Mar 31, 2016
To The Members of REI AGRO LIMITED
REPORT ON THE STANDALONE FINANCIAL STATEMENTS
We have audited the accompanying financial statements of REI AGRO LIMITED, which comprise the Balance Sheet as at March 31, 2016, 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.
MANAGEMENTâS RESPONSIBILITY FOR THE FINANCIAL STATEMENTS
The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of 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.
AUDITORâS RESPONSIBILITY
Our responsibility is to express an opinion on these financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.
We conducted our Audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statements. The procedures selected depend on the auditorâs 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 Companyâs preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the 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 on the financial statements.
BASIS FOR QUALIFIED OPINION:-
1) During the year due to sudden death of one of the Independent Director Mr. Asoke Chatterjee on 04.08.2015 and subsequently due to resignation of Dr Ing Narpinder Kumar Gupta on 23.11.2015, Number of Directors on the Board of the Company has reduced to Two {2}only which is not a Competent Board. However, the Board have finalized and approved the 3rd Quarterly Results with the existing two directors and now submitting the yearly results which is again subject to final approval by the duly constituted Board. Meanwhile the company has communicated and appraised the facts to the Regulatory Authority and also sought certain waivers and reliefs from the Honâble BIFR. Company being a Net Worth eroded Company, is registered under Sick Industrial Companies (Special Provisions) Act, 1985.
2) The Companyâs Fixed Assets have been hypothecated / pledged with the Banks / Financial Institutions etc against various credit facilities availed by the Company and due to the accounts being classified as NPA, the Bankers / FIs have taken legal actions for recovery. Fixed Assets / Inventories are not insured.
3) The Company has not provided Interest on loans availed from Banks and Financial Institutions which has been classified as NPA. The Amount not so provided amounts to Rs. 1127.42 Crore {including Rs. 426.07 Crore for previous year} up to 31st March 2016.
4) Provision for Gratuity and Leave Encashment has been made on the basis of estimate and not as per the Actuarial Valuation, which is not in consonance with AS -15.
5) The Company had provided Corporate Guarantee to overseas lenders for the borrowings by its Subsidiary Company namely Ammalay Commodities JLT. The said subsidiary company defaulted in the repayment of the facilities provided by the lenders and the lenders to the subsidiary company had invoked the Corporate Guarantee of the Company provided to them amounting to Rs. 3105.93 Crore against which no provision has been made till the year ended 31st March 2016.
6) No balance confirmation and / or Bank Statement of the outstanding loan could be obtained, in absence of which, we are unable to confirm the correctness of the balances appearing in the financial statement.
7) The Net Worth of the company has fully eroded and the companyâs reference filed before the Honâble BIFR was registered. The Companyâs ability to continue the business as going concern is significantly dependent upon the viability of the restructuring plan as may be approved by the Honâble BIFR.
QUALIFIED OPINION:-
In our opinion and to the best of our information and according to the explanations given to us, except for the possible effects of the matter described in the âbasis for qualified opinionâ paragraph, 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 principle generally accepted in India;
a. in the case of the Balance Sheet, of the state of affairs of the Company as at March 31,2016
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 the following matters in the Notes to the financial Statements:
1. Note 29.1 to the financial statements that describe that due to liquidity crunch being faced by the Company, it was not able to procure adequate quantum of Raw Material for last two years, which has resulted in partly operational of one its unit only at the end of the year.
2. Note 29.2 to the financial statement that the Company has defaulted in payment of obligations in respect of all the Banks/ Financial Institutions / Non Convertible Debentures holders together with interest thereon on due dates. As a result thereof ''all the Working Capital Banks , Term Lenders and NCD Holders had initiated the Corrective Action Plan (CAP) through the Joint Lenders Forum (JLF) in accordance with the RBIâs SMA Guidelines dated February 26,2014. But the same could not be approved. Some of the lender banks have initiated winding up proceedings against the Company for recovery of dues. Notices have been issued by the lenders U/s 13(4) of Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002.This have adverse effect on the functioning of the Company on going forward basis.
3. Note No 29.5 to the financial statement indicates that the company has accumulated losses and its net worth is fully eroded. The Company has incurred net loss during the current year and previous years and Companyâs current liabilities exceeded its current assets as at the balance sheet date.
These Conditions along with other matters set out above indicates the existence of uncertainty that may cast doubt about the Companyâs ability to continue as Going Concern. However the financial statements of the company have been prepared by the management on Going Concern Basis.
Our opinion is not modified in respect of these matters.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
1. As required by the Companies (Auditorâs Report) Order, 2015 (âthe Orderâ) issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in the âAnnexure Aâ, a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.
2. As required by section 143(3) of the Act, we report that:
a) We have sought and obtained and except for the matters described in the basis for Qualified Opinion paragraph, all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit;
b) Except for the possible effects of the matter described in the basis for Qualified Opinion Paragraph above, in our opinion proper books of account as required by law have been kept by the Company so far as appears from our examination of those books
c) The Balance Sheet, Statement of Profit and Loss, and Cash Flow Statement dealt with by this Report are in agreement with the books of account.
d) Except for the possible effects of the matter described in the basis for Qualified Opinion Paragraph, in our opinion, the aforesaid standalone financial statement comply with the Accounting Standards specified under section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules,2014;
e) The matter described in the basis for Qualified Opinion paragraph above, in our opinion, may have an adverse effect on the functioning of the Company.
f) The Company has defaulted in redemption of Non Convertible Debenture {âNCDâ} on due date and payment of interest due thereon and dividend on preference share and such default has continued for more the one year. In terms of Section 164 (2) of the Companies Act,2013 the Directors of the Company are not eligible to be re-appointed as directors of the Company. As per the legal opinion obtained by the company, the existing directors of the company may continue to hold their position as Directors till their reappointment date
g) With respect to the adequacy of Internal Financial Controls over Financial Reporting of the Company, and the operating effectiveness of such controls, refer to our separate report in âAnnexure Bâ.
h) With respect to other matters to be included in the Auditorâs Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rule 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 on its financial position in its financial statements-Refer Note No. 28 & 29 to the financial statements.
ii) The Company did not have long-term contracts including derivative contracts for which there were any material foreseeable losses.
iii) There has been some delay in transferring amounts required to be transferred to the Investor Education & Protection Fund by the Company.
