Mar 31, 2014
We have audited the accompanying financial statements of M/s Sancia
Global Infraprojects Limited ("the Company"), which comprise the
Balance Sheet as at March 31,2014, and the Statement of Profit and Loss
and Cash Flow Statement for the year ended on that date, and a summary
of significant accounting policies and other explanatory information.
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956 ("the Act") read with the General
Circular 15/2013 dated 13 September 2013 of the Ministry of Corporate
Affairs in respect of section 133 of the Companies Act, 2013. This
responsibility includes the design, implementation and maintenance of
internal control relevant to the preparation and presentation of the
financial statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by management, as
well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India, subject to our report as required under section 227(3) of the
Act and annexure to our report:
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 Profit and Loss Account, of the profit/ loss for
the year ended on that date.
c) In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
1. As required by the Companies (Auditor''s Report) Order, 2003
("theOrder") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we enclose in the Annexure
a statement on the matters specified in paragraphs 4 and 5 of the
Order.
2. Further to our comments in the Annexure referred to above, and 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 31,2014, 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.
f. We further report that:
As Stated in Note no.21.1 regarding FCCB, the maturity date of said
FCCB was 13th day of February 2013.The Company has given proposals to
the FCCB holders to convert their bonds into fully paid equity shares
and the same is under the process of negotiations. However the company
has become defaulted in making payment of interest installments to FCCB
holders which were due on 12th August 2013 &12th February, 2014 during
the year and total amount of interest overdue is
Rs.306.08Lacs(P.y.197.28 Lakhs).
As stated in Note no.21.2 there was a search and seizure action u/s 132
of the Income Tax Act 1961 had been conducted by the Income Tax
Department as on 23rd day of June, 2009 and presently the matter is
pending with the Income Tax Appellate Tribunal, Kolkata pursuant to
Appeal filed by DCIT, Kolkata under section 253 of the Income Tax Act,
1961. However the company has not made any provision towards liability
of income tax for the period covered under the aforesaid search and
seizure since the management did not foresee any major income tax
liability. Further the company has received the notice of demand dated
08th June, 2014 under section 156 of the income tax Act, 1961 for the
assessment year 2004-05, 2005-06, 2007-08, 2008-09, and 2009-10 with
the demand of Rs.24982/-, 852001/-, 6,73,130/-, 59,49,227/- and
2,18,62,624/- respectively. However the management has decided to file
appeal against the said orders.
As stated in Note No. 21.8 there was an inquiry operation on 4th day of
June, 2014 was conducted by the DGCEI, Zonal Unit, Mumbai to ascertain
facts regarding evasion of service tax under central excise act, 1944
read with section 83 of the finance act, 1994. However the company has
not made any provision towards liability of service tax for the period
covered under the aforesaid search and seizure since the management did
not foresee any major service tax liability.
As stated in Note No. 21.3 the wholly owned subsidiary company i.e.
Petrogrema Overseas Pte. Ltd has incurred heavy losses due to
written-off of various loans & advances which could not be recovered as
per the view of the management and become bad due to various reasons
and consequently it will affect the going concern status of the
subsidiary company. However the company has made provision for
diminution of investments in subsidiary company as required byAS-13 on
"Accounting on Investments" and to that extent the losses and
Reserve of the company have been understated.
Bad Debts and sundry advances has been written off, as contained in
Note no. 21.5 which is forming part of Balance Sheet and Profit & Loss
Statement, the Company has written-off the debtors and advances, having
consequential effect on the profit/loss of the reporting period.
The Accumulated losses of the Company is Rs. 403.95 Crores
(Previous year: Loss Rs. 252.06crores) and its net worth isnegative
Rs.191.16 Crores(Previous period: Negative Rs. 39.28crores) at the end
of the reporting period which indicates erosion of Net worth of the
Company. The Company can be termed as"SICK" within the meaning of
clause (O) of sub section (1) of section 3 of the Sick Industrial
Companies (Special Provision) Act, 1985.As per the Note no.21.6; "The
Company has made a reference during the financial year 2012-13 to the
"Board for Industrial & Financial Reconstruction" under section
15(1) of Sick Industrial Companies (Special Provisions) Act 1985
however the same reference has been declined by BIFR."Considering the
same, the Company''s ability to continue as going concern is in doubt
and will depend upon any revival programme by Bankers/Government.
The Company has defaulted in making payments to secured creditors and
also not provided for interest on the banking facilities availed from
the banks. The secured creditors had declared the account as a Non
Performing Asset (NPA) and initiated notice under Section 13(2) as per
the SARFAESI Act 2002. Further Bank of India have assigned all the
rights, title and interest in financial assistance in favour of
"Edelweiss Asset Reconstruction Company Limited (EARC)"vide letter
No. EdelARC/3985-2014 dated April 30,2014 received from "Edelweiss
Asset Reconstruction Company Limited.
During the Period under review M/s Suryoday Allo Metal Powders Limited,
a company registered under the Companies Act 1956 and having its
Registered Office at 302, B.Wing, Narayan Chambers, 555, Narayan Peth
Pune-411030, (Maharashtra) filed a legal suit in the court at Kolkata
for winding-up the company due to defaulting of payment of
Rs.1,04,19,948/- by M/s Sancia Global Infraprojects Limited.
Company has not made Provision for Interest on Working Capital
Facility and Term Loan availed from Indian Overseas Bank, Punjab
National Bank, Bank of India and State Bank of India, pursuant to
classification of its account by the concerned Banks and Financial
Institution as Non-performing Assets (NPA).
Balances of Loans, Sundry Debtors, Loans and Advances, deposits and
Current Liabilities, are subject to confirmation from the respective
parties and reconciliation, if any.
