Mar 31, 2015
1. We have audited the accompanying financial statements of Rajvir
Industries Limited ("the Company"), which comprise the Balance Sheet as
at March 31, 2015, the statement of Profit and Loss and the Cash Flow
Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information
Management's Responsibility for the Financial Statements
2. The Company's Board of Directors is 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 financial
statements that give a true and fair view of the financial position,
financial performance and Cash flows of the Company in accordance with
the accounting principles generally accepted in India, including the
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility
also includes 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; and design, implementation and maintenance of adequate
internal financial controls, that were operating effectively for
ensuring the accuracy and completeness of the accounting records,
relevant to the preparation and presentation of the financial
statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error
Auditor's Responsibility
3. Our responsibility is to express an opinion on these financial
statements based on our audit.
4. 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 rules
made there under.
5. 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.
6. An audit involves performing procedures to obtain audit evidence
about the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial control relevant
to the Company's preparation of the financial statements that give 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 the accounting policies used and the reasonableness
of the accounting estimates made by the Company's Directors, as well as
evaluating the overall presentation of the financial statements
7. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our audit opinion on the
financial statements.
Opinion
8. In our opinion and to the best of our information and according to
the explanations given to us, the aforesaid financial statements give
the information required by the Act in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India, of the state of affairs of the Company as
at March 31 2015 and its Loss and its Cash Flows for the year ended on
that date.
Emphasis of Matter
9. We draw attention to Notes to accounts of the accompanying
financial statement in respect of:
(a) Note no. 2.27(e): contingency related to 'recompense payable in
lieu of bank sacrifice' outcome of which is materially uncertain and
cannot be determined currently;
(b) Note no. 2.32: the confirmation of balances of trade payable, trade
receivable, debit and credit to the parties are subject to
reconciliation, review and adjustment thereof
(c) Note no. 2.18.1: interest subsidy under TUFS receivable, towards
claim of refund made in earlier years, against eligible machinery,
which is pending, for final decision before appropriate authorities.
The management expects full realization thereof.
Our opinion is not qualified in respect of above matters.
Report on Other Legal and Regulatory Requirements
10. As required by the Companies (Auditor's Report) Order, 2015, issued
by the Central Government of India in terms of sub- section (11) of
section 143 of the Act ( hereinafter referred to as 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 the paragraph 3 and 4 of the Order, to the extent
applicable.
11. As required by Section 143 (3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purposes of our audit.
(b) In our opinion, proper books of account as required by law have
been kept by the Company so far as it appears from our examination of
those books.
(c) The Balance Sheet, the Statement of Profit and Loss and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account.
(d) In our opinion, the aforesaid financial statements comply with the
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014.
(e) On the basis of the written representations received from the
directors as on March 31, 2015, taken on record by the Board of
Directors, none of the directors is disqualified as on March 31, 2015
from being appointed as a director in terms of Section 164 (2) of the
Act.
(f) With respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us
i. The Company has disclosed the impact of pending litigations as on
March 31, 2015 on its financial position in its financial statements
ii. The Company has made provision, as required under the applicable
law or Accounting Standards, for material foreseeable losses, if any,
on long term contracts. The Company neither entered into any derivative
contract during the year nor have any outstanding derivative contract
at the end of the year;
iii. There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company during the year ended March 31, 2015
Annexure to the Independent Auditors' Report
Referred to in paragraph 9 of the Independent Auditors' Report of even
date to the members of Rajvir Industries Limited on the financial
statements as of and for the year ended March 31, 2015
(i) (a) The Company is maintaining proper records showing full
particulars, including quantitative details and situation, of fixed
assets
(b)The fixed assets are physically verified by the Management during
the year and there is regular program of verification which, in our
opinion, is reasonable having regard to the size of the Company and the
nature of its assets
(ii) (a) The inventory has been physically verified by the management
during the year. In respect of inventory lying with the parties, these
have substantially been confirmed by them. In our opinion, the
frequency of verification is reasonable.
(b) In our opinion, the procedures of physical verification of
inventory followed by the management are reasonable and adequate in
relation to the size of the company and the nature of its business
(c) On the basis of our examination of the inventory records, in our
opinion, the Company is maintaining proper records of inventory. The
discrepancies noticed on physical verification of inventory as compared
to book records were not material
(iii) The Company has not granted any loans secured or unsecured to
Companies, firms or other parties covered in the registers maintained
under Section 189 of the Act.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business for the purchase of inventory and fixed assets and for the
sale of goods and services. Further, on the basis of our examination of
the books and records of the Company and according to the Information
and explanations given to us, we have neither come across, nor have
been informed of, any continuing failure to correct major weaknesses in
the aforesaid internal control system.
(v) In our opinion and according to the information and explanation
given to us, the company has complied with the provisions of section 73
to 76 and other relevant provisions of the Companies Act and the
Companies (Acceptance of Deposit) Rules, 2014 as applicable, with
regards to the deposits accepted from members and the public. No order
has been passed by the Company Law Board or National Company Law
Tribunal or Reserve Bank of India or any Court or any other Tribunal
with regard to the Deposits
(vi) We have broadly reviewed the books of accounts maintained by the
Company pursuant to the rules made by the Central Government of India,
the maintenance of cost records specified under sub-section (1) of
Section 148 of the Act, and are of the opinion that, prima facie, the
prescribed accounts and records have been made and maintained. We have
not, however, made a detailed examination of the Records with a view to
determine whether they are accurate or complete.
