Mar 31, 2014
We have audited the attached Balance Sheet of RAJ IRRIGATION PIPES AND
FITTINGS LIMITED for the period of 18 months commencing from 1st
October, 2012 to 31st March, 2014 and also the Profit and Loss Account
for the period of 18 months and the Cash Flow Statement for the period
of 18 months annexed thereto. These Financial Statements are the
responsibility of the Company''s Management. Our responsibility is to
express an opinion on these Financial Statements based on our audit.
We conducted our audit in accordance with auditing standards generally
accepted in India. Those Standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the 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.
As required by the Companies (Auditors Report) Order, 2003, issued by
the Central Government of India in terms of sub-section (4A) of Section
227 of 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 paragraph (3)
above, we report that:
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;
2. In our opinion, subject to our observations in para 6 and para i(a)
of the Annexure to the Auditors'' Report, proper books of account as
required by law have been kept by the Company so far as appears from
our examination of the books;
3. The Balance Sheet and Profit and Loss Account dealt with by this
report are in agreement with the books of account;
4. In our opinion, subject to our observations in para 6, the Balance
Sheet and Profit and Loss Account dealt with by this report comply with
the Accounting Standards referred to in sub section (3C) of section 211
of the Companies Act,1956;
5. On the basis of written representations received from the directors,
as on 31st March, 2014 and taken on record by the Board of Directors,
we report that none of the directors is disqualified as on 31st March,
2014 from being appointed as a director in terms of clause (g) of
sub-section (1) of Section 274 of the Companies Act,1956;
6. The accounts have been prepared on the going concern concept.
Considering the erosion of the net
worth, the sale of the Nagpur and Goa plants, absence of any commercial
activity and any crystallized plans to recommence business operations,
in our opinion the accounts need to be prepared on the realizable basis
instead of the going concern basis. Consequently in our opinion the
following assets have been overstated:
i. Investments in National Savings Certificates not backed by
certificates Rs.35,010.
ii. Loans, advances and deposits under current assets by Rs.26,43,121
being sales tax dues paid under protest by the Company.
The impact of this is an understatement of the loss for the year by
Rs.26,78,131.
7. The lease agreement for the registered office at Mumbai expired on
28.2.06 and has not been since renewed. The Company has made adhoc
provision towards rent of Rs 200,724 and interest of Rs.550,000 during
the current year. Provision for expenses under Current Liabilities and
Provisions in the Balance Sheet includes provision of Rs 27,91,086 on
this account to date. We are unable to ascertain the actual liability
the Company would incur towards rent for the period from 30.9.12 to
31.03.14.
8. No provision has been made against sales tax demands disputed by the
Company. Contingent liabilities includes disputed sales tax and excise
duty demands of Rs 488,37,715 plus interest and penalty which may be
levied by the Department and is unascertained at this stage. Payments
of Rs 26,43,121 made against these demands are accounted as recoverable
advances under Current Assets. We are unable to express an opinion on
the ultimate outcome in this matter.
9. Current liabilities include provision for sundry creditors towards
goods aggregating to Rs 110,29,840 and towards services for Rs 760,428.
These amounts pertain to earlier years and are outstanding since long.
They are subject to confirmation and consequent reconciliation. We are
unable to ascertain the financial impact of the delay in settlement of
these liabilities.
10. Sales tax dues of Rs 45,02,611 pertaining to the period July, 02 to
February, 03 and Provident Fund dues of Rs 92,185 for the period from
September, 2007 were overdue for payment. The interest/ penalty which
may be levied by the authorities due to the delay in deposit of these
statutory dues is unascertained at this stage.
11. In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read together with the
accounting policies and other notes attached thereto, subject to our
observations in paragraphs 6, 7, 8 ,9 and 10 above, 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:
a) In the case of the Balance Sheet, of the state of affairs of the
Company for the period of 18 months commencing from 1st October, 2012
to 31st March, 2014.
b) In the case of the Profit and Loss Account, of the loss for the
period of 18 months commencing from 1st October, 2012 to 31st March,
2014.
and
c) In the case of the Cash Flow statement of the cash flows for the
period of 18 months commencing from 1st October, 2012 to 31st March,
2014.
ANNEXURE TO THE AUDITORS'' REPORT
The Annexure referred to in the auditors'' report to the members of RAJ
IRRIGATION PIPES AND FITTINGS LIMITED for the period of 18 months
commencing from 1st October, 2012 to 31st March, 2014. We report that:
i. (a) The fixed assets register was not available for our
verification. We were informed by the
management that the register is not traceable. The management has
furnished us a list of fixed assets at its Head office. The asset wise
cost particulars were not available.
(b) As explained the fixed assets have been physically verified by the
management at reasonable intervals and no material discrepancy was
noticed on such verification.
(c) The Company has disposed off a substantial part of its fixed assets
in recent years. As stated in para 6 of the audit report this has
affected the going concern status of the Company as it currently has no
operations and no crystallized plans for recommencing its operations.
ii. The Company has no inventory during the year. Hence clause 4 (ii)
of Companies (Auditors Report) Order, 2003 is not applicable.
iii. The Company has not granted unsecured loans to companies, firms or
other parties covered in the register maintained under section 301 of
the Companies Act, 1956. The Company has taken interest free unsecured
loans from Directors and Shareholders as detailed below:
Maximum
No. of Closing balance as amount outstanding parties on 30.9.11 (Rs.)
during the year (Rs.)
4 21,49,038 21,49,038
No terms and conditions have been fixed for these loans. In absence of
the same, regularity of repayment and overdue amount if any, cannot be
commented.
iv. The Company has not purchased inventory or fixed assets or sold
goods or services during the year. Hence para 4(iv) of Companies
(Auditor''s Report) Order, 2003 is not applicable.
v. (a) In our opinion and according to the information and explanations
given to us, the
transactions that need to be entered into the register in pursuance to
Section 301 of the Companies Act, 1956 have been so entered.
