Mar 31, 2016
INDEPENDENT AUDITOR''S REPORT
TO
THE MEMBERS
SOMI CONVEYOR BELTINGS LTD.
JODHPUR (RAJASTHAN)
Report on the Financial Statements
We have audited the accompanying Financial Statements of SOMI CONVEYOR BELTINGS LIMITED (CIN : L25192RJ2000PLCO16480) (âthe companyâ), which comprises the Balance Sheet as at 31st March, 2016, the Statement of Profit and Loss, the Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
The Company''s 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 and presentation of these Financial Statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes the maintenance of adequate accounting records in accordance with the provision of the Act for safeguarding of the assets of the Company and for preventing and detecting the 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 control, 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 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 true and fair view 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 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 Financial Statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid Financial Statements give the adequate 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 31st March, 2016;
(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, 2016 (âthe Orderâ), 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 âAnnexure Aâ a statement on the matters specified in paragraphs 3 and 4 of the Order.
2. As required by section 143(3) of the Act, we report that:
a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit;
b) In our opinion proper books of account as required by law have been kept by the Company so far as appears from our examination of those books;
c) The Balance Sheet, the 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 aforesaid Financial Statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014;
e) On the basis of written representations received from the directors as on 31st March, 2016, taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2016, from being appointed as a director in terms of Section 164(2) of the Act;
f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our Report in âAnnexure Bâ; and
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 22 to the Financial Statements;
ii. The Company did not have any long-term contracts including derivative contracts 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.
âAnnexure Aâ to the Independent Auditor''s Report
The annexure referred to in paragraph 1 under the heading ''Report on Other Legal & Regulatory Requirements'' of our report of even date to the Financial Statements of SOMI CONVEYOR BELTINGS LIMITED for the year ended 31st March, 2016, we report that:
1) FIXED ASSETS
a) The Company is maintaining proper records showing full particulars, including quantitative details and situation of fixed assets.
b) According to information provided by the management, fixed assets have been physically verified by the management at reasonable intervals and no material discrepancies were noticed.
c) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the title deeds of immovable properties are held in the name of the Company.
2) INVENTORIES
In our opinion and according to information and explanations given to us, the inventory has been physically verified by the management at reasonable intervals and the discrepancies noticed during the physical verification of inventory as compared to book records, were not material.
3) LAONS & ADVANCES
The Company has not granted any loans, secured or unsecured to companies, firms, or other parties covered in the register maintained under Section 189 of the Companies Act, 2013. Accordingly, clause (iii) (a) , (iii) (b) & (iii) (c) of paragraph 3 of âthe Orderâ is not applicable to the Company.
4) LOANS, INVESTMENT & GUARANTEES
According to information & explanation given to us, company has not given any loan or provided any guarantee to any person specified under section 185 of Companies Act 2013.
Further, Company has not made any investment nor given any loan or provided any guarantee to any body corporate as specified under section 186 of Companies Act 2013. Therefore, clause (iv) of paragraph 3 of âthe order" is not applicable to the company.
5) FIXED DEPOSITS
According to the information and explanations given to us, the Company has not accepted any deposits, therefore directive issued by the Reserve Bank of India and the provisions of Sections 73 to 76 or any other relevant provisions of the Companies Act, 2013 and the rules framed there under, clause (v) of paragraph 3 of âthe Orderâ is not applicable to the Company.
6) COST RECORDS
We have broadly reviewed the cost records maintained by the Company pursuant to the Companies (Cost Records and Audit) Rules, 2014, as amended and prescribed by the Central Government under sub-section (1) of Section 148 of the Companies Act, 2013, and are of the opinion that, prima facie, the prescribed cost records have been made and maintained. We have, however, not made a detailed examination of the cost records with a view to determine whether they are accurate or complete.
7) STATUTORY DUES
a) According to the information and explanations given to us and on the basis of our examination of the records of the Company, amounts deducted/ accrued in the books of account in respect of undisputed statutory dues including provident fund, income-tax, sales tax, value added tax, duties of customs and excise, service tax and other material statutory dues have been generally regular in depositing during the year by the Company with the appropriate authorities.
b) According to the information and explanation given to us there are no disputed amounts payable in respect of income tax, sales tax, service tax, duty of customs, duty of excise, value added tax except as stated below:-
Name of the Statute |
Nature of the dues |
Amount (in Rs.) |
period to which the amount relates |
Forum where dispute is pending |
Income Tax Demand |
Income Tax |
4657870.00 |
A.Y. 2010-11 |
CIT (Appeal) |
Sales Tax Penalty |
Sales Tax |
146947.00 |
A.Y. 2008-09 |
Commissioner (A) Commercial Tax Department |
Sales Tax Demand |
Sales Tax (ITC) |
1316184.00 |
A.Y. 2008-09 |
Commissioner (A) Commercial Tax Department |
300000.00 |
A.Y. 2009-10 |
8) DEFAULT IN PAYMENT OF DUES
According to the records of the Company examined by us and the information and explanations given to us, the Company has not defaulted in payment of dues to any financial institution or bank or Government or debenture holders as at the balance sheet date. Accordingly, clause (viii) of the paragraph 3 of âthe Orderâ is not applicable to the Company.