(vii) (a) According to the information and explanations given to us,
and on the basis of our examination of the books of account, the
company has been regular in depositing with appropriate authorities
undisputed statutory dues including wealth tax, sales-tax, customs
duty, investor education and protection fund and any other material
statutory dues applicable to it except as stated below, where the
company is irregular in payment of undisputed statutory dues and which
remained unpaid for a period of more than six months as on the date of
reporting
Particulars Period Amount
(In lakhs)
Employee State October 2013 to 29.19
insurance September 2014
Provident fund March 2014 to 26.71
September 2014
Tax deducted and April 2014 to September 14.42
collected at source 2014
Sales tax deferment Upto 31 st March 2015 187.89
Income Tax For the financial year 98.10
2012-13
(b) According to the information and explanations given to us, there
are no disputed statutory dues as at the year end
(c) The amount required to be transferred to Investor Education and
Protection Fund has been transferred within the stipulated time in
accordance with the provisions of the Companies Act, 1956 and the rules
made there under.
(viii) The company has accumulated losses as at the close of the year
and are not more than 50% of its net worth. The company has incurred
cash losses during the financial year ended on that date and in the
immediately preceding financial year.
(ix) According to the records examined by us, the Company has defaulted
in repayment of dues to financial institutions/banks and same has been
rescheduled under Corporate Debt Restructuring dated 13th August 2014
during the current financial year. There are no over-dues as on 31 st
March 2015. In case of bond holder of Rs.41.43 lacs (Pr.year Rs.41.43
lacs), the company has not repaid and has disputed the same pending
before High Court. As per information and explanation given to us, the
company has deposited by way of fixed deposit a sum of Rs75 lacs(Pr.
year Rs.55 lacs ) with the bank against the same.
(x) In our opinion and according to the information and the
explanations given to us, the company has not given any guarantees for
loans taken by others from banks and financial institutions
(xi) In our opinion and according to the information and explanations
given to us, the term loans have been applied on an overall basis for
the purposes for which they were obtained
(xii) According to the information and explanations given to us, no
material fraud on or by the Company has been noticed or reported during
the course of our audit nor have been informed of such case by the
Management.
For S Daga & Co.
Chartered Accountants
(ICAI FRN: 000669S)
Sd/-
(Pavan Kumar Bihani)
Place: Hyderabad Partner
Date: 30.05.2015 M. No. 225603
Mar 31, 2014
We have audited the accompanying financial statements of RAJVIR
INDUSTRIES LIMITED ("the Company"), which comprise the Balance Sheet as
at March 31, 2014, and 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
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956 ("the Act") read with the General Circular
15/2013 dated September 13, 2013 of the Ministry of Corporate Affairs
in respect of Section 133 of the Companies Act, 2013. This
responsibility includes the design, implementation and maintenance of
internal control relevant to the preparation and presentation of the
financial statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement. An audit involves performing procedures to
obtain audit evidence about the amounts and disclosures in the
financial statements. The procedures selected depend on the auditor''s
judgment, including the assessment of the risks of material
misstatement of the financial statements, whether due to fraud or
error. In making those risk assessments, the auditor considers internal
control relevant to the Company''s preparation and fair presentation of
the financial statements in order to design audit procedures that are
appropriate in the circumstances. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of
the accounting estimates made by management, as well as evaluating the
overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Basis of Qualified Opinion
The Company has recognised in ''Other non-operative Income'' towards
interest under TUFS receivable amounting to Rs. 1,210.41 lakhs for the
period 2006-07 to 2010-11 (refunded in earlier years), in view of the
favorable judgment of competent court, which is yet to be determined by
appropriate authority and realized and therefore in our opinion the
income should not have been recognized being a contingent asset as per
Accounting Standard 29. Had the income would not have been recognized
during the year ended 31st March, 2014, the loss for the year would be
increased by Rs. 1,210.41 lakhs, reserves would be decreased by Rs.
836.39 lakhs, net deferred tax liability would be decreased by Rs.
374.02 lakhs and earnings per share would be decreased by Rs. 27.56 for
the year ended.
Qualified Opinion
In our opinion and to the best of our information and according to the
explanations given to us, except for the effects of the matter
described in the Basis for Qualified Opinion paragraph, the financial
statements give the information required by the Act in the manner so
required and give a true and fair view in conformity with the
accounting principles generally accepted in India:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2014;
(b) in the case of the Statement of Profit and Loss, of the Loss for
the year ended on that date; and
(c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Emphasis of matter
We draw attention to note No. 2.30 to the financial statements,
regarding the balance outstanding to the debit or credits in the
accounts of the parties are subject to confirmation and review by the
management.
Our opinion is not qualified in respect of this matter.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
a. we have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b. in our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books and proper returns adequate for the purposes of our audit have
been received from branches not visited by us;
c. the Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account and with the returns received from branches not visited by us;
d. in our opinion, the Balance Sheet, Statement of Profit and Loss, and
Cash Flow Statement comply with the Accounting Standards referred to in
subsection (3C) of section 211 of the Companies Act, 1956 read with the
General Circular 15/2013 dated September 13, 2013 of the Ministry of
Corporate Affairs in respect of Section 133 of the Companies Act, 2013
except AS - 29;
e. on the basis of written representations received from the directors
as on March 31, 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2014, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
Annexure to Auditors'' Report
(Annexure referred to in Point 1 of Other Legal and Regulatory
Requirements of the Report of the Auditors)
1. a) The company has maintained proper records to show full
particulars including quantitative details and situation of fixed
assets.
b) As explained to us, the fixed assets have been physically verified
by the management at reasonable intervals, in a phased verification
programme, which, in our opinion, is reasonable, looking to the size of
the Company and the nature of its business. According to the
information and explanations given to us, discrepancies noticed on
physical verification have been properly dealt with in the books of
account;
c) In our opinion, and according to the information and explanations
given to us, no substantial part of fixed assets has been disposed off
by the company during the year.
