rayban sun optics india ltd Auditors report

RAYBAN SUN OPTICS INDIA LIMITED ANNUAL REPORT 2010-2011 AUDITORS REPORT TO THE MEMBERS OF RAYBAN SUN OPTICS INDIA LIMITED 1. We have audited the attached Balance Sheet of RAYBAN SUN OPTICS INDIA LIMITED (the Company) as at 31st December, 2011, the Profit and Loss Account and Cash Flow Statement for the year then ended, both 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 of material misstatements. An audit includes examining, on a test basis, evidence supporting the amounts and the disclosures in the financial statements. An audit also includes assessing the accounting principles used and the significant estimates made by the 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 (CARO) issued by the Central Government in terms of Section 227(4A) 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 in paragraph 3 above, we report as follows: (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 it appears from our examination of those books; (c) the Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by this report are in agreement with the books of account; (d) in our opinion, the Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by this report are in compliance with the Accounting Standards referred to in Section 211(3C) of the Companies Act, 1956; (e) in our opinion and to the best of our information and according to the explanations given to us, the said accounts read together with the 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; (i) in the case of the Balance Sheet, of the state of affairs of the Company as at 31st December, 2011; (ii) in the case of the Profit and Loss Account, of the profit of the Company for the year ended on that date and (iii) in the case of the Cash Flow Statement, of the cash flows of the Company for the year ended on that date. 5. On the basis of the written representations received from the Directors as on 31st December, 2011 and taken on record by the Board of Directors, none of the Directors is disqualified as on 31st December, 2011 from being appointed as a director in terms of Section 274(l)(g) of the Companies Act, 1956. For DELOITTE HASKINS & SELLS Chartered Ac countants (ICAI Registration No.015125N) sd/- Deepak Roy Gurgaon Partner February 15, 2012 (Membership No.053091) ANNEXURE TO THE AUDITORS REPORT (Referred to in paragraph 3 of our report of even date) (i) In respect of its fixed assets: (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of the fixed assets. (b) The fixed assets of the Company have been physically verified by the management during the year ended December 31,2011 and discrepancies noted on such verification were not significant and have been properly dealt with in the books of account. (c) The fixed assets disposed off during the year, in our opinion, do not constitute a substantial part of the fixed assets of the Company and such disposal has, in our opinion, not affected the going concern status of the Company. (ii) In respect of its inventory: (a) As explained to us, the stock of raw materials except materials lying with third parties, components & other materials, stores & spares, work in progress and finished goods have been physically verified by the management during the year ended December 31, 2011. (b) In our opinion and according to the information and explanation given to us, the procedures of physical verification of inventories followed by the Management were reasonable and adequate in relation to the size of the Company and the nature of its business. (c) In our opinion and according to the information and explanations given to us, the Company has maintained proper records of its inventories and no material discrepancies were noticed on physical verification. (iii) The Company has neither granted nor taken any loans, secured or unsecured to/from companies, firms or other parties listed in the register maintained under Section 301 of the Companies Act, 1956. Accordingly clauses (iii) (b), (iii)(c), (iii)(d), (iii)(f) and (iii)(g) of paragraph 4 of CARO are not applicable to the Company. (iv) In our opinion and according to the information and explanations given to us, there is an adequate internal control system commensurate with the size of the Company and the nature of its business with regard to purchase of inventory, fixed assets and for sale of goods. There are no transactions with respect to sale of sendees. During the course of our audit, we have not observed any major weakness in such internal control system. (v) In our opinion and according to the information and explanations given to us, there are no transactions made in pursuance of contracts and arrangements the particulars of which need to be entered in the register required to be maintained under Section 301 of the Companies Act, 1956. Accordingly clause (v)(b) of paragraph 4 of CARO is not applicable to the Company. (vi) According to the information and explanations given to us, the Company has not accepted any deposit from the public during the year within the meaning of Sections 58A & 58AA or any other relevant provisions of the Companies Act, 1956 