Mar 31, 2015
1. We have audited the accompanying standalone financial statements of
M/s. NEO CORP INTERNATIONAL LIMITED ("the Company"), which comprises
the Balance Sheet as at March 31, 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 Statements
2. The company's Board of Directors are responsible for the matters
stated in Section 134(5) of the Companies Act, 2013 ('the Act') with
respect to the preparation and presentation Of these standalone
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 Companies (Accounts) Rules, 2014. This
responsibility includes maintenance of adequate accounting records in
accordance with the provisions of the Act for safeguarding the assets
of the Company and for preventing and detecting frauds and other
irregularities; selection and application of appropriate accounting
policies; making judgments and estimates that are reasonable and
prudent; design, implementation and maintenance of adequate internal
financial controls, that are operating effectively for ensuring the
accuracy and completeness of the accounting records, relevant to the
preparation and presentation of the standalone 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 standalone
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.
4. An audit involves performing procedures to obtain audit evidence
about the amounts and disclosure 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 a
true and fair view, in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing
an opinion on whether the Company has in place an adequate internal
financial controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of
the accounting estimates made by the Company's management and Board of
Directors, 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 on the
standalone financial statements except reported by us in paragraph 8(a)
of the report.
Opinion
6. In our opinion and to the best of our information and according to
the explanations given to us and except comment given by us in point
8(a) to 8(b) below by us, the aforesaid standalone 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, of the state of affairs of the Company as
at 31st March 2015, its profit and its cash flows for the year ended on
that date.
Report on Other Legal and Regulatory Requirements
7. As required by the Companies (Auditor's Report) Order, 2015 ("the
Order") issued by the Central Government of India in Terms of
sub-section(ll)ofsectionl43oftheAct,wegivein the Annexure a statement
on the matters Specified in paragraphs3and4ofthe Order.
8. As required by section 143(3) of the Act, we further report that:
a. The Company has maintained its account on a highly integrated
computerized software system namely "SAP" but being international
software, the books of accounts generated through the software system
differ from the Indian traditional formats of the books of accounts.
However, on the basis of viewing the data in the computerized form, we
conducted our audit. We are of the view that the appropriate feeding of
the primary data from the corresponding source documents, their
processing on SAP and resultant trial balance generated by the system
provide a reasonable basis for us in expressing our opinion on the
standalone financial statements under reference to this report.
b. The company has not complied with the method prescribed in Schedule
II of the Companies Act, 2013 and continues to charge depreciation as
per the rate and method defined in Companies Act 1956. In absence of
information, we are unable to quantify the short/excess amount of
depreciation and impact of same on the Financial Statements.
For : A.P GARG & Co
Chartered Accountants
Place : Indore (F.R. 002143C)
Date: 30th May 2015 Anup Garg
Partner
(Membership No. 071283
Mar 31, 2014
1. We have audited the accompanying financial statements of NEO CORP
INTERNATIONAL LIMITED ("the Company"), which comprise the Balance-Sheet
as at March 31st, 2014, the Statement of Profit and Loss and Cash Flow
Statement for the year ended, and a summary of the significant
accounting policies and other explanatory information, which we have
signed under reference to this report.
Management''s Responsibility forthe Financial Statements
2. The Company''s Management is responsible for the preparation of
these financial statements that give a true and fair view of the
financial position, financial performance and cash flows of the Company
in accordance with the Accounting Standards notified under the
Companies Act, 1956 of India ("the Act") read with the General Circular
15/2013 dated 13th September 2013 of the Minister of Corporate Affairs
in respect of Section 133 of the Companies Act, 2013 and in accordance
with the accounting principal generally accepted in India . 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 mis statement, whether due to fraud or error.
Auditors''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 auditors consider 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 Company''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 thefinancial statement.
5. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide abasis for our audit opinion.
Opinion
6. In our opinion and to the best of our information and accordingto
the explanations given to us, the accompanying 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 lndia.
(a) In the case of the Balance Sheet, of the state of affairs of the
Company as at March 31st, 2014;
(b)ln the case of the Statement of Profit it and Loss, ofthe profit forthe
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.
Report on Other Legal and Regulatory Requirements
7. As required by ''the Companies (Auditor''s Report) Order, 2003'', as
amended by the Central Government of India in terms of sub- section
(4A) of Section 227 ofthe Act ("the Order"), and on the basis of such
checks ofthe books and records ofthe Company as we considered
appropriate and accordingto the information and explanations given to
us, we give in the Annexure a statement on the matters specified in
paragraphs 4 and 5 ofthe Order.
8. As required by Section227(3) of the Act,were port that:
(a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose
ofouraudit;
(b) The company has maintained its account on a highly integrated
computerized software system namely "SAP" but being an international
software, the books of accounts generated through the software system
differ from the Indian traditional formats of the books of accounts.
However, on the basis of viewing the data in the computerized form, we
conducted our audit. We are ofthe view that the appropriate feeding of
the primary data from the corresponding source documents, their
processing on SAP and resultant trial balance generated by the system
provide a reasonable basis for us in expressing our opinion on the
financial statements under referencetothis report.
(c) The Balance-Sheet, the Statement of Profit and Loss and the Cash
Flow Statement dealt with by this Report are in agreement with
the books ofaccount.