(b) Based on the information received and records verified there were
no transactions made in pursuance of contracts or arrangements entered
in the register maintained under section
301 of the companies Act, 1956, and exceeding the value of rupees five
lakhs in respect of any party during the year.
vi. The Company has not accepted any deposits from the public and
consequently, the directives issued by the Reserve Bank of India and
the provision of sections 58A and 58AA of the Companies Act 1956 and
rules made thereunder are not applicable.
vii. The Company does not have an internal audit system.
viii. We are informed that the Central Government has not prescribed
maintenance of cost records under Section 209 (1) (d) of the Companies
Act, 1956 for the products of the Company.
ix. (a) According to the information and explanations given to us and
the records of the Company examined by us, the following statutory dues
were outstanding as on 31.03.2014 for a period of more than six months
from the date they became payable.
Name of the statute Nature of Dues Amount(Rs.) Period to which the
amount relates
Sales Tax Act Sales Tax 45,02,611 July''02 to February''03
Provident Fund Delayed payment 92,185 For the period prior
charges to 30.09.07
(b) According to the information and explanations given to us and the
records of the
Company examined by us, there are no dues in respect of income tax,
sales tax, customs duty, wealth tax, excise duty and cess that have not
been deposited with appropriate authorities on account of any dispute
except for the following:-
Name of the Nature of Amount Period to which Forum where the
statute Dues (Rs. in the Amount dispute is
lakhs) relates pending
Sales Tax Act Sales Tax 666,517 1.1.85 to 30.6.85 2nd appeal before
Tribunal
Sales Tax Act Sales Tax 15,92,996 1985-86 2nd appeal before
Tribunal
Sales Tax Act Sales Tax 15,40,884 1986-87 2nd appeal before
Tribunal
Sales Tax Act Sales Tax 32,79,847 1987-88 2nd appeal before
Tribunal
Sales Tax Act Sales Tax 53,89,437 1988-89 2nd appeal before
Tribunal
Sales Tax Act Sales Tax 54,90,730 1989-90 2nd appeal before
Tribunal
Sales Tax Act Sales Tax 15,15,675 1990-91 2nd appeal before
Tribunal
Sales Tax Act Sales Tax 86,92,319 1991-92 1st appeal before
Dy. Comm
Sales Tax Act Sales Tax 60,32,450 1992-93 1st appeal beforr
Dy. Comm
Sales Tax Act Sales Tax 138,15,624 1993-94 1st appeal before
Dy. Comm
Sales Tax Act Sales Tax 166,181 1995-96 2nd appeal before
Tribunal
Central Excise Excise Duty 655,055 July''00 to CESTAT, Mumbai
31.08.00
Against these demands the Company has deposited Rs 26,43,121
x. The Company has accumulated losses of Rs.11,18,22,542 at the end of
the period and
has incurred a cash loss of Rs.6,62,107 for the period of 18 months
commencing from 1st October, 2012 to 31st March, 2014 and cash loss of
Rs.10,19,664 in the immediately preceding financial year.
xi. According to the information and explanations required and the
records of the company examined by us, the company did not have any
pending defaults in repayment of dues to banks and financial
institutions as on 31.03.2014.
xii. According to the information and explanations given to us, the
Company has not granted 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, nidhi, mutual
benefit fund or a society.
xiv. According to the information and explanations given to us and the
records of the Company examined by us, the Company is not dealing or
trading in shares, securities, debentures and other investments.
xv. According to the information and explanations required and the
records of the company examined by us, the Company has not given any
guarantee for loans taken by others from banks or financial
institutions.
xvi. During the period of 18 months, the Company has not taken any term
loans. Hence para 4(xvi) of Companies (Auditor''s Report) Order, 2003 is
not applicable.
xvii. In our opinion funds raised on short term basis have not been
used for long term investments.
xviii. During the period of 18 months, the Company has not made any
preferential allotment of shares to parties and Companies covered in
the register maintained under section 301 of the Companies Act,1956.
xix. The Company has not issued any debentures during the period of 18
months.
xx. The Company has not raised any money by public issue during the
period of 18 months.
xxi. During the course of our examination of the books and records of
the Company, carried out in accordance with the generally accepted
auditing practices in India and according to the information and
explanations given to us, we have neither come across any instance of
material fraud on or by the Company, noticed or reported during the
year, nor have we been informed of such case by the management.
For M. G. SHOUCHE & CO.
CHARTERED ACCOUNTANTS
Place: Mumbai ( M. G. SHOUCHE )
Date: 25th April, 2014 PROPRIETOR
Membership No.13102
Sep 30, 2012
We have audited the attached Balance Sheet of RAJ IRRIGATION PIPES AND
FITTINGS LIMITED as at 30th September, 2012 and also the Profit and
Loss Account for the year ended on that date and the Cash Flow
Statement for the year ended on that date annexed thereto. These
Financial Statements are the responsibility of the Company's Management.
Our responsibility is to express an opinion on these Financial Statements
based on our audit.
We conducted our audit in accordance with auditing standards generally
accepted in India. Those Standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the 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.
As required by the Companies (Auditors Report) Order, 2003, issued by
the Central Government of India in terms of sub-section (4A) of Section
227 of 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 paragraph (3)
above, we report that:
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;
2. In our opinion, subject to our observations in Para 6 and Para i(a)
of the Annexure to the Auditors' Report, proper books of account as
required by law have been kept by the Company so far as appears from
our examination of the books;
3. The Balance Sheet and Profit and Loss Account dealt with by this
report are in agreement with the books of account;
4. In our opinion, subject to our observations in para 6, the Balance
Sheet and Profit and Loss Account dealt with by this report comply with
the Accounting Standards referred to in sub section (3C) of section 211
of the Companies Act, 1956;
5. On the basis of written representations received from the directors,
as on 30lh September. 2012 and taken on record by the Board of
Directors, we report that none of the directors is disqualified as on
30lh September. 2012 from being appointed as a director in terms of
clause (g) of sub-section (1) of Section 274 of the Companies Act.]
956;
6 The accounts have been prepared on the going concern concept.
Considering the erosion of the net worth, the sale of the Nagpur and
Goa plants, absence of any commercial activity and any crystallized
plans to recommence business operations, in our opinion the accounts
need to be prepared on the realizable basis instead of the going
concern basis. Consequently in our opinion the following assets have
been overstated:
i. Investments in National Savings Certificates not backed by
certificates Rs.35.010.
ii. Loans, advances and deposits under current assets by Rs.26.43J2]
being sales tax dues paid under protest by the Company. The impact of
this is an understatement of the loss for the year byRs.26,78,131
7. The lease agreement for the registered office at Mumbai expired on
28.2.06 and has not been since renewed. The Company has made
Ado provision towards rent of Rs 200,724 and interest of Rs.550,000
during the current year. Provision for expenses under Current
Liabilities and Provisions in the Balance Sheet includes provision of
Rs 27,91,086 on this account to date. We are unable to ascertain the
actual liability the Company would incur towards rent for the period
from 28.2.06 to 30.9. J2.
