Mar 31, 2014
1. Reports on the financial statements
We have audited the attached Balance Sheet of ''SURAJ PRODUCTS LIMITED''
(the ''Company'') as at 31st March, 2014, and the related Statement of
Profit and Loss Account and Cash Flow Statement for the year ended on
that date annexed thereto, and a summary of significant accounting
policies and other explanatory information which we have signed under
reference to this report. 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. Management 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
Accounting principles generally accepted in India, including the
Accounting Standards notified under the Companies Act, 1956 read with
General circular 15/2013 dated 13th September, 2013 issued by 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.
3. Auditors Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with auditing standards on auditing issued by ICAI. Those standards
require that we comply with the ethical requirement and plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement.
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
circumstance but not for the purpose of expressing an opinion on the
effectiveness of the entity''s internal control. An audit involves
performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements.
An audit involves performing procedures to obtain audits, evidence
about the amounts and disclosures in the financial statements. An audit
also includes assessing the appropriateness of policies used and the
reasonableness of the accounting estimates made by management as well
as evaluating the overall presentation of the financial statements. An
audit also includes evaluating the appropriateness of accounting
policies used.
4. We believe that audit evidence we have obtained, is sufficient and
appropriate to provide a basis for our audit opinion excepting as
stated below.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the said financial statements together with
the notes thereon and attached thereto give, in the prescribed manner,
the information required by the Act, 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, 2014
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
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.
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 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 Account and the
Cash Flow Statement dealt with by this report are in agreement with the
books of account;
d) In our opinion, the Balance Sheet, the Statement of Profit and Loss
Account and the Cash Flow Statement dealt with by this report comply
with the applicable accounting standards notified under the Companies
Act, 1956 read with General Circular 15/2013 dated 13th September 2013,
issued by the Ministry of Corporate Affairs, in respect of Section 133
of the Companies Act, 2013
On the basis of written representations received from the directors, as
on 31st March, 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on 31st March, 2014 from being
appointed as a director in terms of clause (g) of sub - section (1) of
Section 274 of the Act;
ANNEXURE
Re: M/s Suraj Products Limited
Referred to in paragraph 3 of our report of even date,
i) a) The company has maintained proper records showing details of
fixed assets including quantitative details and situation of fixed
assets. However comprehensive fixed asset register is being complied.
b) All the assets have been physically verified by the management
during the year and there is a regular programme of verification which,
in our opinion is reasonable having regards to the size of the company
and the nature of its assets. On the basis of explanation given to us,
no material discrepancies have been noticed on such verifications.
c) In our opinion and according to information and explanations given
to us, a substantial part of fixed assets has not been disposed off by
the company during the year.
ii) a) According to information and explanation given to us the
inventory of the company has been physically verified by the management
during the year according to a phased program normally so designed that
each material item is physically verified at least once in a year In
our opinion, the frequency of verification is reasonable.
b) In our opinion and according to information and explanation 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 nature of its business.
c) In our opinion and according to explanation given to us the company
is maintaining proper records of inventory and no material
discrepancies were noticed on physical verification between of stock as
compared to the books and records.
iii) a) The company has not granted any loans secured or unsecured to
companies, firms or other parties covered in the register maintained
u/s 301 of the Companies Act, 1956. Accordingly clauses (b), (c), (d)
of the order are not applicable.
e) The company has taken loan from three parties covered in the
register maintained under section 301 of the Companies Act, 1956. The
maximum amount involved during the year was Rs. 11,86,61,719/- and the
year-end balance of loan taken was Rs. 4,47,93,837/- respectively.
f) In our opinion the rate of interest and other terms and condition on
which loan has been taken from party listed in the register maintained
under section 301 of the companies act 1956 are not, prime facie,
prejudicial to the interest of the company.
g) During the year the company was regular in repaying principle amount
as stipulated and has been regular in payment of interest.
iv) In our opinion, there are adequate internal control procedures
commensurate with the size of the company and the nature of the
business with regard to purchases of inventory, fixed assets and with
regard to sale of goods. Further on the basis of our examination of the
books and records of the company, we have neither come across nor have
been informed of any continuing failure to correct major weakness in
the aforesaid internal control procedures.
v) a) Based on the audit procedure applied by us and according to
information and explanations provided by the management, we are of the
opinion that the particulars of contracts or arrangements that need to
be entered into the register maintained under section 301 of the
Companies Act, 1956, have been so entered.