(d) In our opinion, the Balance-Sheet, the Statement of Profit and Loss
and the Cash Flow Statement dealt with by this report comply with the
Accounting Standards notified under the Companies Act, 1956 (the Act)
read with the General Circular 15/2013dated 13th September 2013 ofthe
Minister of Corporate Affairs in respect of Section 133 ofthe Companies
Act, 2013
(e) On the basis of written representations received from the directors
as on March 31st, 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31st, 2014, from
being appointed as a director in terms of clause
(g)ofsub-section (l) of Section 274 of the Act.
Name of Statute Nature of the Disputed Amount Period to Which
Dues (inLacs) Amount relates
Central Excise Act 1944 CENVAT Credit on Inputs 1.86 1995-1996
Central Excise Act 1944 CENVAT Credit on Thread 0.22 1996-1997
Customs Act 1962 Customs Duty on Capital 18.11 1996-1997
Goods Imported Under
EPCG Scheme
Central Excise Act 1944 Excise Duty 1.27 2000-2001
Central Excise Act 1944 Duty free input under 53.7 2006-2007
annexure 45
Income Tax Act, 1961 Income Tax 21.16 2001-2002
Custom Act, 1962 Custom Duty 3.20 1997-1998
MP Entry Tax Act Entry Tax on expansion 52.47 2008-09
MP VAT Act Credit of Input Rebate 4.55 2008-09
MP Entry Tax Act Entry Tax on Expansion 23.02 2009-10
MP VAT Act Classification of Goods 5.87 2009-10
Central Sales Tax Act Classification of Goods 7.39 2009-10
MP Entry Tax Act Entry tax on new unit 41.88 2009-10
MP VAT Act Classification of Goods 21.45 2010-11
Central Sales Tax Act Classification of Goods 12.60 2010-11
Name of Statute Forum where pending Remarks
Central Excise
Act 1944 Asst Commissioner of Central Excise, Provided in the
Pithampur Books
Central Excise Asst Commissioner of Central Excise, Provided in the
Act 1944 Pithampur Books
Customs Act 1962 High Court of M.P. Bench Indore Provided in the
Books
Central Excise Additional Commissioner of Central (Part of DBK case)
Act 1962 Excises Customs (Appeal), Indore
Central Excise Customs, Excises Service Tax WP with H.C. Annex
Act 1944 45 _case
lncome Tax Act, ITAT, Indore Provided in the
1961 Books
Custom Act, 1962 High Court of M.P. Bench, Indore Drawback on sacks
with _Liner
MP Entry Tax Act MP Commercial Tax Appellate Board, -
Bhopal_
MP VAT Act MP Commercial Tax Appellate Board, -
Bhopal_
MP Entry Tax Act MP Commercial Tax Appellate Board, -
Bhopal_
MP VAT Act MP Commercial Tax Appellate Board -
Bhopal_
Central Sales MP Commercial Tax Appellate Board, -
Tax Act Bhopal_
MP Entry Tax Act MP Commercial Tax Appellate Board, -
Bhopal_
MP VAT Act High Court of M.P. Bench, Indore _
Central Sales Act High Court of M.P. Bench, Indore -
Tax Act
10) The company has no accumulated losses at the end of the financial
year and it has not incurred any cash losses in the current and the
preceding financial year.
11) In our opinion and according to the information and explanations
given to us, the company has not defaulted in the repayment of its dues
to the financial institutions and banks.
12) The company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
13) In our opinion, the company is not a chit fund or a nidhi/mutual
benefit fund/society. Therefore, the provisions of clause (xiii) of
Para 4 of the Companies (Auditor''s Report) Order, 2003 is not applicable
to the company.
14) In our opinion, the company is not dealing or trading in shares,
securities, debentures and other investments. Accordingly, clause
(xiv) of Para 4 of the Companies (Auditor''s Report) Order, 2003 is not
applicabletothe company.
15) According to the information and explanations given to us, the
company has given guarantee for loans taken by its subsidiaries from
bankorfinancial institutions, thetermsand conditions whereof, in our
opinion, are not prima-facie pre judicial to the interest of the
Company.
16) Based on the information and explanationsgiven to us by the
management, the term loans availed by the Company during
the year were applied for the purposes for which the loans were
obtained.
17) According to the information and explanations given to us and on an
overall examination of the Balance Sheet of the company for the year
under report, we are of the opinion that no funds raised on short term
basis have been used for long term investment.
18) The company has not made any preferential allotment of shares to
any parties or companies covered in the register maintained
under Sec.301 of the Companies Act, 1956.
19)The company has not issue danyde bentures during the year.
20) The company has not raisedany money by wayofpublic issue
during the year.
According to the information and explanations given to us and on the
basis of examination of records, no fraud by or on the Company has been
noticed or reported during the year.
For:A.P.GARG&CO.
Chartered Accountants
Place: Indore (F.R. No. 002413C)
Date: 30th May, 2014 Abdhesh Bansal
Partner
(Membership No. 079758)
Mar 31, 2013
Report on the Financial Statements
1. We have audited the accompanying financial statements of NEO CORP
INTERNATIONAL LIMITED ("the Company"), which comprise the Balance-Sheet
as at March 31st, 2013, the Statement of Profit and Loss and Cash Flow
Statement for the year ended, and a summary of the significant
accounting policies and other explanatory information, which we have
signed under referencetothis report.
Management''s Responsibility forthe Financial Statements
2. The Company''s Management is responsible forthe 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 of India ("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, whetherduetofraudorerror.
Auditors''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 wecomply 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 auditors consider 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 statement.
5. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our audit
opMonexceptreportedbyusinparagraphSofthereport.