9) FUND RAISED BY PUBLIC ISSUE/ FOLLOW ON OFFER / TERM LOAN
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.
10) FRAUD
During the course of our examination of the books and records of the Company, carried out in accordance with the generally accepted auditing practices in India and according to the information and explanations given to us, no fraud by the Company or any fraud on the company by its officers / employees has been noticed or reported during the year.
11) MANAGERIAL REMUNERATION
The Company has provided / paid managerial remuneration in accordance with the requisite approvals mandated by the provisions as specified under section 197 read with Schedule V to The Companies Act 2013 during the year.
12) NIDHI COMPANY
The company is not a Nidhi Company as defined under section 406 of companies Act 2013. Therefore, clause (xii) of paragraph 3 of the order is not applicable to the company.
13) TRANSACTIONS WITH RELATED PARTY
As per the information and explanation given to us, all transactions with related parties are in compliance with the provision of section 177 and section 188 of Companies Act, 2013. The relevant disclosure as required by AS 18 has been made in the Financial Statements.
14) PREFERETIAL ALLOTMENT / PRIVATE PLACEMENT OF SHARE / ISSUE OF DEBENTURE
During the year Company has not made any preferential allotment or private placement of shares nor have issued any fully or partly convertible debenture as required under section 42 of Companies Act 2013. Therefore, clause (xiv) of paragraph 3 of the order is not applicable to the company.
15) NON CASH TRANSACTIONS WITH DIRECTORS
As per the information and explanation given to us, Company has not entered in to any non cash transactions with directors or persons connected with him and hence provisions of section 192 of the Companies Act,2013 are not applicable.
16) NBFC REGISTRATION
The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934 as NBFC. Therefore, clause (xvi) of paragraph 3 of âthe orderâ is not applicable to the Company.
âAnnexure Bâ to the Independent Auditor''s Report of even date on the Financial Statements of SOMI CONVEYOR BELTINGS LIMITED
Report on the Internal Financial Controls 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 SOMI CONVEYOR BELTINGS LIMITED (âthe Companyâ) as of 31st March, 2016 in conjunction with our audit of the Financial Statements of the Company for the year ended on that date.
Management''s Responsibility for Internal Financial Controls
The Company''s 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 India. 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 Company''s 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.
Auditors'' Responsibility
Our responsibility is to express an opinion on the Company''s 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) and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. 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 auditor''s judgement, 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 audit opinion on the Company''s internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A Company''s 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 Company''s 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 Company''s 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.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31st March, 2016, 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 India.
FOR P. SINGHVI & ASSOCIATES
CHARTERED ACCOUNTANTS
FR No. 113602W
PLACE : JODHPUR (PRAVEEN SINGHVI)
DATED : 28th MAY, 2016 PARTNER
M.No. 71608
Mar 31, 2015
We have audited the accompanied financial statements of SOMI CONVEYOR
BELTINGS LIMITED, which comprises of the Balance Sheet as on 31st
March, 2015 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 Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 ("the Act") with respect
to the preparation and presentation of these financial statements that
give a true and fair view of the financial position, financial
performance and cash flows of the Company in accordance with the
accounting principles generally accepted in India including the
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility
also includes maintenance of adequate accounting records in accordance
with the provisions of the Act for safeguarding the assets of the
Company and for preventing and detecting frauds and other
irregularities; selection and application of appropriate accounting
policies; making judgments and estimates that are reasonable and
prudent; and design, implementation and maintenance of adequate
internal financial controls, that were operating effectively for
ensuring the accuracy and completeness of the accounting records,
relevant to the preparation and presentation of the financial
statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
Auditor's Responsibility
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 misstatements.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial control relevant
to the Company's preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing
an opinion on whether the Company has in place an adequate internal
financial controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company's Directors, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the financial
statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the adequate
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 Profit and Loss Statement, 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
As required by Section 143 (3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purposes of our audit;
(b) In our opinion proper books of account as required by law have been
kept by the Company so far as it appears from our examination of those
books.