b) According to information and explanation given to us, we are of the
opinion that no transaction of purchase of goods and materials and sale
of goods and materials and servicing made in pursuance of contract or
arrangement entered in has taken place which is required to be entered
into the register maintained U/s.301 of the Companies Act,1956.
vi) The company has not accepted any deposit from the public within the
meaning of Section 58A and 58 AA of the Act and the rules framed there
under.
vii) In our opinion, on the basis of the internal audit reports broadly
reviewed by us, the coverage of internal audit function carried on by
the management is commensurate with the size of the Company and the
nature of its business.
viii) We have broadly reviewed the books of account maintained by the
Company in respect of products where, pursuant to the rules made by the
Central Government of India, the maintenance of cost records has been
prescribed under clause (d) of sub-section (1) of Section 209 of the
Act, and are of the opinion that, prima facie, the prescribed accounts
and records have been made and maintained. We have not, however, made a
detailed examination of the records with a view to determine whether
they are accurate or complete.
ix) a) The company is regular in depositing with appropriate
authorities undisputed statutory dues including provident fund,
employee state insurance, income tax, sales tax, service tax, excise
duty, cess and other material statutory dues applicable to it.
b) According to the information and explanations given to us, no
undisputed amounts payable in respect of income tax, sales tax, excise
duty and cess were in arrears, as at 31st March, 2014 for a period of
more than six months from the date they became payable.
c) According to information and explanation given to us, there are
disputed Sales Taxes, entry Tax and Excise Duty which has not yet been
paid and are pending in at forum for redressal of dispute. The
particulars of dues of Excise Duty, Sales Tax, Entry Tax which has not
yet been deposited on account of dispute are as follows :
Name of Statute Nature of Dues Amount in
Rs. (Lacs)
The Orissa Sales Dispute regarding 3.68
Tax Act 1947 ITC
The Orissa Entry Entry Tax on 9.7
Tax Rules, 1999 Inter-State Purchases
The Orissa Entry Entry Tax on 0.87
Tax Rules, 1999 Inter-State Purchases
Central Sales Non-submission of 3.12
Tax, 1956 C-Form Declaration
Central Sales Absence of documentation of 12.72
Tax, 1956 Pre-Existing contract in
relation with Form-H Sales
Central Sales Non-submission of C-Form & 9.52
Tax, 1956 H-Form Declaration
Central Sales Non-submission of 28.57
Tax, 1956 H-Form Declaration
Central Excise Cenvat Credit on Cement 4.86
Rules 2004
Name of Statute Period to which the Forum where the
amount relates to dispute is pending
The Orissa Sales 2005-2006 to Additional Commissioner
Tax Act 1947 2007-2008 Sales Tax (Appeals) North
Zone, Sambalpur
The Orissa Entry 2002-2003 to Dy. Commissioner (Appeals)
Tax Rules, 1999 2003-2004 Sundargarh Range, Rourkela
The Orissa Entry 2005-2006 to Addl. Commissioner of Sales
Tax Rules, 1999 2003-2004 Tax (Appeals), North Zone,
Sambalpur.
Central Sales 2004-2005 Dy. Commissioner Sales Tax
Tax, 1956 (Appeals), Sundargarh,
Range, Rourkela
Central Sales 2004-2005 Deputy Commissioner of Sales
Tax, 1956 Tax Pre-Existing contract in
relation with Form-H Sales
Central Sales 2011-12 Addl. Commissioner of Sales
Tax, 1956 Tax, (Appeals) North Zone,
Sambalpur
Central Sales 2006-2008 to Addl. Commissioner of Sales
Tax, 1956 2007-2008 Tax, (Appeals) North Zone,
Sambalpur
Central Excise 2010-2011 to Commissioner of Appeals,
Rules 2004 2011-2012 (Up to Central Excise Customs &
December 2011) Service Tax, Bhubaneshwar
x) In our opinion the company do not have any accumulated losses and
the company has not incurred cash losses during the financial year
covered by our audit and in the immediately preceding financial year.
xi) In our opinion and according to information and explanation given
to us the company has not defaulted in repayment of dues to financial
institutions and banks.
xii) In our opinion and according to information and explanation given
to us the company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
xiii) In our opinion, the company is not a chit fund or nidhi/ mutual
benefit fund/society. Therefore theprovisions of clause 4(xiii) of the
Companies (Auditor''s Report) Order, 2003 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 and hence the clause is
not applicable for the Company.