8. No provision has been made against sales tax demands disputed by
the Company. Contingent liabilities includes disputed sales tax and
excise duty demands of Rs 488,37,715 plus interest and penalty which
may be levied by the Department and is unascertained at this stage.
Payments of Rs 26,43,121 made against these demands are accounted as
recoverable advances under Current Assets. We are unable to express an
opinion on the ultimate outcome in this matter.
9. Current liabilities include provision for sundry creditors towards
goods aggregating to Rs 110,29,840 and towards services for Rs 760,428.
These amounts pertain to earlier years and are outstanding since long.
They are subject to confirmation and consequent reconciliation. We are
unable to ascertain the financial impact of the delay in settlement of
these liabilities.
10. Sales tax dues of Rs 45,02,611 pertaining to the period July, 02 to
February, 03 and Provident Fund dues of Rs 92,185 for the period from
September, 2007 were overdue for payment. The interest/ penalty which
may be levied by the authorities due to the delay in deposit of these
statutory dues is unascertained at this stage.
11. We draw the attention of the members to note 20 with regard to
non-appointment of a Company Secretary which is a contravention of
section 383 A of the Companies Act, 1956 and the non- obtaining of a
compliance certificate from a Company Secretary by the Company.
12. In our opinion and to the best of our information and according to
the explanations given to us, they said accounts read together with the
accounting policies and other notes attached thereto, subject to our
observations in paragraphs 6, 7. 8 ,9 and JO above, 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:
a) In the case of the Balance Sheet, of the state of affairs of the
Company as at 30'h September,2012.
b) In the case of the Profit and Loss Account, of the loss for the year
ended on that date. and
c) In the case of the Cash Flow statement of the cash flows for the
year ended on that date.
ANNEXURE TO THE AUDITORS' REPORT
The Annexure referred to in the auditors' report to the members of RAJ
IRRIGATION PIPES AND FITTINGS LIMITED for the year ended 30th
September,2012. We report that:
i. (a) The fixed assets register was not available for our
verification. We were informed by the management that the register is
not traceable. The management has furnished us a list of fixed assets a
its Head office- The asset wise cost particulars were not available.
(b) As explained the fixed assets have been physically verified by the
management at reasonable intervals and no material discrepancy was
noticed on such verification.
(c) The Company has disposed off a substantial part of its fixed assets
in recent years. As stated in Para 6 of the audit report this has
affected the going concern status of the Company as it currently has no
operations and no crystallized plans for recommencing its operations.
ii. The Company has no inventory during the year. Hence clause 4 (ii)
of Companies (Auditors Report) Order, 2003 is not applicable.
iii. The Company has not granted unsecured loans to companies, firms or
other parties covered in the register maintained under section 301 of
the Companies Act, 1956. The Company has taken interest free unsecured
loans from Directors and Shareholders as detailed below:
Maximum
No. of Closing balance as amount outstanding
parties on 30.09.12 (Rs.) during the year (Rs.)
4 21,49,038 21, 49,038
No terms and conditions have been fixed for these bans. In absence of
the same, regularity of repayment and overdue amount if any, cannot be
commented.
iv. The Company has not purchased inventory or fixed assets or sold
goods or services during the year. Hence Para 4(iv) of Companies
(Auditor's Report) Order, 2003 is not applicable.
v. (a) In our opinion and according to the information and
explanations given to us, the transactions that need to be entered into
the register in pursuance to Section 301 of the Companies Act, 1956
have been so entered.
(b) Based on the information received and records verified there were
no transactions made in pursuance of contracts or arrangements entered
in the register maintained under section 301 of the companies Act,
1956, and exceeding the value of rupees five lakhs in respect of any
party during the year.
vi. The Company has not accepted any deposits from the public and
consequently, the directives issued by the Reserve Bank of India and
the provision of sections 58A and 58AA of the Companies Act 1956 and
rules made there under are not applicable.
vii. The Company does not have an internal audit system.
viii. We are informed that the Central Government has not prescribed
maintenance of cost records under Section 209 (1) (d) of the Companies
Act, 1956 for the products of the Company.
ix. I am According to the information and explanations given to us and
the records of the Company examined by us. the following statutory dues
were outstanding as on 30.09.2012 for a period of more than six months
from the date they became payable.
Name of the
statute Nature of Dues Amount(Rs.) Period to which the
amount relates
Sales Tax Act Sales Tax 45,02,611 July '02 to
February '03
Provident Fund Delayed payment 92,185 For the period
prior to 30.09.07
charges
(b) According to the information and explanations given to us and the
records of the Company examined by us, there are no dues in respect of
income tax, sales tax, customs duty, wealth tax, excise duty and cess
that have not been deposited with appropriate authorities on account of
any dispute except for the following:-
Name of the Amount Period to
which Forum where the
dispute
statute Nature of (Rs. in
lakhs) the Amount is pending
Dues relates
Sales Tax Act Sales Tax 666,517 1.1.85 to
30.6.85 2nd appeal
before Tribunal"
Sales Tax Act Sales Tax 15,92,996 1985-86 2nd appeal
before Tribunal
Sales Tax Act Sales Tax 15,40.884 1986-87 2nd appeal
before Tribunal
Sales Tax Act Sales Tax 32,79,847 1987-88 2nd appeal
before Tribunal
Sales Tax Act Sales Tax 53,89,437 1988-89 2nd appeal
before Tribunal
Sales Tax Act Sales Tax 54,90,730 1989-90 2nd appeal
before Tribunal
Sales Tax Act Sales Tax 15,15,675 1990-91 2nd appeal
before Tribunal
Sales Tax Act Sales Tax 86,92,319 1991-92 1st appeal
before Dy.
Comm
Sales Tax Act Sales Tax 60,32,450 1992-93 1st appeal
before Dy.