(c) The balance sheet, the statement of profit and loss and the cash
flow statement dealt with by this Report are in agreement with the
books of account.
(d) In our opinion, the aforesaid financial statements comply with the
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014;
(e) On the basis of the written representations received from the
directors as on 31 March 2015 taken on record by the Board of
Directors, none of the directors is disqualified as on 31 March 2015
from being appointed as a director in terms of Section 164 (2) of the
Act.
(f) With respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us:
i. The Company has disclosed the pending litigations in its financial
statements - Refer to Note No. 35.
ii. The Company has made provision, as required under the applicable
law or accounting standards, for material foreseeable losses, if any,
on long-term contracts including derivative contracts.
iii. There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company.
REPORT UNDER THE COMPANIES (AUDITOR'S REPORT) ORDER, 2015 (CARO 2015)
CARO 2015 REPORT ON THE FINANCIAL STATEMENT FOR THE PERIOD ENDED 31st
MARCH, 2015 OF SOMI CONVEYOR BELTINGS LTD.
On the basis of such checks as we considered appropriate and according
to the information and explanations given to us during the course of
audit, we state that:
i) (a) The company is maintaining proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) The fixed assets are physically verified by the management during
the year and no material discrepancies between the book records and the
physical records have been noticed.
(c) In our opinion and according to the information and explanations
given to us, a substantial part of fixed assets has not been disposed
off by the company during the period.
ii) (a) The inventory has been physically verified by the management
during the period. In our opinion, the frequency of verification is
reasonable.
(b) In our opinion, the procedure of physical verification of inventory
followed by the management is reasonable and adequate in relation to
the size of the company and the nature of its business.
(c) On the basis of our examination of the inventory records, in our
opinion, the company is maintaining proper records of inventory. The
discrepancies noticed during the physical verification of inventory as
compared to book records, were not material.
iii) (a) The company has not granted any loans, secured or unsecured to
companies, firms or other parties covered in the register maintained
under Section 189 of the Companies Act, 2013.
iv) In our opinion and according to the information and explanations
given to us, certain items purchased are of special nature for which
suitable alternative sources do not exist for obtaining comparative
quotations, there is an adequate internal control system that
commensurate with the size of the company and the nature of its
business for the purchase of inventory, fixed assets and for the sale
of goods and services. Further, on the basis of our examination of the
books and records of the company, and according to the information and
explanations given to us, we have neither come across nor have been
informed of any continuing failure to correct major weaknesses in the
aforesaid internal control system.
v) The Company has not accepted any deposits from the public.
vi) The Central Government has not prescribed the maintenance of cost
records under section 148(1) of the Act, for any of the services
rendered by the Company.
vii) (a) In our opinion and according to the information and
explanations given to us and the records of the company examined by us,
the company is generally regular in depositing the undisputed statutory
dues including Provident Fund, Employees' State Insurance, Income Tax,
Sales Tax, Service Tax, Customs Duty, Excise Duty, Vat, Cess and other
material statutory dues as applicable with the appropriate authorities.
(b) According to the information and explanations given to us and the
records of the Company examined by us, there are no dues of Provident
Fund, Wealth Tax, Custom Duty, ESI, Service Tax and Cess as at March 31,
2015 on account of any dispute. The dues of Income Tax, Sales Tax, and
Entry Tax as discussed below have not been deposited by company on
account of disputes.
Name of the Nature of dues Amount Period to
Statute (in Rs.) which the
amount
relates
Income Tax Income Tax 4657870.00 A.Y. 2010-11
Demand
Sales Tax Sales Tax 146947.00 A.Y. 2008-09
Penalty
Sales Tax Sales Tax (ITC) 1316184.00 A.Y. 2008-09
Demand
300000.00 A.Y. 2009-10
Name of the Forum where
Statute dispute is
pending
Income Tax CIT(Appeal)
Demand
Sales Tax Commissioner
Penalty (A) Commercial
Tax Department
Sales Tax Commissioner
Demand (A) Commercial
Tax Department
Note: Income tax demand, Sales tax demand, sales tax Penalty in respect
of appeal is pending but Amount is already paid to department.
viii) The Company has no Accumulated losses as at March 31, 2015 and it
has not incurred any cash losses in the year ended on that date or in
the immediately preceeding financial year.
ix) According to the records of the Company examined by us and the
information and explanations given to us, the company has not defaulted
in repayment of dues to any bank as at the balance sheet date.
x) In our opinion and according to the information and explanations
given to us, the terms and conditions of the guarantees given by the
Company for loans taken by others from banks or financial institutions
during the year, are not prejudicial to the interest of the company.
xi) In our opinion and according to the information and explanations
given to us, the company has taken following loans during the year and
o/s balance.