ANNEXURE TO THE AUDITORS'' REPORT
The Annexure referred to in paragraph 1 of the Our Report of even date
to the members of Sancia Global Infraprojects Limited on the accounts
of the company for the year ended 31st March, 2014.
On the basis of such checks as we considered appropriate and on the
basis of examination of records and according to the information and
explanation given to us during the course of our audit, we report that:
1. (a) The company has maintained proper records showing full
particulars including quantitative details and situation of its fixed
assets.
(b) As explained to us, all fixed assets have not been physically
verified by the management during the period 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.
(c) As per the information and explanations given to us, the company
has impaired various tangible assets during the reporting period
however, it has no effect on the going concern assumption.
2. (a) As explained to us, inventories have been physically verified
during the reporting period by the management at reasonable intervals.
(b) In our opinion and according to the information and explanations
given to us, 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) In our opinion and on the basis of our examination of the records,
the Company is generally maintaining proper records of its inventories.
No material discrepancy was noticed on physical verification of stocks
by the management as compared to book records.
3. (a) According to the information and explanations given to us and on
the basis of our examination of the books of account, the Company had
granted interest free unsecured loans, to companies and other parties
listed in the register maintained under Section 301 of the Companies
Act, 1956, repayable on call basis. The balances as at the close of the
reporting period is Rs. 0.70crores.
In our opinion, other terms and conditions on which the loans have been
granted is prima facie, not prejudicial to the interest of the company.
The said parties are regular in repayment of the loan and company is
taking reasonable steps to recover the same.
(b) According to the information and explanations given to us and on
the basis of our examination of the books of account, the Company had
taken interest free unsecured loans from companies, and other parties
listed in the register maintained under Section 301 of the Companies
Act, 1956, repayable on call basis. The balances as at the close of the
reporting period is Rs. 105.98crores.
In our opinion, the other terms and conditions on which the loans have
been taken is prima facie, not prejudicial to the interest of the
company.
4. In our opinion and according to the information and explanations
given to us, there is generally an adequate internal control procedure
commensurate with the size of the company and the nature of its
business, for the purchase of inventories & fixed assets and payment
for expenses & for sale of goods. During the course of our audit, no
major instance of continuing failure to correct any weaknesses in the
internal controls has been noticed.
5. a) Based on the audit procedures applied by us and according to the
information and explanations provided by the management, the
particulars of contracts or arrangements referred to in section 301 of
the Act have been entered in the register required to be maintained
under that section.
b) As per information & explanations given to us and in our opinion,
the transaction entered into by the company with parties covered u/s
301 of the Act have been made at reasonable prices having regard to the
prevailing market prices at the relevant time.
6. The Company has not accepted any deposits from the public covered
under section 58A and 58AA of the Companies Act, 1956.
7. As per information & explanations given by the management, the
Company has no internal audit system commensurate with its size and the
nature of its business.
8. The Company is not required to maintain cost records under section
209(1) (d) of the Companies Act, 1956.
9. According to the records of the company, undisputed statutory dues
including Provident Fund, Investor Education and Protection Fund,
Employees'' State Insurance, Income-tax, Sales-tax, Wealth Tax, Service
Tax, Custom Duty, Excise Duty, cess to the extent applicable and any
other statutory dues have generally been regularly deposited with the
appropriate authorities. According to the information and explanations
given to us there were no outstanding statutory dues as on 31st of
March, 2014 for a period of more than six months from the date they
became payable except Professional tax, Sales tax and service tax and
Income tax.
10. The Company has accumulated loss of Rs. 403.95 crores (Previous
period loss Rs.252.06 crores) and has incurred cash loss of Rs. 0.74
Crores during the reporting period covered by our audit and cash loss
of Rs. 1.48 crores in the immediately preceding reporting period. The
Company may be classified as sick Company within the meaning of section
3(1)(o) of SICA.
11. Based on our audit procedures and on the information and
explanations given by the management, we are of the opinion that, the
Company has defaulted in repayment of dues to a financial institution,
banks or debenture holders.
12. According to the information and explanations given to us, the
Company has not granted loans and advances on the basis of security by
way of pledge of shares, debentures and other securities.
13. The Company is not a chit fund or a nidhi /mutual benefit
fund/society. Therefore, the provision of this clause of the Companies
(Auditor''s Report) Order, 2003 (as amended) is not applicable to the
Company.
14. According to information and explanations given to us, the Company
is not dealing or trading in Shares, Securities, Debentures, Mutual
funds & other Investments. Therefore, the requirements of clause 4(xiv)
of the order relating to the maintenance of the proper records of the
transactions are not applicable.
15. According to the information and explanations given to us, the
Company has given guarantees for loan taken by others from a bank or
financial institution. In our opinion and according to the information
and explanation given to us, the terms & conditions of the guarantees
given by the company for loans taken by others from banks and financial
institutions, are not prima facie prejudicial to the interest of the
company.
16. Based on our audit procedures and on the information given by the
management, we report that the company has not raised any term loans
during the reporting period.
17. Based on the information and explanations given to us and on an
overall examination of the Balance Sheet of the Company as at 31st
March, 2014, we report that no funds raised on short-term basis have
been used for long-term investment by the Company.
18. Based on the audit procedures performed and the information and
explanations given to us by the management, we report that the Company
has not made any preferential allotment of shares to the parties and
companies covered in the register maintained under section 301 of the
Companies Act, 1956 during the reporting period.
19. The Company has not issued any secured debentures during the
period, hence the question of creation of security or charge in respect
of debenture issued does not apply.
20. The Company has not raised any money by public issue during the
reporting period.
21. Based on the audit procedures performed and the information and
explanations given to us, we report that no fraud on or by the Company
has been noticed or reported by the company during the period under
review, nor have we been informed of such case by the management.