and Companies (Acceptance of Deposits) Rules, 1975. (vii) In our opinion, the Company has an adequate internal audit system commensurate with the size and the nature of its business. (viii) According to the information and explanations given to us, the Central Government has not prescribed the maintenance of cost records under Section 209(l)(d) of the Companies Act. 1956, for the business activities of the Company. (ix) According to the information and explanations given to us in respect of statutory dues: (a) Except for delays in deposit of taxes deducted at source, work contract tax and labour welfare fund, the Company has generally been regular in depositing other undisputed statutory dues payable in respect of provident fund, service tax, sales tax, employee state insurance dues, customs duty and other material statutory dues applicable to it with the appropriate authorities. fb) There are no undisputed amounts payable in respect of income tax, service tax, customs duty, excise duty and other material statutory dues in arrears as at December 31, 2011 for a period more than six months from the date they became payable. (c) There are no dues of wealth tax that have not been deposited on account of any dispute. According to the information and explanations given to us, disputed income tax, sales tax and excise duty dues that have not been deposited are as follows: Name of the Nature of Amount Period to Forum where dispute Statute Dues Rs. which the is pending amount relates Central Excise Excise Duty 27,310,456 1992-93 to Supreme Court Act, 1944 1995-96 Central Excise Excise Duty 2,061,660 1996-97 and Assessment order Act, 1944 1997-98 remanded to Assistant Commissioner, Central Excise, Bhiwadi Central Excise Excise Duty 1,689,669 2000-01 Customs Excise and Act, 1944 Service Tax Appellate Tribunal Income Tax Act, Income Tax 21,710,760 2007-08 Income Tax Appellate 1961 Tribunal Income Tax Act, Income Tax 54,156,731 2008-09 *Dispule Resolution 1961 Panel Income Tax Act, Income Tax 107,600 2009-10 Assessing Officer 1961 Delhi Sales Tax Sales Tax 428,429 1992-93 Deputy Commissioner Act, 1975 (Appeals) Delhi Sales Tax Sales Tax 1,446,119 1998-99 Sales Tax Officer Act, 1975 Delhi Sales Tax Sales Tax 854,958 1999-2000 Sales Tax Officer Act, 1975 Bengal Finance Sales Tax 996,311 1996-97 Deputy Commissioner (Sales Tax) Act, (Commercial Taxes) 1941 Bengal Finance Sales Tax 2,721,837 1998-99 Deputy Commissioner (Sales Tax) Act, (Commercial Taxes) 1941 Bengal Finance Sales Tax 167,741 1993-94 Deputy Commissioner (Sales Tax) Act, (Commercial Taxes) 1941 Bengal Finance Sales Tax 323,064 1994-95 Deputy Commissioner (Sales Tax) Act, (Commercial Taxes) 1941 Bengal Finance Sales Tax 737,199 2000-01 Assistant (Sales Tax) Act, Commissioner 1941 (Commercial Taxes) Rajasthan Sales Sales Tax 357,685 1995-96 and Amnesty Scheme Tax Act, 1994 1996-97 Kerala General Sales Tax 387.706 1997-98 and Commercial Tax Sales Tax Act, 1998-99 Officer 1963 Rajasthan Sales Sales Tax 10,714,927 2005-06 to Tax Board, Ajmer Tax Act, 1994 2007-08 Rajasthan Sales Sales Tax 1,676,475 2002-03 Tax Board, Ajmer Tax Act, 1994 * Draft order has been received from Deputy Commissioner of Income Tax. The Company has preferred an appeal to the Dispute Resolution Panel. fx) The Company does not have any accumulated losses at the end of the financial year and has not incurred cash losses in the financial year and in the immediately preceding financial year. (xi) In our opinion and according to the information and explanations given to us, there are no dues to banks, financial institutions and debenture holders. (xii) In our opinion, the Company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and other securities. (xiii) In our opinion and according to the information and explanations given to us, the Company is not a chit fund or a nidhi/mutual benefit fund/society. (xiv) According to the information and explanations given to us, the Company is not dealing or trading in shares, securities, debentures and other investments. (xv) According to the information and explanations given to us, the Company has not given any guarantee for loans taken by others from banks or financial institutions. (xvi) According to the information and explanations given to us, the Company did not have any term loans outstanding during the year. (xvii) According to the information and explanations given to us, the Company has not raised any funds on short term basis. (xviii) The Company has not made any preferential allotment of shares to parties and companies covered in the register maintained under Section 301 of the Companies Act, 1956. (xix) The Company has not issued any debentures during the year. (xx) The Company has not raised any money by way of public issues during the year. (xxi) To the best of our knowledge and according to the information and explanations given to us, no fraud by the Company and no fraud on the Company has been noticed or reported during the year. For DELOITTE HASKINS & SELLS Chartered Ac countants (ICAI Registration No.015125N) sd/- Deepak Roy Gurgaon Partner February 15, 2012 (Membership No.053091)