S.No Particular Loan Taken(Rs) O/s Balance. (Rs)
1. Buyer's Credit 64052856.00 64135531.00
2. Demand Loan 488000000.00 46236479.00
3 Car Loan 6400000.00 6092407.00
These loans are used for that purpose for which these are taken
xii) During the course of examination of the books and records of the
Company, carried out in accordance with the Generally Accepted Auditing
Practices in India, and according to the information and explanations
given to us, we have neither come across any instance of fraud on or by
the company, noticed or reported during the year, nor we have been
informed of such case by the management.
FOR P SINGHVI & ASSOCIATES
CHARTERED ACCOUNTANTS
FRN 113602W
PLACE : JODHPUR (PRAVEEN SINGHVI)
DATED: 30th MAY, 2015 PARTNER
M.No.71608
Mar 31, 2014
We have audited the accompaning financial statements of SOMI CONVEYOR
BELTINGS LIMITED, which comprises of the Balance Sheet as on March
31st, 2014 and the Statement of Profit and Loss and Cash Flow Statement
for the year ended 31st March, 2014, and a summary of significant
accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956 ("the Act"). This responsibility includes
the design, implementation and maintenance of internal control relevant
to the preparation and fair presentation of the financial statements
that 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. These 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 misstatements.
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 an error. In making these 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 the management,
as well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidences we have obtained are sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the adequate
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 Profit and Loss Account, 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 accounts 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, Statement of Profit and Loss and Cash Flow
Statement dealt with by this Report are in agreement with the books of
accounts.
(d) In our opinion, the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement comply with the accounting standards referred to in
sub-section (3C) of section 211 of the Act.
(e) On the basis of written representations received from the directors
as on March 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 Act.
ANNEXURE REFERRED TO IN PARAGRAPH 3 OF INDEPENDENT AUDITOR''S REPORT OF
EVEN DATE ON THE ACCOUNTS FOR THE PERIOD ENDED 31ST MARCH, 2014 OF SOMI
CONVEYOR BELTINGS LTD.
On the basis of such checks as we considered appropriate and according
to the information and explanations given to us during the course of
audit, we state that:
i) (a) The company is maintaining proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) The fixed assets are physically verified by the management during
the year and no material discrepancies between the book records and the
physical records have been noticed.
(c) In our opinion and according to the information and explanations
given to us, a substantial part of fixed assets has not been disposed
off by the company during the period.
ii) (a) The inventory has been physically verified by the management
during the period. In our opinion, the frequency of verification is
reasonable.
(b) In our opinion, the procedure of physical verification of inventory
followed by the management is reasonable and adequate in relation to
the size of the company and the nature of its business.
(c) On the basis of our examination of the inventory records, inour
opinion, the company is maintaining proper records of inventory. The
discrepancies noticed during the physical verification of inventory as
compared to book records, were not material.
iii) (a) 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. (b) The Company has not
taken unsecured loans from directors on the Balance Sheet date.
IV) In our opinion and according to the information and explanations
given to us. certain items purchased are of special nature for which
suitable alternative sources do not exist for obtaining comparative
quotations, there is an adequate internal control system that
commensurate with the size of the company and the nature of its
business for the purchase of inventory. fixed assets and for the sale
of goods and services. Further, on the basis of our examination of the
books and records of the company, and according to the information and
explanations given to us, we have neither come across nor have been
informed of any continuing failure to correct major weaknesses in the
aforesaid internal control system.
v) (a) In our opinion and according to the information and explanations
given to us, during the year under audit, the contracts and
arrangements which need to be entered in the register, have been duly
entered under section 301 of the Companies Act, 1956. (b) In our
opinion and according to the information and explanations given to us,
the transactions made in pursuance of such contracts or arrangements
and exceeding the rupees five lacs in respect of any party during the
year, have been made at prices which are reasonable having regard to
the prevailing market prices at the relevant time.
vi) In our opinion and according to the information and explanations
given to us, the company has not taken any deposit under Sections 58A
and 58AA or any other relevant provisions of the Act and the Companies
(Acceptance of Deposits) Rules, 1975.
vii) In our opinion the internal audit functions carried out during the
year by a firm of chartered Accountants appointed by the management
commensurates with the size of the company and the nature of its
business.
viii) We have broadly reviewed the cost records maintained by the
company pursuant to the companies (Cost Accounting Records) Rules, 2011
prescribed by the central government under Section 209(1) (d) of the
Companies Act, 1956 and are of the opinion that prima facie the
prescribed cost records have been maintained. We have however, not made
a detailed examination of the cost records with a view to determine
whether they are accurate or complete.
ix) (a) In our opinion and according to the information and
explanations given to us and the records of the company examined by us,
the company is generally regular in depositing the undisputed statutory
dues including provident fund, employees state insurance, income-tax,
sales-tax, service tax, customs duty, excise duty, cess and other
material statutory dues as applicable with the appropriate authorities.