Opinion
6. In our opinion and to the best of our information and according to
the explanations given to us for the possible effect of the matters
described in the paragraphs 8 (b) & 8 (c) below, the accompanying
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 31st,2013;
(b) In the case of the Statement of Profit and Loss, of the profit
fortheyear ended on thatdate;and
(c) In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
7. As required by ''the Companies (Auditor''s Report) Order, 2003'', as
amended by the Central Government of India in terms of sub-section (4A)
of Section 227 of the Act ("the Order"), and on the basis of such
checks of the books and records of the Company as we considered
appropriate and according to the information and explanations given to
us, we give in the Annexure a statement on the matters specified in
paragraphs 4 andSoftheOrder.
8. As required by Section 227(3) of the Act, we report that:
(a) Subject to our comments given below at sub-para (b) regarding
non-maintenance of the books of account by the Company on SAP System,
in the desired form, we have obtained all the information and
explanations which, to the best of our knowledge and belief, were
necessary for the purpose ofouraudit;
(b) During the year under audit, the Company has implemented highly
integrated computerized Software System namely ''SAP'' but due to
jumbling and improper mapping in the software, the books of account, as
commonly understood under general accounting procedures and practices,
could not get generated through the system. However, in absence of such
books of account, we conducted our oudit on the basis of various
reports generated by the system and also verified the veracity of such
reports with the primary records and evidences as well as third parties
confirmations by observing principles of materiality and prudence. We
consider that the reports generated by the system provide a reasonable
basis for us in expressing our opinion on the financial statements
under reference to this report
(c) Subject to our comments in sub-para (b) above, the Balance-Sheet,
Statement of Profit and Loss and Cash Flow Statement dealt with by this
Report are in consonance with the reports generated by the computerized
Software System namely''SAP- fd) 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 Act; (e) On the basis of written
representations received from the directors as on March 31st, 2013, and
taken on record by the Board of Directors, none of the directors is
disqualified as on March 31st, 2013, from being appointed as a director
in terms of clause (g) of sub-section (1) of Section 274 of the Act.
12. The company has not granted loans and advanceson the basis of
security by way of pledge of shares, debentures and other securities.
13. In our opinion, the company is not a chit fund or a nidhi/mutual
benefit fund/society. Therefore, the provisions of clause (xiii) of
Para 4 of the Companies (Auditor''s Report) Order, 2003 is not
applicable to thecompany.
14. In our opinion, the company is not dealing or trading in shares,
securities, debentures and other investments. Accordingly, clause (xiv)
of Para 4 of the Companies (Auditor''s Report) Order,
2003isnotapplicabletothecompany.
15. According to the information and explanations given to us, the
company has given guarantee for loans taken by its subsidiaries from
bank or financial institutions, the terms and conditions whereof, in
our opinion, are not prima-facie prejudicial to the interest of the
Company.
16. Based on the information and explanations given to us by the
management, theterm loansavailed bythe Company duringthe year were
applied for the purposes for which the loans were obtained.
17. According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the company for the year
under report, we are of the opinion that no funds raised on short term
basis have been used for long term investment.
18. The company has not made any preferential allotment of shares to
any parties or companies covered in the register maintained under Sec.
301 oftheCompaniesAct, 1956.
19. Thecompanyhasnotissuedanydebenturesduringtheyear.
20. The company has not raised any money by way of public issue
duringtheyear.
21. According to the information and explanations given to us and on
the basis of examination of records, no fraud by or on the Company has
been noticed or reported duringthe year.
For:A.P.GARG & Co.
Place: Indore Chartered Accountants
Date: 3rd May, 2013 F.R.NO.002413C
(AnupGarg)
Partner
M. No. 071283
Mar 31, 2012
1. We have audited the attached Balance Sheet of M/s. NEO CORP
INTERNATIONAL LIMITED as at 31st March 2012, and also the Profit and
Loss Account and the Cash Flow Statement for the year ended on that
date. These financial statements are the responsibility of the
company's management. Our responsibility is to express an opinion on
these financial statements based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. These standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are prepared 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
presentation of the financial statements. 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(4A) ofthe Companies Act, 1956, we enclosed in the Annexure
a statement on the matters specified in paragraphs 4 and 5 of the said
Order.
4. Further to our comments in the Annexure referred to in paragraph 3
the above, we report that:
(a) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
(b) In our opinion proper books of account as required by law have been
kept by the Company so far as it appears from our examination of the
books;
(c) The Balance Sheet, Profit and Loss Account and the Cash Flow
Statement dealt with by this report, are in agreement with the books of
account;
(d) In our opinion the Balance Sheet, Profit & Loss account and the
Cash Flow Statement dealt with by this report, comply with the
Accounting Standards referred to in sub-section (3C) ofthe Section 211
ofthe Companies Act, 1956;
(e) On the basis of the written representations received from all the
Directors, as on 31st March, 2012 and taken on record by the Board of
Directors, we report that none of the directors of Company is
disqualified as on 31st March, 2012 from being appointed as a director,
in term of clause (g) of sub section (1) of section 274 ofthe Companies
Act, 1956;
(f) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts, read together with
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 accounting principles
generally accepted in India;
(i) In the case of the Balance Sheet, of the state of affairs ofthe
Company as on 31st March 2012;
(ii) In the case of Profit and Loss Account, of the profit of the
Company for the year ended on that date; and
(iii) In the case of Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
Annexure referred to in paragraph 3 of Auditor's Report of even date on
the accounts for the year ended on 31st March. 2012 of Neo Corp
International Limited.