2. a) The inventory has been physically verified during the year by the
management except the stock lying with the third party (consignment
agent). In our opinion, the frequency of verification is reasonable.
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 nature of its business.
c) The company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stocks and
the book records were not material.
3. a) The company had not granted any loans, secured or unsecured to
companies, firms and other parties covered in the register maintained
under Section 301 of the Companies Act, 1956.
b) In view of our comment in paragraph 3(a) above, reporting under
clause 4(iii) (b), (c) & (d) of the aforesaid order are not applicable
to the Company.
c) During the period, the company had taken unsecured loans from eight
parties (Previous year: eight parties) covered in the register
maintained under section 301 of the companies Act, 1956 and the maximum
amount involved during the period was Rs. 181.57 lacs (Pr. Year Rs.
417.73 lacs) and the period end balance is Rs. 117.58 lacs (Pr. Year
Rs. 102.43 lacs).
d) In our opinion the rate of interest and other terms and conditions
on which loans have been taken from the companies, firms and other
parties listed in the register maintained under section 301 of the
Companies Act, 1956 are not prima facie prejudicial to the interest of
the Company.
(e) In our opinion and according to the information given to us, there
is no stipulation of repayment has been made for long term loans from
the companies, firms and other parties listed in the register
maintained under section 301 of the Companies Act 1956 and further
interest accrued on the loans remained unpaid.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business with regard to purchase of inventory, fixed assets and with
regard to the sale of goods and services. Further, on the basis of our
examination of the books and records of the company, and according to
the information and explanations given to us, we have neither come
across nor have been informed of any continuing failure to correct
major weaknesses in the aforesaid internal control procedures.
5. a) According to the information and explanations given to us, we are
of the opinion that the transactions 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 contracts or
arrangements entered in the register maintained under section 301 of
the Companies Act, 1956 in respect of any party during the year, have
been made at prices which are reasonable having regard to the
prevailing market prices at the relevant time.
6. In our opinion and according to the information and explanations
given to us, the company has complied with the provision of Sec 58A and
58AA and other relevant provisions of the Companies Act, 1956 and the
Companies(Acceptances of deposits) Rules, 1975 with regard to the
deposits accepted from the public. No order has been passed by the
Company Law Board or National Company Law Tribunal or Reserve Bank of
India or any court or any other Tribunal.
7. On the basis of internal audit reports broadly reviewed by us, we
are of the opinion that the internal audit work carried out by an
Independent Chartered Accountant appointed by management is
commensurate with the size and nature of its business.
8. We have broadly reviewed the books of account relating to materials,
labour and other items of cost maintained by the company pursuant to
the Rules made by the Central Government for the maintenance of cost
records under section 209(1) (d) of the Companies Act, 1956 and we are
of the opinion that prima facie the prescribed accounts and records
have been made and maintained.
9. a) According to the information and explanations given to us, and on
the basis of our examination of the books of account, the company has
been regular in depositing with appropriate authorities undisputed
statutory dues including wealth tax, service tax, sales-tax, customs
duty, investor education and protection fund and any other material
statutory dues applicable to it except as stated below, where the
company is irregular in payment of undisputed statutory dues and which
remained unpaid as on the date of reporting:
Particulars Period Amount
(Rs. lakhs)
Employee State insurance November 2013 to March 2014 17.07
Provident fund October 2013 to March 2014 24.00
Tax deducted and
collected at source November 2013 to March 2014 41.40
Sales tax deferrement Upto 31st March 2014 242.25
Income Tax For the financial year 2012-13 98.10
b) According to the information and explanations given to us, no
undisputed amounts payable in respect of income tax, wealth tax,
service tax, sales tax, customs duty, excise duty and cess were in
arrears, as at 31st March 2014 for a period of more than six months
except income tax of Rs. 98.10 lakhs from the date they became payable.
c) According to the information and explanations given to us, there are
no disputed statutory dues as at the year end.
10. The company does not have any accumulated losses at the end of the
financial year and has incurred cash losses in the current financial
year and not in the immediately preceding financial year.
11. The company has delayed in making payment of dues to banks for a
short period of 2-3 months during the year. The balance overdue to the
banks at the close of the year towards principal Rs. 436.53 lakhs and
interest of Rs. 122.97 lakhs, of which part of principal arrears of Rs.
42.50 lakhs and part of interest of Rs. 12.32 lakhs is unpaid as on
date of reporting.
12. The company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
Accordingly, clause 4(xii) of the Companies (Auditor''s Report) Order,
2003 is not applicable.
13. The company is not a chitfund, nidhi, mutual benefit fund or a
society. Accordingly, clause 4(xiii) of the Companies (Auditor''s
Report) Order,2003 are not applicable.
14. According to the information and explanations given to us, the
company is not dealing or trading in shares, securities, debentures and
other investments. Accordingly, clause 4(xiv) of the Companies
(Auditor''s Report) Order, 2003 are not applicable.
15. According to the information and explanations to us, the company
has not given any guarantee for loans taken by others from banks or
financial institutions. Accordingly, clause 4(xv) of the order is not
applicable.
16. In our opinion, and according to the information and explanations
given to us, the term loans have been applied for the purpose for which
they were raised.
17. According to the information and explanations given to us and on an
overall examination of the records of the company, we report that no
funds raised on short-term basis have been used for long term
investment by the company.
18. According to the information and explanation given to us, the
company has made preferential allotment of preference shares to parties
covered in the register maintained under section 301 of the Act. In our
opinion, the price at which preference shares have been issued is not
prejudicial to the interest of the company.
19. The company has not issued any fresh Debentures during the year.
The company has created security in respect of debentures issued.