(b) According to the information and explanations given to us and the
records of the Company examined by us, there are no dues of Provident
Fund, Wealth Tax, Custom Duty, ESI, service tax and cess as at March
31, 2014 on account of any dispute. The dues of income tax, sales tax,
Entry tax as discussed below have not been deposited by company on
account of disputes.
Name of the Nature of dues Amount Period to which
Statute ( In Rs. ) the amount relates
Entry Tax Demand Entry Tax 266131.00 A.Y. 2005-06,
2006-07 & 2007-08
Entry Tax Demand Entry Tax 239008.00 A.Y. 2005-06 &
2006-07
Income Tax Demand Income Tax 4657870.00 A.Y. 2010-11
Sales Tax Panalty Sales Tax 146947.00 A.Y. 2008-09
Sales Tax Demand Sales Tax (ITC) 1316184.00 A.Y. 2008-09 &
300000.00 A.Y. 2009-10
Name of the Statute Forum where dispute is pending
Entry Tax Demand Hon. High Court
Entry Tax Demand Hon. High Court
Income Tax Demand CIT (Appeal) Commissioner
Sales Tax Panalty (A) COMMERCIAL Tax Department
Commissioner
Sales Tax Demand (A) COMMERCIAL Tax Department
# Note : Income Tax demand, Sales Tax demand, Sales Tax Penalty in
respect of appeal is pending but amount is already paid to department.
x) The Company has no accumulated losses as at March 31, 2014 and it
has not incurred any cash losses in the year ended on that date or in
the immediately preceeding financial year.
xi) According to the records of the Company examined by us and the
information and explanations given to us, the company has not defaulted
in repayment of dues to any bank as at the balance sheet date.
xii) The Company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
xiii) The provisions of any special statute applicable to chit fund /
nidhi / mutual benefit company / societies are not applicable to the
company.
xiv) In our opinion, the Company is not a dealer or trader in
shares, securities, debentures and other investments.
xv) In our opinion and according to the information and explanations
given to us, the terms and conditions of the guarantees given by the
Company for loans taken by others from banks or financial institutions
during the year, are not prejudicial to the interest of the company.
xvi) In our opinion and according to the information and explanations
given to us, the term loan taken by the company has been applied for
the purpose for which they were raised.
xvii) On the basis of an overall examination of the balance sheet of
the Company, in our opinion and according to the information and
explanations given to us, there are no funds raised on a short term
basis, which have been used for long-term investment.
xviii) The Company has not made preferential allotment of shares to
parties and companies covered in the register maintained under Section
301 of the Companies Act, 1956 during the year.
xix) The Company has not issued any debentures during the year.
xx) The Company has not raised any money by way of public issue during
the year. Therefore, the provisions of clause 4(xx) of the Order are
not applicable to the company.
xxi) During the course of examination of the books and records of the
Company, carried out in accordance with the generally accepted Auditing
practices in India, and according to the information and explanations
given to us, we have neither come across any instance of fraud on or by
the company, noticed or reported during the year, nor we have been
informed of such case by the management.
FOR P. SINGHVI & ASSOCIATES
CHARTERED ACCOUNTANTS
FR NO. 113602W
PLACE : JODHPUR (PRAVEEN SINGHVI)
DATED : 30th MAY, 2014 PARTNER
M. No. 71608
Mar 31, 2012
We have audited the accompaning financial statements of SOMI CONVEYOR
BELTINGS LIMITED, which comprises of the Balance sheet as on March 31,
2012 and the Statement of Profit and Loss and Cash Flow Statement for
the year ended, and a summary of significant accounting policies and
other expalanatory.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting.
Standards referred to in sub-section (3D) of section 211 of the
Companies Act, 1956 AHsAIg-the Act"). This responsibility includes the
design, implementation and maintenance of internal control relevant to
the preparation and fair presentation of the financial statements that
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 our audit. We conducted our audit in accordance with
the Standards on Auditing issued by the Institute of Chartered
Accountants of India. These Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are from
material misstatements.
