The Members of SOLID CONTAINERS LIMITED
1 We have audited the attached Balance Sheet of SOLID CONTAINERS LIMITED as at31 March 2010, and Profit and Loss Account and the Cash Flow Statement of the company forthe year ended on that date, annexed thereto These financial statements are theresponsibility of the Company's management Our responsibility is to express an opinion onthese financial statements based on our audit.
2 We conducted our audit in accordance with auditing standards generally accepted inIndia Those standards require that we plan and perform the audit to obtain reasonableassurance about whether the financial statements are free from material misstatement Anaudit includes examining, on a test basis, evidence supporting the amounts and disclosuresin the financial statements An audit also includes assessing the accounting principlesused and significant estimates made by management, as well as evaluating the overall financialstatement presentation We believe that our audit provides a reasonable basis for ouropinion.
3 As required by the Companies (Auditor's Report) Order, 2003 issued by the CentralGovernment of India in terms of section 227(4A) of the Companies Act, 1956, and on thebasis of such checks as we considered appropriate and according to the information andexplanations given to us, we enclose in the annexure a statement on the matters specifiedin paragraph 4 and 5 of the said order to the extent applicable.
4 Further to our comments in the Annexure referred to above, we report that:
a) We have obtained all the information and explanations, which to the best of ourknowledge and belief were necessary for the purposes of our audit.
b) In our opinion, proper books of accounts as required by Law have been kept by thecompany, so far as appears from our examination of the books.
c) The Balance Sheet and Profit and Loss Account dealt with by this report are inagreement with the books of account.
d) In our opinion, the Balance Sheet, Profit and Loss Account and Cash Flow Statementdealt with by this report comply with the accounting standards referred to in sub-section(3C) of section 211 of the Companies Act, 1956 to the extent applicable to the Company.
e) On the basis of written representations received from the Directors, and taken onrecord by the Board of Directors, we report that, none of the directors is disqualified ason 31 March 2010 from being appointed as a director in terms of clause (g) of sub-section(1) of Section 274 of the Companies Act, 1956.
f) In our opinion and to the best of our information and according to the explanationsgiven to us, the said accounts read together with the notes thereon, give in theprescribed manner the information required by the Act, but in view of Note No 4regarding substantial operating losses due to closure of commercial operations of thecompany and in the absence of any rehabilitation measures the company is no longer a goingconcern. The Gompany has not made adjustment to accounts relating to recoverability ofrecorded asset amounts and in respect of liabilities as might be necessary forcompilation, where the Company is no longer a going concern. The effect on the Loss forthe year and Net Worth of the company is unascertained.
Considering the impact of above, the accounts does not give a true and fair view inconformity 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 March2010;
(ii) In the case of Profit and Loss Account, the loss for the year ended on that date;and
(iii) In the case of Cash Flow Statement, of the cash flow of the company for the yearended on that date.
For MGB & Co.
Firm Registration No. 101169W
Membership No. 48215
Place : Mumbai
Date : 23 August, 2010
ANNEXURE REFERRED TO IN PARAGRAPH 3 OF AUDITOR'S REPORT TO THE MEMBERS OF SOLIDCONTAINERS LIMITED ON THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2010.
(1) (a) As explained to us, the company has maintained proper records showing fullparticulars including quantitative details and situation of fixed assets but the samehave not been produced for verification as reported to be untraceable.
(b) The fixed assets are not physically verified during the year.
(c) During the year, the Company has not sold a substantial part of fixed assets.
(2) Due to closure of commercial operations company is not having any inventory duringthe year and hence, clauses (ii) a, (ii) b, (ii) c of the Order regarding inventories arenot applicable to the company.
3) (a) The Company has not granted any loans, secured or unsecured to companies, firmsor other parties covered in the register maintained under section 301 of the Act.Accordingly the requirements of the clause (b), (c) and (d) are not applicable.
