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CRESTCHEM LIMITED
ANNUAL REPORT 2011-2012
AUDITORS' REPORT
1. We have audited the attached Balance Sheet of CRESTCHEM LIMITED as at
31st March, 2012 and also the Statement of Profit and Loss and the Cash
Flow Statement for the year ended on that date annexed thereto. These
Financial statements are the responsibility of the company s management.
Our responsibility is to express an opinion on these financial statements
based on our audit.
2. We conducted our audit in accordance with auditing standards generally
accepted in India. Those Standards require that we plan and perform the
audit to obtained 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.
3. As required by the Companies (Auditor s Report) Order, 2003 as amended
by companies (Auditors Report) (Amendments) Order, 2004 (hereinafter
referred to as the Order ) issued by the central Government of India in
terms of Section 227 (4A) of the Companies Act, 1956, and on the basis of
such checks, as we considered appropriate we annex hereto of a statement on
the matters specified in paragraphs 4 and 5 of the said Order.
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 law have been
kept by the company so far, as appears from our examination of the books.
iii. 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.
4. In our opinion, balance sheet, Statement of profit and loss account and
cash flow statement comply with the Accounting Standards referred to in
sub-section (3C) of Section 211 of the Companies Act, 1956.
5. On the basis of written representation received from the directors, as
on 31st March,2012 and taken on record by the Board of Director, we report
that none of the Directors is disqualified as on 31st March,2012 from being
appointed as a Director in terms of Clause (g) of Sub-Section (1) of
section 274 of the Companies Act, 1956.
6. In our opinion and to the best of our information and according to the
explanations given to us the said accounts read together with the
other notes appearing thereon give the information required by the
Companies Act, 1956, in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India;
a. In the case of the Balance Sheet of the state of the affairs of the
Company as at 31st March,2012
b. In the case of the Statement of Profit and Loss, of the Loss for the
year ended on that date and,
c. In the case of the Cash Flow Statement, of the cash flows for the year
ended on the date.
For TALATI & TALATI
Chartered Accountants
(Firm Reg. No 110758W)
AHMEDABAD (UMESH H.TALATI)
DATE: 15th June, 2012 PARTNER
M. NO. 34834
ANNEXURE Re: CRESTCHEM LIMITED
Referred to in paragraph 3 of our report of even date.
(i)(a) The Company is maintaining proper records showing full particulars
including quantitative details and general location of fixed assets.
b) Majority of the assets has been physically verified by the management
during the year and there is a regular programme of verification which, in
our opinion, is reasonable having regard to the size of the Company and the
nature of its assets. No material discrepancies were noticed on such
verification.
c) During the year, the Company has not disposed off any major part of the
Fixed Assets.
(ii)(a) The inventory has been physically verified during the year by the
management. In our opinion the frequency of verification is reasonable.
(b) The procedures of physical verification of inventories followed by the
management are reasonable and adequate in relation to the size of the
company and the nature of its business.
(c) On the basis of our examination of the records of the company, we are
of the opinion that the company is maintaining proper records of inventory.
The discrepancies noticed on verification between the physical stocks and
the book records were not material.
(iii) In respect of Loans secured or unsecured , granted or taken by
company to/from companies, firm or other parties covered in the register
maintained under section 301 of the Companies Act, 1956:
(a) The company has not granted any unsecured loan to any companies, firms
or other parties listed in the register maintained under section 301 of the
Companies Act, 1956. Hence the provisions of Clause (iii) (a), (b), (c),
and (d) are not applicable to the company.
(e) The Company has taken Interest free unsecured loan from parties listed
in the register maintained under section 301 of the Companies Act, 1956.
The maximum amount involved during the year was Rs. 17,35,598/- and the
year end balance of loan taken from such parties was Rs. 17,35,598/-.
(f) In our opinion and according to the information and explanations given
to us, the rate of interest and other terms and conditions on which loans
have been taken from parties listed in the register maintained under
Section 301 of the Companies Act, 1956 are not, prima facie, prejudicial to
the interest of the Company.