1) a. The Company has maintained proper records showing
full particulars, including quantitative details and situation of fixed
assets.
b. We have been informed that the fixed assets of the company are
physically verified by the management during the year in a phased
periodical manner, which in our opinion is reasonable having regard to
the size of the company and the nature of its assets. No material
discrepancies were noticed on such physical verification.
c. There was a major fire accident in the factory premises of the unit
named M/s. Techtextil (A 100% EOU Division of the Company) during year
2009-10 on 27th & 28th February, 2010. The total loss of assets has
been valued to Rs. 5205.16 Lacs consist of two divisions of the Company.
The said assets were covered by insurance policies with two Insurance
Companies. The Company had received an interim claim amounting Rs.
1500.00 Lacs during Financial Year 2010-11 but the final approval/
settlement of the claim by the said Insurance Companies is still
pending. Apart from this issue, the Company has not disposed off any
substantial part of fixed assets during the year and in our opinion the
going concern status of the Company is not affected.
d. The Capital Subsidy ofRs. 124.52 Lacs received during financial year
2010-11 on various assets which was carried in Capital Reserve because
of assets purchased pertaining to subsidy was kept in CWP is being
capitalised during the year and charged depreciation accordingly. Hence
proportionate subsidy amount has been written back to Profit & Loss
Accounts as per AS 12 "Government Grants" and AS 10 Fixed Assets.
2) a. As explained to us, inventories (except stocks in transit
and stock lying with third parties, confirmation for which has been
obtained) have been physically verified by the management at reasonable
intervals during the year.
b. The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the company and the nature of its business.
c. The Company is maintaining proper records of inventory. The
discrepancies noticed on physical verification of were not material and
these have been properly dealt with in the books of account.
3) a. In our opinion and according to the information and
explanations given to us, the company has taken loans from two parties
during the year covered in the register maintained under Sec 301 of the
Companies Act and the outstanding year end balance of such parties wasRs.
2.89 lacs and the maximum outstanding balance during the year was Rs.
20.00 lacs.
b. The company has granted loan to one party covered u/s 301 of the
CompaniesAct 1956 and the outstanding year end balance of such parties
was Rs. 24.92 lacs and the maximum outstanding balance during the year
was Rs. 24.92 lacs.
c. In our opinion and according to the information and explanations
given to us, the rate of interest and other terms and conditions of
such loan are not prima-facie prejudicial to the interest of the
company.
d. The principal amounts are repayable on demand and there is no
repayment schedule.
e. In our opinion and according to the information and explanations
given to us, there is no overdue amount of loan taken from Companies,
Firms or other parties listed in the register maintained under Sec. 301
of the CompaniesAct, 1956.
4) In our opinion and according to the 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 with regards to purchase of inventory, fixed assets and sale
of goods and services and we have not observed any continuing failure
to correct the major weakness in such internal controls.
5) a. In our opinion and according to the information and
explanations given to us, the particulars of contracts or arrangements
referred to in Section 301 of the CompaniesAct, 1956 that need to be
entered into the register maintained under Section 301 of the Companies
Act,1956 have been so entered.
b. In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements exceeding the value ofRs. Five Lacs have been entered into
during the financial year, at prices which are reasonable having regard
to the prevailing market prices at the relevant time.
6) The Company has not accepted any deposit during the year from the
public within the meaning of the provision of Section 58Aand 58AAofthe
Companies Act,1956 or any other relevant provisions of the Act and the
rule made there under.
7) In our opinion, the Company's internal Audit System is commensurate
with the size and nature of business.
8) a. According to the books and records as produced and
examined by us in accordance with the generally accepted auditing
practice in India and also based on management representation,
undisputed statutory dues in respect of Provident Fund, Investor
Education and Protection Fund, Employees State Insurance, Income Tax,
VAT/Sales Tax, Wealth Tax, Customs duty, Excise duty, Service Tax, cess
and other material statutory dues have generally been regularly
deposited by the Company with appropriate authorities in India except
delay in few cases. According to information and explanations given to
us, there are no undisputed arrears of statutory dues which have
remained outstanding as at 31st March 2012 for a period of more than
six months from the date they became payable except Rs. 587.14 Lacs
payable for the preceding two years and interest there on.
b. According to the information and explanation given to us, the
statutory dues disputed on account of matters pending before
appropriate authorities are reported as under:
Name of Nature of
the Amt Period to which
Statute Disputed
Dues (Rs.in Lacs) Amt relates
Central
Excise CENVAT
Credit 1.86 1995-1996
Act
1944 on Inputs
Central
Excise CENVAT
Credit 0.22 1996-1997
Act 1944 on Thread
CustomsAct
Customs Duty on 18.11 1996-1997
1962 Capital Goods
Imported Under
EPCG Scheme
Central
Excise Excise
Duty 1.27 2000-2001
Act 1944
Central
Excise Excise duty on 38.76 2002-2003
Act 1944 removal of
goods
Central
Excise Duty free
input 53.77 2006-2007
Act 1944 under
annexure 45
Income Tax Income Tax 21.16 2001-2002
Act, 1961
Custom Act, Custom Duty 3.20 1997-1998
1962
Forum where pending Remarks
Asst. Commissioner of Provided in
Central Excise, Pithampur the Books
Asst. Commissioner of Provided in
Central Excise, Pithampur the Books
High Court of M.P Bench Provided in
Indore the Books
Additional Commissioner (Part of DBK
of Central Excise & case)
Customs (Appeal), Indore
Customs, Excise & (Inv. Case)
Service Tax Appellete
Tribunal, New Delhi
Customs, Excise & WP with
Service Tax Appellete H.C. Annex
Tribunal, New Delhi 45 case
ITAT, Indore Provided in
the Books
High Court of M. P. Bench, Drawback
Indore on sacks
with Liner
9) The company has no accumulated losses at the end of the financial
year and it has not incurred any cash losses in the current and the
preceding financial year.