The Annexure referred to in our Independent Auditorsâ Report
âannexure aâ to the auditors'' report
to the members of the Company on the financial statements for the year ended 31st March 2016,
We report that:
i. In respect of its Fixed Assets:
a) The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets.
b) It has been confirmed by the Management that three Title Deeds in respect free hold land are not in the name of the company. The Gross Block / Net Block of these Freehold Land amounts to Rs. 177.01 Crore as on 31.03.2016.
c) All the fixed assets have not been physically verified by the management during the year but 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 its assets. No material discrepancies were noticed on such verification.
ii. In respect of its Inventories:
a) As explained to us the Inventories have been physically verified by the management at reasonable intervals. In our opinion the frequency of verification is reasonable.
b) The procedure of physical verification of inventories followed by the management is reasonable and adequate in relation to the size of the Company and the nature of its business.
iii) As informed to us, the Company during the year has not granted any loan, secured or unsecured to companies, firms, Limited Liability Partnership or other parties covered in register maintained under section 189 of the Companies Act, 2013. Accordingly, the provisions of sub clause (iii) (b) & (c) of the Companies (Auditors Report) order, 2013 (as amended) are not applicable.
iv) In respect of loans, investments, guarantees and security, provisions of section 185 and 186 of the Companies Act 2013 have been complied with. However, the company during the year, has not given loan or provided guarantee or security to any person or other body corporate and not made any investment.
v) The Company has not accepted any deposit from the public; therefore the provisions of clause (v) of the order are not applicable to the company.
vi) We have broadly reviewed the Books of Accounts maintained by the company in respect of generation of electricity where pursuant to the rules made by the Central Government of India, the maintenance of Cost Records have been prescribed U/s 148(1) 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) In respect of Statutory Dues:-
a) According to the information and explanations given to us and on the basis of examination of records of the Company, amount deducted / accrued in the books of accounts in respect of undisputed statutory dues including Provident Fund, Employees State Insurance, Income Tax, Sales Tax, Service Tax, Duty of Customs, Duty of Excise, Value Added Tax, Cess and other material statutory dues have been regularly deposited with appropriate authorities during the year except Dividend Distribution Tax Payable as set out below. As explained to us the Company did not have any dues on account of Duty of Custom and Duty of Excise as they were not applicable.
Particulars Dividend Distribution Tax Payable (DDT) (Inclusive of Interest ) |
Amount (Rs) |
F.Y 2011-12 |
114,026,220/- |
F.Y 2012-13 |
104,390,201/- |
218,416,421/- |
b) According to information and explanation given to us and records of the Company examined by us, the following disputed amount of statutory dues which have not been deposited.
Name of the Statute |
Nature of Dues |
Amount (Rs in Lacs) |
Period to which it relates |
Forum where Dispute is Pending |
PDIF Act |
Local Tax |
119.00 |
2008-09 |
Punjab & Haryana High Court |
Sales Tax |
Local Tax |
144.00 |
2008-09 |
Punjab & Haryana High Court |
Sales Tax |
Local Tax |
36.53 |
2011-12 |
*** |
Sales Tax |
HVAT |
118.33 |
2012-13 |
*** |
Sales Tax |
CST |
1462.01 |
2012-13 |
*** |
*** The Company is in process of filing Appeal before the Competent Authority.
viii) The company has defaulted in repayment of loans or borrowing to the financial institutions/ bank / Government and Debenture holder in respect of secured / unsecured loans. There loan have been classified as NPA, and therefore no statement of Accounts or Balance confirmation could be made available. The company has therefore not provided Interest of Rs. 1127.42 Crore, computed on the basis of last available rates. The applicable details of defaults as at
31.03.2016 are as under, exclusive of interest thereon, as stated above:
a) To Banks Rs. 4745.24 Crores
Bank Names (Lender wise details) |
Principal Outstanding (in Cr.) |
Andhra Bank |
84.34 |
Axis Bank |
165.54 |
Bank of Baroda |
321.40 |
Bank of Maharashtra |
74.95 |
Central Bank of India |
227.76 |
Corporation Bank |
535.18 |
Dena Bank |
114.00 |
Dhanlaxmi Bank |
69.67 |
IDBI Bank |
39.13 |
IFCI Ltd. |
40.53 |
Indian Overseas Bank |
426.30 |
Indusind Bank |
132.92 |
ING Vysya Bank |
80.14 |
Jammu & Kashmir Bank |
237.68 |
Karur Vysya Bank |
110.50 |
Lakshmi Vilas Bank |
52.59 |
State Bank of Bikaner & Jaipur |
337.08 |
State Bank of Patiala |
283.17 |
State Bank of Travancore |
75.29 |
UCO Bank |
903.95 |
Union Bank of India |
209.28 |
United Bank of India |
223.84 |
TOTAL |
4,745.24 |
b) To Debenture Holders Rs. 524.35 Crores
c) To FCCB Holders Rs. 667.20 Crores
ix) The Company did not raise any money by way of Initial Public Offer or Further Public Offer (including debt instruments) and term loans during the year. Accordingly, Paragraph 3(ix) of the order is not applicable.
x) According to the information and explanations given to us, no material fraud on or by the company by its officers or employees has been noticed or reported during the course of our audit.
xi) According to the information and explanations given to us and based on our examination of the records of the Company, the company has paid / provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V to the Act.
xii) According to the information and explanations given to us, the Company is not a Nidhi Company. Accordingly; paragraph 3(xii) of the order is not applicable.
xiii) According to the information and explanations given to us and based on our examination of the records of the Company transactions with related parties are in compliance with sections 177 and 188 of the Act where applicable and details of such transactions have been disclosed in the financial statements as required by the applicable Accounting Standards.
xiv) According to the information and explanations given to us and based on our examination of the records of the Company the company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year.
xv) As per information and explanations given to us and based on our examination of the records of the Company, the company has not entered into any non cash transactions with the Directors or persons connected with him. Accordingly, Paragraph 3 (xv) of the order is not applicable.
xvi) The Company is not required to be registered U/s 45-IA of the Reserve Bank of India Act, 1934.
âannexure Bâ
Report on the Internal Financial Controls Over Financial Reporting under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ).
We have audited the internal financial controls over financial reporting of REI Agro Ltd. (âthe Company7â) as of March 31, 2016 in conjunction with our audit of the financial statements of the Company for the year ended on that date.
MANAGEMENTâS RESPONSIBILITY FOR INTERNAL FINANCIAL CONTROLS
The Companyâs management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of Indiaâ (ICAI). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to companyâs policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
AUDITORâS RESPONSIBILITY
Our responsibility is to express an opinion on the Companyâs internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the âGuidance Noteâ) issued by the Institute of Chartered Accountants of India (ICAI) and the Standards on Auditing prescribed under Section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified audit opinion on the Companyâs internal financial controls system over financial reporting.
MEANING OF INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING
A companyâs internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles.
A companyâs internal financial control over financial reporting includes those policies and procedures that:
(1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company;
(2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and
(3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the companyâs assets that could have a material effect on the financial statements.
INHERENT LIMITATIONS OF INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
QUALIFIED OPINION
According to the information and explanations given to us and based on our audit, the following material weakness has been identified in the Companyâs internal financial controls over financial reporting as at March 31st, 2016:
i) As required u/s 138 of the Companies Act, 2013, Internal Audit has not been conducted by the Company.
A âmaterial weaknessâ is a deficiency, or a combination of deficiencies, in Internal Financial Control over Financial Reporting, such that there is a reasonable possibility that a material misstatement of the Companyâs Annual or Interim Financial Statements will not be prevented or detected on a timely basis.
OPINION
In our opinion, except for the possible effects of the material weakness described as above on the achievement of the objectives of the control criteria, the Company has maintained, in all material respects, adequate Internal Financial Controls over Financial Reporting and such Internal Financial control over financial reporting were operating effectively as of March 31, 2016, based on âthe internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of Indiaâ(ICAI).