xv) In our opinion and according to information and explanation given
to us the company has not given any guarantee for loan taken by others
from banks or financial institutions.
xvi) In our opinion and information and explanation given to us on an
overall basis the term loan has been applied for the purpose for which
they were obtained.
xvii) According to the information and explanation given to us and on
an overall examination of balance sheet of the company, we report that
no funds raised on long term basis has been applied to finance short
term assets. No short-term fund has been used to finance long-term
investment except permanent working capital.
xviii) According to information and explanation given to us the company
has made preferential allotment of 35,00,000 Equity Shares at the rate
of Rs. 20/- per share (face value of Rs. 10/- per share with a premium
of Rs. 10/- per share) aggregating to Rs. 7,00,00,000/- to companies
covered in the register maintained under section 301 of the Companies
Act, 1956. In our opinion, the said issue was in accordance with SEBI
guidelines for preferential allotment of shares in terms of size and
price.
xix) According to information and explanation given to us the company
has not issued any debentures during the period covered by our audit
report. Accordingly, the provisions of clause 4(xix) of the Companies
(Auditor Report) Order, 2003 are not applicable to the company.
xx) According to information and explanation given to us the company
has not made any public issue during the period covered by our audit
report. Accordingly, the provisions of clause 4(xx) of the Companies
(Auditor Report) Order, 2003 are not applicable to the company.
xxi) According to information and explanations given to us, no fraud on
or by the company has been noticed or reported during the course of our
audit.
For RUSTAGI & Co.
Chartered Accountants
Firm Registration No. 301094E
ASHISH RUSTAGI
Place: Barpali (Partner)
Dated : the 31st day of May 2014 Membership No. : 062982
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of SURAJ PRODUCTS
LIMITED ("the Company"), which comprise the Balance Sheet as at March
31, 2013, and the Statement of Profit and Loss and Cash Flow Statement
for the year then ended, and a summary of significant accounting
policies and other explanatory information.
Management''s Responsibility for the Financial Statements
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 principles generally accepted in India including
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.
Auditors'' Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by management, as
well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India:
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2013;
b) in the case of the Statement of Profit and Loss 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 account as required by law have been
kept by the Company so far as appears from our examination of those
books
c) the Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
d) in our opinion, the Balance Sheet, Statement of Profit and Loss, and
Cash Flow Statement comply with the Accounting Standards referred to in
subsection (3C) of section 211 of the Companies Act, 1956;
e) on the basis of written representations received from the directors
as on March 31, 2013, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2013, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
ANNEXURE
Re: M/s Suraj Products Limited
Referred to in paragraph 3 of our report of even date,
i) a) The company has maintained proper records showing details of
fixed assets including quantitative details and situation of fixed
assets. However comprehensive fixed asset register is being complied.
b) All the assets have been physically verified by the management
during the year and there is a regular programme of verification which,
in our opinion is reasonable having regards to the size of the company
and the nature of its assets. On the basis of explanation given to us,
no material discrepancies have been noticed on such verifications.
c) The Company has not disposed off any fixed assets during the year.
ii) a) According to information and explanation given to us the
inventory of the company has been physically verified by the management
during the year according to a phased program normally so designed that
each material item is physically verified at least once in a year In
our opinion, the frequency of verification is reasonable.
b) In our opinion and according to information and explanation 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 nature of its business.
c) In our opinion and according to explanation given to us the company
is maintaining proper records of inventory and no material
discrepancies were noticed on physical verification between of stock as
compared to the books and records.
iii) a) The company has not granted any loans secured or unsecured to
companies, firms or other parties covered in the register maintained
u/s 301 of the Companies Act, 1956. Accordingly clauses (b), (c), (d)
of the order are not applicable.
b) The company has taken loan from three parties covered in the
register maintained under section 301 of the Companies Act, 1956. The
maximum amount involved during the year wasRs. 1,20,538,446/- and the
year-end balance of loan taken was Rs. 11,31,60,738/- respectively.
c) In our opinion the rate of interest and other terms and condition on
which loan has been taken from party listed in the register maintained
under section 301 of the companies act 1956 are not, prime facie,
prejudicial to the interest of the company.
d) During the year the company was regular in repaying principle amount
as stipulated and has been regular in payment of interest.
iv) In our opinion, there is adequate internal control procedures
commensurate with the size of the company and the nature of the
business with regard to purchases of inventory, fixed assets and with
regard to sale of goods. Further on the basis of our examination of the
books and records of the company, we have neither come across nor have
been informed of any continuing failure to correct major weakness in
the aforesaid internal control procedures.