For Arup Das & Associates
(Chartered Accountants)
Firm Regn. No.:318034E
Sd/-
Arup Das
(Proprietor)
Membership No.: 053564
Place : Kolkata
Date : 24.06.2014
Mar 31, 2013
We have audited the accompanying financial statements of M/s Sancia
Global Infra projects 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 ended on that date, and a
summary of significant accounting policies and other explanatory
information.
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.
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by management, as
well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India, subject to our report as required under section 227(3) of the
Act and annexure to our report:
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 Profit and Loss Account, of the profit/ loss for
the year ended on that date.
c) In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
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 enclose in the Annexure
a statement on the matters specified in paragraphs 4 and 5 of the
Order.
2. Further to our comments in the Annexure referred to above, and 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, except information and explanations read with auditors'' report
for the year ended 31.03.2010;
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.
f. Since the Central Government has not issued any notification as to
the rate at which the cess is to be paid under section 441A of the
Companies Act, 1956 nor has it issued any Rules under the said section,
prescribing the manner in which such cess is to be paid, no cess is due
and payable by the Company.
g. We further report that:
- As Stated in Note no.1 in Note No. 22(Notes to accounts) regarding
FCCB, the Company has defaulted in making payment to FCCB holders which
was due on February 13, 2013. The company has given proposals to the
FCCB holders to convert their bonds into fully paid equity shares and
the same is under the process of negotiations. Further the company has
become defaulted in making payment of interest installments to FCCB
holders which were due on 12th August 2012 & 12th February, 2013 during
the year and total amount was Rs. 197.28 Lakhs.
- As stated in Note no.2 in Note No. 22(Notes to accounts) there was
a search and seizure action u/s 132 of the Income Tax Act 1961 had been
conducted by the Income Tax Department as on 23rd day of June, 2009 and
presently the matter is pending with the Income Tax Appellate Tribunal,
Kolkata pursuant to Appeal filed by DCIT, Kolkata under section 253 of
the Income Tax Act, 1961. However the company has not made any
provision towards liability of income tax for the period covered under
the aforesaid search and seizure since the management did not foresee
any major income tax liability.
- As stated in Note No. 3 in Note No. 22(Notes to Accounts) the
wholly owned subsidiary company i.e. Petrogrema Overseas Pte. Ltd has
incurred heavy losses due to written-off of various loans & advances
which could not be recovered as per the view of the management and
become bad due to various reasons and consequently it will affect the
going concern status of the subsidiary company. However the company has
not made provision for diminution of investments in subsidiary company
as required by AS-13 on "Accounting on Investments" and to that
extent the losses and Reserve of the company have been understated.
- Bad Debts and sundry advances has been written off, as contained in
Note no.5 in Note No. 22 which is forming part of Balance Sheet and
Profit & Loss Statement, the Company has written-off the debtors and
advances, having consequential effect on the profit/loss of the
reporting period.
- As per AS-28 impairment of asset, company has not made an
independent assessment of any indicators that may lead to impairment of
assets.
- The Accumulated losses of the Company is Rs. 252.06 crores
(Previous period: Loss Rs.232.57 crores) and its net worth is negative
Rs. 39.28 Crores (Previous period: Negative Rs.21.07 crores) at the end
of the reporting period which indicates erosion of Net worth of the
Company. The Company can be termed as "SICK" within the meaning of
clause (O) of sub section (1) of section 3 of the Sick Industrial
Companies (Special Provision) Act, 1985.As per the Note no.6 in
schedule No. 22; "The Company has made a reference during the
financial year 2012-13 to the "Board for Industrial & Financial
Reconstruction" under section 15(1) of Sick Industrial Companies
(Special Provisions) Act 1985 however the same reference has been
declined by BIFR."Considering the same, the Company''s ability to
continue as going concern is in doubt and will depend upon any revival
programme by Bankers/Government.
- The Company has defaulted in making payments to secured creditors
and also not provided for interest on the banking facilities availed
from the banks. The secured creditors had declared the account as a Non
Performing Asset (NPA) and initiated notice under Section 13(2) as per
the SARFAESI Act 2002.
- Company has not made Provision for Interest on Working Capital
Facility and Term Loan availed from Indian Overseas Bank, Punjab
National Bank, Bank of India and State Bank of India, pursuant to
classification of its account by the concerned Banks and Financial
Institution as Non-performing Assets (NPA).
- Balances of Loans, Sundry Debtors, Loans and Advances, deposits and
Current Liabilities, are subject to confirmation from the respective
parties and reconciliation, if any.
On the basis of such checks as we considered appropriate and on the
basis of examination of records and according to the information and
explanation given to us during the course of our audit, we report that:
1. (a) The company has maintained proper records showing full
particulars including quantitative details and situation of its fixed
assets subject to the annexure to the Auditors Report for the period
ended on 31.03.2010.
(b) As explained to us, all fixed assets have not been physically
verified by the management during the period 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.
(c) As per the information and explanations given to us, the company
has impaired various tangible assets during the reporting period
however, it has no effect on the going concern assumption.
2. (a) As explained to us, inventories have been physically verified
during the reporting period by the management at reasonable intervals
(b) In our opinion and according to the information and explanations
given to us, 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) In our opinion and on the basis of our examination of the records,
the Company is generally maintaining proper records of its inventories.
No material discrepancy was noticed on physical verification of stocks
by the management as compared to book records subject to the annexure
to the Auditors Report for the previous financial period ended on
31.03.2010.
3. (a) According to the information and explanations given to us and
on the basis of our examination of the books of account, the Company
had granted interest free unsecured loans, to companies and other
parties listed in the register maintained under Section 301 of the
Companies Act, 1956, repayable on call basis. The balances as at the
close of the reporting period is Rs. 0.69 crores.