10) In our opinion and according to the information and explanations
given to us, the company has not defaulted in the repayment of its dues
to the financial institutions and banks.
11) The company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
12) In our opinion fhe company is not a chit fund or a nidhi/mutual
benefit fund/society. Therefore, the provisions of clause (xiii) of
Para 4 of the Companies (Auditor's Report) Order, 2003 is not
applicable to the company.
13) In our opinion the company is not dealing or trading in shares,
securities, debentures and other investments. Accordingly, clause
(xiv) of Para 4 of the Companies (Auditor's Report) Order, 2003 is not
applicable to the company.
14) According to the information and explanations given to us, the
company has given guarantee for loans taken by its subsidiaries from
bank or financial institutions, the terms and conditions whereof, in
our opinion, are not prima-facie prejudicial to the interest of the
Company.
15) Based on the information and explanations given to us by the
management, the term loans availed by the Company during the year were
applied for the purposes for which the loans were obtained.
16) According to the information and explanations given to us and on an
overall examination of the Balance Sheet of the company for the year
under report, we are of the opinion that no funds raised on short term
basis have been used for long term investment.
17) The company has not made any preferential allotment of shares to
any parties or companies covered in the register maintained under Sec.
301 of the Companies Act, 1956.
18) The company has not issued any debentures during the year.
19) The company has not raised any money by way of public issue during
the year.
20) According to the information and explanations given to us and on
the basis of examination of records, no fraud by or on the Company has
been noticed or reported during the year.
Place: Indore For, A. P. GARG&Co.
Date: 30th May, 2012 Chartered Accountants
F.R. No. 002143C
(Anup P. Garg) Partner M. No 071283
Mar 31, 2011
1. We have audited the attached Balance Sheet of M/s. NEO CORP
INTERNATIONAL LTD, as at 31st March 2011, and also the Profit and Loss
Account and the Cash Flow Statement for the year ended on that date.
These financial statements are the responsibility of the company's
management. Our responsibility is to express an opinion on these
financial statements based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. These standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are prepared 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
presentation of the financial statements. We believe that our audit
provides are as on able as is 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(A) of the Companies Act, 1956, we enclosed in the Annexure
a statement on the matters specified in paragraphs 4 and 5 of the said
Order.
4. Further to our comments in the Annexure referred to in paragraph 3
the above, were port 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 Companies of parasite appears from our examination of the
books;
(c) The Balance Sheet, Profit and Loss Account and the Cash Flow
Statement dealt with by this report, are in agreement with the books of
account;
(d) In our opinion the Balance Sheet, Profit & Loss account and the
Cash Flow Statement dealt with by this report, comply with the
Accounting Standards referred to in sub-section (3C) of the Section 211
of the Companies Act, 1956;
(e) On the basis of the written representations received from all the
Directors, as on 31- March, 2011 and taken on record by the Board of
Directors, were port that none of the directors of Company is
disqualified as on 31st March,2011 from being appointed as a director,
in term of clause(g)of subsection(1)of section 274 of the Companies
Act, 1956;
(f) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts, read together with
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 inconformity with the accounting principles
generally accepted in lndia;
(i) ln the case of the Balance Sheet, of the state of affairs of the
Company as on 31st March 2011;
(ii) ln the case of Profit and Loss Account, of the profit of the
Company for the year ended on that date; and
(iii)ln the case of Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
ANNNEXURE TO THE AUDITORS' REPORT
Annexure referred to in paragraph 3 of Auditor's Report of even date on
the accounts for the year ended on 31- March. 2011 of Neo Corp
International Limited.
1) a. The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
b. we have been informed that the fixed assets of the company are
physically verified by the management during the year in a phased
periodical manner, which in our opinion is reasonable having regard to
the size of the company and the nature of its assets. No material
discrepancies were noticed on such physical verification.
c. There was a major fire accident in the factory premises of the unit
named M/s. Tech textil (A 100% EOU Division of the Company) during last
year on 27th & 28th February 2010. The total loss of assets has been
valued to 5205.16 Lacs consist of two division of the Company. The said
assets were covered by insurance policies with Insurance Companies. The
claim is yet to be finalised, however interim payment of Rs 1500.00
lacs is being received. Apart from this issue, the Company has not
disposed off any substantial part of fixed assets during the year and
in our opinion the going concern status of the Company is not affected.
d. The company has received capital subsidy of Rs124.51, Lacs during
the year under TUFF Scheme. According to the guidelines of AS-12 of
lCAI the Company require either to deduct the said amount from the cost
of assets capitalised or if it is credited to Capital Reserve than
yearly treatment is required by credit the proportionate amount to
profit &loss account. But same has not been made results in to under
statement of Profit to that extend, but due to non availability of cist
of said relevant assets we are unable to quantify the same.
2) a. As explained to us, inventories (except stocks in transit and
stock lying with third parties, confirmation for which has been
obtained) have been physically verified by the management at reasonable
intervals during the year.