v) a) Based on the audit procedure applied by us and according to
information and explanations provided by the management, we are of the
opinion that the particulars of contracts or arrangements that need to
be entered into the register maintained under 301 have been so entered.
b) According to information and explanation given to us, we are of the
opinion that no transaction of purchase of goods and materials and sale
of goods and materials and servicing made in pursuance of contract or
arrangement entered in has taken place which is required to be entered
into the register maintained U/s.301 of the Companies Act, 1956.
vi) The company has not accepted any deposit from the public within the
meaning of Section 58A and 58 AA of the Act and the rules framed there
under.
vii) In our opinion, on the basis of the internal audit reports broadly
reviewed by us, the coverage of internal audit function carried on by
the management is commensurate with the size of the Company and the
nature of its business.
viii) According to information provided and in our opinion, the
maintenance of cost records prescribed by Central Government of 209(1
)(d) of the Companies Act is not applicable to the Company.
ix) The company is regular in depositing with appropriate
authorities undisputed statutory dues including provident fund,
employee state insurance, income tax, sales tax, service tax, excise
duty, cess and other material statutory dues applicable to it.
According to the information and explanations given to us, no
undisputed amounts payable in respect of income tax, sales tax, excise
duty and cess were in arrears, as at 31st March, 2013 for a period of
more than six months from the date they became payable.
x) In our opinion the company do not have any accumulated losses and
the company has not incurred cash losses during the financial year
covered by our audit and in the immediately preceding financial year.
xi) In our opinion and according to information and explanation given
to us the company has not defaulted in repayment of dues to financial
institutions and banks.
xii) In our opinion and according to information and explanation given
to us the company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
xiii) In our opinion, the company is not a chit fund or nidhi/ mutual
benefit fund/society. Therefore the provisions of clause 4(xiii) of the
Companies (Auditor''s Report) Order, 2003 are not applicable to the
company.
xiv) In our opinion, the company is not a dealer or trader in shares,
securities, debentures and other investments and hence the clause is
not applicable for the Company.
xv) In our opinion and according to information and explanation given
to us the company has not given any guarantee for loan taken by others
from banks or financial institutions.
xvi) In our opinion and information and explanation given to us the
company has not availed any term loan from banks and financial
institution during the year and hence relevant clause is not
applicable.
xvii) According to the information and explanation given to us and on
an overall examination of balance sheet of the company, we report that
no funds raised on long term basis has been applied to finance short
term assets. No short-term fund has been used to finance long-term
investment except permanent working capital.
xviii) According to information and explanation given to us the company
has not made any preferential allotment during the period covered by
our audit report. Accordingly, the provisions of clause 4(xviii) of the
Companies (Auditor Report) Order, 2003 are not applicable to the
company.
xix) According to information and explanation given to us the company
has not issued any debentures during the period covered by our audit
report. Accordingly, the provisions of clause 4(xix) of the Companies
(Auditor Report) Order, 2003 are not applicable to the company.
xx) According to information and explanation given to us the company
has not made any public issue during the period covered by our audit
report. Accordingly, the provisions of clause 4(xx) of the Companies
(Auditor Report) Order, 2003 are not applicable to the company.
xxi) According to information and explanations given to us, no fraud on
or by the company has been noticed or reported during the course of our
audit.
For RUSTAGI & Co.
Chartered Accountants
Firm Registration No. 301094E
ASHISH RUSTAGI
Place: Kolkata (Partner)
Dated : the 10th day of June, 2013 Membership No. : 062982
Mar 31, 2012
We have audited the attached Balance Sheet of "Suraj Products Limited"
as at 31st March'2012 and the annexed Profit & Loss Account along with
Cash Flow Statement for the year ending on that date. These financial
statements are the responsibility of the management of the company. Our
responsibility is to express an opinion on these financial statements
based on our audit.
We conducted our audit in accordance with the auditing standard
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining on test basis evidences supporting the amount and
disclosures in the financial statement. An audit also includes
assessing the accounting principles used and significant estimates made
by the management as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis
for our opinion.
As required by the Companies (Auditor's Report)(Amendment) Order, 2004
issued by the Central Government of India in terms of sub-section (4A)
of section 227 of the Companies Act, 1956, we enclose in the annexure a
statement on the matters specified in Paragraphs 4 and 5 of the said
order.