Comm
Sales Tax Act Sales Tax 138,15,624 1993-94 1st appeal
before Dy.
Comm
Sales Tax Act Sales Tax 166,181 1995-96 2nd appeal
before Tribunal
Central
Excise Excise
Duty 655,055 July'00 to CESTAT, Mumbai
31.08.00
Against these demands the Company has deposited Rs 26, 43,121
x. The Company has accumulated loss of Rs. l1,11,60,435 at the end of
the financial year and has incurred a cash loss of Rs.l0,19,664 in the
financial year and cash loss of Rs.8,26,312 in the immediately
preceding financial year.
xi. According to the information and explanations required and the
records of the company examined by us, the company did not have any
pending defaults in repayment of dues to banks and financial
institutions as on 30.09.2012.
xii. According to the information and explanations given to us, the
Company has not granted 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, nidhi, mutual
benefit fund or a society.
xiv. According to the information and explanations given to us and the
records of the Company examined
by us. the Company is not dealing or trading in shares, securities,
debentures and other investments.
xv. According to the information and explanations required and the
records of the company examined by us, the Company has not given any
guarantee for loans taken by others from banks or financial
institutions.
xvi. During the year, the Company has not taken any term loans. Hence
Para 4(xvi) of Companies (Auditor's Report) Order, 2003 is not
applicable.
xvii. In our opinion funds raised on short term basis have not been
used for long term investments.
xviii. During the year, the Company has not made any preferential
allotment of shares to parties and Companies covered in the register
maintained under section 301 of the Companies Act, 1956.
xix. The Company has not issued any debentures during the year.
xx. The Company has not raised any money by public issue during the
year.
xxi. During the course of our examination of the books and records of
the Company, carried out in accordance with the generally accepted
auditing practices in India and according to the information and
explanations given to us, we have neither come across any instance of
material fraud on or by the Company, noticed or reported during the
year, nor have we been informed of such case by the management.
For BHUCHAR & CHANDAK
CHARTED ACCOUNTANTS
FIRM REGN NO. I0I439W
( V. RAJAGOPAL )
Place: Mumbai PARTNER
Date : 31.10.2012 Membership No.27318
Sep 30, 2011
We have audited the attached Balance Sheet of RAJ IRRIGATION PIPES AND
FITTINGS LIMITED as at 30th September, 2011 and also the Profit and
Loss Account for the year ended on that date and the Cash Flow
Statement for the year ended on that date annexed thereto. These
Financial Statements are the responsibility of the Company's
Management. Our responsibility is to express an opinion on these
Financial Statements based on our audit.
We conducted our audit in accordance with auditing standards generally
accepted in India. Those Standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the 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.
As required by the Companies (Auditors Report) Order, 2003, issued by
the Central Government of India in terms of sub-section (4A) of Section
227 of 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 paragraph (3)
above, we report that:
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;
2. In our opinion, subject to our observations in Para 6 and Para i(a)
of the Annexure to the Auditors' Report, proper books of account as
required by law have been kept by the Company so far as appears from
our examination of the books;
3. The Balance Sheet and Profit and Loss Account dealt with by this
report are in agreement with the books of account;
4. In our opinion, subject to our observations in Para 6, the Balance
Sheet and Profit and Loss Account dealt with by this report comply with
the Accounting Standards referred to in sub section (3C) of section 211
of the Companies Act,1956;
5. On the basis of written representations received from the
directors, as on 30th September, 2011 and taken on record by the Board
of Directors, we report that none of the directors is disqualified as
on 30th September, 2011 from being appointed as a director in terms of
clause (g) of sub-section (1) of Section 274 of the Companies Act,1956;
6. The accounts have been prepared on the going concern concept.
Considering the erosion of the net worth, the sale of the Nagpur and
Goa plants, absence of any commercial activity and any crystallized
plans to recommence business operations, in our opinion the accounts
need to be prepared on the realizable basis instead of the going
concern basis. Consequently in our opinion the following assets have
been overstated:
i. Investments in National Savings Certificates not backed by
certificates Rs.35,010.
ii. Loans, advances and deposits under current assets by Rs.26,43,121
being sales tax dues paid under protest by the Company.
The impact of this is an understatement of the loss for the year by
Rs.26,78,131.
7. The lease agreement for the registered office at Mumbai expired on
28.2.06 and has not been since renewed. The Company has made adhoc
provision towards rent of Rs 200,724 and interest of Rs. 450,000 during
the current year. Provision for expenses under Current Liabilities and
Provisions in the Balance Sheet includes provision of Rs 20,40,362 on
this account to date. We are unable to ascertain the actual liability
the Company would incur towards rent for the period from 28.2.06 to
30.9.11.
8. No provision has been made against sales tax demands disputed by
the Company. Contingent liabilities includes disputed sales tax and
excise duty demands of Rs 488,37,715 plus interest and penalty which
may be levied by the Department and is unascertained at this stage.
Payments of Rs 23,21,600 made against these demands are accounted as
recoverable advances under Current Assets. We are unable to express an
opinion on the ultimate outcome in this matter.
9. Current liabilities include provision for sundry creditors towards
goods aggregating to Rs 110,29,840 and towards services for Rs 760,428.
These amounts pertain to earlier years and are outstanding since long.
They are subject to confirmation and consequent reconciliation. We are
unable to ascertain the financial impact of the delay in settlement of
these liabilities.
10. Sales tax dues of Rs 45,02,611 pertaining to the period July, 02
to February, 03 and Provident Fund dues of Rs 92,185 for the period
from September, 2007 were overdue for payment. The interest/ penalty
which may be levied by the authorities due to the delay in deposit of
these statutory dues is unascertained at this stage.
11. In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read together with the
accounting policies and other notes attached thereto, subject to our
observations in paragraphs 6, 7, 8 ,9 and 10 above, 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:
a) In the case of the Balance Sheet, of the state of affairs of the
Company as at 30th September,2011.
b) In the case of the Profit and Loss Account, of the loss for the year
ended on that date. and
c) In the case of the Cash Flow statement of the cash flows for the
year ended on that date.
ANNEXURE TO THE AUDITORS' REPORT
The Annexure referred to in the auditors' report to the members of RAJ
IRRIGATION PIPES AND FITTINGS LIMITED for the year ended 30th
September,2011. We report that:
i. (a) The fixed assets register was not available for our
verification. We were informed by the management that the register is
not traceable. The management has furnished us a list of fixed assets
at its Head office. The asset wise cost particulars were not available.