The procedures of physical verification of inventories followed by the
management are reasonable and adequate in relation to the size of the
company and the nature of its business.
The Company is maintaining proper records of inventory. The
discrepancies noticed on physical verification of were not material and
these have been properly deaf in the books of account.
3) a. In our opinion and according to the information and explanations
given to us, the company has taken loans from two parties during the
year covered in the register maintained under Sec 301 of the Companies
Act and the out standing year end balance of such parties was Rs1.78
Lacs and the maximum outstanding balance during the year was Rs18.41
Lacs.
b. The company has not granted any loan to the parties covered u/s 301
of the Companies Act 1956 hence clause (e) (f) 2(g) of the a fore said
order does not apply.
c. In our opinion and according to the information and explanations
given to us, the rate of interest and other terms and conditions of
such loan are not prima-facie prejudicial to the interest of the
company.
d. The principal amounts are repayable on demand and there is no
repayment schedule.
e. ln our opinion and according to the information and explanations
given to us, there is no over due amount of loan taken from Companies,
Firms other parties listed in the register mair Hained tinder Sec. 301
of the Companies Act, 1956.
4) In our opinion and according to the 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 with regards to purchase of inventory, fixed assets and sale
of goods and services and we have not observed any continuing failure
to correct the major weakness in such internal controls.
5) a. In our opinion and according to the information and explanations
given to us, the particulars of contracts or arrangements referred to
in Section 301 of the Companies Act, 1956 that need to be entered into
the register maintained under Section 301 of the Companies Act, 1956
have been so entered.
b. In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements exceeding the value of Rupees Five Lacs have been entered
into during the financial year, at prices which are reasonable having
regard to the prevailing market prices at the relevant time.
6) The Company has not accepted any deposit during the year from the
public with in the meaning of the provision of Section 58A and 58AA of
the Companies Act, 1956 or any other relevant provisions of the Act and
the rule made there under.
7) In our opinion, the Company's internal Audit System is commensurate
with the size and nature of business.
8) According to information and explanation given to us, the cost
records under section 209(1)(d) of the Companies Act 1956 are not
required to be maintained by the company.
9) a. According to the books and records as produced and examined by
us in accordance with the generally accepted auditing practice in India
and also based on management representation, undisputed statutory dues
in respect of Provident Fund Investor Education and Protection Fund,
Employees State Insurance, Income Tax, VAT/Sales Tax Wealth Tax Customs
duty, Excise duty, Service Tax, cess and other material statutory dues
have generally been regularly deposited by the Company with appropriate
authorities in India with some slight delay in few cases. According to
information and explanations given to us, there are no undisputed
arrears of statutory dues which have remained out standing as at 31st
March 2011 for a period of more to six months from the date they became
payable except Rs 251.53 Lacs Income Tax payable for the year 2009-10
and interest there on.
b. According to the information and explanation given to us, the
statutory dues disputed on account of matters pending before
appropriate authorities are reported as under:
Name of Nature of the Disputed Amt Period to which
Statute Dues ( Rs in Lacs) Amt relates
Central
Excise CENVAT Credit on 1.86 1995-1996
Act 1944 Inputs
Central
Excise CENVAT Credit on 0.22 1996-1997
Act 1944 Thread
Customs
Act Customs Duty on Capital 18.11 1996-1997
1962 Goods Imported Under
EPCG Scheme
Central
Excise Excise Duty 0.11 2000-2001
Act 1944
Central
Excise Excise duty on removal 38.76 2002-2003
Act 1944 of goods
Central
Excise Admissibility of service 0.11 2005-2006
Act 1944 tax credit
Central
Excise Admissibility of service 4.86 2006-2007
Act 1944 tax credit
Central
Excise Duty free input under 53.77 2006-2007
Act 1944 annexure 45
Income
Tax Act, Income Tax 21.16 2001-2002
1961
Custom
Act, Custom Duty 3.20 1997-1998
1962
Name of Statute Forum where pending Remarks
Central Excise Asst. Commissioner of Central Provided in
Act 1944 Excise, Pithampur the Books
Central Excise Asst. Commissioner of Central Provided in
Act 1944 Excise, Pithampur the Books
Customs Act 1962 High Court of MP. Bench Indore Provided in
the Books
Central Excise Additional Commissioner of Central -
Act 1944 Excises Customs (Appeal), Indore
Central Excise Customs, Excises Service Tax -
Act 1944 Appellete Tribunal, New Delhi
Central Excise Customs, Excises Service Tax
Act 1944 Appellete Tribunal, New Delhi _
Central Excise Customs, Excises Service Tax
Act 1944 Appellete Tribunal, New Delhi -
Central Excise Customs, Excises Service Tax -
Act 1944 Appellete Tribunal, New Delhi
Income Tax Act 1961 ITAT, Indore Provided in
the Books
Costom Act, 1962 High Court of M. P. Bench, Indore -
10) The company has no accumulated losses at the end of the financial
year and it has not incurred any cash losses in the current and the
preceding financial year.
11) In our opinion and according to the information and explanations
given to us the company has not defaulted in the repayment of its dues
to the financial institutions and banks.
12) The company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
13) In our opinion the company is not a chit fund or a nidhi/ mutual
benefit fund/ society. Therefore, the provisions of clause (xiii) of
Para 4 of the Companies (Auditor's Report) Order, 2003 is not
applicable to the company.