In our opinion, other terms and conditions on which the loans have been
granted is prima facie, not prejudicial to the interest of the company.
The said parties are regular in repayment of the loan and company is
taking reasonable steps to recover the same.
(b) According to the information and explanations given to us and on
the basis of our examination of the books of account, the Company had
taken interest free unsecured loans from companies, and other parties
listed in the register maintained under Section 301 of the Companies
Act, 1956, repayable on call basis. The balances as at the close of the
reporting period is Rs. 108.57 crores.
In our opinion, the other terms and conditions on which the loans have
been taken is prima facie, not prejudicial to the interest of the
company.
4. In our opinion and according to the information and explanations
given to us, there is generally an adequate internal control procedure
commensurate with the size of the company and the nature of its
business, for the purchase of inventories & fixed assets and payment
for expenses & for sale of goods. During the course of our audit, no
major instance of continuing failure to correct any weaknesses in the
internal controls has been noticed.
5. a) Based on the audit procedures applied by us and according to the
information and explanations provided by the management, the
particulars of contracts or arrangements referred to in section 301 of
the Act have been entered in the register required to be maintained
under that section.
b) As per information & explanations given to us and in our opinion,
the transaction entered into by the company with parties covered u/s
301 of the Act have been made at reasonable prices having regard to the
prevailing market prices at the relevant time.
6. The Company has not accepted any deposits from the public covered
under section 58A and 58AA of the Companies Act, 1956.
7. As per information & explanations given by the management, the
Company has no internal audit system commensurate with its size and the
nature of its business.
8. The Company is not required to maintain cost records under section
209(1) (d) of the Companies Act, 1956.
9. (a) According to the records of the company, undisputed statutory
dues including Provident Fund, Investor Education and Protection Fund,
Employees'' State Insurance, Income-tax, Sales-tax, Wealth Tax, Service
Tax, Custom Duty, Excise Duty, cess to the extent applicable and any
other statutory dues have generally been regularly deposited with the
appropriate authorities. According to the information and explanations
given to us there were no outstanding statutory dues as on 31st of
March, 2013 for a period of more than six months from the date they
became payable except Professional tax, Sales tax and service tax.
10. The Company has accumulated loss of Rs. 252.06 crores (Previous
period loss Rs.232.57 crores) and has incurred cash loss of Rs. 1.48
Crores during the reporting period covered by our audit and cash loss
of Rs. 251.54 crores in the immediately preceding reporting period. The
Company may be classified as sick Company within the meaning of section
3(1)(o) of SICA.
11. Based on our audit procedures and on the information and
explanations given by the management, we are of the opinion that, the
Company has defaulted in repayment of dues to a financial institution,
banks or debenture holders.
12. According to the information and explanations given to us, the
Company has not granted loans and advances on the basis of security by
way of pledge of shares, debentures and other securities.
13. The Company is not a chit fund or a nidhi /mutual benefit
fund/society. Therefore, the provision of this clause of the Companies
(Auditor''s Report) Order, 2003 (as amended) is not applicable to the
Company.
14. According to information and explanations given to us, the Company
is not dealing or trading in Shares, Securities, Debentures, Mutual
funds & other Investments. Therefore, the requirements of clause 4(xiv)
of the order relating to the maintenance of the proper records of the
transactions are not applicable.
15. According to the information and explanations given to us, the
Company has given guarantees for loan taken by others from a bank or
financial institution. In our opinion and according to the information
and explanation given to us, the terms & conditions of the guarantees
given by the company for loans taken by others from banks and financial
institutions, are not prima facie prejudicial to the interest of the
company.
16. Based on our audit procedures and on the information given by the
management, we report that the company has not raised any term loans
during the reporting period.
17. Based on the information and explanations given to us and on an
overall examination of the Balance Sheet of the Company as at 31st
March, 2013, we report that no funds raised on short-term basis have
been used for long-term investment by the Company.
18. Based on the audit procedures performed and the information and
explanations given to us by the management, we report that the Company
has not made any preferential allotment of shares to the parties and
companies covered in the register maintained under section 301 of the
Companies Act, 1956 during the reporting period.
19. The Company has not issued any secured debentures during the
period, hence the question of creation of security or charge in respect
of debenture issued does not apply.
20. The Company has not raised any money by public issue during the
reporting period.
21. Based on the audit procedures performed and the information and
explanations given to us, we report that no fraud on or by the Company
has been noticed or reported by the company during the period under
review, nor have we been informed of such case by the management.
For M. Mukherjee & Associates
(Chartered Accountants)
sd/-
M.M. Mukherjee
(Proprietor)
Membership No.: 015254
FRN:326127E
Place: Kolkata
Date: 03rd September, 2013
Mar 31, 2012
1) We have audited the attached Balance Sheet of M/s Sancia Global
Infraprojects Limited as at 31st March, 2012 and also the Profit and
Loss Account and the Cash Flow Statement for the year ended on that
date annexed thereto. These financial statements are the responsibility
of the Company's management. Our responsibility is to express an
opinion on these financial statements based on our audit.
2) We conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free from any material misstatement. An audit
includes, examining on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes,
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3) As required by the Companies (Auditor's Report) Order 2003 issued by
the Central Government in terms of sub-section (4A) of Section 227 of
"The Companies Act, 1956. We enclose in the Annexure a statement on the
matters specified in paragraphs 4 and 5 of the said order.