We have considered the material weakness identified and reported above in determining the nature, timing and extent of Audit tests applied in our Audit of the March 31, 2016 financial statements of the Company and the material weakness does not affect our opinion on the financial statements of the Company.
For P. K. LILHA & CO.
Chartered Accountants
Firm Reg. No.: 307008E
Sd/-
(CA. P. K. LILHA)
Partner
M. No. 011092
Place : Kolkata
Date : 31.05.2016
Mar 31, 2015
We have audited the accompanying Standalone financial statements of REI
Agro Limited ("the Company"), which comprise the Balance Sheet as at
March 31, 2015, the Statement of Profit and Loss and Cash Flow
Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information, which we have
signed under reference to this report.
MANAGEMENT'S RESPONSIBILITY FOR THE STANDALONE FINANCIAL STATEMENTS
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 of these financial statements that give a true and
fair view of the financial position, financial performance and cash
flow 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 judgements
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
Our responsibility is to express an opinion on these financial
statements based on our audit.
We have taken into account the provisions of the Act, the accounting
and auditing standards and matters which are required to be included in
the audit report under the provisions of the Act and the Rules made
thereunder.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. Those Standards require that
we comply with ethical requirements and plan and perform the audit to
obtain reasonable assurance about whether the financial statements are
free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and 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 & fair view in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing
an opinion on whether the Company has in place an adequate internal
financial controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of
the accounting estimates made by the Company's Directors, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the financial
statements.
BASIS FOR QUALIFIED OPINION
1. The Company has not provided interest on loans availed from banks
and financial institutions which have been classified as NPA by them.
The amount not so provided amounts to Rs.425.23 Crores for the year
ended 31st March 2015.
2. Provision for gratuity and leave encashment has been done on the
basis of estimation and not as per the Actuarial Valuation, which is
not in consonance with AS-15.
3. The company had provided Corporate Guarantee to the lenders for the
borrowings by its Subsidiary Company namely Ammalay Commodities JLT. The
said subsidiary company has defaulted in the repayment of the facilities
provided by the lenders and therefore the lenders of the subsidiary
company has invoked the Corporate Guarantee provided to them amounting
to Rs. 3,105.93 Crores from the company against which no provision has
been made in the books of the accounts for the year ended 31st March
2015. It has been explained by the management that it shall provide for
the liability, if any, after the lender has not been able to recover the
amount from the subsidiary company.
QUALIFIED OPINION
In our opinion, and to the best of our information and according to the
explanations given to us, except for the possible effects of the matter
described in the basis for qualified opinion paragraph above, the
accompanying standalone financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
a. in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2015;
b. in the case of the Statement of Profit and Loss, 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 MATTERS
We draw attention to the following matters in the Notes to the
financial statements:
1. Note 29.1 to the financial statements that describe that due to
liquidity crunch being faced by the company, it was not able to procure
adequate quantum of Raw Material during the year, which has resulted in
temporary shutdown of one of its unit and partly shut down of second
unit. However the third being grading & packing units has been
operational.
2. Note 29.2 to the financial statements that the Company has
defaulted in payment of obligations in respect of all the
Banks/Financial Institutions/Non- Convertible Debentures holders
together with interest thereon on due dates. As a result thereof all
the Working Capital Banks, Term Lenders and NCD Holders have initiated
the Corrective Action Plan (CAP) through the Joint Lenders Forum (JLF)
in accordance with the RBI's SMA Guidelines dated February 26,2014. A
lender bank initiated a Winding up proceedings against the company for
recovery of dues Notices have now been issued by certain lenders u/s
13(2) of Securitization and Reconstruction of Financial Assets and
Enforcement of Security Interest Act, 2002. This may have adverse
effect on the functioning of the company on going forward basis.
3. Note No.29.5 to the financial statement indicates that the company
has accumulated losses and its net worth is fully eroded. The company
has incurred net loss during the current year and previous year and
company's current liabilities exceeded its current assets as at the
balance sheet date.
These conditions along with other matters set out above indicates the
existence of uncertainty that may cast doubt about the company's
ability to continue as going concern. However the financial statements
of the company has been prepared by the management on going concern
basis.
Our opinion is not modified in respect of these matters.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
i) As required by the Companies (Auditor's Report) Order, 2015 ('the
Order"), issued by the Central Government of India in terms of sub
section (11) of Section 143 of the Companies Act 2013, we give in the
Annexure a statement on the matters specified in paragraphs 3 & 4 of
the Order, to the extent applicable.
ii) As required by Section 143(3) of the Companies Act, 2013 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
purpose of our audit;
b. Except for the effects of the matter described in the Basis for
Qualified Opinion paragraph above,in our opinion, proper books of
account as required by law have been kept by the Company so far as
appears from our examination of those books;
c. The Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account ;
d. Except for the effects of the matter described in the Basis for
Qualified Opinion paragraph above,in our opinion, the Balance Sheet,
Statement of Profit and Loss and Cash Flow Statement dealt with by this
report comply with the Accounting Standards referred to in Section 133
of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
e. The matters described in the Basis for Qualified Opinion and
emphasis of matters paragraphs above,
in our opinion, may have an adverse effect on the functioning of the
Company.
f. The Company has defaulted in redemption of Non Convertible
Debentures ("NCD") on due date and payment of interest due thereon and
dividend on preference shares and such default has continued for more
than one year. In terms of section 164(2) of the Companies Act 2013,
the Directors of the Company are not eligible to be reappointed as
Directors of the Company. As per the legal opinion obtained, the
Directors of the Company may continue to hold their position as
Directors till their reappointment date.
g. 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 on its
financial position in its financial statements  Refer Note No. 28 &
29 to the financial statements.
ii) The Company did not have long-term contracts including derivative
contracts any for which there were any material foreseeable losses.
iii) There were no amounts which were required to be transferred to the
Investor Education and Protection Fund by the Company.
ANNEXURE TO THE AUDITORSÂ REPORT
(Referred to in paragraph 1 under the head "Report on Other Legal and
Regulatory Requirements" of our report of even date)
i. In respect of its Fixed Assets:
a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets.
b) Fixed Assets have been physically verified by the management during
the year.
c) No substantial part of fixed assets has been disposed off by the
company during the year.
ii. In respect of its Inventories:
a) As explained to us, the Inventories have been physically verified by
the management at reasonable intervals. In our opinion the frequency of
verification is reasonable.
b) The procedure of physical verification of inventories followed by
the management is reasonable and adequate in relation to the size of
the Company and the nature of its business.
c) The Company has maintained proper records of its inventories and no
material discrepancies were noticed on physical verification of
inventories as compared to the book records.
iii. The company has not granted any loan parties covered in the
register maintained under section 189 of the Companies Act.
iv In our opinion and according to the information and explanations
given to us, the company has adequate internal control system with
regards to the purchase of inventories, fixed assets and for the sale
of goods needs to be further strengthened.
v. The company has not accepted any deposits from the public. Hence
the provisions of clause 4 (v) of the order are not applicable.
vi. We have broadly reviewed the books of account maintained by the
Company in respect of products where, pursuant to the rules made by the
Central Government of India, the maintenance of cost records has been
prescribed under clause (d) of 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
the records of the Company examined by us, in our opinion, the Company
is generally regular in depositing undisputed statutory dues, in
respect of Service tax , and Income Tax at source though there has been
a slight delay or delay in a few cases, and is regular in depositing
undisputed statutory dues, including provident fund, investor education
and protection fund, employees' state insurance, income tax, wealth
tax, customs duty, excise duty and other material statutory dues, as
applicable, with the appropriate authorities except as set out in the
Table below:
Particulars Amount Amount
(Rs) (Rs)
Dividend Distribution Tax
Payable (DDT) (Inclusive of Interest)
F.Y 2011-12 94,754,183
F.Y 2012-13 85,118,164 179,872,347
Income Tax Payable for year
ended 31/03/13 (A.Y 13-14)
(On the Basis of computation 602,606,045
as per IT Act, 1961)
(b) According to information and explanation given to us and the records
of the company examined by us, the following disputed amount of
statutory dues which have not been deposited.