(b) As explained the fixed assets have been physically verified by the
management at reasonable intervals and no material discrepancy was
noticed on such verification.
(c) The Company has disposed off a substantial part of its fixed assets
in recent years. As stated in Para 6 of the audit report this has
affected the going concern status of the Company as it currently has no
operations and no crystallized plans for recommencing its operations.
ii. The Company has no inventory during the year. Hence clause 4 (ii)
of Companies (Auditors Report) Order, 2003 is not applicable.
iii. The Company has not granted unsecured loans to companies, firms or
other parties covered in the register maintained under section 301 of
the Companies Act, 1956. The Company has taken interest free unsecured
loans from Directors and Shareholders as detailed below:
Maximum
No. of Closing balance as amount outstanding
parties on 30.9.11(Rs.) during the year (Rs.)
4 18,99,377 18,99,377
No terms and conditions have been fixed for these loans. In absence of
the same, regularity of repayment and overdue amount if any, cannot be
commented.
iv. The Company has not purchased inventory or fixed assets or sold
goods or services during the year. Hence Para 4(iv) of Companies
(Auditor's Report) Order, 2003 is not applicable.
v. (a) In our opinion and according to the information and
explanations given to us, the transactions that need to be entered
into the register in pursuance to Section 301 of the Companies Act,
1956 have been so entered.
(b) Based on the information received and records verified there were
no transactions made in pursuance of contracts or arrangements entered
in the register maintained under section 301 of the companies Act,
1956, and exceeding the value of rupees five lakhs in respect of any
party during the year.
vi. The Company has not accepted any deposits from the public and
consequently, the directives issued by the Reserve Bank of India and
the provision of sections 58A and 58AA of the Companies Act 1956 and
rules made thereunder are not applicable.
vii. The Company does not have an internal audit system.
viii. We are informed that the Central Government has not prescribed
maintenance of cost records under Section 209 (1) (d) of the Companies
Act, 1956 for the products of the Company.
ix. (a) According to the information and explanations given to us and
the records of the Company examined by us, the following statutory dues
were outstanding as on 30.09.2011 for a period of more than six months
from the date they became payable.
Name of the statute Nature of Dues Amount(Rs.) Period to which the
amount relates
Sales Tax Act Sales Tax 45,02,611 July'02 to February'03
Provident Fund Delayed payment
charges 92,185 For the period prior to
30.09.07
(b) According to the information and explanations given to us and the
records of the Company examined by us, there are no dues in respect of
income tax, sales tax, customs duty, wealth tax, excise duty and cess
that have not been deposited with appropriate authorities on account of
any dispute except for the following:-
Name of the Amount Period to which the
statute Nature of Dues (Rs. in lakhs) Amount relates
Sales Tax Act Sales Tax 666,517 1.1.85 to 30.6.85
Sales Tax Act Sales Tax 15,92,996 1985-86
Sales Tax Act Sales Tax 15,40,884 1986-87
Sales Tax Act Sales Tax 32,79,847 1987-88
Sales Tax Act Sales Tax 53,89,437 1988-89
Sales Tax Act Sales Tax 54,90,730 1989-90
Sales Tax Act Sales Tax 15,15,675 1990-91
Sales Tax Act Sales Tax 86,92,319 1991-92
Sales Tax Act Sales Tax 60,32,450 1991-93
Sales Tax Act Sales Tax 138,15,624 1993-94
Sales Tax Act Sales Tax 166,181 1995-96
Central Excise Excise Duty 655,055 July'00
to 31.08.00
Name of the Director From where the dispute is pending
Sales Tax Act 2nd appeal before Tribunal
Sales Tax Act 2nd appeal before Tribunal
Sales Tax Act 2nd appeal before Tribunal
Sales Tax Act 2nd appeal before Tribunal
Sales Tax Act 2nd appeal before Tribunal
Sales Tax Act 2nd appeal before Tribunal
Sales Tax Act 2nd appeal before Tribunal
Sales Tax Act 1st appeal before Dy.comm
Sales Tax Act 1st appeal before Dy.comm
Sales Tax Act 1st appeal before Dy.comm
Sales Tax Act 2nd appeal before Tribunal
Central Excise CESTAT, Mumbai
Against these demands the Company has deposited Rs 23,21,600
x. The Company has accumulated loss of Rs.11,01,40,771 at the end of
the financial year and has incurred a cash loss of Rs.826,312 in the
financial year and cash loss of Rs.915,716 in the immediately preceding
financial year.
xi. According to the information and explanations required and the
records of the company examined by us, the company did not have any
pending defaults in repayment of dues to banks and financial
institutions as on 30.09.2011.
xii. According to the information and explanations given to us, the
Company has not granted 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, nidhi, mutual
benefit fund or a society.
xiv. According to the information and explanations given to us and the
records of the Company examined by us, the Company is not dealing or
trading in shares, securities, debentures and other investments.
xv. According to the information and explanations required and the
records of the company examined by us, the Company has not given any
guarantee for loans taken by others from banks or financial
institutions.
xvi. During the year, the Company has not taken any term loans. Hence
Para 4(xvi) of Companies (Auditor's Report) Order, 2003 is not
applicable.
xvii. In our opinion funds raised on short term basis have not been
used for long term investments.
xviii. During the year, the Company has not made any preferential
allotment of shares to parties and Companies covered in the register
maintained under section 301 of the Companies Act,1956.
xix. The Company has not issued any debentures during the year.
xx. The Company has not raised any money by public issue during the
year.
xxi. During the course of our examination of the books and records of
the Company, carried out in accordance with the generally accepted
auditing practices in India and according to the information and
explanations given to us, we have neither come across any instance of
material fraud on or by the Company, noticed or reported during the
year, nor have we been informed of such case by the management.
For BHUCHAR & CHANDAK
CHARTERED ACCOUNTANTS
FIRM REGN NO. 101439W
Place: Mumbai (V. RAJAGOPAL)
Date: 29th November,2011 PARTNER
Membership No.27318
Sep 30, 2010
We have audited the attached Balance Sheet of RAJ IRRIGATION PIPES AND
FITTINGS LIMITED as at 30th September, 2010 and also the Profit and
Loss Account for the year ended on that date and the Cash Flow
Statement for the year ended on that date annexed thereto. These
Financial Statements are the responsibility of the Company's
Management. Our responsibility is to express an opinion on these
Financial Statements based on our audit.