20. The company has not raised any money by public issues during the
year. Accordingly, clause 4(xx) of the order is not applicable.
21. 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
fraud on or by the company, noticed or reported during the year, nor
have we been informed of such case by the management.
For S. DAGA & CO.
Chartered Accountants
(F.No.000669S)
Pavan Kumar Bihani
Partner
Membership No.: 225603
Place: Hyderabad
Date : 14.08.2014
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of RAJVIR
INDUSTRIES LTD (the "Company"), which comprise the Balance Sheet as at
March 31,2013, and 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
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in sub-section (3C) of Section 211
of the Companies Act, 1956 ("the Act"). This responsibility includes
the design, implementation and maintenance of internal control relevant
to the preparation and presentation of the financial statements that
give a true and fair view and are free from material misstatement,
whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement. An audit involves performing procedures to
obtain audit evidence about the amounts and disclosures in the
financial statements. The procedures selected depend on the auditor''s
judgment, including the assessment of the risks of material
misstatement of the financial statements, whether due to fraud or
error. In making those risk assessments, the auditor considers internal
control relevant to the Company''s preparation and fair presentation of
the financial statements in order to design audit procedures that are
appropriate in the circumstances. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of
the accounting estimates made by management, as well as evaluating the
overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31,2013;
(b) in the case of the Statement of Profit and Loss , of the Profit for
the year ended on that date; and
(c) in the case of Cash Flow Statement, of the cash flows for the year
ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of sub-
section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
a. we have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b. in our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books and proper returns adequate for the purposes of our audit have
been received from branches not visited by us;
c. the Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account and with the returns received from branches not visited by us;
d. in our opinion, the Balance Sheet, Statement of Profit and Loss,
and Cash Flow Statement comply with the Accounting Standards referred
to in subsection (3C) of section 211 of the Companies Act,1956;
e. on the basis of written representations received from the directors
as on March 31, 2013, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2013, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
1. a) The company has maintained proper records to show full
particulars including quantitative details and situation of its fixed
assets;
b) As explained to us, the fixed assets have been physically verified
by the management at reasonable intervals, in a phased verification
programme, which, in our opinion, is reasonable looking to the size of
the company and the nature of its business. According to the
information and explanations given to us, discrepancies noticed on
physical verification have been properly dealt with in the books of
account;
c) In our opinion, and to the information and explanations given to us,
no substantial part of fixed assets has been disposed off by the
company during the year.
2. a) The inventory has been physically verified during the year by
the management except the stock lying with the third party (consignment
agent). In our opinion, the frequency of verification is reasonable.
b) The procedures of physical verification of inventories followed by
management are reasonable and adequate in relation to the size of the
company and nature of its business.
c) The company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stocks and
the book records were not material.
3. a) The Company had not granted any loans, secured or unsecured to
companies, firms and other parties covered in the register maintained
under Section 301 of the Companies Act, 1956.
b) In view of our comment in paragraph 3(a) above, reporting under
clause 4(iii)(b), (c) & (d) of the aforesaid order are not applicable
to the Company.
c) During the period, the company had taken unsecured loans from eight
parties (previous year: eight parties) covered in the register
maintained under section 301 of Companies Act, 1956 and the maximum
amount involved during the period was Rs.417.73 lakhs (Pr. year Rs.1034.38
lakhs) and the period end balance is Rs.102.43 lakhs (Pr. year Rs.353.50
lakhs).
d) In our opinion the rate of interest and other terms and conditions
on which loans have been taken from the companies, firms and other
parties listed in the register maintained under section 301 of the
Companies Act, 1956 are not prima facie prejudicial to the interest of
the Company.
4. In our opinion and according to the information and explanation
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business with regard to purchase of inventory, fixed assets with regard
to the sale of goods and services. Further, on the basis of our
examination of the books and record of the company, and according to
the information and explanations give to us, we have neither come
across not have been informed of any continuing failure to correct
major weaknesses in the aforesaid internal control procedures.
5. a) According to the information and explanation given to us, we are
of the opinion that the transactions 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 contracts or
arrangements entered in the register maintained under Section 301 of
the Companies Act, 1956 in respect of any party during the year, have
been made at prices which are reasonable having regard to the
prevailing market prices at the relevant time.
6. In our opinion and according to the information and explanations
given to us, the company has complied with the provision of Sec 58A and
58AA and other relevant provisions of the Companies Act,1956 and the
Companies(Acceptances of Deposits) Rules,1975 with regard to the
deposits accepted from the public. No order has been passed by the
Company Law Board or National Company Law Tribunal or Reserve Bank of
India or any court or any other Tribunal.
7. On the basis of internal audit reports broadly reviewed by us, we
are of the opinion that the internal audit work carried out by an
Independent Chartered Accountant appointed by management is
commensurate with the size and nature of business.
8. We have broadly reviewed the books of account relating to
materials, labour and other items of cost maintained by the company
pursuant to the Rules made by the Central Government for the
maintenance of cost records under section 209(1)(d) of the Companies
Act,1956 and we are of the opinion that the prima facie the prescribed
accounts and records have been made and maintained.
9. a) According to the information and explanations given to us, and
on the basis of our examination of the books of account, the company
has been regular except in few cases in depositing with appropriate
authorities undisputed statutory dues including Provident Fund,
Employee''s State Insurance, Income-tax, Sales-tax, Wealth tax, Service
tax, Custom duty, Investor Education and Protection Fund and any other
material statutory dues applicable to it.
b) According to the information and explanations given to us, no
undisputed amounts payable in respect of income-tax, wealth tax,
service tax, sales tax, custom duty, excise duty and cess were in
arrears, as at 31st March 2013 for a period of more than six months
from the date they became payable.
c) According to the information and explanations given to us, there are
no disputed statutory dues as at the year end.