4) Further to our comments in the Annexure referred to above, we report
that:
a) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of the
audit;
b) In our opinion, proper books of account as required by law have been
kept by the Company so far as it appears from our examination of those
books;
c) The Balance Sheet, Profit & Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account of
the Company;
d) In our opinion, the Balance Sheet, Profit & Loss Account and Cash
Flow Statement dealt with by this report comply with accounting
standards referred to in sub-section (3C) of Section 211 of the
Companies Act, 1956.
e) On the basis of representations made by the Directors of the Company
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) We further report that:-
(i) As stated in point no. 1 in Note No. 22 regarding FCCB, the
maturity date of said FCCB is on 13th February 2013. The company has
defaulted on making payment on interest installment, due on 12th
February, 2012 amounting Rs 89.27 Lakhs.
(ii) As stated in point no.2 in Note No. 22 .During the financial
2011-12, the Income Tax Department of Kolkata issued a show cause
letter dated 30.11.2011 for conducting Special Audit u/s 142A (2A) of
the Income Tax Act 1961. The Company has not made any provision against
Income tax liability since the management did not foresee any major
income tax liability.
(iii) As stated in Point No. 4 & 6 in Note No. 22 regarding the
provision / write-off of Loans & Advances and Debtors, during the
Financial Year 2011-12, As in the view of the management the recovery
of same is considered Bad/doubtful..
(iv) As stated in Point No. 7 in Notes No. 22, as on 05.10.2011 the
Company has acquired the assets and liabilities of its Associate
company i.e. Sancia Infraglobal Private Limited.
(v) At the end of the financial Year 2011 -12; the accumulated loss of
the Company is Rs 232.57 Crores have exceeded its net worth of Rs.
205.60 Crore. So, the Net worth of the Company has been fully eroded.
The Company is a sick industrial Company within the meaning of clause
(O) of sub section (1) of section 3 of the Sick Industrial Companies
(Special Provision) Act, 1985. Having Regards to the above, the
Company's ability to continue as going concern is in doubt and will
depend upon any revival program by BIFR/Government (Refer Point No. 9
in Note No. 22)
(vi) The Company has defaulted in making payments to secured creditors
of installment and also not provided for interest on the banking
facilities availed from the bank. The secured creditors have during the
year declared the account as a Non Performing Asset (NPA). Thus the
secured creditors have initiated notice under Section 13(2) as per the
SARFAESI Act 2002.
(vii) As stated in Point No. 3 in Note No.22, the Subsidiary of the
Company has incurred heavy losses due to expiration of License of
Mining and Oil rigs. In view of the losses in the subsidiary company
the company has recorded diminution in the value of its investments by
Rs. 81.93 Crores against its investments in the subsidiary company.
(viii) No provision for accrued Interest has been made for the period
from April 2011 to March 2012 on borrowings from Indian Overseas
Bank(IOB),Punjab National(PNB), Bank of India and State Bank of India,
pursuant to classification of the accounts as Non-performing Assets
(NPA) by the banks,
(ix) Balance of Unsecured loans, Sundry debtors, Loans and Advances and
Deposits are subject to confirmation, reconciliation and adjustments,
if any
g) In our opinion and to the best of our information and according to
the explanations given to us, the said financial statements read
together with Significant Accounting Policies and Notes on Accounts
forming part thereof, give the information required by the Companies
Act,
1956, in the manner so required and present a true and fair view in
conformity with the accounting principles generally accepted in India;
I. In the case of Balance Sheet, of the state of affairs of the
Company as at 31st March 2012
II. In the case of Profit and Loss Account, of the Loss for the year
ended on that date; and
III. In the case of Cash Flow Statement of the cash flows for the year
ended on that date.
ANNEXURE TO THE AUDITORS' REPORT
Annexure referred to in paragraph 3 our report of even date
On the basis of such checks as we considered appropriate and on the
basis of examination of records and in terms of the information and
explanations given to us, we state that:
I (a) The company is maintaining proper records to show full
particulars, including quantitative details and situation of fixed
assets.
(b) All fixed assets have been physically verified by the management
during the year 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.
(c) During the year the company has disposed off various tangible
assets however this will not affect the going concern status of the
company.
II (a) As explained to us company is engaged in manufacturing
activities and its hold the stores, spares, raw materials and finished
goods as inventories and the same were physically verified during the
year by management at reasonable intervals.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management were reasonable and adequate in relation to
the size of the company and the nature of its business.
(c) In our opinion and according to the information and explanation
given to us, the company has maintained proper records of its
inventories and no material discrepancies were noticed on physical
verification..
III The Company has neither granted nor taken any loans, secured or
unsecured to /from companies, firms or other parties covered in the
register maintained under section 301 of the companies Act 1956.
IV. In our opinion, there are generally adequate internal control
procedures commensurate with the size of the Company and nature of its
business with regard to the purchase of raw material, consumables,
stores, spares and fixed assets. We have not come across any instance
of major weakness in the said internal controls.
V. (a) On the basis of audit procedures performed by us, we are of the
opinion that the transactions in which directors were interested and
which were required to be entered in the register maintained under
section 301 of the Companies Act, 1956, have been so entered.
(b) Based on the information and explanation given to us, in our
opinion, these transactions have been made at reasonable prices having
regard to the prevailing market prices at the relevant time.
VI. The Company has not accepted any deposits from public; hence
clause (VI) of the Order does not apply.
VII. In our opinion, the internal audit system is commensurate with
the size of the Company and the nature of its business.
VIII. The Company is not required to maintain cost records under
section 209(1) (d) of the Companies Act, 1956.
IX. The Company is regular in depositing undisputed statutory dues
including Provident Fund, Income Tax, Sales Tax, Wealth Tax, Customs
Duty and other material statutory dues with appropriate authorities. As
per information and explanations given to us, no such undisputed
statutory dues were in arrears as on 31st March 2012 for a period of
more than six months from the date they became payable except disputed
income tax, service tax and sales tax.