An audit involves performing procedures to obtain audit evdence 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 these risk assessments, the auditor
considers internal control relevant to the Company's preparation and
fair prentation of the financial statements in order to design audit
procedures that are appropriate in the circusmstances. An audit also
includes evaluating the appropriatensess of accounting policies used
and the resonableness of the accounting estimates made by the
management, as well as evaluating the overall presentation of the
financial statements.
We believe that the audit evidences we have obtained are sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best for our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
(a) in the case of the Balance Sheet, of the state of affairs of the
Comdpany as at march 31,2012;
(b) in the case of the Profit and Loss Account, 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
vear ended on that date.
Report on Other Legal and Requlatory 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
statemtnt 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, 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 it 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
accounts.
(d) In our opinion, the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement comply with the accounting standards referred to in
sub-section (3C) of section 211 of the Act.
(e) On the basis of written representations received from the directors
as on March 31, 2012 and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2012 from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Act.
ANNEXURE REFERRED TO IN PARAGRAPH 3 OF INDEPENDENTAUDITOR'S REPORTOF
EVEN DATE ON THE ACCOUNTS FOR THE PERIOD ENDED 31ST MARCH, 2012 OF SOMI
CONVEYOR BELTINGS LTD.
On the basis of such checks as we considered appropriate and according
to the information and explanations given to us during the course of
audit, we state that:
i) (a) The company is maintaining proper records showing full
particulars including quantitative details and
situation of fixed assets.
(b) The fixed assets are physically verified by the management during
the year and no material discrepancies between the book records and the
physical records have been noticed.
(c) In our opinion and according to the information and explanations
given to us, a substantial part of fixed assets has not been disposed
off by the company during the period.
ii) (a) The inventory has been physically verified by the management
during the period. In our opinion, the frequency of verification is
reasonable.
(b) In our opinion, the procedure of physical verification of inventory
followed by the management is reasonable and adequate in relation to
the size of the company and the nature of its business.
(c) On the basis of our examination of. the inventory records, in our
opinion, the company is maintaining proper records of inventory. The
discrepancies noticed during the physical verification of inventory as
compared to book records, were not material.
iii) (a) The Company has not granted any loans, secured or unsecured to
mparies, firms or other parties covered in the register maintained
under Section 301 of the Companies Act, 1956.
(b) The Company has not taken unsecured loans from directors on the
Balance Sheet date.
(c) The Company has taken unsecured loans from one party covered in the
register maintained under section 301 of the Act. Loans of Rs. 30.00
Lacs were taken during the year and at the year end balance for such
loans is Rs. 167.44 Lacs.
IV) In our opinion and according to the information and explanations
given to us. certain items purchased are of special nature for which
suitable alternative sources do not exist for obtaining comparative
quotations, there is an adequate internal control system that
commensurate with the size of the company and the nature of its
business for the purchase of inventory, fixed assets and for the sale
of goods and services. Further, on the basis of our examination of the
books and records of the company, and according to the information and
explanations given to us, we have neither come across nor have been
informed of any continuing failure to correct major weaknesses in the
aforesaid internal control system.
v) (a) In our opinion and according to the information and explanations
given to us, during the year under audit, the contracts and
arrangements which need to be entered in the register, have been duly
entered under section 301 of the Companies Act, 1956.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements and exceeding the rupees five lacs in respect of any party
during the year, have been made at prices which are reasonable having
regard to the prevailing market prices at the relevant time.
vi) In our opinion and according to the information and explanations
given to us, the company has not taken any deposit under Sections 58A
and 58AA or any other relevant provisions of the Act and the Companies
(Acceptance of Deposits) Rules, 1975.
vii) In our opinion the internal audit functions carried out during the
year by a firm of chartered Accountants appointed by the management
commensurates with the size of the company and the nature of its
business.
viii) We have broadly reviewed the cost records maintained by the
company pursuant to the companies (Cost Accounting Records) Rules, 2011
prescribed by the central government under Section 209(1) (d) of the
Companies Act, 1956 and are of the opinion that prima facie the
prescribed cost records have been maintained. We have however, not made
a detailed examination of the cost records with a view to determine
whether they are accurate or complete.
ix) (a) In our opinion and according to the information and
explanations given to us and the records of the company examined by us,
the company is generally regular in depositing the "ndisputed statutory
dues including provident fund, employees state insurance, income-tax,
sales-tax, service tax, customs duty, excise duty, cess and other
material statutory dues as applicable with the appropriate authorities.
(b) According to the information and explanations given to us and the
records of the Company examined by us, there are no dues of income tax,
sales tax, service tax and cess as at March 31, 2012 on account of any
dispute, Only Entry Tax demand pertaining to Central Sales Tax of Rs.
