Mar 31, 2015
We have audited the accompanying standalone financial statements of
WINSOME BREWERIES LIMITED ("the Com- pany"), which comprise the Balance
Sheet as at 31st March, 2015, the Statement of Profit and Loss,the Cash
Flow Statement for the year then ended, and a summary of the
significant accounting policies and other explanatory information.
Management's Responsibility for the Standalone Financial Statements
The Company's Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 ("the Act") with respect
to the preparation of these standalone financial statements that give a
true and fair view of the financial position, financial performance and
cash flowsof 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 inaccordance with the
provisions of the Act for safeguarding of the assets of the Company and
for preventing and detecting frauds and other irregularities; selection
and application of appropriate accounting policies; making judgments
and estimates that are reasonable and prudent; and design,
implementation and maintenance of ad- equate 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 standalone
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 reason- able assurance about whether the financial statements
are free from material misstatement. An audit involves performing
procedures to obtain audit evidence about the amounts and the
disclosures in the financial statements. The procedures selected
depend on the auditor's judgment, including the assessment of the risks
of material misstatement of the financial statements, whether due to
fraud or error. In making those risk assessments, the auditor considers
internal financial control relevant to the Company's preparation of the
financial statements that give a true and fair view in order to design
audit procedures that are appropriate in the circumstances. An audit
also includes evaluating the appropriateness of the accounting policies
used and the reasonableness of the accounting estimates made by the
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 standalone financial statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid standalone financial statements
give the information required by the Act in the manner so required and
give a true and fair view in conformity with the accounting principles
generally accepted in India:-
(i) in the case of the balance sheet, of the state of affairs of the
Company as at 31 March 2015;
(ii) in the case of the statement of profit and loss, of the profit for
the year ended on that date; and
(iii) 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, 2015',
issued by the Central Government of India in terms of sub-section (11)
of section 143 of the Act (hereinafter referred to as the "Order"), and
on the basis of such checks of the books and records of the Company as
we considered appropriate and according to the information and
explanations given to us, we give in the Annexure a statement on the
matters specified in 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 it appears from our examination of
those books subject to Note No. 35 regarding accounting of certain
items on cash basis.
(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 standalone financial statements
comply with the Accounting Standards speci- fied under Section 133 of
the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014
except AS-1 regarding accounting of certain items on cash basis as
stated in Note No. 35 & AS-15 regarding provision of employee benefits
as stated in note no. 27.
(e) On the basis of the written representations received from the
directors as on 31st March, 2015 taken on record by the Board of
Directors, none of the directors is disqualified as on31st 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
accord- ing to the explanations given to us:
i) Non- Provisioning against finished goods lying in the possession of
an ex-C&F Agent and demand raised as stated in Note No. 38 (amount
unascertainable).
ii) Non-Provisioning for interest payable on foreign currency loan
amounting to Rs. 1,81,31,810.62 (excluding exchange fluctuation amount
unascertained) (Note No. 35), as stated in the said note.
iii) The Company has disclosed the impact of pending litigations on its
financial position in its financial statements.
iv) In our opinion and as per the information and explanations provided
to us, the Company has not entered into any long-term contracts
including derivative contracts, requiring provision under applicable
laws or accounting standards, for material foreseeable losses.
v) There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company.
ANNEXURE REFERRED TO IN PARAGRAPH 1 OF THE AUDITORS' REPORT ON ACCOUNTS
FOR THE YEAR ENDED 31st MARCH, 2015
1. a) The company is maintaining proper records showing full
particulars, including quantitative details and situation of fixed
assets.
b) As explained to us, all the fixed assets have been physically
verified by the management in a phased periodical manner, which in our
opinion is reasonable, having regard to the size of the Company and
nature of its assets. No material discrepancies were noticed on such
physical verification.
2. (a) Physical verification has been conducted by the management at
reasonable intervals in respect of finished goods, stores, spare parts
and raw materials.
(b) In our opinion, the procedures of physical verification of
inventory followed by the management are reason- able and adequate in
relation to the size of the company and the nature of its business.
(c) In our opinion the Company is maintaining proper records of
inventories. The discrepancies noticed on such verification between the
physical stocks and book records were not significant and the same have
been properly dealt with in the books of account.
3. (a) According to the information and explanations given to us, the
Company has granted unsecured loan to Four Parties covered in the
register maintained under section 189 of the Companies Act. The amount
involved is Rs 6,14,33,521/-.