10. The company does not have any accumulated losses at the end of
financial year and has not incurred cash losses in the current
financial year and in the immediately preceeding financial year.
11. The company has delayed in making payment of dues to banks for a
short period of 2-3 months during the year. The balance overdue to the
banks at the close of the year towards principal of Rs.381.53 lakhs and
Interest of Rs.125.61 lakhs, of which principal arrears was paid in full
and part of interest of Rs.6.19 lakhs is unpaid on the date of reporting.
12. The company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
Accordingly, clause 4(xii) of the Companies (Auditor''s Report) Order,
2003 is not applicable.
13. The company is not a chit fund, nidhi mutual benefit fund or a
society. Accordingly, clause 4(xiii) of the Companies (Auditor''s
Report) Order, 2003 are not applicable.
14. According to the information and explanations given to us, the
company is not dealing in or trading in shares, securities, debentures
and other investments. Accordingly, clause 4(xiv) of the Companies
(Auditor''s Report) Order, 2003 are not applicable.
15. According to the information and explanations given to us, the
company has not given any guarantee for loans taken by others from
banks or financial institutions. Accordingly, clause 4(xv)of the order
is not applicable.
16. In our opinion, and according to the information and explanations
given to us, the term loans have been applied for the purpose for which
they were raised.
17. According to the information and explanations given to us and on
an overall examination of the records of the Company, we report that no
funds raised on short-term basis have been used for long term
investment by the company.
18. According to the information and explanation given to us, the
company has made preferential allotment of preference shares to parties
covered in the register maintained under section 301 of the Act. In our
opinion, the price at which preference shares have been issued is not
prejudicial to the interest of the company.
19. The Company has not issued any fresh Debentures during the year.
The company has created security in respect of debentures issued.
20. The Company has not raised money by public issues during the year.
Accordingly, clause 4(xx) of the order is not applicable.
21. 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 give to us, we have neither come across any instance of
fraud on or by the company, noticed or reported during the year, nor we
have been informed of such case by the management. We have been
informed that the allegation of misrepresentation by management in
respect of subsidy under TUFS withdrawn in the preceeding year, which
has been disputed by the company, is pending with investigating agency.
The company expects no further liability beyond the amount refunded and
reported in preceeding financial year.
For S.DAGA & CO.
Chartered Accountants
(F.No.000669S)
T.V. Subba Rao
Partner
Membership No.: 9636
Place: Hyderabad
Date : 30.05.2013
Mar 31, 2012
1. We have audited the attached Balance Sheet of RAJVIR INDUSTRIES
LTD. as at 31st March 2012 and also the Statement of Profit and Loss
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.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis
for our opinion.
3. As required by the Companies (Auditor's Report) Order, 2003 (and
amended by The Companies (Auditor's Report) (Amendment) Order, 2004)
issued by the Central Government of India in terms of sub- section (4A)
of Section 227 of the Companies Act, 1956, we annex hereto 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 above, we
report that:
a. we have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit,
b. in our opinion, proper books of account as required by law have
been kept by the Company so far as appears from our examination of
those books,
c. the Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement referred to in this report are in agreement with the books of
account,
d. in our opinion, the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement dealt with by this report comply with the
accounting standards as referred to in sub-section (3C) of Section 211
of the Companies Act, 1956
e. On the basis of written representations received from the
directors, as on 31st March 2012, and taken on record by the Board of
directors, we report that none of the directors of the Company is
disqualified as referred to in terms of clause (g) of sub-section (1)
of Section 274 of the Companies Act, 1956.
5. 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
Significant Accounting Policies and Notes on accounts gives 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 at 31st March 2012;
(ii) in the case of the Statement of Profit and Loss, of the loss of
the Company for the year ended on that date; and
(iii) in the case of Cash Flow Statement, of the cash flows for the
year ended on that date.
1. a) The Company has maintained proper records showing full
particulars including quantitative details and situation of its fixed
assets;
b) As explained to us, the fixed assets have been physically verified
by the management at reasonable intervals, in a phased verification
programme, which, in our opinion, is reasonable having regard to the
size of the Company and the nature of the assets. According to the
information and explanations given to us, discrepancies noticed on
physical verification have been properly dealt with in the books of
account;
c) The Company has not disposed off any substantial fixed assets which
effect the going concern status of the Company.
2. a) As explained to us, inventories have been physically verified by
management at reasonable intervals during the period. In our opinion,
the frequency of such verification is reasonable.
b) As per the information given to us, the procedure of physical
verification of inventories followed by management are, in our opinion,
reasonable and adequate in relation to the size of the Company and
nature of its business.
c) The Company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stocks and
the book records were not material.
3. a) The Company had not granted any loans, secured or unsecured to
companies, firms and other parties covered in the register maintained
under Section 301 of the Companies Act, 1956.
b) In view of our comment in paragraph 3(a) above, reporting under
clause 4(iii)(b), (c) & (d) of the aforesaid order are not applicable
to the Company.
c) During the period, the Company has taken unsecured loans from 8
parties covered in the register maintained under section 301 of
Companies Act, 1956 and the maximium amount involved during the period
was Rs.1034.38 Lakhs (Previous year Rs.1055.03 Lakhs) and the year end
balance is Rs.353.50 Lakhs (Previous year Rs.871.53 Lakhs)
d) In our opinion the rate of interest and other terms and conditions
on which loans have been taken from the other parties listed in the
register maintained under section 301 of
the Companies Act, 1956 are not prima facie prejudicial to the interest
of the Company. The Company is generally regular in payment of
principal and interest due thereon as per terms.
