied with the provisions of
section 58A and 58AA or any other relevant provisions of the Act and
the Companies (Acceptance of Deposit) rules, 1975 with regard to
deposits accepted from public.
4.7 In our opinion, the company has an internal audit system
commensurate with its size and nature of its business.
4.8 The Central Government has not prescribed maintenance of cost
records under section 209(l)(d) of the Companies Act 1956,for the
products manufactured by the company.
4.9 a. According to the information and explanations given to us and
on the basis of our examination of
the records of the company, amounts deducted or accrued in the books of
accounts in respect of undisputed statutory dues including Provident
fund, Income tax, Sales Tax, Customs Duty, Service Tax and other
material statutory dues have been generally regularly deposited during
the year by the Company with the appropriate authorities. As explained
to us,the Company did not have any dues on account of Investor
Education and Protection Fund, Employees State Insurance, Excise Duty,
Wealth Tax.
There are no dues on account of Cess under 441A of the Companies Act,
1956 since the date from which the aforesaid said section comes in to
Force has not yet been notified by the Central Government of India.
According to the information and explanations given to us, no
undisputed Amounts payable in respect of Income Tax, Service Tax,
Customs Duty, Sales Tax and other material statutory dues that were in
arrears as at 31st of March 2010 for a period of more than six months
from the date they become payable.
b. Details of dues towards sales tax, income tax and excise duty that
have not been deposited on account of dispute are as stated in Note 15
of Notes to the accounts forming part of the financial statements.
4.10 The company does not have any accumulated losses as at March 31,
2010 and has not incurred any cash losses in the financial year ended
on that date or in the immediately preceding financial year.
4.11 In our opinion, the company has not defaulted in repayment of its
dues to bank during the year.
4.12 In our opinion the company has not granted any loans and advances
on the basis of security by way of pledge of shares, debentures and
other securities.
4.13 The provisions of any special statute applicable to a chit fund,
nidhi, mutual benefit fund / societies are not applicable to the
company.
4.14 In our opinion, the company is not dealing or trading in shares,
securities, debentures and other investments. Accordingly the
provisions of clause 4 (xiv) of the companies (Auditors report) order
2003 are not applicable to the company.
4.15 In our opinion, the company has not given any guarantee for the
loans taken by others from banks and financial institutions.
4.16 In our opinion, the term loans availed by the company during the
year were, prima facie, applied for the purpose for which they were
obtained, other than temporary deployment pending application.
4.17 On an overall examination of the financial statements of the
company, funds raised on short-term basis have, prima facie, not been
used during the year for long-term investment and vice-versa.
4.18 The company has not made any preferential allotment of shares to
parties and companies listed in the register maintained under Sec 301
of the Act.
4.19 Since the company has not issued any debentures, the provisions of
clause 4(xix) of the Companies (Auditors report) order 2003 are not
applicable to the company.
4.20 The company has not raised any money by way of public issues
during the year.
4.21 In our opinion, considering the size and nature of the companys
operations, no fraud of material significance on or by the company has
been noticed or reported during the year.
For M.SRINIVASAN & ASSOCIATES
Chartered Accountants
FRN: 004050S
R.MOHAN
Place : Chennai Partner
Date : 31.05.2010 M.No.22460
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