We conducted our audit in accordance with auditing standards generally
accepted in India. Those Standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the 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.
As required by the Companies (Auditors Report) Order, 2003, issued by
the Central Government of India in terms of sub-section (4A) of Section
227 of 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 paragraph (3)
above, we report that:
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;
2. In our opinion, subject to our observations in para 6 and para i(a)
of the Annexure to the Auditors' Report, proper books of account as
required by law have been kept by the Company so far as appears from
our examination of the books;
3. The Balance Sheet and Profit and Loss Account dealt with by this
report are in agreement with the books of account;
4. In our opinion, subject to our observations in para 6, the Balance
Sheet and Profit and Loss Account dealt with by this report comply with
the Accounting Standards referred to in sub section (3C) of section 211
of the Companies Act,1956;
5. On the basis of written representations received from the
directors, as on 30th September, 2010 and taken on record by the Board
of Directors, we report that none of the directors is disqualified as
on 30th September, 2010 from being appointed as a director in terms of
clause (g) of sub-section (1) of Section 274 of the Companies Act,1956;
6. The accounts have been prepared on the going concern concept.
Considering the erosion of the net worth, the sale of the Nagpur and
Goa plants, absence of any commercial activity and any crystallized
plans to recommence business operations, in our opinion the accounts
need to be prepared on the realizable basis instead of the going
concern basis. Consequently in our opinion the following assets have
been overstated:
i. Investments in National Savings Certificates not backed by
certificates Rs.35,010.
ii. Loans, advances and deposits under current assets by Rs.26,43,121
being sales tax dues paid under protest by the Company.
The impact of this is an understatement of the loss for the year by
Rs.26,78,131.
7. The lease agreement for the registered office at Mumbai expired on
28.2.06 and has not been since renewed. The Company has made adhoc
provision towards rent of Rs 200,724 and interest of Rs 350,000 during
the current year. Provision for expenses under Current Liabilities and
Provisions in the Balance Sheet includes provision of Rs 13,89,638 on
this account to date. We are unable to ascertain the actual liability
the Company would incur towards rent for the period from 28.2.06 to
30.9.10.
8. No provision has been made against sales tax demands disputed by
the Company. Contingent liabilities includes disputed sales tax and
excise duty demands of Rs 488,37,715 plus interest and penalty which
may be levied by the Department and is unascertained at this stage.
Payments of Rs 23,21,600 made against these demands are accounted as
recoverable advances under Current Assets. We are unable to express an
opinion on the ultimate outcome in this matter.
9. Current liabilities include provision for sundry creditors towards
goods aggregating to Rs 110,29,840 and towards services for Rs 760,428.
These amounts pertain to earlier years and are outstanding since long.
They are subject to confirmation and consequent reconciliation. We are
unable to ascertain the financial impact of the delay in settlement of
these liabilities.
10. Sales tax dues of Rs 45,02,611 pertaining to the period July, 02
to February, 03 and Provident Fund dues of Rs 92,185 for the period
from September, 2007 were overdue for payment. The interest/ penalty
which may be levied by the authorities due to the delay in deposit of
these statutory dues is unascertained at this stage.
11. In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read together with the
accounting policies and other notes attached thereto, subject to our
observations in paragraphs 6, 7, 8 ,9 and 10 above, 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:
a) In the case of the Balance Sheet, of the state of affairs of the
Company as at 30th September,2010.
b) In the case of the Profit and Loss Account, of the loss for the year
ended on that date. and
c) In the case of the Cash Flow statement of the cash flows for the
year ended on that date.
ANNEXURE TO THE AUDITORS' REPORT
The Annexure referred to in the auditors' report to the members of RAJ
IRRIGATION PIPES AND FITTINGS LIMITED for the year ended 30th
September,2010. We report that:
i. (a) The fixed assets register was not available for our
verification. We were informed by the management that the register
is not traceable. The management has furnished us a list of fixed
assets at its Head office. The asset wise cost particulars were not
available.
(b) As explained the fixed assets have been physically verified by the
management at reasonable intervals and no material discrepancy was
noticed on such verification.
(c) The Company has disposed off a substantial part of its fixed assets
in recent years. As stated in para 6 of the audit report this has
affected the going concern status of the Company as it currently has no
operations and no crystallized plans for recommencing its operations.
ii. The Company has no inventory during the year. Hence clause 4 (ii)
of Companies (Auditors Report) Order, 2003 is not applicable.
iii. The Company has not granted unsecured loans to companies, firms or
other parties covered in the register maintained under section 301 of
the Companies Act, 1956. The Company has taken interest free unsecured
loans from Directors and Shareholders as detailed below:
Maximum
No. of Closing balance as amount outstanding
parties on 30.9.10 (Rs.) during the year (Rs.)
4 17,25,522 17,25,522
No terms and conditions have been fixed for these loans. In absence of
the same, regularity of repayment and overdue amount if any, cannot be
commented.
iv. The Company has not purchased inventory or fixed assets or sold
goods or services during the year.
Hence para 4(iv) of Companies (Auditor's Report) Order, 2003 is not
applicable.
v. (a) In our opinion and according to the information and
explanations given to us, the transactions that need to be entered
into the register in pursuance to Section 301 of the Companies Act,
1956 have been so entered.
(b) Based on the information received and records verified there were
no transactions made in pursuance of contracts or arrangements entered
in the register maintained under section 301 of the companies Act,
1956, and exceeding the value of rupees five lakhs in respect of any
party during the year.
vi. The Company has not accepted any deposits from the public and
consequently, the directives issued by the Reserve Bank of India and
the provision of sections 58A and 58AA of the Companies Act 1956 and
rules made there under are not applicable.
vii. The Company does not have an internal audit system.
viii. We are informed that the Central Government has not prescribed
maintenance of cost records under Section 209 (1) (d) of the Companies
Act, 1956 for the products of the Company.
ix. (a) According to the information and explanations given to us and
the records of the Company examined by us, the following statutory dues
were outstanding as on 30.09.2010 for a period of more than six months
from the date they became payable.