4. In our opinion and according to the information and explanation
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business, with regard to purchase of inventory, fixed assets and for
the sale of goods and services. During the course of our audit, we have
not observed any continuing failure to correct major weaknesses in the
internal control system.
5. a) According to the information and explanation given to us, we are
of the opinion that the transactions that need to be entered in 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 contracts or
arrangements entered in the register maintained under Section 301 of
the Companies Act, 1956 in respect of any party during the period, have
been made at prices which are reasonable having regard to the
prevailing market prices at the relevant time
6. In our opinion and according to the information and explanations
given to us, the Company has complied with the provision of Sec 58A and
58AA and other relevant provisions of the Companies Act,1956 and the
Companies(Acceptances of Deposits) Rules,1975 with regard to the
deposits accepted from the public. No order has been passed by the
Company Law Board or National Company Law Tribunal or Reserve Bank of
India or any court or any other Tribunal.
7. On the basis of internal audit reports broadly reviewed by us, we
are of the opinion that the internal audit work carried out by an
independent Chartered Accountant appointed by management is
commensurate with the size of the Company and nature of business.
8. We have broadly reviewed the books of account relating to
materials, labour and other items of cost maintained by the Company
pursuant to the rules made by the Central Government for the
maintenance of cost records under section 209(1)(d) of the Companies
Act,1956 and we are of the opinion that the prima facie the prescribed
accounts and records have been made and maintained .
9. a) The Company is regular in depositing with appropriate
authorities undisputed statutory dues including Provident Fund,
Employee's State Insurance, Income-tax, Sales-tax, Wealth tax, Service
tax, Custom duty, Excise duty, cess and other material statutory dues
applicable to it.
b) According to the information and explanations given to us, no
undisputed amounts payable in respect of income-tax, wealth tax,
service tax, sales tax, custom duty, excise duty and cess were in
arrears, as at 31st March 2012 for a period of more than six months
from the date they became payable.
10. In our opinion, the accumulated losses of the Company are not more
than fifty percent of its net worth. Further the Company has not
incurred cash losses during the current financial year covered by an
audit and the immediately preceeding financial year.
11. The Company has delayed in making payment of dues to banks for a
short period of 2-3 months during the year. The balance overdue to the
banks at the close of the year towards principal of Rs.492.78 lakhs and
interest of Rs.148.54 lakhs, which are since paid by the Company.
12. As per the information and explanation 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.
13. In our opinion, the Company is not a chit fund or a nidhi mutual
benefit fund/ society. Therefore, the provisions of clause 4(xiii) of
the Companies (Auditor's Report) Order, 2003 are not applicable to the
Company.
14. In our opinion, the Company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the Companies (Auditor's Report) Order,
2003 are not applicable to the Company.
15. According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks or financial institutions.
16. In our opinion, and according to the information and explanations
given to us, the term loans were applied for the purpose for which the
loans were raised.
17. Based on information and explanations given to us and on an
overall examination of Balance Sheet of the Company, in our opinion,
funds raised on a long term basis have not been used for short term
investment.
18. According to the information and explanation given to us, the
Company has made preferential allotment of preference shares to parties
covered in the register maintained under section 301 of the Act. In our
opinion, the price at which preference shares have been issued is not
prejudicial to the interest of the Company.
19. The Company has not issued any fresh Debentures during the year.
The Company has created security in respect of debenture issued.
20. According to the information and explanations given to us, the
Company has not raised money by public issues during the period.
21. According to the information and explanations given to us, no
fraud on or by the Company has been noticed or reported during the
course of our audit.
For S.DAGA & CO.
Chartered Accountants
(F.No.000669S)
T.V. Subba Rao
Partner
Membership No.: 9636
Place: Hyderabad
Date : 14.08.2012
Mar 31, 2011
1. We have audited the attached Balance Sheet of RAJVIR INDUSTRIES
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 annexed thereto.
These financial statements are the responsibility of the company's
management. Our responsibility is to express an opinion on these
financial statements based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis
for our opinion.
3. As required by the Companies (Auditor's Report) Order, 2003 (and
amended by The Companies (Auditor's Report) (Amendment) Order, 2004)
issued by the Central Government of India in terms of sub- section (4A)
of Section 227 of the Companies Act, 1956, we annex hereto 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 above, we
report that:
a. we have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit,
b. in our opinion, proper books of account as required by law have
been kept by the Company so far as appears from our examination of
those books,
c. the Balance Sheet, Profit and Loss Account and Cash Flow Statement
referred to in this report are in agreement with the books of account,
d. in our opinion, the Balance Sheet, Profit and Loss Account and Cash
Flow Statement dealt with by this report comply with the accounting
standards as referred to in sub-section (3C) of Section 211 of the
Companies Act, 1956,
e. On the basis of written representations received from the
directors, as on 31st March 2011, and taken on record by the Board of
directors, we report that none of the directors of the company is
disqualified as referred to in terms of clause (g) of sub-section (1)
of Section 274 of the Companies Act, 1956,
5. 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
Significant Accounting Policies as appearing in schedule 21 and Notes
on accounts as appearing in Schedule 22, more particularly Note No 3
with regard to credit balance of Rs. 4.44 Cr (Previous year Rs. 4.44
cr.) and Note No.12 regarding accounting treatment of Export benefits
under DEPB Scheme amounting to Rs. 190.60 lakhs ( Previous year 402.25
lakhs) gives 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 at 31st March 2011;
(ii) in the case of the 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 for the
year ended on that date.