Name Nature Amount Period Forum where
of the of Rs. in which it Dispute is pending
Statue Dues Lacs relates
PDIF Local 119.00 2008-09 Punjab & Haryana
Act Tax High Court
Sales Local 144.00 2008-09 Punjab & Haryana
Tax Tax High Court
viii. The Company has accumulated losses of Rs. 5493.13 Crores as at
the end of the Financial Year and it has incurred cash losses of Rs.
5389.28 Crores during the current and NIL in the immediately preceding
financial year.
ix. Based on our audit procedures and on the basis of information and
explanations given to us, we are of the opinion that the Company has
defaulted in the repayment of dues to financial institution, Bank and
debenture holders as referred to Note No.5.4, 5.6 & 8.2 of the Notes to
the Financial Statements.
x. In respect of loans granted by Banks to some of its wholly owned
subsidiary company, this Company has given guarantees to the extent of
Rs 3,105.93 Crores against credit facilities provided by the banks and
Financial Institutions to two (2) Wholly Owned Foreign Subsidiaries
companies - Ammalay Commodities JLT and Ammalay International PTE Ltd.
But during the year bankers have invoked the corporate guarantee for
which no provision has been made.
xi. In our opinion and according to the information and explanation
given to us, the term loans were applied for the purpose for which
these were raised. However, no Term Loan has been raised during the
year.
xii. In our opinion and according to our information and explanation
given by the management, we report that no material fraud on or by the
Company has been noticed or reported during the course of our audit.
For P. K. LILHA & CO.
Chartered Accountants
Firm Reg. No.: 307008E
Sd/-
(CA. P. K. LILHA)
Partner
M. No. 011092
Place : Kolkata
Date : 13.06.2015
Mar 31, 2014
We have audited the accompanying financial statements of REI Agro
Limited ("the Company"), which comprise the Balance Sheet as at March
31, 2014, 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, which we have signed under reference
to this report.
MANAGEMENT''S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS
The Company''s Management is responsible for the preparation of these
financial statements that give a true and fair view of the financial
position, financial performance and cash flows of the Company in
accordance with the Accounting Standards notifed under the Companies
Act, 1956 of India (the "Act"). (Which continue to be applicable in
respect of 133 sections of the Companies Act,2013 in terms of General
Circular 15/ 2013 dated September 13, 2013 of the Ministry of Corporate
Affairs) and in accordance with the accounting principles generally
accepted in India. This responsibility includes the design,
implementation and maintenance of internal control relevant to the
preparation and presentation of the financial statements that give a
true and fair view and are free from material 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 and other applicable authoritative
pronouncements 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 auditors'' 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 consider internal control relevant
to the Company''s preparation and fair presentation of the financial
statements in order to design audit procedures that are appropriate in
the circumstances, but not for the purpose of expressing an opinion on
the effectiveness of the entity''s internal control. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by Management, as
well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is suffcient 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 accompanying financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 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
Without qualifying our opinion, we would like to draw your attention to
the point No.''s 5.1(c) & Point No. 29 of the Notes to the accounts in
the Financial Statements, which indicates that the company is facing
liquidity crunch, mainly due to increase in Finance Cost and overdue
Trade Receivables. This has resulted into default in payment of certain
dues including those to lenders and debenture holders. As informed by
the management, the company has approached to the bankers and Empowered
Group of Joint Lenders Forum (JLF) Cell has admitted the company''s
application under the Corrective Action Plan (CAP) Scheme. On the
basis of strong expectations of the successful outcome of its CAP
application, favourable considerations for reduction in Finance Cost,
and recovery of its Trade Receivables , the company has prepared the
accompanying Financial Statements on the Going Concern Assumption.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
1. As required by ''the Companies (Auditor''s Report) Order, 2003'', as
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 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 paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
a. We have obtained all the information and explanations which, to the
best of our knowledge and belief, were necessary for the purpose of our
audit;
b. In our opinion, proper books of account as required by law have
been kept by the Company so far as appears from our examination of
those books;
c. The Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account ;
d. In our opinion, the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement dealt with by this report comply with the
Accounting Standards notifed under 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;
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 THE AUDITORS'' REPORT
("Referred to in paragraph 1 under the head "Report on Other Legal and
Regulatory Requirements" of our report of even date)
i. In respect of its Fixed Assets:
a. The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets.
b. Fixed Assets have been physically verifed by the management during
the year.
c. No substantial part of fixed assets has been disposed off by the
company during the year.
ii. In respect of its Inventories:
(a) As explained to us, the Inventories have been physically verifed by
the management at reasonable intervals. In our opinion the frequency of
verifcation is reasonable.
(b) The procedure of physical verifcation of inventories followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
(c) The Company has maintained proper records of its inventories and no
material discrepancies were noticed on physical verifcation of
inventories as compared to the book records.
iii. a. The company had given loan to one of its subsidiary, in respect
of which the year end balance was NIL (Rs1482 Lacs) and the maximum
amount outstanding at any time during the year amounted Rs 1627 Lacs
(Rs.1493 Lacs)
b. In our opinion and according to the information and explanation
given to us, the rate of interest and other terms & condition of the
loans given by the company, are not prima facie prejudicial to the
interest of the company.
c. The principal amounts including interest thereon are repayable on
demand as such there are no overdue amounts
d. The Company has not taken any loans secured or unsecured from
companies covered in the register maintained under Section 301 of the
Companies Act, 1956.
iv In our opinion and according to the information and explanations
given to us, the internal control with regards to the purchase of
inventories, fixed assets and for the sale of goods needs to be further
strengthened.
v. a. According to the information and explanations given to us, we are
of the opinion that the particulars of contracts or arrangements
referred to in section 301 of the Companies Act, 1956 that need to be
entered into the register 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 and exceeding the value of Rupees Five Lacs in
respect of any party were made at prices which were reasonable having
regard to the prevailing market prices at the relevant times.
vi. The company has not accepted any deposits from the public. Hence
the provisions of clause 4 (vi) of the order are not applicable.
vii. In our opinion, the company has an internal audit system
commensurate with the size of the company and nature of its business.
viii. We have broadly reviewed the books of account maintained by the
Company in respect of products where, pursuant to the rules made by the
Central Government of India, the maintenance of cost records has been
prescribed under clause (d) of sub- section (1) of Section 209 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.
ix. (a) According to the information and explanations given to us and
the records of the Company examined by us, in our opinion, the Company
is generally regular in depositing undisputed statutory dues, in
respect of Service tax , and Income Tax at source though there has been
a slight delay or delay in a few cases, and is regular in depositing
undisputed statutory dues, including provident fund, investor education
and protection fund, employees'' state insurance, income tax, wealth
tax, customs duty, excise duty and other material statutory dues, as
applicable, with the appropriate authorities except as set out in the
Table below:
Particulars Amount (Rs.) Amount (Rs.)