Name of the statute Nature of Dues Amount(Rs.) Period to which the
amount relates
Sales Tax Act Sales Tax 45,02,611 July'02 to
February'03
Provident Fund Delayed payment 92,185 For the period
prior to 30.09.07
charges
(b) According to the information and explanations given to us and the
records of the Company examined by us, there are no dues in respect of
income tax, sales tax, customs duty, wealth tax, excise duty and cess
that have not been deposited with appropriate authorities on account of
any dispute except for the following:-
Amount Period to which Forum where
the dispute is
Name of the Nature of (Rs. in
lakhs) the Amount pending
statute Dues relates
Sales Tax Act Sales Tax 666,517 1.1.85 to 30.6.85 Second appeal
before Tribunal
Sales Tax Act Sales Tax 15,92,996 1985-86 Second appeal
before Tribunal
Sales Tax Act Sales Tax 15,40,884 1986-87 Second appeal
before Tribunal
Sales Tax Act Sales Tax 32,79,847 1987-88 Second appeal
before Tribunal
Sales Tax Act Sales Tax 53,89,437 1988-89 Second appeal
before Tribunal
Sales Tax Act Sales Tax 54,90,730 1989-90 Second appeal
before Tribunal
Sales Tax Act Sales Tax 15,15,675 1990-91 Second appeal
before Tribunal
Sales Tax Act Sales Tax 86,92,319 1991-92 First appeal
before Dy.
Comm
Sales Tax Act Sales Tax 60,32,450 1992-93 First appeal
before Dy.
Comm
Sales Tax Act Sales Tax 138,15,624 1993-94 First appeal
before Dy.
Comm
Sales Tax Act Sales Tax 166,181 1995-96 Second appeal
before
Tribunal
Central Excise Excise Duty 655,055 July'00 to CESTAT, Mumbai
31.08.00
Against these demands the Company has deposited Rs 23,21,600
x. The Company has accumulated loss of Rs. 10,93,14,459 at the end of
the financial year and has incurred a cash loss of Rs.915,716 in the
financial year and cash loss of Rs.760,050 in the immediately preceding
financial year.
xi. According to the information and explanations required and the
records of the company examined by us, the company did not have any
pending defaults in repayment of dues to banks and financial
institutions as on 30.09.2010.
xii. According to the information and explanations given to us, the
Company has not granted 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, nidhi, mutual
benefit fund or a society.
xiv. According to the information and explanations given to us and the
records of the Company examined by us, the Company is not dealing or
trading in shares, securities, debentures and other investments.
xv. According to the information and explanations required and the
records of the company examined by us, the Company has not given any
guarantee for loans taken by others from banks or financial
institutions.
xvi. During the year, the Company has not taken any term loans. Hence
para 4(xvi) of Companies (Auditor's Report) Order, 2003 is not
applicable.
xvii. In our opinion funds raised on short term basis have not been
used for long term investments.
xviii. During the year, the Company has not made any preferential
allotment of shares to parties and Companies covered in the register
maintained under section 301 of the Companies Act,1956.
xix. The Company has not issued any debentures during the year.
xx. The Company has not raised any money by public issue during the
year.
xxi. During the course of our examination of the books and records of
the Company, carried out in accordance with the generally accepted
auditing practices in India and according to the information and
explanations given to us, we have neither come across any instance of
material fraud on or by the Company, noticed or reported during the
year, nor have we been informed of such case by the management.
For BHUCHAR & CHANDAK
CHARTERED ACCOUNTANTS
FIRM REGN NO. 101439W
Place: Mumbai (V. RAJAGOPAL)
Date: 3rd December,2010 PARTNER
Membership No.27318
Sep 30, 2009
We have audited the attached Balance Sheet of RAJ IRRIGATION PIPES AND
FITTINGS LIMITED as at 30th September, 2009 and also the Profit and
Loss Account for the year ended on that date and the Cash Flow
Statement for the year ended on that date annexed thereto. These
Financial Statements are the responsibility of the Companys
Management. Our responsibility is to express an opinion on these
Financial Statements based on our audit.
We conducted our audit in accordance with auditing standards generally
accepted in India. Those Standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the 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.
As required by the Companies (Auditors Report) Order, 2003, issued by
the Central Government of India in terms of sub-section (4A) of Section
227 of 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 paragraph (3)
above, we report that:
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;
2. In our opinion, subject to our observations in para 6 and para i(a)
of the Annexure to the Auditors Report, proper books of account as
required by law have been kept by the Company so far as appears from
our examination of the books;
3. The Balance Sheet and Profit and Loss Account dealt with by this
report are in agreement with the books of account;
4. In our opinion, subject to our observations in para 6, the Balance
Sheet and Profit and Loss Account dealt with by this report comply with
the Accounting Standards referred to in sub section (3C) of section 211
of the Companies Act,1956;
5. On the basis of written representations received from the
directors, as on 30th September,2009 and taken on record by the Board
of Directors, we report that none of the directors is disqualified as
on 30th September,2009 from being appointed as a director in terms of
clause (g) of sub-section (1) of Section 274 of the Companies Act,1956;
6. The accounts have been prepared on the going concern concept.
Considering the erosion of the net worth, the sale of the Nagpur and
Goa plants, absence of any commercial activity and any crystallized
plans to recommence business operations, in our opinion the accounts
need to be prepared on the realizable basis instead of the going
concern basis. Consequently in our opinion the following assets have
been overstated:
i. Investments in National Savings Certificates not backed by
certificates Rs.35,010.
ii. Loans, advances and deposits under current assets by Rs.26,43,121
being sales tax dues paid under protest by the Company.
The impact of this is an overstatement of the profit for the year by
Rs.26,78,131.
7. The lease agreement for the registered office at Mumbai expired on
28.2.06 and has not been since renewed. The Company has made adhoc
provision towards rent of Rs 200,724 and interest of Rs 300,000 during
the current year. Provision for expenses under Current Liabilities and
Provisions in the Balance Sheet includes provision of Rs 838,914 on
this account to date. We are unable to ascertain the actual liability
the Company would incur towards rent for the period from 28.2.06 to
30.9.09.