Annexure to Auditors' Report
Referred to in Paragraph 3 of our Report of even date:
1. a) The company has maintained proper records showing full
particulars including quantitative details and situation of its fixed
assets.
b) As explained to us, the management has physically verified most of
the fixed assets during the period and there is a regular programme of
verification which, in our opinion, is reasonable having regard to the
size of the Company and the nature of the assets. No material
discrepancies were noticed on such verification.
c) The company has not disposed off any substantial fixed assets which
effect the going concern status of the Company.
2. a) As explained to us, inventories have been physically verified by
management at reasonable intervals during the period. In our opinion,
the frequency of such verification is reasonable.
b) As per the information given to us, the procedure of physical
verification of inventory followed by management are, in our opinion,
reasonable and adequate in relation to the size of the company and
nature of its business.
c) The company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stocks and
the book records were not material.
3. a) The Company had not granted any loans, secured or unsecured to
companies, firms and other parties covered in the register maintained
under Section 301 of the Companies Act, 1956.
b) In view of our comment in paragraph 3(a) above, (b), (c) & (d) of
the aforesaid order are not applicable to the Company.
c) During the period, the Company had taken unsecured loans from nine
parties covered in the register maintained under section 301 of the
Companies Act, 1956 and the maximum amount involved during the period
was Rs.1076.58 lakhs ( Previous year Rs. 1055.63 Lakhs) and the year
end balance is Rs. 991.34 Lakhs ( Previous year Rs. 871.53 Lakhs)
d) In our opinion the rate of interest and other terms and conditions
on which loans have been taken from the other parties listed in the
register maintained under section 301 of the Companies Act, 1956 are
not prima facie prejudicial to the interest of the Company.
4. In our opinion and according to the information and explanation
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business, with regard to purchase of inventory, fixed assets and for
the sale of goods and services. During the course of our audit, we have
not observed any continuing failure to correct major weaknesses in the
internal control system.
5. a) According to the information and explanation given to us, we are
of the opinion that the transactions that need to be entered in 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 contracts or
arrangements entered in the register maintained under Section 301 of
the Companies Act, 1956 in respect of any party during the period, have
been made at prices which are reasonable having regard to the
prevailing market prices at the relevant time.
6. In our opinion and according to the information and explanations
given to us, the company has not accepted any deposits from the public
within the meaning of Sec.58A, 58AA of the Companies Act, 1956 or any
other relevant provisions of the Act and the Rules made there under.
7. On the basis of internal audit reports broadly reviewed by us, we
are of the opinion that the internal audit work carried out by an
independent Chartered Accountant appointed by management is
commensurate with the size of the company and nature of business.
8. In our opinion and according to the information and explanations
given to us, prima facie, the company has made and maintained accounts
and records as prescribed by the Central Government under section
209(1)(d) of the Companies Act, 1956.
9. a) The company is regular in depositing with appropriate
authorities undisputed statutory dues including Provident Fund,
Employee's State Insurance, Income-tax, Sales-tax, Wealth tax, Service
tax, Custom duty, Excise duty, cess and other material statutory dues
applicable to it.
b) According to the information and explanations given to us, no
undisputed amounts payable in respect of income-tax, wealth tax,
service tax, sales tax, custom duty, excise duty and cess were in
arrears, as at 31st March 2011 for a period of more than six months
from the date they became payable.
10. The company does not have any accumulated losses at the end of the
financial year and has not incurred cash losses in the current
financial year and in the immediately preceding financial year.
11. In our opinion and according to the information and explanations
given to us, the company has not defaulted in repayment of dues to a
financial institution, bank or debenture holders.
12. As per the information and explanation 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.
13. In our opinion, the company is not a chit fund or a nidhi mutual
benefit fund/ society. Therefore, the provisions of clause 4(xiii) of
the Companies (Auditor's Report) Order, 2003 are not applicable to the
company.
14. In our opinion, the company is not dealing in or trading in shares,
securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the Companies (Auditor's Report) Order,
2003 are not applicable to the company.
15. According to the information and explanations given to us, the
company has not given any guarantee for loans taken by others from
banks or financial institutions.
16. In our opinion, and according to the information and explanations
given to us, the term loans were applied for the purpose for which the
loans were raised.
17. Based on information and explanations given to us and on an overall
examination of Balance Sheet of the Company, in our opinion, funds
raised on a long term basis have not been used for short term
investment.
18. The company has not made any preferential allotment of shares to
parties or companies covered in the register maintained under section
301 of the Companies Act, 1956.
19. The Company has not issued any Debentures during the year..
20. According to the information and explanations given to us, the
Company has not raised money by public issues during the period.
21. According to the information and explanations given to us, no fraud
on or by the company had been noticed or reported during the course of
our audit.
For S.DAGA & CO.
Chartered Accountants
(F.No.000669S)
T.V. Subba Rao
Partner
Membership No.: 9636
Place: Hyderabad
Date : 30.05.2011
Mar 31, 2010
1. We have audited the attached Balance Sheet of RAJVIR INDUSTRIES
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 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.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditors Report) Order; 2003 (and
amended by The Companies (Auditors Report) (Amendment) Order, 2004)
issued by the Central Government of India in terms of sub-section (4A)
of Section 227 of the Companies Act, 1956, we annex hereto 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 above, we
report that:
a. we have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit,
b. in our opinion, proper books of account as required by law have
been kept by the Company so far as appears from our examination of
those books.
c. the Balance Sheet, Profit and Loss Account and Cash Flow Statement
referred to in this report are in agreement with the books of account.
d. In our opinion, the Balance Sheet, Profit and Loss Account and Cash
Flow Statement dealt with by
this report comply with the accounting standards as referred to in
sub-section (3C) of Section 211 of the Companies Act, 1956,
e. On the basis of written representations received from the directors,
as on 31st March 2010, and taken on record by the Board of Directors,
we report that none of the directors of the company is disqualified as
referred to in terms of clause (g) of sub-section (1) of Section 274 of
the Companies Act, 1956,
5. 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
Significant Accounting Policies as appearing in schedule 22 and Notes
on accounts as appearing in Schedule 23, more particularly Note No 3
with regard to credit balance of Rs. 4.44 Cr (Previous year Rs. 4.44
cr.), Note No. 8 (iii) regarding Insurance claim pending settlement
amounting to Rs. 171.15 lakhs (Previous year Rs. 171.15 lakhs), and
Note No 11 regarding accounting treatment of Export benefits under DEPB
Scheme amounting to Rs. 402.25 lakhs (Previous year 152.96 lakhs) gives
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 at 31st March 2010.