Dividend Distribution Tax
Payable (DDT) (Inclusive of
Interest )
F.Y. 2011-12 94,754,183
F.Y. 2012-13 85,118,164 179,872,347
Income Tax Payable for year
ended 31/03/14 (A.Y. 13-14)
(On the Basis of computation 602,606,045
as per IT Act, 1961)
(b) According to information and explanation given to us and the
records of the company examined by us, the following disputed amount of
statutory dues which have not been deposited.
Name Nature Amount Period to Forum where
of the of Dues (Rs in which it Dispute is
Statute Lacs) relates Pending
Income Income 411.36 2006-07to Commissioner
Tax Tax 2012-13 of Income
Act,1961 including Tax (Appeals),
applicable Kolkata
interest
PDIF Act Local Tax 119.00 2008-09 Punjab &
Haryana High Court
Sales Tax Local Tax 144.00 2008-09 Punjab &
Haryana High Court
x. The Company has no accumulated losses as at the end of the Financial
Year and it has not incurred cash losses during the current and in the
immediately preceding financial year.
xi. Based on our audit procedures and on the basis of information and
explanations given to us, we are of the opinion that the Company has
defaulted in the repayment of dues to financial institution, Bank and
debenture holders as referred to Note No.5.5 & 8.2 of the Notes to the
Financial Statements.
xii. According to the information and explanations given to us, the
company has not granted any loans or advances on the basis of security
by way of pledge of shares, debentures and other securities,
accordingly paragraph 4 (xii) of the Order is not applicable.
xiii. The company is not a Chit Fund/Nidhi/Mutual benefit Fund/Society.
Therefore the provisions of Paragraph 4 (xiii) of the Order are not
applicable to the company.
xiv The Company has in our opinion maintained proper records and
contract notes with respect to its investments and timely entries have
been made therein. All investments at the close of the year are held in
the name of the Company.
xv In respect of loans granted by some of the Banks to its wholly owned
subsidiary company this Company has given guarantees to the extent of
Rs 2,98,292 Lacs against credit facility provided by the banks and
financial institutions to two (2) Wholly Owned Foreign Subsidiaries
Companies Ammalay Commoditiess JLT and Ammalay International PTE Ltd.
However, According to the information and explanations given to us, we
are of the opinion that the terms and condition thereof are not prima
facie prejudicial to the interest of the Company.
xvi. In our opinion and according to the information and explanation
given to us, the term loans were applied for the purpose for which
these were raised. However, no Term Loan has been raised during the
year.
xvii. According to the Cash Flow Statement and other records examined
by us and the information and explanations given to us, on an overall
basis, funds raised on short term basis have, prima facie, not been
used for long term investment.
xviii. The Company has not made any preferential allotment of shares
during the year to parties or 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 way public issue during the
year.
xxi. In our opinion and according to our information and explanation
given by the management, we report that no material fraud on or by the
Company has been noticed or reported during the course of our audit.
For P.K.LILHA & CO.
Chartered Accountants
Firm Reg. No.: 307008E
(CA. P.K. LILHA)
Partner
M. No. 011092
Place : Kolkata
Date : 30th May, 2014
Mar 31, 2013
REPORT ON THE FINANCIAL STATEMENTS
We have audited the accompanying financial statements of REI Agro
Limited ("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
The Company''s Management is responsible for the preparation of these
financial statements that give a true and fair view of the financial
position, financial performance and cash flows of the Company in
accordance with the Accounting Standards 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 our audit provides a reasonable
basis for our opinion.
OPINION
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements read with notes 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 the 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;
c. the Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account ;
d. in our opinion, the Balance Sheet, Statement of Profit and Loss,
and Cash Flow Statement 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.
ANNEXURE TO THE AUDITORS'' REPORT
(Referred to in paragraph 1 under the head "Report on Other Legal and
Regulatory Requirements" of our report of even date)
i. In respect of its Fixed Assets:
a. The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets.
b. All Fixed Assets have not been physically verified by the
management during the year but there is a regular programme of physical
verification which, in our opinion, is reasonable having regards to the
size of the company and nature of its assets. No material discrepancies
were noticed on such verification.
c. No substantial part of fixed assets have been disposed off by the
company during the year.
ii. In respect of its Inventories:
(a) As explained to us the Inventories have been physically verified by
the management at reasonable intervals. 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 the nature of its business.
(c) The Company has maintained proper records of its inventories and no
material discrepancies were noticed on physical verification of
Inventories as compared to the book records.
iii.
(a) The company has given loan to one of its subsidiary. In respect of
which the maximum amount outstanding at any time during the year
amounts to Rs. 1493 Lacs and the year end balance was Rs. 1482 Lacs .
(b) In our opinion and according to the information and explanation
given to us, the rate of interest and other terms & condition of the
loans given by the company, are not prima facie prejudicial to the
interest of the company.
(c) The principal amounts including interest thereon are repayable on
demand as such there are no overdue amounts.
(d) The Company has not taken any loans secured or unsecured from
companies covered in the register maintained under Section 301 of the
Companies Act, 1956.
iv. In our opinion and according to the information and explanations
given to us, there are adequate internal control systems commensurate
with the size of the Company and the nature of its business with
regards to the purchase of inventories, fixed assets and for the sale
of goods. There is no sale of services. During the course of our audit
no major weakness has been noticed in the internal control system in
respect of these areas.
v.
(a) According to the information and explanations given to us, we are
of the opinion that the particulars of contracts or arrangements
referred to in section 301 of the Companies Act, 1956 that need to be
entered into the register 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 and exceeding the value of Rupees Five Lacs in
respect of any party were made at prices which were reasonable having
regard to the prevailing market prices at the relevant times.
vi. The company has not accepted any deposits from the public during
the year. Hence the provisions of clause 4 (vi) of the order are not
applicable.
vii. In our opinion, the company has an internal audit system
commensurate with the size of the company and nature of its business.
viii. We have broadly reviewed the Books of Accounts maintained by the
Company in respect of manufacturing of packaged food products , basmati
rice and generation of electricity from wind power where pursuant to
the rules made by the Central Government of India, the maintenance of
Cost Records have been prescribed U/s 209(1)(d) 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 cost records with a view to determine whether they
are accurate or complete.
ix.