Further to our comments in the annexure referred to above, we report
that:
1. We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of our
audit.
2. 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.
3. The Balance Sheet, Profit & Loss Account and Cash flow Statement
dealt with by this report are in agreement with the books of accounts
produced before us.
4. In our opinion prima facie, the Balance Sheet, Profit & Loss
Account and Cash Flow Statement dealt with by this report comply with
the mandatory Accounting Standard, referred in sub-section 3(C) of
section 211 of the Companies Act, 1961.
5. On the basis of written representation received from the director
and taken on record by the Board of Directors, we report that prima
facie none of the directors is disqualified as on 31.03.2012 from being
appointed as a director in terms of clause(g) of sub-section(l) of
section 274 of the Companies Act 1956.
6. In our opinion and to the best of our information and according to
the explanation given to us, the balance sheet and profit & loss
account read with schedules and notes on account annexed thereto gives
the information required by the Companies Act, 1956 in the manner so
required and gives 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 and;
ii) in the case of profit & loss account of the Profit for the year
ended on that date.
iii) in the case of Cash Flow Statement of the Cash Flow of the company
for the year ended on that date.
i) a) The company has maintained proper records showing details of
fixed assets including quantitative details and situation of fixed
assets. However comprehensive fixed asset register is being complied.
b) All the assets have been physically verified by the management
during the year and there is a regular programme of verification which,
in our opinion is reasonable having regards to the size of the company
and the nature of its assets. On the basis of explanation given to us,
no material discrepancies have been noticed on such verifications.
c) The Company has not disposed off any fixed assets during the year.
ii) a) According to information and explanation given to us the
inventory of the company has been physically verified by the management
during the year according to a phased program normally so designed that
each material item is physically verified at least once in a year. In
our opinion, the frequency of verification is reasonable.
b) In our opinion and according to information and explanation 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 nature of its business.
c) In our opinion and according to explanation given to us the company
is maintaining proper records of inventory and no material
discrepancies were noticed on physical verification between of stock as
compared to the books and records.
iii) a) The company has not granted any loans secured or unsecured to
companies, firms or other parties covered in the register maintained
u/s 301 of the Companies Act, 1956. Accordingly clauses (b), (c), (d)
of the order are not applicable.
b) The company has taken loan from three parties covered in the
register maintained under section 301 of the Companies Act, 1956. The
maximum amount involved during the year was Rs. 1,258,42,325/- and the
year-end balance of loan taken was Rs. 1,09,840,682/- respectively.
c) In our opinion the rate of interest and other terms and condition on
which loan has been taken from party listed in the register maintained
under section 301 of the companies act 1956 are not, prime facie,
prejudicial to the interest of the company.
d) During the year the company was regular in repaying principal amount
as stipulated and has been regular in payment of interest.
iv) In our opinion, there is adequate internal control procedures
commensurate with the size of the company and the nature of the
business with regard to purchases of inventory, fixed assets and with
regard to sale of goods. Further on the basis of our examination of the
books and records of the company, we have neither come across nor have
been informed of any continuing failure to correct major weakness in
the aforesaid internal control procedures.
v) a) Based on the audit procedure applied by us and according to
information and explanations provided by the management, we are of the
opinion that the particulars of contracts or arrangements that need to
be entered into the register maintained under 301 have been so entered.
b) According to information and explanation given to us, we are of the
opinion that no transaction of purchase of goods and materials and sale
of goods and materials and servicing made in pursuance of contract or
arrangement entered in has taken place which is required to be entered
into the register maintained U/s.301 of the Companies Act, 1956.
vi) The company has not accepted any deposit from the public within the
meaning of Section 58A and 58 AA of the Act and the rules framed there
under.
vii) In our opinion, on the basis of the internal audit reports broadly
reviewed by us, the coverage of internal audit function carried on by
the management is commensurate with the size of the Company and the
nature of its business.
viii) According to information provided and in our opinion, the
maintenance of cost records prescribed by Central Government of 209(1
)(d) of the Companies Act is not applicable to the Company.
ix) a) The company is regular in depositing with appropriate
authorities undisputed statutory dues including provident fund,
employee state insurance, income tax, sales tax, service tax, excise
duty, cess and other material statutory dues applicable to it.
b) According to the information and explanations given to us, no
undisputed amounts payable in respect of income tax, sales tax, excise
duty and cess were in arrears, as at 31 st March, 2012 for a period of
more than six months from the date they became payable.