14) In our opinion the company is not dealing or trading in shares,
securities, debentures and other investments. Accordingly, clause
(xiv) of Para 4 of the Companies (Auditor's Report) Order, 2003 is not
applicable to the company.
15) According to the information and explanations given to us, the
company has given guarantee for loans taken by its subsidiaries from
bank or financial institutions, the terms and conditions whereof, in
our opinion, are not prima-facie prejudicial to the interest of the
Company.
16) Based on the information and explanations given to us by the
management, the term loans availed by the Company during the year were
applied for the purposes for which the loans were obtained.
17) According to the information and explanations given to us and on an
overall examination of the Balance Sheet of the company for the year
under report, we are of the opinion that no funds raised on short term
basis have been used for long term investment.
18) The company has not made any preferential allotment of shares to
any parties or companies covered in the register
maintainedunderSec.301oftheCompaniesAct,1956.
19) The company has not issued any debentures during the year.
20) The company has not raised any money by way of public issue during
the year.
21) According to the information and explanations given to us and on
the basis of examination of records, no fraud by or on the Company has
been noticed or reported during the year.
Place: Indore For A. P. GARG & Co.
Date:02nd September,2011 Chartered Accountants
FRNO.002143C
(Anup Garg)
Partner
M. No 071283
Mar 31, 2010
1. We have audited the attached Balance Sheet of M/s. NEO CORP
INTERNATIONAL LTD, as at 31st March 2010, and also the Profit and Loss
Account and the Cash Flow Statement for the year ended on that date.
These financial statements are the responsibility of the companys
management. Our responsibility is to express an opinion on these
financial statements based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. These standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are prepared 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
presentation of the financial statements. We believe that our audit
provides a reasonable basis for our opinion.
3. As required by the Companies (Auditors Report) Order, 2003, issued
by the Central Government of India in terms of Sub-section (4A) of
Section 227(4A) of the Companies Act, 1956, we enclosed in the Annexure
a statement on the matters specified in paragraphs 4 and 5 of the said
Order.
4. Furtherto our comments in the Annexure referred to in paragraph 3
the above, we report that:
(a) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of
ouraudit;
(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 the
books;
(c) The Balance Sheet, Profit and Loss Account and the Cash Flow
Statement dealt with by this report, are in agreement with the books of
account;
(d) In ouropinion the Balance Sheet, Profit & Loss account and the Cash
Flow Statement dealt with by this report, comply with the Accounting
Standards referred to in sub-section (3C) of the Section 211 of the
Companies Act, 1956;
(e) On the basis of the written representations received from all the
Directors, as on 31st March, 2010 and taken on record by the Board of
Directors, we report that none of the directors of Company is
disqualified as on 31st March, 2010 from being appointed as a director,
in term of clause (g) of sub section (1) of section 274 of the
Companies Act, 1956.
(f) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts, read together with
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 accounting principles
generally accepted in India
(i) In the case of the Balance Sheet, of the state of affairs of the
Company as on 31st March 2010;
(ii) In the case of Profit and Loss Account, of the profit of the
Company for the year ended on that date; and
(iii) In the case of Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
ANNNEXURE TO THE AUDITORS REPORT
Annexure referred to in paragraph 3 of Auditors Report of even date on
the accounts for the year ended on 31" March. 2010 of Neo Corp
International Limited.
1) a. The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
b. These fixed assets have been physically verified by the management
during the year and in our opinion the frequency of verification is
reasonable having regard to the size of the company and the nature of
its assets. According to the information given to us and to the best
of our knowledge, no material discrepancies were noticed on such
physical verification.
c. It is reported that there was major fire accident in the factory
premises of the newly established unit named M/s Techtextil (A 100% EOU
Division of the Company) on 27th & 28th February, 2010 in which super
structure of factory Building and plant and machinery is destroyed
along with raw material, WIP, finished goods and other movable assets.
The total loss of assets has been valued to 5205.16 Lacs consist of
both the division of the company. This amount to substantial part of
fixed assets of the said division but being same is covered by
insurance policy taken from M/s. United India Insurance Company Ltd.
and M/s.The Oriental Insurance Company Ltd.. The claim is under process
of finalisation with them and interim payment of 750.00 lacs is being
received.
According to the information and explanations given to us, the company
management has already taken stapes of revamping of the unit, therefore
it will not affect the going concern assumption forthe Company.
2) a. The inventories (except stocks in transit and stock lying with
third parties, confirmation for which has been obtained) have been
physically verified by the management at reasonable intervals during
the year.
b. The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the company and the nature of its business.
c. The company is maintaining proper records of inventory. The
discrepancies noticed on physical verification of were not material and
these have been properly dealt with in the books of account.
3) a. In our opinion and according to the information and explanations
given to us, the company has taken loans from two parties during the
year covered in the register maintained under Sec 301 of the Companies
Act and the outstanding year end balance of such parties was 0.92 lacs
and the maximum outstanding balance during the year was 33.92 lacs.
b. The company has not granted any loan to the parties covered u/s 301
of the Companies Act 1956 hence clause (e) (f) 2(g) of the aforesaid
order does not apply.
c. In our opinion and according to the information and explanations
given to us, the rate of interest and other terms and conditions of
such loan are not prima-facie prejudicial to the interest of the
company.
d. The company is regular in repaying the principal amount as
stipulated.
e. In our opinion and according to the information and explanations
given to us, there is no overdue amount of loan taken from Companies,
Firms or other parties listed in the register maintained under Sec. 301
of the Companies Act, 1956.