(a) On the basis of examination of records of the Company, undisputed
statutory dues including Provident fund, Employee''s State Insurance,
Investor Education and Protection Fund, Income Tax, Wealth Tax, Service
Tax, Sales tax, Custom Duty, Excise, Cess and any other material
statutory dues have been generally regularly deposited with the
appropriate authorities during the year.
(b) No undisputed amounts payable were outstanding at the year end, for
a period of more than six months from the date they became payable.
(c) According to information and explanation given to us and the
records of the company examined by us, there are no undisputed amount
of statutory dues which have not been deposited.
x. The Company has no accumulated losses as at the end of the year and
it has not incurred cash losses during the current and in the
immediately preceding financial year.
xi. Based on our audit procedures and on the basis of information and
explanations given to us, we are of the opinion that the company has
not defaulted in the repayment of dues to any financial institution, or
Bank, or debenture holders.
xii. According to the information and explanations given to us, the
company has not granted any loans or advances on the basis of security
by way of pledge of shares, debentures and other securities,
accordingly paragraph 4 (xii) of the Order is not applicable.
xiii. The company is not a Chit Fund/Nidhi/Mutual Benefit
Fund/Society. Therefore the provisions of Paragraph 4 (xiii) of the
Order are not applicable to the company.
xiv. The Company has in our opinion maintained proper records and
contract notes with respect to its investments and timely entries have
been made therein. All investments at the close of the year are held in
the name of the Company.
xv. The Company has given guarantees for loans taken by five
subsidiary companies from banks and financial institutions. According
to the information and explanations given to us, we are of the opinion
that the terms and condition thereof are not prima facie prejudicial to
the interest of the Company.
xvi. In our opinion and according to the information and explanation
given to us, the term loans were applied for the purpose for which
these were raised.
xvii. According to the Cash Flow Statement and other records examined
by us and the information and explanations given to us, on an overall
basis, funds raised on short term basis have, prima facie, not been
used during the year for long term investment.
xviii. The Company has not made any preferential allotment of shares
during the year to parties or 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 way public issue during
the year.
xxi. In our opinion and according to our information and explanation
given by the management, we report that no material fraud on or by the
Company has been noticed or reported during the course of our audit.
For PK.LILHA & CO.
Chartered Accountants
Firm Reg. No.: 307008E
(CA. P.K. LILHA)
Partner
M. No. 011092
Place : Kolkata
Date : 30th May, 2013
Mar 31, 2012
1. We have audited the attached Balance Sheet and Statement of Profit
and Loss of REI AGRO LIMITED as at 31st March, 2012 also 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 the 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 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 Companies (Auditor's Report) Order, 2003, (as
amended) issued by the Central Government of India in terms of Section
227(4A) of the Companies Act, 1956, and we enclose in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the said
Order, to the extent applicable to the Company.
4. Further to our comments in the Annexure referred to in paragraph 3
above, we report that:
a) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b) In our opinion, proper books of accounts as required by law have
been kept by the Company so far as appears from our examination of
those books;
c) The Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
d) In our opinion, the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement dealt with by this report comply with the
Accounting Standards referred to in Section 211(3C) 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 is disqualified as on 31st March,
2012 from being appointed as a director in terms of clause (g) of
sub-section (1) of Section 274 of the Companies Act, 1956;
f) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read together with the
Significant Accounting Policies as per Notes 1 & 2 and others, 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;
1) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2012;
2) in the case of Statement of Profit and Loss, of the Profit of the
Company for the year ended on that date, and
3) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
ANNEXURE TO THE AUDITORS' REPORT
(Referred to in paragraph 3 of our report of even date)
i. In respect of its Fixed Assets:
(a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets.
(b) In our opinion, the company has a regular programme of physical
verification of fixed assets which, in our opinion, is reasonable
having regards to the size of the company and nature of its assets. In
accordance with this programme, fixed assets were physically verified
by the management during the year and that no material discrepancies
were noticed on verification.
(c) There was no substantial disposal of its fixed assets during the
year, which may have any impact on the going concern nature of the
Company
ii. In respect of its Inventories:
(a) As explained to us the Inventories have been physically verified by
the management at reasonable intervals. 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 the nature of its business.
(c) The Company has maintained proper records of its inventories and no
material discrepancies were noticed on physical verification of
Inventories as compared to the book records.
iii. (a) The company has given loan to one subsidiary. In respect of
said loan the maximum amount outstanding at any time during the year
and the year end balance was Rs. 1476.86 Lacs including interest thereon.
(b) In our opinion and according to the information and explanation
given to us, the rate of interest and other terms & condition of the
loans given by the company, are not prima facie prejudicial to the
interest of the company.
(c) The principal amount are repayable on demand including interest.
(d) In respect of the said loans and interest thereon, there are no
overdue amount.
(e) The Company has not taken any loans secured or unsecured from
companies covered in the register maintained under Section 301 of the
Companies Act, 1956.
iv. In our opinion and according to the information and explanations
given to us, there are adequate internal control systems commensurate
with the size of the Company and the nature of its business with
regards to the purchase of inventories, fixed assets and for the sale
of goods. There is no sale of services. During the course of our audit
no major weakness has been noticed in the internal control system in
respect of these areas.
v.(a) According to the information and explanations given to us, we are
of the opinion that the particulars of contracts or arrangements
referred to in section 301 of the Companies Act, 1956 that need to be
entered into the register 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 and exceeding the value of Rupees Five Lacs in
respect of any party were made at prices which were reasonable having
regard to the prevailing market prices at the relevant times.
vi. The company has not accepted any deposits from the public during
the year. Hence the provisions of clause 4 (vi) of the order are not
applicable.
vii. In our opinion, the company has an internal audit system
commensurate with the size of the company and nature of its business.
viii. We have broadly reviewed the Books of Accounts maintained by the
Company in respect of generation of electricity from wind power where
pursuant to the rules made by the Central Government of India, the
maintenance of Cost Records have been prescribed U/s 209(1)(d) 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.
ix.(a) On the basis of examination of records of the Company,
undisputed statutory dues including Provident fund, Employee's State
Insurance, Investor Education and Protection Fund, Income Tax, Wealth
Tax, Service Tax, Sales tax, Custom Duty, Excise, Cess and any other
material statutory dues have been generally regularly deposited with
the appropriate authorities during the year.
(b) No undisputed amounts payable were outstanding at the year end, for
a period of more than six months from the date they became payable.
(c) According to information and explanation given to us and the
records of the company examined by us, there are no undisputed amount
of statutory dues which have not been deposited.
x. The Company has no accumulated losses as at the end of the year and
it has not incurred cash losses during the current and in the
immediately preceding financial year.
xi. Based on our audit procedures and on the basis of information and
explanations given to us, we are of the opinion that the company has
not defaulted in the repayment of dues to any financial institution, or
Bank, or debenture holders.
xii. According to the information and explanations given to us, the
company has not granted any loans or advances on the basis of security
by way of pledge of shares, debentures and other securities,
accordingly paragraph 4 (xii) of the Order is not applicable.
xiii. The company is not a Chit Fund/Nidhi/Mutual Benefit
Fund/Society. Therefore the provisions of Paragraph 4 (xiii) of the
Order are not applicable to the company.
xiv. The Company has in our opinion maintained proper records and
contract notes with respect to its investments and timely entries have
been made therein. All investments at the close of the year are held in
the name of the Company.
xv. The Company has given guarantees for loans taken by two subsidiary
companies from banks and financial institutions.