c) According to information and explanation given to us, there are
disputed Sales Taxes and Excise Duty which has not yet been paid and
are pending in at forum for redressal of dispute. The particulars of
dues of Excise Duty, Sales Tax which has not yet been deposited on
account of dispute are as follows:
Name of Statute Nature of Dues Amount in
(Lacs)
The Orissa Sales Dispute regarding 3ll
tax Act 1947 Sales Tax exemption
set off on cement,
consumption norms
The Orissa Sales Dispute regarding 3.68
tax Act 1947 ITC
The Orissa Entry Entry Tax on 97
Tax rules, 1999 Inter-State
_Purchases
The Orissa Entry Entry Tax on 0.87
Tax rules, 1999 Inter-State Purchases
Central Sales Tax Non- submission of 2
C- Form Declaration
Central Sales Tax Absence of 12.72
documentation of
Pre-Existing
contract in relation
with Form- H Sales
Central Sales Tax Non-submission of 9.52
C- Form & H-Form
Declaration
Central Sales Tax Non-submission of 28.57
H-Form Declaration
Central Excise Cenvat Credit on Iron 2398
Rules 2004 & Steel
Name of Statute Period to which Forum where the
the amount dispute is pending
relates to
The Orissa Sales 1999-2000 to Sales Tax Tribunal,
tax Act 1947
The Orissa Sales 2003-2004 Orissa, Cuttack
tax Act 1947
The Orissa Entry Tax 2005-2008 Addl. Commissioner
rules, 1999 Sales Tax (Appeals)
North Zone, Sambalpur
The Orissa SalesTax 2002-2003 to Dy. Commissioner
rules, 1999 2003-2004 (Appeals) Sundargarh,
Range, Rourkela
Central Sales Tax 2005-2008 Addl. Commissioner
Sales tax (Appeals)
North Zone, Sambalpur
Central Sales Tax 2004-2005 Dy. Commissioner
Sales Tax (Appeals)
North Zone, Sambalpur
Central Sales Tax 2004-2005 Dy. Commissioner
Sales tax (Appeals)
Sundargarh Range,
Rourkeal
Central Sales Tax 2011-12 Addl. Commissioner
Sales tax (Appeals)
North Zone, Sambalpur
Central Sales Tax 2006-2008 Addl. Commissioner
Sales Tax (Appeals)
North Zone, Sambalpur
Central Excise 2002-2008 Commissioner of
Rules 2004 Appeals .Central
Excise Customs &
Service Tax,
Bhubaneshwar
x) In our opinion the company do not have any accumulated losses and
the company has not incurred cash losses during the financial year
covered by our audit and in the immediately preceding financial year.
xi) In our opinion and according to information and explanation given
to us the company has not defaulted in repayment of dues to financial
institutions and banks.
xii) In our opinion and according to information and explanation given
to us the company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
xiii) In our opinion, the company is not a chit fund or nidhi/ mutual
benefit fund/society. Therefore the provisions of clause 4(xiii) of the
Companies (Auditor's Report) Order, 2003 are not applicable to the
company.
xiv) In our opinion, the company is not a dealer or trader in shares,
securities, debentures and other investments and hence the clause is
not applicable for the Company.
xv) In our opinion and according to information and explanation given
to us the company has not given any guarantee for loan taken by others
from banks or financial institutions.
xvi) In our opinion and information and explanation given to us the
company has not availed any term loan from banks and financial
institution during the year and hence relevant clause is not
applicable.
xvii) According to the information and explanation given to us and on
an overall examination of balance sheet of the company, we report that
no funds raised on long term basis has been applied to finance short
term assets. No short-term fund has been used to finance long-term
investment except permanent working capital.
xviii) According to information and explanation given to us the company
has not made any preferential allotment during the period covered by
our audit report. Accordingly, the provisions of clause 4(xviii) of the
Companies (Auditor Report) Order, 2003 are not applicable to the
company.
xix) According to information and explanation given to us the company
has not issued any debentures during the period covered by our audit
report. Accordingly, the provisions of clause 4(xix) of the Companies
(Auditor Report) Order, 2003 are not applicable to the company.
xx) According to information and explanation given to us the company
has not made any public issue during the period covered by our audit
report. Accordingly, the provisions of clause 4(xx) of the Companies
(Auditor Report) Order, 2003 are not applicable to the company.
xxi) According to information and explanations given to us, no fraud on
or by the company has been noticed or reported during the course of our
audit.