4) In our opinion and according to the 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 with regards to purchase of inventory and fixed assets and
with regards to sale of goods and services. During the course of our
audit, no majorweakness has been noticed in the internal control in
respect of these areas.
5) a. According to the information and explanations provided by the
management, we are of the opinion that the particulars of contracts or
arrangements referred to in Section 301 of the Companies Act, 1956 that
need to be entered into the register maintained under Section 301 of
the Companies Act,1956 have been so entered. b. In our opinion and
according to the information and explanations given to us, the
transactions made in pursuance of such contracts or arrangements
exceeding the value of Rupees Five Lacs have been entered into during
the financial year, at prices which are reasonable having regard to the
prevailing market prices at the relevant time.
6) The Company has not accepted any deposit during the year from the
public within the meaning of the provision of Section 58A and 58AA of
the Companies Act, 1956 or any other relevant provisions of the Act and
the rule made there under.
7) The Company has an Internal Audit System which in our opinion is
commensurate with the size and nature of the business.
8) The cost records under section 209(1 )(d) of the Companies Act 1956
are not required to be maintained by the company.
9) a. According to the information and explanation given to us and on
the basis of our examination of books of accounts, the company is
generally regular in depositing undisputed statutory dues including
Provident Fund, Investor Education and Protection Fund, Employees State
Insurance, Income Tax, Sales Tax, Wealth Tax, Customs duty, Excise
duty, cess and other statutory dues with appropriate authorities with
some slight delay in few cases. According to information and
explanations given to us, there are no undisputed arrears of statutory
dues which have remained outstanding as at 31st March 2010 for a period
of more than six months from the date they became payable.
b. According to the information and explanation given to us, the
statutory dues disputed on account of matters pending before
appropriate authorities are reported as under:
Name of Statute Nature of the Amt Period to
Disputed Dues (in Lacs) which Amt
relates
Central Excise CENVAT Credit on 1.86 1995-1996
Act 1944 Inputs
Central Excise CENVAT Credit on 0.22 1996-1997
Act 1944 Thread
Customs Act Customs Duty on 18.11 1996-1997
1962 Capital Goods Imported
Under EPCG Scheme
Central Excise Excise Duty 1.27 2000-2001
Act 1944
Central Excise Excise duty on removal 38.76 2002-2003
Act 1944 of goods
Central Excise Admissibility of service 0.11 2005-2006
Act 1944 tax credit
Central Excise Admissibility of service 4.86 2006-2007
Act 1944 tax credit
Central Excise Duty free input under 53.77 2006-2007
Act 1944 annexure 45
Income Tax Act, Income Tax 21.16 2001-2002
1961
Income Tax Act, Income Tax 6.64 2003-2004
1961
Income Tax Act, Income Tax 2.87 2005-2006
1961
Name of Statue Forum where pending Remarks
Central Excise
Act 1944 Asst. Commissioner of Provided in the Books
Central excise, Pithampur
Central Excise
Act 1944 Asst. Commissioner of Provided in the Books
Central excise, Pithampur
Customs Act
1962 High Court of M.P. Provided in the Books
Bench Indore
Central Excise
Act 1944 Additional Commissioner --
of Central Excise &
Customs (Appeal),
Indore
Central Excise
Act 1944 Customs, Excise & --
Service Tax Appellete
Tribunal, New Delhi
Central Excise
Act 1944 Customs, Excise & --
Service Tax Appellete
Tribunal New Delhi
Central Excise
Act 1944 Customs, Excise & --
Service Tax Appellete
Tribunal New Delhi
Central Excise
Act 1944 Customs, Excise & --
Service Tax Appellete
Tribunal New Delhi
Income Tax Act,
1961 ITAT, Indore Provided in the Books
Income Tax Act,
1961 ITAT, Indore Provided in the Books
Income Tax Act,
1961 CIT (A), Indore Provided in the Books
10) The company has no accumulated losses at the end of the financial
year and it has not incurred any cash losses in the current and the
preceding financial year.
11) In our opinion and according to the information and explanations
given to us, the company has not defaulted in the repayment of its dues
to the financial institutions and banks.
12) The company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
13) In our opinion the company is not a chit fund or a nidhi/mutual
benefit fund/society Therefore, the provisions of clause (xiii) of Para
4 of the Companies (Auditors Report) Order, 2003 is not applicable to
the company.
14) In our opinion the company is not dealing or trading in shares,
securities, debentures and other investments. Accordingly, clause
(xiv) of Para 4 of the Companies (Auditors Report) Order, 2003 is not
applicable to the company.
15) In our opinion and according to the information and explanations
given to us, where the company has not given guarantee for loans taken
by its subsidiaries from bank or financial institutions.
16) Based on the information and explanations given to us by the
management, the term loans availed by the company during the year were
applied for the purposes for which the loans were obtained.
17) According to the information and explanations given to us and on an
overall examination of the Balance Sheet of the company for the year
under report, we are of the opinion that no funds raised on short term
basis have been used for long term investment.
18) The company has not made any preferential allotment of shares to
any parties or companies covered in the register maintained under Sec.
301 of the Companies Act, 1956.
19) The company has not issued any debentures during the year.
20) The company has not raised any money by way of public issue during
the year.
21) According to the information and explanations given to us, no fraud
by or on the Company has been noticed or reported during the course of
our audit.
Place: Indore For, A. P. GARG & Co.
Date: 15th October, 2010 Chartered Accountants
(Anup Garg)
Partner
M. No. 071283
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