p r cements ltd Auditors report
P.R. CEMENTS LIMITED
ANNUAL REPORT 2011-2012
AUDITORS REPORT
To,
The Members,
P.R. CEMENTS LIMITED
VIJAYAWADA
We have audited the attached Balance Sheet of P.R. CEMENTS LIMITED,
VIJAYAWADA, as at 30th June, 2012 and the Statement of Profit and Loss for
the year ended on that date annexed thereto which we signed in reference to
this report. 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.
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.
1. 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 give in the Annexure a statement on the
matters specified in paragraphs 4 and 5 of the said Order.
2. Further to our comments in the annexure referred to in paragraph 1
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 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 it appears from our examination of those
books.
iii) The Balance Sheet and Statement of Profit and Loss dealt with by this
report are in agreement with the books of account.
iv) In our opinion, the Balance Sheet and Statement of Profit and Loss
dealt with by this report comply with the accounting standards referred to
in sub-section (3C) of Section 211 of the Companies Act, 1956, except
Accounting standard (AS-15) relating to employee benefits.
v) In our opinion and based on written representation received from
directors, and taken on record by the Board of Directors, none of the
Directors is disqualified on 30th June, 2012 from being appointed as a
Director in terms of Clause (g) of sub-section (1) to Section 274 of the
Companies Act, 1956.
vi) In our opinion and to the best of our information and according to the
explanations given to us, the said accounts read with significant
accounting policies and other notes 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:
b) In so far as it relates to balance Sheet, of the state of affairs of the
Company as at 30th June 2012
And
b) In so far as it relates to Statement of Profit and Loss, of the profit
of the Company for the year ended on that date.
Place: Hyderabad For RAMBABU & Co.,
Date : 29.08.2012 Chartered Accountants
Firm Reg. No. 002976S
Sd/-
C. SATYAPRAKASH
Partner
M. No. 027183
ANNEXURE TO THE AUDITORS REPORT:
Referred to as in paragraph 1 of our report of even date.
1. In respect of its Fixed assets:
(a) The company has maintained proper records showing full particulars
including details and situation of fixed assets.
(b) As explained to us, all the fixed assets have not been physically
verified by the management during the year but there is a program of
verification in phased periodical manner at regular intervals, 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
physical verification.
(c) During the year, the company has not disposed of substantial part of
the Assets. According to the information and explanations given to us, we
are of the opinion that no transactions are affected involving disposal of
assets so as to affect going concern status of the company.
2. In respect of its Inventories:
(a) As explained to us, inventories have been physically verified during
the year by the management at regular intervals. In our opinion, the
frequency of verification is reasonable.
(b) In our opinion and according to the information and explanations given
to us, 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 maintained proper records of inventories. In our
opinion and according to the information and explanations given to us, the
discrepancies noticed on verification between the physical stocks and the
book records were not material, have been properly dealt with in the books
of account.
3. In respect of loans secured or unsecured, granted or taken by the
company from/to companies, firms or other parties covered in the register
maintained under section 301 of the companies act, 1956.
a. The Company has taken loan aggregating Rs.331.89 lakhs from Companies,
firms or other parties covered in the registered maintained under section
301 of the Companies Act, 1956.
b. According to the information and explanations given to us, we are of the
opinion, the terms and conditions on which loan taken by the company from
such 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.
c. There is no overdue amount in-respect of loan taken from parties listed
in the register maintained under section 301 of the Companies Act, 1956,
the question of statement on the steps taken for payment of the Principal,
and overdue amount of more than one lakh does not arise.
d. During the year the Company has not granted any loans to Companies,
firms or other parties covered in the registered maintained under section
301 of the Companies Act, 1956.
4. 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, for the purchase of
inventory, fixed assets and for the sale of goods. During the course of
audit, based on audit procedures applied, we have not observed any
continuing failure to correct major weaknesses in internal controls.
