REPORT OF THE AUDITORS TO THE MEMBER OF SUNRISE ZINC LIMITED
To The Member Of Sunrise Zinc Limited
1 We have audited the attached Balance Sheet of SUNRISE ZINC LIMITED,
CUNCOLIM - GOA, as at 31st March 2007 and also the Profit and Loss Account of the Company
for the period from 1st April 2006 to 31 March 2007 These financial statements are the
responsibilities 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 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
3 As required by the Companies (Auditors Report) Order, 2003 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
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 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 Profit and Loss Account and dealt with by this Report are in
agreement with the books of account,
d In our opinion, the Balance Sheet, Profit and Loss Account dealt with by this Report
comply with the Accounting Standards referred to in Sub-section (3C) of Section 211 of the
Companies Act, 1956,
e On the basis of the written representations received from Directors, as on 31 03 07
and taken on record by the Board of Directors, we report that none of the Director(s) is
disqualified as on 31 st March 2007 from appointed as a Director in terms of clause (g) of
sub-Section (1) of section 274 of the Companies Act, 1956;
f In view of the heavy accumulated losses and inability of the Company to bear the
same, the Company has made no provision in its accounts for interest, both simple and
compound, on Term Loans to Rs. 3,55,67,621/-and Working Capital Loan amounting to Rs
1,88,75,792/-(last year Rs 4,66,11,162/-and Rs 1,61,32,139/-) respectively AND HAD THE
PROVISION BEEN MADE IN THE ACCOUNTS, THE LOSS FOR THE YEAR WOULD HAVE BEEN MORE BY RS
5,44,43.413/- AND THE ACCUMULATED LOSS AND SECURED LOANS AS AT THE END OF THE ACCOUNTING
PERIOD, WOULD HAVE BEEN HIGHER BY THIS AMOUNT.
g In our opinion and to the best of our information and according to the explanations
given to us, 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 Accounting
Principles generally accepted in India subject to notes 2&4 (vi)
(i) in the case of the Balance Sheet, of the state of affairs of the Company, as at 31
st March 2007
(li) In the case of Profit and Loss Account, of the profit for the period from 1st
April 2006 to 31st March 2007
|
For J. B. Sardesai & Associates |
|
Chartered Accountants |
|
S/d- |
|
(J. B. Sardesai) |
| Place Margao - Goa. |
Proprietor |
| Date : 15-06-2007 |
Memb. No. 033177 |
Annexure
Re : Sunrise Zinc Limited
1 Referred to in paragraph 3 of our Report of even date
a The Company has maintained proper records and showing full particulars including
quantitative details and situations of Fixed Assets
b We were informed that the management during the period under Audit has physically
verified Fixed Assets and no discrepancy have been noticed on such physical verification
c During the year, the Company has not disposed off any of the Plant and machinery
2 a The inventory has been physically verified during the year by the management In our
opinion 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 The company has maintaining proper records of inventory The discrepancies noticed on
verification between the physical stock and the book records were not material
3 a The Company has taken unsecured loans from the parties listed in the register
maintained under section 301 of the Companies Act, 1956 AND NO INTEREST ON SUCH LOANS HAVE
BEEN PAID BY THE COMPANY
b No terms and conditions, however, in respect of the payment etc, or others have been
stipulated It is informed there is no company under the same management as defined under
sub-section (1B) of section 370 of the Companies Act, 1956 The Company has not granted
loan to person covered in the Register maintained under Section 301 of the Companies Act,
1956
c In our opinion, the rate of interest and other terms and conditions on which loans
have been taken from/granted to companies, firms or other parties listed in the Register
under Section 301 of the Companies Act, 1956 are not prima-facie, prejudicial to the
interest of the Company
d The Company is IRREGULAR in repaying the principal amounts as well as payment of
interest as stipulated
4 a 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 the goods During the course of our Audit, we have not observed any
continuing failure to correct major weakness in internal controls
5 a According to the information and explanations given to us, we are of the opinion
that the transactions that need to be entered into the Register 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, the
transactions made in pursuance of contracts or agreements entered in the Register
maintained under Section 301 of the Companies Act, 1956 and exceeding the value of Rupees
five lakhs in respect of any party during the year have been made at prices which are
reasonable having regard to prevailing market prices at the relevant time
6 The Company has not accepted any deposits from the public during the year No order
has been passed by the Company Law Board as informed by the management
7 As informed to us, the Company has yet to set up internal audit system
8 The maintenance of cost records has not been prescribed for the products of the
Company by the Central Government under section 209 (i) (d) of the Companies Act, 1956 as
informed by the management
9 a The Company is irregular in depositing Provident Fund dues with the appropriate
authorities and some part of interest and damages payment for the year is still unpaid as
at the date of Balance Sheet
b) As per the information provided and explanation given to us, the Company has no
undisputed amounts payable in respect of Wealth Tax, Sales Tax, VAT Act, Excise Duty,
Custom Duty which were outstanding as at 31st March 2007, for a period exceeding six
months from the date they become payable
c) According to the information and explanation given to us, there are no dues of Sales
Tax, Vat Act, Income Tax, Excise Duty, Custom Duty, Wealth Tax and Cess, which have not
been deposited on account of any dispute
10 The Company is in existence for more than 5 years and due to accumulated losses, the
net worth of the Company had been negative However, during the period under audit the
Company has incurred no cash losses However, no provisions for interest payments have been
made
11 The Company has defaulted in repayment of dues to Financial Institutions &Banks,
Simple & compound interest payable to Financial Institution and banks have not been
provided during the year
12 We are of the opinion that the Company has maintained adequate records where the
Company has granted loans & advances on the basis of security by way of pledge of
Shares, Debentures and other Securities
13 In our opinion, the Company is not a Chit fund or a Nidhi / Mutual fund / Society
Therefore, the provision of the clause 4(xiii) of the Companies (Auditor's Report) order
2003 is not applicable to the Company
14 In our opinion, the Company is not dealing in or trading in Shares, Securities
Debentures and other Investments Accordingly, the provisions of clause 4(xiv) of the
Companies (Auditors Report) Order, 2004 are not applicable to the Company
15 In our opinion, the terms and conditions on which the Company has given guarantees
for loans taken by others from banks of Financial Institutions are not prejudicial to the
interest of the Company
16 According to the information and explanation given to us, and on an overall
examination of the Balance Sheet of the Company we report that no funds on short-term
basis have been used for long-term investment No long-term funds have been used to finance
short-term assets except permanent working capital
17 According to the information & explanation given to us, the company has not
allotted any Shares during the period under audit, therefore the question of preferential
allotment of shares to the parties and companies covered in the Register maintained under
section 301 of th Act at a price at which shares have been issued prejudicial to the
interest of the Company does not arise
18 No Debentures have been issued by the Company during the year
19 According to the information explanation given to us, the Company has not raised
money by Public Issue during the year Therefore, the question for their use does not arise
20 According to the information & explanation given to us, no frauds on or by the
Company has been noticed or reported during the course of our audit
|
For J. B. Sardesai & Associates |
|
Chartered Accountants |
|
S/d- |
|
(J. B. Sardesai) |
| Place Margao - Goa. |
Proprietor |
| Date : 15-06-2007 |
Memb. No. 033177 |