X. The Company has incurred cash loss of Rs. 68.01 Crores during the
year and its accumulated losses at the end of the financial year are
more than 100% of its net worth.
XI. The Company has defaulted in repayment of its dues to Banks/
Financial Institutions; resulting the account of the company become NPA
(Non Performing Assets).
Xil. The Company has not granted any loans or advances on the pledge of
any securities; hence clause (xii) of the order does not apply.
XIII. In our opinion and according to the information and explanation
given to us, the company is not a Chit fund or nidhi /mutual benefit
fund/ society. Therefore, the provisions of clause (xiii) of paragraph
4 of the companies (Auditor's Report) order, 2003 are not applicable to
the Company.
XIV. According to the information and explanations given to us, the
company is not dealing or trading in shares, securities, debentures and
other investments, the requirements of clause (xiv) of the order
relating to the maintenance of the proper records of the transactions
are not applicable.
XV. In our opinion and according to the information and explanation
given to us, the terms & conditions of, the guarantees given by the
company for loans taken by others from banks and financial institutions
are prima facie prejudice to the interest to the company. Refer the
Point no. 10 in Notes No. 21 (contingent liability)
XVI. In our opinion and according to the information and explanation
given to us, no term loans obtained during the year hence clause (XVI)
of the order is not applicable.
XVII. According to the information and explanation given to us no
short term funds were raised by the company during the year hence,
Clause (XVII) of the order is not applicable.
XVIII. During the year under review, the Company did not make any
preferential allotment of shares to the parties and companies covered
in the register maintained under section 301 of the Companies Act,
1956.
XIX. The Company has not issued any secured debentures during the
year, hence the question of creation of security or charge in respect
of debenture issued does not apply.
XX. The company has not raised any money by public issues during the
year under review.
XXI. According to the information and explanations given to us and to
the best of our knowledge and belief, no fraud on or by the Company has
been noticed or reported by the Company during the year.
For Rahul Bansal & Associates
(Chartered Accountants)
Place: Kolkata Rahul Bansal
Date : 17.05.2012 Proprietor
Membership No. 068619
Mar 31, 2010
1. We have audited the attached Balance Sheet of M/s Sancia Global
Infraprojects Ltd. as at 31st March, 2010 and also the Profit and Loss
Account and the Cash Flow Statement for the year ended on that date
annexed thereto. These financial statements are the responsibility of
the Companys management. Our responsibility is to express an opinion
on these financial statements based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free from any material misstatement. An audit
includes, examining on a test basis, evidence supporting the amounts
and disclosures in the financial statements An audit also includes,
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditors Report) Order 2003 issued
by the Central Government in terms of sub section (4A) of Section 227
of "The Companies Act, 1956" we enclose in the Annexure a statement on
the matters specified in paragraphs 4 and 5 of the said order.
4. Further to our comments in the Annexure referred to above, we
report that:
(a) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of the
audit, except as otherwise stated;
(b) As per information and explanation with documentary evidence
provided by the company, the books of accounts from 01st April 2009 to
14 February 2010 as required by law was destroyed on 21st February 2010
during shifting of statutory records from corporate office Mumbai to
Registered office Kolkata. Company has presented before us books of
accounts for the above said period, which were regenerated from the
various sources of data. However books of accounts from 15th February
to 31st March, 2010 were produced before us for the purpose of audit.
(c) The Balance Sheet, Profit & Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account of
the Company:
(d) In our opinion, the Balance Sheet, Profit & Loss Account and Cash
Flow Statement dealt with by this report comply with accounting
standards referred to in sub-section (3C) of Section 211 of the
Companies Act, 1956 to the extent applicable except:
The accounting for changes in foreign exchange rates, as required in
accordance with accounting standard 11 "The effect of change in foreign
exchange rates"
Provision for diminution in the value of Long Term investment, which is
required in accordance with accounting standard 13 on "Accounting for
Investment"
Provision for Actual liabilities of employees cost, which is not in
accordance with accounting standard 15 "Employee Benefit"
Deferred Tax assets/liabilities accounted for to the extent of timing
difference arising on depreciation. No other timing differences are
considered as applicable in accounting standard 22 "Accounting for
Taxes on Income"
Provision of impairment losses which is required in accordance with
accounting standard 28 "Impairment of Assets"
(e) On the basis of representations made by the Directors of the
Company 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) We further report that :-
Unsecured Loans, Sundry creditors, Sundry Debtors, Loans and Advances
and Deposits are subject to confirmation, reconciliation and adjustment
if any.
We are Unable to comment on Debtors outstanding more than six months
which is not stated in financial report.
We are Unable to comment on Loans and Advances given to subsidiaries
and other.
We are Unable to comment on advance against capital goods
(g) In our opinion and to the best of our information and according to
the explanations given to us, the said financial statements read
together with Significant Accounting Policies and Notes on Accounts
forming part thereof, give the information required by the Companies
Act, 1956, in the manner so required and present a true and fair view
in conformity with the accounting principles generally accepted in
India;
I. In the case of Balance Sheet, of the state of affairs of the
Company as at 31st March 2010
II. In the case of Profit and Loss Account, of the Profit for the year
ended on that date; and
III. In the case of Cash Flow Statement of the cash flows for the year
ended on that date.
ANNEXURE TO THE AUDITORS REPORT Annexure referred to in paragraph 3 our
report of even date
On the basis of such checks as we considered appropriate and on the
basis of examination of records and in terms of the information and
explanations given to us, we state that:
I (a) As there is no documentary evidence, we are not able to comment
whether the company has maintained fixed assets register or not showing
full particulars, including quantitative details and situation of fixed
assets. However, till previous year 2008-09 company has maintained fixed
assets register showing full particulars, including quantitative details
and situation of fixed assets.