(b) The Rate of interest and other terms & condition of the above loan
are not prima-facie prejudicial to the interest of the company.
(c) The payment of interest & principal amount is regular.
4. In our opinion 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 and fixed assets and for the
sale of goods and services. During the course of audit, we have not
observed any continuing failure to correct major weaknesses in internal
control system.
5. According to the information and explanations given to us the
company has not accepted any deposits, in terms of the directives
issued by the Reserve Bank of India and the provisions of sections 73
to 76 or any other relevant provisions of the Companies Act and the
rules framed there under.
6. The Central Government has prescribed the maintenance of cost
records sub-section (l) of section 148 of the Companies Act, in respect
of certain manufacturing activities of the Company. We have broadly
reviewed such records and are of the opinion that prescribed accounts
and records have been made and maintained.
7. a) As per information and explanations given to us, the company is
regular in depositing undisputed statutory dues including provident
fund, employees'state insurance, income-tax, sales-tax, wealth tax,
service tax, duty of customs, duty of excise, value added tax, cess and
any other statutory dues with the appropriate authorities. There are
no outstanding statutory dues as at the last day of the financial year
under audit for a period of more than six months from the date they
became payable except dues of Sales Tax as stated below:
Name of the statute Nature of the Amount (Rs.) Period to
dues which the
amount
relates
Sales Tax Act (Patna) Sales Tax 484543.77 1998-99
Sales Tax Act (Patna) Sales Tax 267036.39 1999-00
Name of the statute Due Date Date of Payment
Sales Tax Act (Patna) 15th April 1999 Not paid till date
Sales Tax Act (Patna) 15th July 1999 Not paid till date
As informed to us, Employees' State Insurance is not applicable to the
Company.
b) We have been informed that following disputed demands in respect of
VAT, Service Tax, Excise Duty, Entry Tax and Income Tax have not been
deposited on account of pending appeals:
Name of the statute Nature of the dues Amount (Rs.)
Rajasthan Excise duty 3049576.00
State Excise Act
Name of the statute Period to which Forum where pending
the amount relates
Rajasthan 1995-96 Revenue Board
State Excise Act
c) In our opinion, and according to the information and explanations
given to us, amounts required to be transferred to investor education
and protection fund in accordance with the relevant provisions of the
Companies Act, 1956 (1 of 1956) and rules made thereunder have been
transferred to such fund within time.
8. There are no accumulated losses of the company as at the end of the
year. The company has not incurred cash losses during the financial
year covered by our audit and in the immediately preceding financial
year.
9. Based on our audit procedures and on the basis of information and
explanations given to us by the manage- ment, we are of the opinion
that there is no default in repayment of dues to the Financial
Institutions, banks or debenture holders as at the year end.
10. According to information and explanations given to us the Company
has not given any guarantee for loan taken by others from banks or
financial institutions, the terms and conditions whereof are not
prejudicial to the interest of the company.
11. In our opinion term loans were applied for the purpose for which
the loans were obtained by the company.
12. Based upon the audit procedures performed and information and
explanations given by the management, we report that, no fraud on or by
the Company has been noticed or reported during the course of our audit
for the year ended 31.03.2015.
For O. P. BAGLA & CO.
CHARTERED ACCOUNTANTS
FIRM REGN. NO. 000018N
PLACE : NEW DELHI
DATED : 28th May,2015
(SANJEEV AGARWAL)
PARTNER
M No. 408316
Mar 31, 2014
We have audited the accompanying financial statements of WINSOME
BREWERIES LIMITED (the Company1), which comprise the Balance Sheet as
at March 31,2014, the Statement of Profit and Loss and Cash Flow
Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view ofthe financial position and
financial performance ofthe Company in accordance with the Accounting
Standards referred to in sub-section (3C) of section 211 ofthe
Companies Act, 1956 ("the Act"). This responsibility includes the
design, implementation and maintenance of internal control relevant to
the preparation and presentation of the financial statements that give
a true and fair view and are free from material misstatement, whether
due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute ofChartered
Accountants ofIndia. 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''sjudgment, including the assessment
ofthe risks of material misstatement ofthe 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 ofthe accounting estimates made by
management, as well as evaluating the overall presentation ofthe
financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
Subject to the foregoing, In our opinion and to the best of our
information and according to the explanations given to us, the
financial statements give the information required by the Act in the
manner so required and give a true and fair view in conformity with the
accounting principles generally accepted in India:
(i) in the case of the balance sheet, of the state of affairs of the
Company as at 31 March 2014;
(ii) in the case of the statement of profit and loss, of the PROFIT for
the year ended on that date; and
(iii) 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 (Auditors Report) Order, 2003as amended
by the Companies(Auditors Report) order2004issued by the Central
Government of India in terms ofsub-section (4a) of section 227of the
Act, we give in the Annexure a statement on the matters specified in
paragraphs 4 and 5 ofthe 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 ofour knowledge and beliefwere necessary for the purpose of our
audit.