266131.00 ralating to A.Y.2005-06 & 2006-07 is pending with Appellate
Authority up to Commissioner's Level.
x) The Company has no accumulated lossess as at March 31, 2012 and it
has not incurred any cash losses in the year ended on that date or in
the immediately preceeding financial year.
xi) According to the records of the Company examined by us and the
information and explanations Sheet date.
xii) The Company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
xiii) The provisions of any special statute applicable to chit
fund/nidhi/mutual benefit company/ societies are not applicable to the
company.
xiv) In our opinion, the Company is not a dealer or trader in shares,
securities, debentures and other investments.
xv) In our opinion and according to the information and explanations
given to us, the terms and conditions of the guarantees given by the
Company for loans taken by others from banks or financial institutions
during the year, are not prejudicial to the interest of the company.
xvi) In our opinion and according to the information and explanations
given to us, the company has taken term loan of Rs. 1386 Lacs in
2009-10 from Punjab National Bank for expansion work of Unit - II - at
village Tanawara, Jodhpur which has been applied for the said purpose.
xvii) On the basis of an overall examination of the balance sheet of
the Company, in our opinion and according to the information and
explanations given to us, there are no funds raised on a short term
basis, which have been used for long-term investment.
xviii) The Company has not made preferential allotment of shares to
parties and companies covered in the register maintained under Section
301 of the Companies Act, 1956 during the year.
xix) The Company has not issued any debentures during the year.
xx) The Company has not raised any money by way of public issue during
the year. Therefore, the provisions of clause 4(xx) of the Order are
not applicable to the company.
xxi) During the course of examination of the books and records of the
Company, carried out in accordance with the generally accepted audition
practices in India, and according to the information and explanations
given to us, we have neither come across any instance of fraud on or by
the company, noticed or reported during the year, nor we have been
informed of such case by the management.
FOR P. SINGHVI & ASSOCIATES
CHARTEREDACCOUNTANTS
FR.NO.113602W
PLACE : JODHPUR (KEWALCHANDDAKALIYA)
DATED : 29thAUGUST,2012 PARTNER
M.NO.71013
Mar 31, 2010
1. We have audited the attached Balance Sheet of Somi Conveyor
Beltings Limited as at 31st March 2010, the Profit & Loss Account and
Cash Flow Statement for the year ended on that date, annexed thereto.
These Financial Statements are the responsibilities of the Companys
Management. Our responsibility is to express an opinion on these
financial statements based on our audit.
2. We have 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 from 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 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, 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,of India 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
enclose in the Annexurea statement on the matters specified in
paragraph 4 and 5 of the said Order.
4. Further, to our comments in the Annexure referred to above, we
report that:
(i) 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.
(ii) In our opinion, proper books of account as required by the law
have been kept by the Company so far as it appears from our examination
of the books;
(iii) The Balance sheet, the Profit & Loss account and Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
(iv) In our opinion, the Balance sheet, Profit & Loss account and Cash
Flow Statement dealt with by this report comply with the Accounting
Standards referred to in subsection (3C) of Section 211 of the
Companies Act, 1956.
(v) On the basis of written representation received from the directors
and taken on record by the Board of Directors, none of the Directors is
disqualified as on 31st March, 2010 from being appointed as a Director
in terms of section 274 (1) (g) of the Companies Act, 1956;
5. In our opinion and to the best of our information and according to
the explanations given to us, the said accounts together with
significant accounting policies and notes thereon, give the information
required by the Companies Act, 1956, in the manner so required and give
a true and fair view;
(a) In the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2010;
(b) In the case of Profit & Loss Account, of the Profit of the Company
for year ended on that date; and
(c) In the case of the Cash Flow Statement, of the cash flows, for the
year ended on that date.
ANNEXURE REFERRED TO IN PARAGRAPH 3 OF AUDITORS REPORT OF EVEN DATE ON
THE ACCOUNTS FOR THE PERIOD ENDED 31st MARCH, 2010 OF SOMI CONVEYOR
BELTINGS LTD.
On the basis of such checks as we considered appropriate and according
to the information and explanations given to us during the course of
audit, we state that:
(i) (a) The Company is maintaining proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) The fixed assets are physically verified by the management during
the year and no material discrepancies between the book records and the
physical records have been noticed.
(c) In our opinion and according to the information and explanations
given to us, the company has not disposed off a substantial part of
fixed assets during the period.
(ii) (a) The inventory has been physically verified by the management
during the period. In our opinion, the frequency of verification is
reasonable.
(b) In our opinion, the procedure of physical verification of inventory
followed by the management is reasonable and adequate in relation to
the size of the Company and the nature of its business.