(ii) In the case of the 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 for the
year ended on that date.
ANNEXURE TO AUDITORS REPORT Referred to in Paragraph 3 of our Report
of even date:
1. a) The company has maintained proper records showing full
particulars including quantitative details and situation of its fixed
assets.
b) As explained to us, the management has physically verified most of
the fixed assets during the period and there is a regular programme of
verification which, in our opinion, is reasonable having regard to the
size of the Company and the nature of the assets. No material
discrepancies were noticed on such verification.
c) The company has not disposed off any substantial fixed assets which
effect the going concern status of the Company.
2. a) As explained to us, inventories have been physically verified by
management at reasonable intervals during the period. In
our opinion, the frequency of such verification is reasonable.
b) As per the information given to us, the procedure of physical
verification of inventory followed by management are, in our opinion,
reasonable and adequate in relation to the size of the company and
nature of its business.
c) The company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stocks and
the book records were not material.
3. a) The Company had not granted any loans, secured or unsecured to
companies, firms and other parties covered in the register maintained
under Section 301 of the Companies Act, 1956.
b) in view of our comment in paragraph 3 (a) above, (b), (c) & (d) of
the aforesaid order are not applicable to the Company.
c) During the period, the Company had taken unsecured loans from 8
parties covered in the register maintained under section 301 of the
Companies Act, 1956 and the maximum amount involved during the period
was Rs. 1055.63 lakhs (Previous year Rs 1032.93 Lakhs) and the year end
balance is Rs 871.53 lakhs (Previous year Rs 1032.93 Lakhs)
d) in our opinion the rate of interest and other terms and conditions
on which loans have been taken from the other parties listed in the
register maintained under section 301 of the Companies Act, 1956 are
not prima facie prejudicial to the interest of the Company.
4. In our opinion and according to the information and explanation
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business, with regard to purchase of inventory, fixed assets and for
the sale of goods and services. During the course of our audit, we have
not observed any continuing failure to correct major weaknesses in the
internal control system.
5. a) According to the information and explanation given to us, we are
of the opinion that the transactions that need to be
entered in 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 contracts or
arrangements entered in the register maintained under Section 301 of
the Companies Act, 1956 in respect of any party during the period, have
been made at prices which are reasonable having regard to the
prevailing market, prices at the relevant time.
6. In our opinion and according to the information and explanations
given to us, the company has not accepted any deposits from the public
within the meaning of Sec. 58A, 58AA of the Companies Act, 1956 or any
other relevant provisions of the Act and the Rules made there under.
7. On the basis of internal audit reports broadly reviewed by us, we
are of the opinion that the internal audit work carried out by an
independent Chartered Accountant appointed by management is
commensurate with the size of the company and nature of business
8. In our opinion and according to the information and explanations
given to us, prima facie, the company has made and maintained accounts
and records as prescribed by the Central Government under section
209(1)(d) of the Companies Act, 1956.
9. a) The company is regular in depositing with appropriate
authorities undisputed statutory dues including Provident Fund,
Employees State Insurance, Income-tax, Sales-tax, Wealth tax, Service
tax, Custom duty, Excise duty, cess and other material statutory dues
applicable to it.
b) According to the information and explanations given to us, no
undisputed amounts payable in respect of income-tax, wealth tax,
service tax, sales tax, custom duty, excise duty and cess were in
arrears, as at 31st March 2010 for a period of more than six months
from the date they became payable.
10. The company does not have any accumulated losses and has not
incurred cash losses in the current financial year.
11. In our opinion and according to the information and explanations
given to us, the company has not defaulted in repayment of dues to a
financial institution, bank or debenture holders.
12. As per 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.
13. in our opinion, the company is not a chit fund or a nidhi mutual
benefit fund/society. Therefore, the provisions of clause 4 (xiii) of
the Companies (Auditors Report) order, 2003 are not applicable to the
company.
14. in our opinion, the company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly, the
provisions of clause 4 (xiv) of the Companies (Auditors Report) Order,
2003 are not applicable to the company.
15. According to the information and explanations given to us, the
company has not given any guarantee for loans taken by others from
banks or financial institutions.
16. in our opinion, and according to the information and explanations
given to us, the term loans were applied for the purpose for which the
loans were raised.
17. Based on information and explanations given to us and on an
overall examination of Balance Sheet of the Company, in our opinion,
funds raised on a long term basis have not been used for short term
investment.
18. The company has not made any preferential allotment of shares to
parties or companies covered in the register maintained under section
301 of the Companies Act, 1956.
19. The Company has not issued any Debentures during the year.
20. According to the information and explanations given to us, the
Company has not raised money by public issues during the period.
21. According to the information and explanations given to us, no
fraud on or by the company had been noticed or reported during the
courses of our audit.
For S.DAGA & CO.,
Chartered Accountants
(F.No. 000669S)
(T.V.Suba Rao)
Partner
Membership No : 9636
Place : Hyderabad
Date : 29.05.2010