gujarat bulk packs ltd Auditors report

GUJARAT BULK PACKS LIMITED ANNUAL REPORT 2010-2011 AUDITORS REPORT To The members of GUJARAT BULK PACKS LTD. AHMEDABAD 1. We have audited the attached Balance sheet of GUJARAT BULK PACKS LTD. as at 31st March 2011, the profit and loss account and also the cash flow statements for the year ended on that date annexed thereto. 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. 2. We conducted our audit in accordance with the 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 from material misstatement. An audit includes examining, on a test, 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 subsection (4A) of section 227 of the Companies Act, 1956, We enclosed 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: (i) 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. (ii) 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. (iii) The Balance sheet, Profit and Loss account and cash flow statements dealt with by this report are in agreement with the books of account. (iv) In our opinion, the Balance sheet, Profit and loss and cash flow statements dealt with by this report comply with accounting standards referred to in sub-section (3C) of section 211 of the companies act, 1956. (v) On the basis of written representation received from the directors, as on 31st March, 2011 and taken on record by the Board of directors, we report that none of the directors is disqualified as on 31/03/2011 from being appointed as a director, in terms of clause (g) of sub-section(l) of section 274 of the companies act, 1956. (vi) In our opinion and to the best of our information and according to the explanation given to us, the said account 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 affairs of the company as at 31st March 2011, (b) In the case of the profit and loss account, of the Loss for the year ended on that date and (c) In the case of the cash flow statement, of the cash flow for the year ended on that date. PLACE: AHMEDABAD. FOR, D.V. DAVE & CO., DATE : 02/09/2011 CHARTERED ACCOUNTANTS (CA D.V. DAVE) PROPRIETOR. Annexure: REF: GUJARAT BULK PACKS LTD. Referred to in paragraph 3 of our report of even date, 1. a) The company is maintaining proper records showing full particular including quantitative details and situation of Fixed assets. b) The fixed assets are physically verified by the management during the year. We are informed that no material Discrepancies were noticed on such verification. c) In our opinion the company has not disposed off substantial part of its fixed assets during the year and the going concern status of the company is not affected. 2. a) The inventory has not been physically verified during the year by the management. Because the inventory has been given to State Bank of India as security against Loan. b) The procedures of physical verification of inventories is not applicable in view of above. c) The company is maintaining proper records of inventory. The Discrepancies noticed on verification between the physical Stocks and the book records were not material. 3. The Company has granted/taken unsecured loans to / from the companies / firms or other parties listed in the register maintained under section 301 of the Companies Act, 1956 and/or to the Companies under the same management, as defined under sub section (IB) of the Companies Act, 1956. 4. In our opinion and according to the information and explanations given to us, there is adequate internal control procedures commensurate with the size of the company and the nature of its business with regard to purchases of inventory, fixed assets. During the course of our audit, we have not observed any continuing failure to correct major weaknesses 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 explanation given to us, the transaction made in pursuance of contracts or arrangements 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 price at the relevant time. 6. The company has not accepted any deposits from the public within the meaning of Sections 58A of the Act and the rules framed there under. 7. In our opinion, the company has an internal audit system commensurate with the size and nature of its business. 8. a) The company is regular in depositing with appropriate authorities undisputed statutory dues including provident fund, employees state insurance, income tax, sales tax, custom duty, cess and other material statutory dues applicable to it. b) According to the information and explanation given to us, there are no dues of sale tax, income tax, customs duty, excise duty and cess which have not been deposited on account of any dispute. 9. The Company has accumulated losses as at 31st March,2011 and it has not incurred any cash losses in the financial year ended on that date or in the immediately preceding financial year. 10. In our opinion and according to the information and explanations given to us, the company has defaulted in repayment of dues to a financial institution and banks. 11. The company has not granted any loans and advances on the basis of security by way of pledge of shares and other securities. 12. In our opinion, the company is not a chit fund or a nidhi mutual benefit fund/society. Therefore, the provisions of clause 4 (xiii) of the Companies (Auditors Report) Order, 2003 are not applicable to the company. 13. In our opinion, the company is not a dealer or trader in share, securities, debenture and other investment. 14. In our opinion and according to the information and explanations given to us, the company has not given any guarantee for the loan taken by others from banks or financial institutions during the year. 15. In our opinion, the term loan has been applied for the purpose for which it was raised. 16. According to the information and explanations given to us and on an overall examination of the balance sheet of the company, we report that short term fund have not been used for the long term uses. 17. During the period covered by our audit report, the company has not raised any money through the public issue. 18. According to the information and explanations given to us, no fraud on or by the company has been noticed during the course of our audit. 19. The other clauses of paragraph 4 of the companies (Auditors Reports) order 2003 are not applicable in the case of the company for the current year, since in our opinion there is no matter which arises to be reported in the aforesaid order. PLACE: AHMEDABAD. FOR, D.V. DAVE & CO., DATE : 02/09/2011 CHARTERED ACCOUNTANTS, (CA D.V. DAVE) PROPRIETOR