According to the information and explanations given to us, we are of
the opinion that the terms and condition thereof are not prima facie
prejudicial to the interest of the Company.
xvi. In our opinion and according to the information and explanation
given to us, the term loans were applied for the purpose for which
these were raised.
xvii. According to the Cash Flow Statement and other records examined
by us and the information and explanations given to us, on an overall
basis, funds raised on short term basis have, prima facie, not been
used during the year for long term investment.
xviii. The Company has not made any preferential allotment of shares
during the year to parties or companies covered in the Register
maintained under Section 301 of the Companies Act, 1956.
xix. The Company has issued during the year secured non convertibles
debentures amounting to Rs. 343.5 crores and has created securities /
charges in respect of secured debentures issued.
xx. The Company has not raised any money by way public issued during
the year.
xxi. In our opinion and according to our information and explanation
given by the management, we report that no material fraud on or by the
Company has been noticed or reported during the course of our audit.
For P.K.LILHA & CO.
Chartered Accountants
Firm Reg. No.: 307008E
(CA. P.K. LILHA)
Partner
M. No. 11092
Place : Kolkata
Date : 30.05.2012
Mar 31, 2011
1. We have audited the attached Balance Sheet and Profit & Loss
Account of REI AGRO LIMITED as at 31st March, 2011 also 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 the 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 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 Companies (Auditor's Report) Order, 2003, (as
amended) issued by the Central Government of India in terms of Section
227(4A) of the Companies Act, 1956, and we enclose in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the said
Order, to the extent applicable to the Company.
4. Further to our comments in the Annexure referred to in paragraph 3
above, we report that:
a) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b) In our opinion, proper books of accounts 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
dealt with by 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 referred to in Section 211(3C) of the Companies Act, 1956;
e) On the basis of written representations received from the directors
as on 31stMarch,2011 and taken on record by the Board of Directors, we
report that none of the directors is disqualified as on 31st March,
2011 from being appointed as a director in terms of clause (g) of
sub-section (1) of Section 274 of the Companies Act, 1956;
f) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read together with the
Significant Accounting Policies as per Schedule 20 and Notes thereon as
per Schedule 21, 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;
1) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31stMarch,2011;
2) in the case of Profit and Loss Account, of the Profit of the Company
for the year ended on that date, and
3) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
ANNEXURE TO THE AUDITORS' REPORT (Referred to in paragraph 3 of our
report of even date)
i) In respect of its Fixed Assets:
(a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets.
(b) In our opinion, the company has a regular programme of physical
verification of fixed assets which, in our opinion, is reasonable
having regards to the size of the company and nature of its assets. In
accordance with this programme, fixed assets were physically verified
by the management during the year and that no material discrepancies
were noticed on verification.
(c) There was no substantial disposal of its fixed assets during the
year, which may have any impact on the going concern nature of the
Company.
ii) In respect of its Inventories:
(a) As explained to us the Inventories have been physically verified by
the management at reasonable intervals. 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 the nature of its business.
(c) The Company has maintained proper records of its inventories and no
material discrepancies were noticed on physical verification of
Inventories as compared to the book records.
iii) (a) According to the information and explanations given to us, the
Company has not granted any loans, secured or unsecured to companies,
firms or other parties covered in the register maintained under Section
301 of the Companies Act, 1956. Accordingly the provisions of other sub
- clauses are not applicable to the Company.
(b) The Company has not taken any loans secured or unsecured from
companies covered in the register maintained under Section 301 of the
Companies Act, 1956.
iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control systems commensurate
with the size of the Company and the nature of its business with
regards to the purchase of inventories, fixed assets and for the sale
of goods. There is no sale of services. During the course of our audit
no major weakness has been noticed in the internal control system in
respect of these areas.
v) (a) According to the information and explanations given to us, we
are of the opinion that the particulars of contracts or arrangements
referred to in section 301 of the Companies Act, 1956 that need to be
entered into the register 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 and exceeding the value of Rupees Five Lacs in
respect of any party were made at prices which were reasonable having
regard to the prevailing market prices at the relevant times.
vi) The company has not accepted any deposits from the public during
the year. Hence the provisions of clause 4 (vi) of the order are not
applicable.
vii) In our opinion, the company has an internal audit system
commensurate with the size of the company and nature of its business.
viii) We have broadly reviewed the Books of Accounts maintained by the
Company in respect of generation of electricity from wind power where
pursuant to the rules made by the Central Government of India, the
maintenance of Cost Records have been prescribed u/s 209(l)(d) 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.
ix) (a) On the basis of examination of records of the Company,
undisputed statutory dues including Provident fund, Employee's State
Insurance, Investor Education and Protection Fund, Income Tax, Wealth
Tax, Service Tax, Sales tax, Custom Duty, Excise, Cess and any other
material statutory dues have been generally regularly deposited with
the appropriate authorities during the year.
(b) No undisputed amounts payable were outstanding at the year end, for
a period of more than six months from the date they became payable.
(d) According to the information and explanations given to us and the
records of the Company examined by us, there are no undisputed amounts
of statutory dues, which have not been deposited. The details of
disputed dues as at 31 st March, 2011 in respect of income tax that
have not been deposited by the Company, are as follows:-
Name of the Nature of Amount Period to Forum where
statute Dues (Rs. in
Lacs) which the dispute is
amount
relates pending
Income Tax Income Rs.149.52 AY CIT (A),
Act, 1961 Tax Lacs 2008-09 Kolkata
x) The Company has no accumulated losses as at the end of the year and
it has not incurred cash losses during the current and in the
immediately preceding financial year.
xi) Based on -our audit procedures and on the basis of information and
explanations given to us, we are of the opinion that the company has
not defaulted in the repayment of dues to any financial institution, or
Bank, or debenture holders.
xii) According to the information and explanations given to us, the
company has not granted any loans or advances on the basis of security
by way of pledge of shares, debentures and other securities,
accordingly paragraph 4 (xii) of the Order is not applicable.
xiii) The company is not a Chit Fund/Nidhi/Mutual Benefit Fund/Society.
Therefore the provisions of Paragraph 4 (xiii) of the Order are not
applicable to the company.
xiv) The Company has in our opinion maintained proper records and
contract notes with respect to its investments and timely entries have
been made therein. All investments at the close of the year are held in
the name of the Company.
xv) The Company has given guarantees for loans taken by others from
banks and financial institutions. According to the information and
explanations given to us, we are of the opinion that the terms and
condition thereof are not prima facie prejudicial to the interest of
the Company.
xvi) In our opinion and according to the information and explanation
given to us, the term loans were applied for the purpose for which
these were raised.
xvii) According to the Cash Flow Statement and other records examined
by us and the information and explanations given to us, on an overall
basis, funds raised on short term basis have, prima facie, not been
used during the year for long term investment.
xviii) The Company has not made any preferential allotment of shares
during the year to parties or companies covered in the Register
maintained under Section 301 of the Companies Act, 1956.
xix) The Company has issued during the year secured non convertibles
debentures amounting to Rs.99 crores and has created securities /
charges in respect of secured debentures issued.
xx) The Company has raised monies through Right issue during the year
to the extent of Rs.1245.38 Crores.
xxi) Based upon the audit procedures performed and information and
explanation given by the management, we report that no material fraud
on or by the Company has been noticed or reported during the course of
our audit.