For RUSTAGI & CO.
Chartered Accountants
Firm Registration No. 301094E
(ASHISH RUSTAGI)
Place: Barpali Partner
Dated, the 26th day of May, 2012 Membership No.062982
Mar 31, 2010
We have audited the attached Balance Sheet of "SuraJ Products Limited"
as at 31st March2010 and the annexed Profit & Loss Account along with
Cash Flow Statement for the year ending on that date. These financial
statements are the responsibility of the management of the company. Our
responsibility is to express an opinion on these financial statements
based on our audit.
We conducted our audit in accordance with the auditing standard
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining on test basis evidences supporting the amount and
disclosures in the financial statement. An audit also includes
assessing the accounting principles used and significant estimates made
by the management as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
As required by the Companies (Auditors Report)(Amendment) Order, 2004
issued by the Central Government of India in terms of sub-section (4A)
of section 227 of the Companies Act, 1956, we enclose in the annexure a
statement on the matters specified in Paragraphs 4 and 5 of the said
order.
Further to our comments in the annexure referred to above, we report
that:
1. We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of our
audit.
2. 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.
3. The Balance Sheet, Profit & Loss Account and Cash flow Statement
dealt with by this report are in agreement with the books of accounts
produced before us.
4. In our opinion prima facie, the Balance Sheet, Profit & Loss
Account and Cash Flow Statement dealt with by this report comply with
the mandatory Accounting Standard, referred in sub-section 3(C) of
section 211 of the Companies Act, 1961.
5. On the basis of written representation received from the director
and taken on record by the Board of Directors, we report that prima
facie none of the directors is disqualified as on 31.03.2010 from being
appointed as a director in terms of clause(g) of sub-section(l) of
section 274 of the Companies Act 1956.
6. In our opinion and to the best of our information and according to
the explanation given to us, the balance sheet and profit & loss
account read with schedules and notes on account annexed thereto gives
the information required by the Companies Act, 1956 in the manner so
required and gives 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 31" March 2010 and;
ii) in the case of profit & loss account of the Profit for the year
ended on that date.
iii) in the case of Cash Flow Statement of the Cash Flow of the company
for the year ended on that date.
ANNEXURE
Re : M/s Suraj Products Limited
Referred to in paragraph 3 of our report of even date,
i) a) The company has maintained proper records showing details of
fixed assets including quantitative details and situation of fixed
assets. However comprehensive fixed asset register is being complied.
b) All the assets have been physically verified by the management
during the year and there is a regular programme of verification which,
in our opinion is reasonable having regards to the size of the company
and the nature of its assets. On the basis of explanation given to us,
no material discrepancies have been noticed on such verifications.
c) The fixed assets disposed off during the year, in our opinion, do
not constitute a substantial part of fixed assets of the company and
such disposals has, in our opinion, not affected the going concern
status of the company.
ii) a) According to information and explanation given to us the
inventory of the company has been physically verified by the management
during the year according to a phased program normally so designed that
each material item is physically verified at least once in a year In
our opinion, the frequency of verification is reasonable.
b) In our opinion and according to information and explanation 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 nature of its business..
c) In our opinion and according to explanation given to us the company
is maintaining proper records of inventory and no material
discrepancies were noticed on physical verification between of stock as
compared to the books and records.
iii) a) The company has not granted any loans secured or unsecured to
companies, firms or other parties covered in the register maintained
u/s 301 of the Companies Act, 1956. Accordingly clauses (b), (c), (d)
of the order are not applicable.
b) The company has taken loan from three parties covered in the
register maintained under section 301 of the Companies Act, 1956. The
maximum amount involved during the year was Rs.2,60,94,868/- and the
year-end balance of loan taken was Rs. 9082680/-
c) In our opinion the rate of interest and other terms and condition on
which loan has been taken from party listed in the register maintained
under section 301 of the companies act 1956 are not, prime facie,
prejudicial to the interest of the company.
d) During the year the company was regular in repaying principle amount
as stipulated and has been regular in payment of interest.
iv) In our opinion, there is adequate internal control procedures
commensurate with the size of the company and the nature of the
business with regard to purchases of inventory, fixed assets and with
regard to sale of goods. Further on the basis of our examination of the
books and records of the company, we have neither come across nor have
been informed of any continuing failure to
correct major weakness in the aforesaid internal control procedures.
v) a) Based on the audit procedure applied by us and according to
information and explanations provided by the management, we are of the
opinion that the particulars of contracts or arrangements that need to
be entered into the register maintained under 301 have been so entered.