(b) As there is no documentary evidence available we are not able to
comment whether fixed assets have been physically verified by the
management or not.
(c) The Company has not disposed off substantial part of fixed assets
so as to affect its going concern status.
II (a) As explained to us company is not engaged in manufacturing
activities and it hold only the stores
& spares as inventories and the same were physically verified during
the year by management at reasonable intervals.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management were reasonable and adequate in relation to
the size of the company and the nature of its business.
(c) As there is no documentary evidence is available we are not able to
comment that whether the company has maintained proper records of its
inventories and material discrepancies were noticed on physical
verification.
III (a) As there is no documentary evidence is available we are not
able to comment that whether company has granted any loans, secured or
unsecured, to or from companies, firms or other parties covered in the
register maintained under section 301 of the companies Act 1956,
(b) We are not able to comment on the rate of interest and other terms
and conditions, whether prima facie prejudicial to the interest of the
company.
(c) We are not able to comment relating to regularity of receipt of the
Principal amount and interest.
(d) We are unable to comment regarding loan taken from parties, covered
in the register maintained under Section 301 of the Act.
(e) We are not able to comment on other terms and conditions on which
the loans have been taken is prima facie, not prejudicial to the
interest of the company.
(f) In view of our comments in Para III (d) and (e) above, clause III
(g) of the said order is not applicable to the company.
IV. In our opinion, there are generally adequate internal control
procedures commensurate with the size of the Company and nature of its
business with regard to the purchase of consumables, stores, spares and
fixed assets. We have not come across any instance of major weakness in
the said internal controls.
V. (a) As there is no documentary evidence, we are unable to form an
opinion that the transactions in which directors were interested and which
were required to be entered in the register maintained under section 301 of
the Companies Act, 1956, have been so entered.
(b) Based on the information and explanation given to us, in our
opinion, these transactions have been made at reasonable prices having
regard to the prevailing market prices at the relevant time.
VI. The Company has not accepted any deposits from public; hence
clause (vi) of the Order does not apply.
VII. The Company has an internal audit system, which in our opinion is
commensurate with the size and nature of its business.
VIII. The Company is not required to maintain cost records under
section 209(1) (d) of the Companies Act, 1956.
IX. The company is generally regular in depositing with appropriate
authorities undisputed statutory dues including Provident Fund,
Investor Education and Protection Fund, Employees State Insurance,
Income Tax, Sales Tax, Wealth Tax, Custom Duty, Excise Duty, Cess and
other material statutory dues applicable to it. There are no such
material outstanding statutory dues accrued in accounts as of the last
date of the financial year concerned for a period of more than six
months from the date they became payable except Income Tax payable for
the financial year 2008-09.
X. The Company has not incurred cash loss during the year nor does it
have accumulated losses, hence clause (x) of the Order does not apply.
XI. As no documentary evidence is available we are not able to comment
that whether the Company has defaulted in repayment of its dues to any
Financial Institution or bank.
XII. The Company has not granted any loans or advances on the pledge
of any securities; hence clause (xii) of the order does not apply.
XIII. In our opinion and according to the information and explanation
given to us, the company is not a Chit fund or nidhi/mutual benefit
fund/ society. Therefore, the provisions of clause (xiii) of paragraph
4 of the companies (Auditors Report) order, 2003 are not applicable to
the Company.
XIV. As no documentary evidence is available we are not able to
comment that whether the company is not dealing or trading in shares,
securities, debentures and other investments, the requirements of
clause 4(xiv) of the order relating to the maintenance of the proper
records of the transactions are not applicable.
XV. As no documentary evidence is available we are not able to comment
that whether the guarantees given by the company for loans taken by
others from banks and financial institutions, are not prima facie
prejudicial to the interest of the company.
XVI. As no documentary evidence is available we are not able to
comment that whether term loans obtained during the year have been
prima facie applied for the purpose for which they were taken.
XVII. As no documentary evidence is available we are not able to
comment that whether the information and explanation given to us and an
overall examination of the Balance Sheet of the company, funds raised
on short-term basis, have not been used for long-term investments.
XVIII. During the year under review, the Company did not make any
preferential allotment of shares to the parties and companies covered
in the register maintained under section 301 of the Companies Act,
1956.
XIX. The Company has not issued any secured debentures during the
year, hence the question of creation of security or charge in respect
of debenture issued does not apply.
XX. The Company has not raised any money by public issues during the
year under review.
XXI. During the course of our examination of the books and records of
the company, carried out / in accordance with the generally accepted
practice in India, and according to the explanation and information
given to us, we have neither come across any instance of fraud on or by
the company.
For T.N. Datta & Associates
(Chartered Accountants)
Sd/-
T.N. Datta
Proprietor
Membership No. 056676
Place : Kolkata
Date : September 05, 2010
Mar 31, 2009
1) We have audited the attached Balance Sheet of M/s. Gremach
Infrastructure Equipments & Projects Ltd. as at 31st March, 2009 and
also the Profit and Loss Account and the Cash Flow Statement for the
year ended on that date annexed thereto. These financial statements are
the responsibility of the Companys management. Our responsibility is
to express an opinion on these financial statements based on our audit.
2) We conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free from any material misstatement. An audit
includes, examining on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes,
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3) As required by the Companies (Auditors Report) Order 2003 issued by
the Central Government in terms of sub-Section (4A) of Section 227 of
"The Companies Act, 1956" we enclose in the Annexure a statement on the
matters specified in paragraphs 4 and 5 of the said order.