8. No provision has been made against sales tax demands disputed by
the Company. Contingent liabilities includes disputed sales tax demands
of Rs 363,00,371 and payments of Rs 26,43,121 made against the same is
accounted as recoverable advances under Current Assets. We are unable
to express an opinion on the ultimate outcome in this matter.
9. Current liabilities include provision for sundry creditors towards
goods aggregating to Rs 110,29,840 and towards services for Rs 760,428.
These amounts pertain to earlier years and are outstanding since long.
They are subject to confirmation and consequent reconciliation. We are
unable to ascertain the financial impact of the delay in settlement of
these liabilities.
10. In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read together with the
accounting policies and other notes attached thereto, subject to our
observations in paragraphs 6, 7, 8 and 9 above, 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:
a) In the case of the Balance Sheet, of the state of affairs of the
Company as at 30th September,2009.
b) In the case of the Profit and Loss Account, of the loss for the year
ended on that date. And
c) In the case of the Cash Flow statement of the cash flows for the
year ended on that date.
ANNEXURE TO THE AUDITORS REPORT
The Annexure referred to in the auditors report to the members of RAJ
IRRIGATION PIPES AND FITTINGS LIMITED for the year ended 30th
September,2009. We report that:
i. (a) The fixed assets register was not available for our
verification. We were informed by the management that the register is
not traceable. The management has furnished us a list of fixed assets
at its Head office. The asset wise cost particulars were not available.
(b) As explained the fixed assets have been physically verified by the
management at reasonable intervals and no material discrepancy was
noticed on such verification.
(c) The Company has disposed off a substantial part of its fixed assets
in recent years. As stated in para 6 of the audit report this has
affected the going concern status of the Company as it currently has no
operations and no crystallized plans for recommencing its operations.
ii. The Company has no inventory during the year. Hence clause 4 (ii)
of Companies (Auditors Report) Order, 2003 is not applicable.
iii. The Company has not granted unsecured loans to companies, firms
or other parties covered in the register maintained under section 301
of the Companies Act, 1956. The Company has taken interest free
unsecured loans from Directors and Shareholders as detailed below:
Maximum
No. of Closing balance as amount outstanding
parties on 30.9.09 (Rs.) during the year (Rs.)
4 13,59,713 13,59,713
No terms and conditions have been fixed for these loans. In absence of
the same, regularity of repayment and overdue amount if any, cannot be
commented.
iv. The Company has not purchased inventory or fixed assets or sold
goods or services during the year. Hence para 4(iv) of Companies
(Auditors Report) Order, 2003 is not applicable.
v. (a) In our opinion and according to the information and
explanations given to us, the transactions that need to be entered into
the register in pursuance to Section 301 of the Companies Act, 1956
have been so entered.
(b) Based on the information received and records verified there were
no transactions made in pursuance of contracts or arrangements entered
in the register maintained under section 301 of the companies Act,
1956, and exceeding the value of rupees five lakhs in respect of any
party during the year.
vi. The Company has not accepted any deposits from the public and
consequently, the directives issued by the Reserve Bank of India and
the provision of sections 58A and 58AA of the Companies Act 1956 and
rules made thereunder are not applicable.
vii. The Company does not have an internal audit system.
viii. We are informed that the Central Government has not prescribed
maintenance of cost records under Section 209 (1) (d) of the Companies
Act, 1956 for the products of the Company.
ix. (a) According to the information and explanations given to us and
the records of the Company examined by us, the following statutory dues
were outstanding as on 30.09.2009 for a period of more than six months
from the date they became payable.
Name of the
statute Nature of
Dues Amount(Rs-) Period to which the
amount relates
Sales Tax Act Sales Taxes 45,02,611 July02 to February03
Provident Fund Provident
Fund 92,185 For the period prior
to 30.09.07
(b) According to the information and explanations given to us and the
records of the Company examined by us, there are no dues in respect of
income tax, sales tax, customs duty, wealth tax, excise duty and cess
that have not been deposited with appropriate authorities on account of
any dispute except for the following:-
Amount Period to
which the Forum where
the dispute is
Name of the
statute Nature of
Dues (Rs. in
lakhs) Amount
relates pending
Sales
Tax Act Sales Tax 30.06 30.06.88 1st Appeal to
Deputy
Commissioner
57.52 31.03.89
61.57 31.3.90
19.55 30.06.86 2nd Appeal
before the 3rd
34.91 30.06.87 Bench of
Maharashtra
19.53 31.03.91 Sales Tax
Tribunal.
1.71 30.06.96
Central
Excise Excise
Duty 5.55 July00 to
31.08.00 CESTAT, Mumbai
x. The Company has accumulated loss of Rs. 10,83,98,743 at the end of
the financial year and has incurred a cash loss of Rs.7,60,050 in the
financial year and cash profit of Rs.2,02,55,703 in the immediately
preceding such financial year.
xi. According to the information and explanations required and the
records of the company examined by us, the company did not have any
pending defaults in repayment of dues to banks and financial
institutions as on 30.09.2009.
xii. According to the information and explanations given to us, the
Company has not granted 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, nidhi, mutual
benefit fund or a society.
xiv. According to the information and explanations given to us and the
records of the Company examined by us, the Company is not dealing or
trading in shares, securities, debentures and other investments.
xv. According to the information and explanations required and the
records of the company examined by us, the Company has not given any
guarantee for loans taken by others from banks or financial
institutions.
xvi. During the year, the Company has not taken any term loans. Hence
para 4(xvi) of Companies (Auditors Report) Order, 2003 is not
applicable.
xvii. In our opinion funds raised on short term basis have not been
used for long term investments.
xviii. During the year, the Company has not made any preferential
allotment of shares to parties and Companies covered in the register
maintained under section 301 of the Companies Act,1956.
xix. The Company has not issued any debentures during the year.
xx. The Company has not raised any money by public issue during the
year.
xxi. During the course of our examination of the books and records of
the Company, carried out in accordance with the generally accepted
auditing practices in India and according to the information and
explanations given to us, we have neither come across any instance of
material fraud on or by the Company, noticed or reported during the
year, nor have we been informed of such case by the management.
For BHUCHAR & CHANDAK
CHARTERED ACCOUNTANTS
Place: Mumbai ( V. RAJAGOPAL )
Date: 4th December,2009 PARTNER
Membership No.27318
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