b. In our opinion, proper book ofaccounts as required by the law, have
been kept by the Company so far as appears from our examination ofthose
books subject to Note No. 35 & 36 regarding accounting of certain items
on cash basis.
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, Profit and Loss Account, and Cash
Flow Statement dealt with by this report comply with the accounting
standards referred to in sub section (3C) of Section 211 of the
Companies Act, 1956 except aS-1 regarding accounting of certain items
on cash basis as stated in Note No. 35 & 36 & AS-15 regarding provision
of employee benefits as stated in note no. 27.
e. On the basis ofwritten representations received from the directors
as on 31 March 2014, and taken on record by the Board of Directors,
none ofthe directors is disqualified as on 31 March 2014, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 ofthe Companies Act, 1956.
f. Attention is invited to the following notes of accounts :
i) Non- Provisioning against finished goods lying in the possession of
an ex-C&F Agent and demand raised as stated in Note No. 38 (amount
unascertainable).
ii) Non-Provisioning for interest payable on foreign currency loan
amounting to Rs. 1,81,31,810.62 (exclud- ing exchange fluctuation
amount unascertained) (Note No. 35), as stated in the said note.
iii) Non-Provisioning for foreign exchange fluctuation on foreign
currency loan amounting to Rs. 62,15,219 (Note No. 36), as stated in
the said note.
g) We further report that the balance in Profit and Loss Account are
without considering items mentioned in 2(f)
(i) to (iii) above the effect of which could not be determined. Had the
effect of items mentioned in 2(f) (ii)& (iii) above been given to in
these accounts, credit balance in Profit and Loss Account would have
been reduced by Rs.2,43,47,030 and unsecured loan would have been
increased by Rs. 2,43,47,030.
Annexure to the Auditors'' Report
(Referred to in paragraph 1 of our Report of even date: Winsome
Breweries Ltd. for the year ended 31st March, 2014)
i) (a) The Company has maintained records showing full particulars
including quantitative details and situation of fixed assets, however
the same needs to be Completed/Updated.
(b) As explained to us, the fixed assets are being physically verified
by the management (as per the programme in a phased periodical manner),
which in our opinion is reasonable, having regard to the size of the
company and nature of its fixed assets.No material discrepancies were
noticed on such verification.
(c) As per the records and the information and explanations given to
us, no fixed assets have been disposed off during the year.
ii) (a) As explained to us, inventories (except stock lying with third
parties) have been physically verified by the management at regular
intervals during the year.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the company and the nature of its business.
(c) The company is maintaining proper records of inventories and no
material discrepancies were noticed on physical verification.
iii) (a) According to the information and explanations given to us, the
Company has granted an unsecured loan to
Three Parties covered in the register maintained under section 301 of
the Companies Act 1956. The amount involved is Rs 43,882,309.
(b) The Rate of interest and other terms & condition of the above loan
are not prima-facie prejudicial to the interest of the company.
(c) The payment of interest & principal amount is regular.
(d) The company has not taken unsecured loan from a company covered in
the register maintained under section 301 of the Companies Act, 1956.
Further, Clause 4(iii) (e) & (f) of the order are not applicable.
iv) In our opinion and according to the information and explanations
given to us, the internal control system is commensurate with the size
of the company and nature of its business for the purchase of
inventory, fixed assets and for the sale of goods. We have not observed
any continuing failure to correct major weaknesses in internal control.
v) (a) According to the information and explanations given by the
management and based on our audit procedures performed, the transacti
-ons that need to be entered into the register maintained under section
301 of the Companies Act, 1956 have been so entered.