5. In respect of transactions covered under section 301of the Companies
act,1956:
(a) In our opinion and according to the information and explanations given
to us the transactions, contracts or arrangements that are 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, that the transactions 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 Rs. 5 Lakhs with parties covered above
during the year have been made at prices which are reasonable having regard
to prevailing market price at the relevant time.
6. In our opinion and according to the information and explanations given
to us, the company has not accepted any Deposits from public to which the
directives issued by the Reserve Bank of India and the provisions of
sections 58A and 58AA of the Companies Act, 1956 and the Companies
(Acceptance of Deposits) Rules, 1975 framed there under apply.
7. In our opinion, the Company has an independent internal audit system
commensurate with the size and nature of its business.
8. We have broadly reviewed the books of account maintained by the Company
in respect of products where, pursuant to the Rules made by the Central
Government of India, the maintenance of cost records has been prescribed
under clause (d) of sub section (1) of section 209 of the Act and are of
the opinion that prima facie, the prescribed accounts and records have been
made maintained. We have not, however, made a detailed examination of the
records with a view to determine whether they are accurate or complete.
9. In respect of statutory dues:
(a) According to the records of the company and as per the information and
explanations given to us, the company is generally, regular in depositing
with appropriate authorities undisputed current Statutory dues including
Provident fund, Investor education & protection fund, Employees state
insurance, Income tax, Sales tax, Wealth tax, Custom duty, Excise duty,
Cess and other material statutory dues applicable to it.
(b) According to the information and explanations given to us, no
undisputed Amounts payable in respect of Income tax, Wealth tax, Sales tax,
Customs duty, Excise duty and Cess that were outstanding, as at 30th June,
2012 for a period of more than six Months from the date they became payable
except Sales tax Rs.178.69 lakhs.
(c) According to the information and explanation given to us, there are no
dues of Sale tax, Income tax, Custom duty, Wealth tax, Excise duty and
Cess, which have not been deposited on account of any dispute except the
following-
(Rs. in lakhs)
S. Name of the Nature of Amount. Rs. Not Deposited Due
No. Statute the dues to Dispute Rs.
1. APGST Sales Tax 26.52 26.52
Act-1957
2. APGST Interest 234.77 234.77
Act-1957
3. Mines Interest 85.89 39.37
Department
Total 347.18 300.66
10. In our opinion, the company has accumulated losses at the end of the
year exceeding its net worth but not incurred cash losses during the
financial year covered by our audit and in the immediately preceding
financial year.
11. As per the records of the Company and according to the information and
explanations given to us, there are no dues to the financial institutions
and banks. Hence, the question of default does not arise.
12. According to the information and explanations given to us, the company
has not given any loans and 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
benefit fund/society. Accordingly the provisions of clause 4(xiii) of the
Companies (Auditors Report) Order, 2003 are not applicable to the company.
14. In our opinion, the company is not dealing in or trading in shares,
securities, and debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the Companies (Auditors Report) Order, 2003
are not applicable to the company.
15. In our opinion, according to the information and explanations given to
us, the company has not given guarantees for loans taken by the others from
banks or financial institutions.
16. In our opinion, during the year the company has not raised fresh terms
loans.
17. In our opinion, according to the information and explanations given to
us and on an overall examination of statements and records of the company,
that the funds raised on short-term basis have, prima facie, not been used
during the year for long-term investment and vice versa.
18. In our opinion, according to the information and explanations given to
us, the company has not issued debentures during the period covered by our
report.
19. In our opinion, the company has not raised money by way of public issue
for any specific purpose during the year.
20. In our opinion, the Company has not made any preferential allotment of
shares/securities during the year to parties and companies covered in the
register maintained under section 301 of the companies act, 1956.
21. In our opinion, the Company is not required to create/register/modify
any security (Charge) as company is not holding/issued any debentures.
22. According to the information and explanations given to us and based on
audit procedures performed, no fraud on or by the Company has been noticed
during the year.
Place: Hyderabad For RAMBABU & Co.,
Date : 29-08-2012 Chartered Accountants
Firm Reg. No. 002976S
Sd/-
C. SATYAPRAKASH
Partner.
M. No. 027183