b) According to information and explanation given to us, we are of the
opinion that no transaction of purchase of goods and materials and sale
of goods and materials and servicing made in pursuance of contract or
arrangement entered in has taken place which is required to be entered
into the register maintained U/s.301 of the Companies Act, 1956.
vi) The company has not accepted any deposit from the public within the
meaning of Section 58A and 58 AA of the Act and the rules framed there
under.
vii) In our opinion,on the basis of the internal audit reports broadly
reviewed by us, the coverage of internal audit function carried by firm
of Chartered Accountants appointed by the management is commensurate
with the size of the Company and the nature of its business.
viii) According to information provided and in our opinion, the
maintenance of cost records prescribed by Central Government of 209(1
)(d) of the Companies Act is not applicable to the Company.
ix) a) The company is regular in depositing with appropriate
authorities undisputed statutory dues including provident fund,
employee state insurance, income tax, sales tax, service tax, excise
duty, cess and other material statutory dues applicable to it. However
few delays in depositing dues were observed but no material discrepancy
was observed.
b) According to the information and explanations given to us, no
undisputed amounts payable in respect of income tax, sales tax, excise
duty and cess were in arrears, as at 31st March, 2010 for a period of
more than six months from the date they became payable.
- c) According to information and explanation given to us, there are
disputed sale tax and excise duty which has not yet been paid and are
pending in at forum for redressal of dispute. The particulars of dues
of Excise Duty, Sales Tax which has not been deposited on account of a
dispute are as follows:
Name of the
Statute Nature of dues Amount Period to which Forum where
the
Rs in
lakhs the amount
relates dispute is
pending
1) The Orissa
Sales Dispute
regarding 31.5 1999-2000 to Sales Tax,
Tax Act, 1947 Sales tax
exemption, 2003-2004 Tribunal,
Orissa
set off on
cement,
consumption
norms.
2) The Orissa Entry tax on 9.7 2002-2003 to Asst.
Entry Taxes, interstate
Purchase 2003-2004 Commiss-
ioner
Rules 1999 of
Commercial
Taxes,
Rourkela
3) Central Non submission 3.12 2004-2005 Asst.
Sales Tax, of "C" Form Commissio-
ner of
1969 Declaration Commercial
Taxes,
Rourkela
x) In our opinion the company do not have any accumulated losses and
the company has not incurred cash losses during the financial year
covered by our audit and in the immediately preceding financial year.
xi) In our opinion and according to information and explanation given
to us the company has not defaulted in repayment of dues to financial
institutions and banks.
xii) In our opinion and according to information and explanation given
to us the company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
xiii) In our opinion, the company is not a chit fund or nidhi/ mutual
benefit fund/society. Therefore the provisions of clause 4(xiii) of the
Companies (Auditors Report) Order, 2003 are not applicable to the
company.
xiv) In our opinion, the company is not a dealer or trader in shares,
securities, debentures and other investments and hence the clause is
not applicable for the Company.
xv) In our opinion and according to information and explanation given
to us the company has not given any guarantee for loan taken by others
from banks or financial institutions.
xvi) In our opinion and information and explanation given to us term
loans have been availed during the year and applied for the purpose for
which they were raised.
xvii) According to the information and explanation given to us and on
an overall examination of balance sheet of the company, we report that
no funds raised on long term basis has been applied to finance short
term assets. No short-term fund has been used to finance long-term
investment except permanent working capital.
xviii) According to information and explanation given to us the company
has not made any preferential allotment during the period covered by
our audit report. Accordingly, the provisions of clause Ã4(xviii) of
the Companies (Auditor Report) Order, 2003 are not applicable to the
company.
xix) According to information and explanation given to us the company
has not issued any debentures during the period covered by our audit
report. Accordingly, the provisions of clause 4(xix) of the Companies
(Auditor Report) Order, 2003 are not applicable to the company.
xx) According to information and explanation given to us the company
has not made any public issue during the period covered by our audit
report. Accordingly, the provisions of clause 4(xx) of the Companies
(Auditor Report) Order, 2003 are not applicable to the company.
xxi) According to information and explanations given to us, no fraud on
or by the company has been noticed or reported during the course of our
audit.
For RUSTAGI & CO.
Chartered Accountants
Place: Barpali
(ASHISHRUSTAGI)
Dated, the 31 st day of May, 2010 Partner
Membership No.062982