(b) Such transactions have been made at prices which are reasonable
having regard to the prevailing market prices at the relevant time.
vi) The company has not accepted any deposit from the public, within
the meaning of the directives issued by Reserve Bank of India and the
provisions of sections 58A and 58AA and any other relevant provisions
of the Act and the rules framed thereunder
vii) In our opinion, the company has internal audit system commensurate
with the size and nature of its business.
viii) The central government has prescribed the maintenance of cost
records under section 209(1) (d) of the Companies Act, 1956 in respect
of the manufacturing activities of the Company. We have broadly
reviewed the accounts and records of the Company in this connection and
are of the opinion, that prima facie, the prescribed accounts and
records have been made and maintained. We have not, however, carried
out a detailed examination of the same.
ix) (a) According to the records of the company, the company is
generally regular in depositing (except delay of
some days) undisputed statutory dues including Provident Fund, Investor
Education and Protection Fund, Wealth Tax, Income Tax, Service Tax,
Sales Tax, Custom duty, Excise duty, Cess and other material statutory
dues with the appropriate authorities and there are no undisputed
statutory dues payable for a period of more than six months from the
date they became payable as at 31st March 2014 except dues of Sales Tax
as stated below:
Name of the Nature of the Amount (Rs.) Period to Due Date Date of Pay
Status the dues which the ment tus
Payment Payment
relates
Sates Tax Sales Tax 484543.77 1998-99 15th April Not paid till
Act(Patna) 1999 date
267036.39 1999-00 15th July
1999
As informed to us, Employees'' State Insurance is not applicable to the
Company.
(b) According to the records of the company and the information and
explanations given to us, there are no dues in respect of income tax,
customs duty, wealth tax, cess matters that have not been deposited
with the appropriate authorities on account of any dispute and the dues
in respect of sales tax and excise duty that have not been deposited on
account of dispute are as stated below:
Name of the Nature of Amount (Rs.) Period to which Forum where
statute the dues the amount pending
relates
Rajasthan Excise duty 3049576/- 1995-96 Revenue Board
State
Excise
Act
x) There are no accumulated losses of the company as at the end of the
year. The company has not incurred cash losses during the financial
year covered by our audit and in the immediately preceding financial
year.
xi) According to the information and explanations given to us, there is
no default in repayment of dues of Financial Institutions and Banks.
xii) In our opinion and according to the information and explanations
given to us, 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) According to the information and explanations given to us, the
company has not given any guarantee for loans taken by others from banks
or financial institutions.
xiv) According to the information and explanations given to us, the
term loans taken by the company have been applied for the purposes for
which the loans were obtained.
xv) According to the information and explanations given to us and on an
overall examination of the financial statements of the company, no
funds raised on short term basis have been used for long term
investment and vice versa.
xvi) According to the information and explanations given to us, 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.
xvii) The company has not issued any debentures.
xviii) The company has not raised any money by public issue during the
year.
xix) Based on the audit procedures performed and on the basis of the
information and explanations provided by the management, no material
fraud on or by the company has been noticed or reported during the
course of the audit.
xx) Clauses in paragraph 4 (xiii) & (xiv) of the order are not
applicable to the Company for the year under report.
For O.P. BAGLA & CO.
CHARTERED ACCOUNTANTS
(MUKUL BAGLA)
Place: New Delhi PARTNER
M.No. 94156
Dated: 31st May, 2014 FIRM REGN NO. 000018N
Mar 31, 2010
We have audited the attached Balance Sheet of Winsome Breweries Limited
as at 31 st March, 2010 and both the Profit & Loss Account and the Cash
Flow Statement of the company for the year ended on that date annexed
thereto which we have signed under reference to this report. These
financial statements are the responsibility of the Companys
management. Our responsibility is to express an opinion on these
financial statements based on our audit. We conducted our audit in
accordance with auditing standards generally accepted in India. Those
standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis,
evidence supporting, the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles
used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe
that our audit provides a reasonable basis for our opinion.
1) As required by the Companies (Auditors Report) Order, 2003 ,as
amended by the Companies (Auditors Report) (Amendment) order 2004
issued by the Central Government in the terms of Section 227 (4A) of
the Companies Act, 1956 (TheAct) 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 during the
course of the audit, we enclose in the Annexure, a statement on the
matters specified in Clause 4 and 5 of the said order.