4) Further to our comments in the Annexure referred to above, we report
that:
a) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of the
audit;
b) In our opinion, proper books of account as required by law have been
kept by the Company so far as it appears from our examination of those
books;
c) The Balance Sheet, Profit & Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account of
the Company;
d) In our opinion, the Balance Sheet, Profit & Loss Account and Cash
Flow Statement dealt with by this report comply with accounting
standards referred to in sub-Section (3C) of Section 211 of the
Companies Act, 1956.
e) On the basis of representations made by the Directors of the Company
and taken on record by the Board of Directors, we report that none of
the Directors is disqualified as on 31st March, 2009 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 financial statements read
together with Significant Accounting Policies and Notes on Accounts
forming part thereof, give the information required by the Companies
Act, 1956, in the manner so required and present a true and fair view
in conformity with the accounting principles generally accepted in
India;
I. In the case of Balance Sheet, of the state of affairs of the
Company as at 31st March 2009
II. In the case of Profit and Loss Account, of the Profit for the year
ended on that date; and
III. In the case of Cash Flow Statement of the cash flows for the year
ended on that date.
ANNEXURE TO THE AUDITORS REPORT
Annexure referred to in paragraph 3 our report of even date
On the basis of such checks as we considered appropriate and on the
basis of examination of records and in terms of the information and
explanations given to us, we state that:
I (a) The company is maintaining proper records to show 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
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.
(c) The Company has not disposed off substantial part of fixed assets
so as to affect its going concern status.
II (a) As explained to us company is not engaged in manufacturing
activities and it holds only the stores & spares as inventories and the
same were physically verified during the year by management at
reasonable intervals.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management were reasonable and adequate in relation to
the size of the company and the nature of its business.
(c) In our opinion and according to the information and explanation
given to us, the company has maintained proper records of its
inventories and no material discrepancies were noticed on physical
verification.
III (a) The Company has not granted any loans, secured or unsecured, to
or from Companies, firms or other parties covered in the register
maintained under Section 301 of the Companies Act 1956, Clause 4(iii)
(b) of the order relating to the rate of interest and other terms and
conditions, whether prima facie prejudicial to the interest of the
company and clause 4(iii) (c) relating to regularity of receipt of the
Principal amount and interest, are not applicable.
(b) The company has taken unsecured loans from two parties, pending
finalization of terms of allotment of shares, covered in the register
maintained under Section 301 of the Act. The maximum amount outstanding
during the year was Rs. 21,654.93 lacs and the year end balance was Rs.
92,62.55 Lacs.
(c) The other terms and conditions on which the loans have been taken
is prima facie, not prejudicial to the interest of the company.
(d) In view of our comments in Para III (d) and (e) above, clause III
(g) of the said order is not applicable to the company.
IV. In our opinion, there are generally adequate internal control
procedures commensurate with the size of the Company and nature of its
business with regard to the purchase of coal, consumables, stores,
spares and fixed assets. We have not come across any instance of major
weakness in the said internal controls.
V. (a) On the basis of audit procedures performed by us, we are of the
opinion that the transactions in which directors were
interested and which were required to be entered in the register
maintained under Section 301 of the Companies Act, 1956, have been so
entered.
(b) Based on the information and explanation given to us, in our
opinion, these transactions have been made at reasonable prices having
regard to the prevailing market prices at the relevant time.
VI. The Company has not accepted any deposits from public; hence
clause (vi) of the Order does not apply.
VII. In our opinion, the internal audit system is commensurate with
the size of the Company and the nature of its business.
VIII. The Company is not required to maintain cost records under
Section 209(1) (d) of the Companies Act, 1956.
IX. (a) The Company is regular in depositing undisputed statutory dues
including Provident Fund, Income Tax, Sales Tax, Wealth Tax, Customs
Duty and other material statutory dues with appropriate authorities.
(b) As per information and explanations given to us, no such undisputed
statutory dues were in arrears as on 31st March 2009 for a period of
more than six months from the date they became payable.
X. The Company has not incurred cash loss during the year nor does it
has accumulated losses, hence clause (x) of the Order does not apply.
XI. The Company has not defaulted in repayment of its dues to any
Financial Institution or bank.
XII. The Company has not granted any loans or advances on the pledge
of any securities; hence clause (xii) of the order does not apply.
XIII.In our opinion and according to the information and explanation
given to us , the company is not a Chit fund or nidhi /mutual benefit
fund/ society. Therefore, the provisions of clause (xiii) of paragraph
4 of the Companies (Auditors Report) order, 2003 are not applicable to
the Company.
XIV.According to the information and explanations given to us, the
company is not dealing or trading in shares, securities, debentures and
other investments, the requirements of clause 4(xiv) of the order
relating to the maintenance of the proper records of the transactions
are not applicable.
XV. In our opinion and according to the information and explanation
given to us, the terms & conditions of the guarantees given by the
company for loans taken by others from banks and financial
institutions, 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 obtained during the year have been prima
facie applied for the purpose for which they were taken.
XVII. According to the information and explanation given to us and an
overall examination of the Balance Sheet of the company, funds raised
on short-term basis, have not been used for long-term investments.
XVIII .During the year under review, the Company did not make any
preferential allotment of shares to the parties and Companies covered
in the register maintained under Section 301 of the Companies Act,
1956.
XIX. The Company has not issued any secured debentures during the year,
hence the question of creation of security or charge in respect of
debenture issued does not apply.
XX. The Company has not raised any money by public issues during the
year under review.
XXI.According to the information and explanations given to us and to
the best of our knowledge and belief, no fraud on or by the Company has
been noticed or reported by the Company during the year.
For T.N. Datta & Associates
(Chartered Accountants)
T.N. Datta
Proprietor
Membership No. 056676
Place: Kolkata
Date : 30.06.2009