TO THE MEMBERS
I have audited the attached Balance Sheet of ELLENBARRIE INDUSTRIAL GASES LIMITEDas at 31st March, 2010 and also the Profit & Loss Account and the Cash Flow Statementfor the year ended on that date annexed thereto. These financial statements are theresponsibility of the Company's management. My responsibility is to express an opinion onthese financial statements based on my audit.
I conducted my audit in accordance with auditing standards generally accepted in India.Those standards require that I plan and perform the audit to obtain reasonable assuranceabout whether the financial statements are free of material misstatement. An auditincludes examining, on a test basis, evidence supporting the amounts and disclosures inthe financial statements. An audit also includes assessing the accounting principles usedand significant estimates made by management, as well as evaluating the overall financialstatement presentation. I believe that my audit provides a reasonable basis for myopinion.
As required by the Companies (Auditor's Report) (Amendment) Order, 2004 issued by theCentral Government of India in terms of Sub-section (4A) of Section 227 of the CompaniesAct, 1956,
I report that:
i) a) The Company maintains proper records showing full particulars, includingquantitative details and situation of Fixed Assets.
b) The fixed assets have been physically verified by the management at the end of theyear and there have been no material discrepancy.
c) A substantial part of the fixed assets have not been disposed of during the year.
ii) a) Physical verification of inventory has been conducted by the management at theend of the year.
b) The procedures of physical verification of inventory followed by the management arereasonable and adequate in relation to the size of the Company and the nature of itsbusiness.
c) The Company is maintaining proper records of inventory and no material discrepancieswere noticed on physical verification.
iii) a) The Company has given loan to a company covered in the register maintainedunder Section 301 of the Act. The number of party and amount involved is ONE and Rs.43,62,492/- respectively.
b) The loan given is interest free as per the convention of the company amongst sisterconcern and is repayable on demand.
c) The repayment of principle is on demand.
iv) The Company has not taken loans from a company, firm or other party covered in theregister maintained Section 301 of the Act.
v) There is an adequate internal control system commensurate with the size of theCompany and the nature of its business, for the purchase of inventory and fixed assets andfor the sale of goods and services. There is no continuing failure to correct majorweaknesses in internal control system.
vi) a) Transaction that need to be entered into a register in pursuance of Section 301of the Act, have been so entered.
b) Each of these transactions have been made at prices which are reasonable havingregard to the prevailing market prices at the relevant time.
vii) The Company has not accepted deposits from the public.
viii) The Company has an internal audit system commensurate with its size and nature ofits business.
ix) The Company is regular in depositing undisputed statutory dues including ProvidentFund, Investor Education & Protection Fund, Employees State Insurance, Income Tax,Sales Tax, Wealth Tax, Service Tax, Customs Duty, Excise Duty, Cess or any other statutorydues with the appropriate authorities and there is no arrear of more than six months as atthe last day of the year.
x) The Company has not defaulted in repayment of dues to a bank or financialinstitution.
xi) The Company is dealing in shares, debentures and other investments and properrecords have been maintained of the transactions and contracts and timely entries havebeen made. The shares, securities and debentures have been held by the Company in its ownname.
xii) The term loans were applied for the purpose for which the loans were obtained.
xiii) The funds raised on short term basis have not been used for long term investment.
xiv) In the circumstances of the case, other clauses of the order are not applicable.
Further to my comments, I report that:
i) I have obtained all the information and explanations, which to the best of myknowledge and belief were necessary for the purpose of my audit;
ii) In my opinion, proper books of account as required by law have been kept by theCompany so far as appears from my examination of those books ;
iii) The Balance Sheet and Profit & Loss Account dealt with by this report are inagreement with the books of account:
iv) In my opinion, Subject to non compliance of AS 15: Re: Retirement Benefits ; Re:Gratuity, and non compliance of AS 22 : Re : Deferred Tax, the Balance Sheet and Profit& Loss Account dealt with by this report comply with the accounting standards referredto in Sub-section (3C) of Section 211 of the Companies Act, 1956;
v) On the basis of written representations received from the directors, as on 31stMarch, 2010 and taken on record by the Board of Directors, I report that none of thedirectors is disqualified as on 31st March, 2010 from being appointed as a director interms of clause (g) of Sub-section (1) of Section 274 of the Companies Act, 1956 ;
vi) In my opinion and to the best of my information and according to the explanationsgiven to me, the said accounts 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 accountingprinciples generally accepted in India :
a) in the case of the Balance Sheet, of the state of affairs of the Company as at 31stMarch, 2010 ;
b) in the case of the Profit & Loss Account, of the profit for the year ended onthat date.
c) in the case of the Cash Flow Statement, of the cash flows for the year ended on thatdate.
| ||For A. K. KUMAR & CO. |
| ||Chartered Accountant |
| ||(Regn. No. 308013E) |
|9/15, Fern Road ||ANJAN KUMAR |
|Kolkata-700 019 ||Proprietor |
|Dated : 4th day of September, 2010 ||(Regn. No. 013166) |