2) Further to our comments in the Annexure referred to in paragraph 1
above, we report that: -
a) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of
audit.
b) In our opinion, proper book of accounts as required by the law, have
been kept by the Company so far as appears from our examination of
those books subject to Note No. 3 of schedule 20 regarding accounting
of certain items on cash basis.
c) The Balance Sheet, the Profit and Loss Account and the Cash Flow
Statement dealt with by this report are 1n agreement with the books of
accounts of the Company.
d) In our opinion, the Balance Sheet, Profit and Loss Account, and Cash
Flow Statement dealt with by this report comply with the accounting
standards referred to in sub section (3C) of Section 211 of the
Companies Act, 1956 except AS-1 regarding accounting of certain items
on cash basis as stated in Note No. 3.
e) On the basis of the written representations received from the
directors.and according to the information and explanations given to
us, we report that none of the directors of the Company is disqualified
as on 31.3.2010 from being appointed as a director in term of clause
(g) of sub-section (1) of Section" 274 of the Companies Act, 1956.
f) Attention is invited to the following notes of schedule 20:
(I) i) Non- Provisioning against finished goods lying in the possession
of an ex-C&F Agent and demand raised as stated in Note No. 6 (amount
unascertainable). ii) Balances of certain sundry debtors, sundry
creditors, capital advance, (shown under capital work in progress)
loans and advances, unsecured loans and certain bank balances, which
are subject to confirmation and reconciliation and impact whereof on
the profit for the year and balance in profit & loss account is not
ascertainable (Note No. 5). iii) Note No. 9 regarding contingent
liability taken on management estimation basis and our inability to
comment on correctness and completeness of the same. iv) Note No. 18
regarding deferred tax assets recognized by the company based on the
management perception as stated in the said Note about readability and
our inability to comment thereon.
(II) i) Non-Provisioning of depreciation on certain fixed assets
amounting to Rs. 3,56,73,039.70 for the earlier years (Note No. 2).
ii) Non-Provisioning for interest payable on foreign currency loan
amounting to Rs. 1,81,31,810.62 (excluding exchange fluctuation amount
unascertained) (Note No. 3), as stated in the said note.
g) We further report that the balance in Profit and Loss Account are
without considering items mentioned in 2(f) (l)(i) to (iv) above the
effect of which could not be determined. Had the effect of items
mentioned in 2(f) (ll)(i) to (ii) above been given to in these
accounts,balance in Profit and Loss Account would have been Rs.
5,47,84,668.72 (as against the reported figure of Rs. 9,79,818.40),
Total Fixed Assets would have been Rs. 5,66,31,749.65 (as against the
reported figure of Rs. 9,23,04,789.35) and unsecured loan would have
been Rs. 6,74,38,487.02 (as against the reported figure of Rs.
4,93,06,676.40).
h) Subject to the foregoing, in our opinion and to the best of our
information and according to the explanations given to us, the said
Balance Sheet, Profit and Loss Account and the Cash Flow Statement read
together with Notes thereon, give the information required by the
Companies Act, 1956 in the manner so required and give a true and fair
view :-
i) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2010; and ii) in the case of the Profit and
Loss Account, of the profit for the year ended on that date. iii) in
the case of the Cash Flow Statement, of the cash flow for the year
ended on mat date.
Annexure to the AuditorsReport
(Referred to in paragraph 1 of our Report of even date: Winsome
Breweries Ltd. for the year ended 31s1 March, 2010) i) (a) The Company
has maintained records showing full particulars including quantitative
details and situation of fixed assets, however the same needs to be
Completed/Updated.
(b) As explained to us, the fixed assets are being physically verified
by the management (as per the programme in a phased periodical manner),
which in our opinion is reasonable, having regard to the size of the
company and nature of its fixed assets.No material discrepancies were
noticed on such verification.
(c) As per the records and the information and explanations given to
us, no fixed assets have been disposed off during the year.
ii) (a) As explained to us, inventories (except stock lying with third
parties) have been physically verified by the management at regular
intervals during the year.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the company and the nature of its business.
(c) The company is maintaining proper records of inventories and no
material discrepancies were noticed on physical verification.