ForP.K.LILHA&CO.
Chartered Accountants
Firm Reg.No.:307008E
(CAPK.LILHA)
Place: Kolkata Partner
Date: 21/05/2011 M.No.011092
Mar 31, 2010
1. We have audited the attached Balance Sheet and Profit & Loss
Account of REI AGRO LIMITED as at 31st March, 2010 also 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 the 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 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 Companies (Auditors Report) Order, 2003, as amended
by the Companies (Auditors Report) Amendment Order 2004, issued by the
Central Government of India in terms of Section 227(4A) of the
Companies Act, 1956, and on the basis of such check as we considered
appropriate and according to the information and explanation given to
us we enclose in the Annexure a statement on the matters specified in
paragraphs 4 and 5 of the said Order, to the extent applicable to the
Company.
4. Further to our comments in the Annexure referred to in paragraph 3
above, we report that:
a) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b) In our opinion, proper books of accounts 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
dealt with by 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 referred to in Section 211(3C) of the Companies Act, 1956;
e) On the basis of written representations received from the directors,
and taken on record by the Board of Directors, we report that none of
the directors is disqualified as on 31st March, 2010 from being
appointed as a director in terms of clause (g) of sub- section (1) of
Section 274 of the Companies Act, 1956;
f) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read together with the
Significant Accounting Policies and Notes thereon as per Schedule 20
and 21, 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;
1) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2010;
2) in the case of Profit and Loss Account, of the Profit of the Company
for the year ended on that date, and
3) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
ANNEXURE TO THE AUDITORS REPORT
(Referred to in paragraph 3 of our report of even date) i) In respect
of its Fixed Assets:
(a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets.
(b) In our opinion, the management has phvsically verified all the
fixed assets of the Company during the year at reasonable intervals,
having regards to the size of the companv and nature of its assets. We
were informed that no material discrepancies were noticed on such
verification.
(c) The Companv has not disposed any substantial part of its fixed
assets during the year, which may have any impact on the going concern
nature of the Company.
ii) In respect of its Inventories:
(a) As explained to us the Inventories have been physically verified by
the management at reasonable intervals. 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 the nature of its business.
(c) The Companv has maintained proper records of its inventories and no
material discrepancies were noticed on physical verification of
Inventories as compared to the book records.
iii) (a) According to the information and explanations given to us, the
Company has not granted any loans, secured or unsecured to companies,
firms or other parties covered in the register maintained under Section
301 of the Companies Act, 1956. Accordingly the provisions of other sub
à clauses are not applicable to the Companv. (b) The Company has taken
interest free unsecured loans from a company covered in the register
maintained under Section 301 of the Companies Act, 1956. The maximum
amount involved during the year was Rs. 4,390 Lacs and the year end
balance of loan taken from such Companv was Rs. 4,390 Lacs.
iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control systems commensurate
with the size of the Company and the nature of its business with
regards to the purchase of inventories, fixed assets and for the sale
of goods. There is no sale of services. During the course of our audit
no major weakness has been noticed in the internal control system in
respect of these areas.
v) (a) According to the information and explanations given to us, we
are of the opinion that the particulars of contracts or arrangements
referred to in section 301 of the Companies Act, 1956 that need to be
entered into the register 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 and exceeding the value of Rupees Five Lacs in
respect of any part} were made at prices which were reasonable having
regard to the prevailing market prices at the relevant times.
vi) The company has not accepted any deposits from the public during
the year. Hence the provisions of clause 4 (vi) of the order are not
applicable.
vii) In our opinion, the company has an internal audit system
commensurate with the size of the company and nature of its business.
viii) We have broadly reviewed the Books of Accounts maintained by the
Company in respect of generation of electricity from wind power where
pursuant to the rules made by the Central Government of India, the
maintenance of Cost Records have been prescribed u/s 209(l)(d) 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.
ix) (a) According to the record of the Companv, undisputed statutory
dues including Provident fund, Employees State Insurance, Investor
Education and Protection Fund, Income Tax, Wealth Tax, Service Tax,
Sales tax, Custom Duty, Excise, Cess and any other material statutory
dues have been generally regularly deposited with the appropriate
authorities during the year.
(b) No undisputed amounts payable were outstanding at the year end, for
a period of more than six months from the date they became payable.
(c) According to the information and explanations given to us and the
records of the Company examined by us, there are no undisputed amounts
of statutory dues, which have not been deposited. The details of
disputed dues as at 31st March, 2010 in respect of excise duty-, sales
tax, service tax, cess and income tax that have not been deposited by
the Company, are as follows: -
Name Nature of Amount Period to Forum
of the Dues (Rs. in which the where
statute Lacs) amount dispute
is
relates pending
Income Tax Income Rs.149.52 A Y 2008- CIT (A),
Act, 1961 Tax Lacs 09 Kolkata
x) The Company has no accumulated losses as at the end of the year and
it has not incurred cash losses during the current and the immediately
preceding financial year. xi) Based on our audit procedures and on the
basis of information and explanations given to us, we are of the
opinion that the company has not defaulted in the repayment of dues to
any financial institution, or Bank, or debenture holders. xii)
According to the information and explanations given to us, the company
has not granted any loans or advances on the basis of security by way
of pledge of shares, debentures and other securities, accordingly
paragraph 4 (xii) of the Order is not applicable xiii) The company is
not a Chit Fund/Nidhi/Mutual Benefit Fund/Society. Therefore the
provisions of Paragraph 4 (xiii) of the Order are not applicable to the
company. xiv) The Company has in our opinion maintained proper records
and contract notes with respect to its investments and timely
entries have been made therein. All investments at the close of the
year are held in the name of the Company.
xv) According to the information and explanations given to us there is
no guarantee given by the company for loans taken by others from banks
or financial institutions.
xvi) In our opinion and according to the information and explanation
given to us, the term loans were applied for the purpose for which
these were raised.
xvii) According to the Cash Flow Statement and other records examined
by us and the information and explanations given to us, on an overall
basis, funds raised on short term basis have, prima facie, not been
used during the year for long term investment.
xviii) The Company has not made any preferential allotment of shares
during the year to parties or companies covered in the Register
maintained under Section 301 of the Companies Act, 1956.
xix) The Company has issued secured non convertibles debentures
amounting to Rs. 140 Crore and has created securities / charges in
respect of secured debentures issued.
xx) The Company has not raised any monies through public issue during
the year.
xxi) Based upon the audit procedures performed and information and
explanation given by the management, we report that no material fraud
on or by the Company has been noticed or reported during the year.
For RK.LILHA & CO.
Chartered Accountants
(CA. P.K. LILHA)
Partner
Place: Kolkata M. No. 11092
Date: 26th May, 2010
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