(g) The company is not paying interest on loans and principal amount is
repayable on demand.
(iv) In our opinion and according to the information and explanations given
to us, there are adequate internal control procedures commensurate with the
size of the company and the nature of its business with regard to purchase
of inventory, fixed assets and with regard to the sale of goods. During
the course of our audit, no major weaknesses have been noticed in the
internal controls.
(v)(a) To the best of our knowledge and according to information and
explanations given to us, we are of the opinion that the contracts or
arrangements that need to be entered in to the register required to be
maintained under section 301 of the companies act, 1956 have been so
entered.
(b) In our opinion and according to the information and explanations given
to us, transactions made in pursuance of contracts or arrangements entered
in the register maintained under section 301 of the Companies Act, 1956
have been made at prices which are reasonable having regard to prevailing
market prices at the relevant time where such market prices are available.
(vi) In our opinion and according to the information and explanations given
to us, the company has not accepted any deposit from the public and hence
the provisions of Section 58A, 58AA and other relevant provisions of the
Companies Act, 1956 and the Companies (Acceptance of Deposits) Rules, 1975
are not applicable.
(vii) In our opinion, the internal audit system of the company is
commensurate with its size and nature of its business.
(viii) The Company has not maintained Cost Accounting Records required to
be 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. However, as per the Information and
Explanation given by the Management The Cost Accountant has been appointed
by the Company and the process of preparing cost records is in progress.
(ix)(a) The company does not have any employees therefore it does not have
any provident fund liability during the current year. However, the company
is regular in depositing other statutory dues applicable to it. According
to the information and explanations given to us and on the basis of records
produced before us, Provident Fund of Rs. 2,25,988/-, FBT of Rs. 42,540/-
is outstanding for more than six months.
However the company has obtained an interim stay order from the high court
of Gujarat against payment of the dues to the P.F.Department. Except above
there are no undisputable amount payable in respect of Income Tax, Wealth
Tax, Sales Tax, custom duty and excise duty and cess were outstanding as at
31st March, 2012 for a period of more than six months from the date they
become payable.
(b) According to the records of the company, there are no dues of Sales
Tax, Income Tax and Excise Duty and Cess which have not been deposited on
account of any dispute.
(x) The accumulated losses of the company at the end of the financial year
are in excess of 50% of its net worth. The company has not incurred cash
loss during the financial year covered by our audit and in the immediately
preceding previous year.
(xi) In our opinion and according to information and explanation given to
us the Company has not defaulted in repayment of dues to a Bank.
(xii) The company has not granted any loans against 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 this clause is not applicable to the
company.
(xiv) The company is not dealing in or trading in shares, securities,
debentures and other investments. Accordingly, the provisions of this
clause of the Companies (Auditor s Report) Order, 2003 are not applicable
to the Company.
(xv) In our opinion the company has not given any guarantee for loans taken
by others from bank or financial institution hence the provision of this
clause is not applicable to the company.
(xvi) According to the information and explanations given to us, the
company has not raised any term loans during the year and hence in our
opinion this clause is not applicable to the company
(xvii) In our opinion and according to the information and explanation
given to us and overall examination of the balance sheet of the company we
report that no funds raised on short term basis has been used for long term
investment by the company.
(xviii)The company has not made any preferential allotment of shares to any
parties and companies covered under the register maintained u/s.301 of the
Act.
(xix) During the period covered by our audit report, the company has not
issued any debentures.
(xx) The company has not raised any money out of public issue during the
period covered by our report.
(xxi) We report that no fraud on or by the company has been noticed or
reported during the course of our audit.
For TALATI & TALATI
Chartered Accountants
(Firm Reg. No 110758W)
AHMEDABAD (UMESH H.TALATI)
DATE: 15th June, 2012 PARTNER
M. NO. 34834
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