(c) On the basis of our examination of the inventory records, in our
opinion, the Company is maintaining proper records of inventory. The
discrepancies noticed on physical verification of inventory as compared
to book records were not material.
(iii) (a) 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 Company Act, 1956.
(b) The Company has not taken unsecured loans from directors.
(c) The company has taken unsecured loan from two firms covered in the
register maintained under section 301 of the Act. The maximum amount
involved during the year and the year-end balance of such loan is Rs.
22 lacs each respectively.
(iv) (a) In our opinion and according to the information and
explanations given to us, certain items purchased are of special nature
for which suitable alternative sources do not exist for obtaining
comparative quotations, there is an adequate internal control system
commensurate with the size of the company and the nature of its
business for the purchase of inventory, fixed assets and for the sale
of goods and services. Further, on the basis of our examination of the
books and records of the company, and according to the information and
explanations given to us, we have neither come across nor have been
informed of any continuing failure to correct major weaknesses in the
aforesaid internal control system. (v) (a) In our opinion and
according to the information and explanations given to us, during the
year under audit the contracts and arrangements which need to be
entered in the register have been duly entered under section 301 of the
Companies Act, 1956. (b) In our opinion and according to the
information and explanations given to us, the transactions made in
pursuance of such contracts or arrangements and exceeding the value of
rupees five lakhs in respect of any party during the year have been
made at prices which are reasonable having regard to the prevailing
market prices at the relevant time. (vi) In our opinion and according
to the information and explanations given to us, the company has not
taken any deposit under Sections 58A and 58AA or any other relevant
provisions of the Act and the Companies (Acceptance of Deposits) Rules,
1975. (vii) In our opinion the internal audit functions carried out
during the year by a firm of Chartered Accountants appointed by the
management have been commensurate with the size of the company and the
nature of its business. (viii) As explained to us, the Central
government has not prescribed the maintenance of cost records under
clause (d) of sub-section (1) of section 209 of the Companies Act,
1956.
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 the undisputed statutory dues
including provident fund, employees state insurance, income-tax,
sales-tax, service tax, customs duty, excise duty, cess and other
material statutory dues as applicable with the appropriate authorities.
(b) According to the information and explanations given to us and the
records of the Company examined by us, there are no dues of income tax,
sales tax, service tax, and cess as at March 31, 2010 on account of any
dispute.
(x) The Company has no accumulated losses as at March 31, 2010 and it
has not incurred any cash losses in the year ended on that date or in
the immediately preceding financial year.
(xi) According to the records of the Company examined by us and the
information and explanation given to us, the company has not defaulted
in repayment of dues to any bank as at the balance sheet date.
(xii) The Company has not granted any loans and advances on the basis
of security by way of pledge of shares, debentures and other
securities.
(xiii) The provisions of any special statute applicable to Chit
Fund/Nidhi/Mutual Benefit Fund/Societies are not applicable to the
company.
(xiv) In our opinion, the Company is not a dealer or trader in shares,
securities, debentures and other investments.
(xv) In our opinion and according to the information and explanations
given to us, the terms and conditions of the guarantees given by the
Company, for loans taken by others from banks or financial institutions
during the year, are not prejudicial to the interest of the company.
(xvi) In our opinion and according to the information and explanations
given to us, the company has taken new term loan of Rs. 13.86 crores
in addition to previous year term loan of Rs. 850.00 lacs from Punjab
National Bank for expansion work of Unit - II at village tanawara,
Jodhpur, which has been applied for the said purpose.
(xvii) On the basis of an overall examination of the balance sheet of
the Company, in our opinion and according to the information and
explanations given to us, there are no funds raised on a short-term
basis, which have been used for long-term investment.
(xviii) The Company has not made preferential allotment of shares to
parties and companies covered in the register maintained under Section
301 of the Company Act, 1956 during the year.
(xix) The Company has not issued any debentures during the year.
(xx) The Company has not raised any money by way of public issue during
the year. Therefore, the provisions of clause 4(xx) of the Order are
not applicable to the company.
(xxi) During the course of our examination of the books and records of
the Company, carried out in accordance with the generally accepted
auditing practices in India, and according to the information and
explanations given to us, we have neither come across any instance of
fraud on or by the company, noticed or reported during the year, nor we
have been informed of such case by the management.
For P. SINGHVI & ASSOCIATES
CHARTERED ACCOUNTANTS
Firm Regn. NO.113602W
Place: Jodhpur {PRAVEEN SINGHVI)
Dated: 29th May, 2010 Partner
M.No. 71608
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