(b) The company has not taken any loans, secured or unsecured from companies, firms orother parties covered in the register maintained under section 301 of the companies Act.Accordingly, sub-clause (f) and (g) are not applicable.
4) In our opinion and according to the information and explanations given to us, thereis an adequate internal control system commensurate with the size of the company and thenature of its business. However, there are no purchases of inventory, fixed assets andsale of goods and services during the year.
5) In our opinion and according to the information and explanation given to us, thereare no transactions that need to be entered in to register in pursuance of section 301 ofthe Act.
6) According to the information and explanations given to us, the company has notaccepted any deposits from the public during the year.
7) As informed to us, the company did not have Internal Audit System during the year.
8) In view of closure of manufacturing activities, the report on the maintenance ofcost records as prescribed by the Central Government under section 209 (1)(d) of theCompanies Act, 1956 is not required.
(9) a) According to information and explanation given to us and on the basis ofexamination of records of the company, the company is regular in depositing withappropriate authorities undisputed statutory dues including provident fund, investoreducation and protection fund, employees state insurance, income tax, sales tax/ValueAdded Tax, wealth tax, service tax, custom duty, excise duty, cess and other materialstatutory dues applicable except delay in few cases. There are no undisputed amountspayable in respect of the aforesaid dues outstanding as at 31 March 2010 for a period ofmore than six months from the date they became payable.
b) According to the records of the company disputed dues in respect of income tax,wealth tax, service tax, sales tax, custom duty, excise duty and cess which have not beendeposited are as under:
|Name of the Statutes ||Nature of Dues ||Amount in Rupees ||Forum where dispute is pending |
|Central Excise Act (FY 2007-08) ||Excise Duty ||1,894,007 ||Commissioner of Central Excise, Dadar. |
|Central Excise Act (FY 1994 - 95) ||Excise Duty ||292,787 ||Assistant Commissioner of Central Excise, Kalyan |
|Central Excise Act (FY 1994 - 95) ||Excise Duty ||58,549 ||Assistant Commissioner of Central Excise, Dadar |
|Central Excise Act (FY 1983 - 85) ||Excise Duty ||1,434,197 ||Assistant Commissioner of Central Excise, Kalyan |
10) According to the records of the company and in our opinion, the Company'saccumulated losses at the end of the financial year are more than fifty percent of itsnet worth. Further, the Company has incurred cash losses during the financial year endedMarch 31, 2010 and in the immediately preceding financial year.
11) The company has not taken loans from Financial Institutions or Banks and has notissued debentures. Therefore para 4(xi) of the order is not applicable.
12) According to the information and explanation given to us, the company has notgranted any loans or advances on the basis of security by way of pledge of shares,debentures and other securities.
13) The provisions of any special statue applicable to Chit Fund/Nidhi/Mutual benefitFund/ Society are not applicable to the company.
14) The nature of Companies business / activities during the year does not includedealing in shares, securities, debentures or other investments; hence the requirement ofoffering comments on clause (xiv) is not applicable.
15) The Company has not given any guarantee for loans taken by others from bank orfinancial institutions.
16) As the Company has not taken any term loan, hence para 4(xvi) of the order is notapplicable.
17) On the basis of review of utilization of funds which is based on an overallexamination of the Balance Sheet of the Company and related information as made availableto us, we report that no funds raised on short-term basis have been used for long-termpurposes.
18) As the company has not made any preferential allotment of shares to parties orcompanies covered in the register maintained under section 301 of the Act, para 4(xviii)of the order is not applicable.
19) As the company has not issued any debentures during the year, para 4(xix) of theorder is not applicable.
20) The company has not raised any money by way of public issues during the year.
21) On the basis of our examination and according to the information and explanationsgiven to us, no fraud on or by the company has been noticed or reported during the year.
For MGB & Co
Firm Registration No. 101169W
Membership No.: 48215
Place : Mumbai
Date : 23 August, 2010