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.Further clause 4(iii)b,c,
and dare not applicable (e) The company has not taken unsecured loan
from a company covered in the register maintained under section 301 of
the Companies Act, 1956. Further, Clause 4(iii) (f) & (g) of the order
are not applicable.
iv) In our opinion and according to the information and explanations
given to us, the internal control system is commensurate with the size
of the company and nature of its business for the purchase of
inventory, fixed assets and for the sale of goods. We have not
observed any continuing failure to correct major weaknesses in internal
control.
v) (a) According to the information and explanations given by the
management and based on our audit procedures performed, the
transactions that need to be entered into the register maintained under
section 301 of the Companies Act, 1956 have been so entered. (b) Such
transactions have been made at prices which are reasonable having
regard to the prevailing market prices at the relevant time. vj) The
company has not accepted any deposit from the public, within the
meaning of the directives issued by Reserve Bank of India and the
provisions of sections 58A and 58AA and any other relevant provisions
of the Act and the rules framed thereunder
vi) In our opinion, the company has internal audit system commensurate
with the size and nature of its business.
vii) The Central Government has not prescribed maintenance of cost
records under section 209(1) (d) of the Companies Act, 1956 in respect
of products of the company.
ix) (a) According to the records of the company, the company is
generally regular in depositing (except delay of some days) undisputed
statutory dues including Provident Fund, Investor Education and
Protection Fund, Wealth Tax, Income Tax, Service Tax, Sales Tax, Custom
duty, Excise duty, Cess and other material statutory dues with the
appropriate authorities and there are no undisputed statutory dues
payable for a period of more than six months from the date they became
payable as at 31st March 2010 except dues of Sales Tax as stated below:
Name of the
statute Nature of
the dues Amount
(Rs.) Period to
which Due Date Date of Payment
the amount
relates
Sales Tax
Act Sales Tax 484543.77 1998-99 15 th
April 1999 Not paid till
date
267036.39 1999-00 15lh July
1999
Further, this is to be read together with our comments in para 2f) (II)
(i) to (ii) of our audit report.
As informed to us , Employees State Insurance is not applicable to the
Comapany.
(b) According to the records of the company and the information and
explanations given tu us, there are no dues in.respect of income tax,
customs duty, wealth tax, cess matters that have not been deposited
with the appropriate authorities on account of any dispute and the dues
in respect of sales tax and excise duty that have not been deposited on
account of dispute are as stated below : -
Name of the
statute Nature of
the dues Amount
(Rs.) Period to which Forum where pending
the amount
relates
Sales Tax
Act Rajasthan Sales tax 961666 1996-97 Dy.Commissioner
(Appeals)
Rajasthan
State Excise
Act Excise
duty 31147.75 1997-98 High Court
Rajasthan
State
Excise Act Excise
duty 3049576 1995-96 Revenue Board
x) After considering the quantified qualifications as stated in para 2
f) (II) (i) to (ii) in our Audit Report, accumulated losses as at 31sl
March, 2010 of the Company are not more than 50% of its net worth.lt
has hot incurred cash losses in current financial year and it has not
incurred cash losses in the immediately preceding financial year.
However, this is to be read together with comments in Audit Report in
para 2 f) (I) (i) to (iv) above in respect of unquantified
qualifications, effect of which could not be ascertained.
xi) According to the information and explanations given to us, there is
no default in repayment of dues of Financial Institutions and Banks,
(except disputed amount of a bank amounting to Rs. 2840969.07)
xii) In our opinion and according to the information and explanations
given to us, 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 Company is not a chit fund or a nidhi/ mutual benefit fund/
society, therefore the provisions of Clause 4(xiii)- of the Order are
not applicable to the company.
xiv) In our opinion and according to the information and explanations
given to us, the company is not dealing in or trading in shares,
securities, debentures and other investment.Therefore, the provisions
of Clause 4
(xiv) of the Order are not applicable to the Company.
xv) According to the information and explanations given to us, the
company has not given any guarantee for loans taken by others from
banks or financial institutions.
xvi) The company has not taken any term loan during the year.
xvii) According to the information and explanations given to us and on
an overall examination of the financial statements of the company, no
funds raised on short term basis have been used for long term
investment and vice versa.
xviii) According to the information and explanations given to us, 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.
xx) The company has not raised any money by public issue during the
year.
xxi) Based on the audit procedures performed and on the basis of
the information and explanations provided by the management, no
material fraud on or by the company has been noticed or reported during
the course of the audit.
For O.P.BAGLA & CO.
Chartered Accountants
Place: New Delhi (MUKUL BAGLA)
Date: 14 AUGUST 2010 PARTNER
M.N.94156
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