Arvind Products Ltd merged Auditor Reports

ARVIND PRODUCTS LIMITED ANNUAL REPORT 2010-2011 AUDITORS REPORT TO THE MEMBERS OF ARVIND PRODUCTS LIMITED 1. We have audited the attached Balance Sheet of ARVIND PRODUCTS LIMITED, as at March 31, 2011, the Profit and Loss Account and also the Cash Flow Statement for the year ended on that date 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 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 (Order) 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: 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 appears from our examination of those books; iii) The Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by this report are in agreement with the books of account; iv) In our opinion, the Balance Sheet , Profit & Loss Account and Cash Flow Statement dealt with by this report comply with the applicable accounting standards referred to in Subsection (3C) of Section 211 of the Companies Act, 1956; v) On the basis of written representations 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 31st March, 2011 from being appointed as a director in terms of clause (g) of sub-section (1) of 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 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 Profit for the year ended on that date; and (c) In the case of Cash Flow Statement, of the cash flows for the year ended on that date. For Sorab S. Engineer & Co. Firm Registration No. 110417W Chartered Accountants CA. Chokshi Shreyas B. Place: Ahmedabad Partner Date : May 14, 2011 Membership No. 100892 Annexure To The Auditors Report: Re: ARVIND PRODUCTS LIMITED Referred to in Paragraph 3 of our Report of even date, (i) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of its fixed assets. (b) As explained to us, the fixed assets have been physically verified by the management during the year in accordance with a phased program of verification, which in our opinion provides for physical verification of all the fixed assets at reasonable intervals. We are informed that no material discrepancies were noticed on such verification. (c) In our opinion and as per the information and explanations given to us, the Company has not made any substantial disposal of fixed assets during the year and going concern status of the Company is not affected. (ii) (a) As explained to us, the inventory has been physically verified during the year by the management. 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 inventory 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 is maintaining proper records of inventory. As explained to us, the discrepancies noticed on verification between the physical stocks and the book records were not material having regard to the size of the Company, and the same have been properly dealt with. (iii) The Company has not granted/taken any loans secured or unsecured to/from Companies, firms or other parties covered in the register maintained under Section 301 of the Companies Act, 1956. Consequently, requirement of clauses (iii,b), (iii,c), (iii,d), (iii,e), (iii,f) and (iii,g) of paragraph 4 of the order are not applicable. (iv) In our opinion and according to the information and explanations given to us, there exists 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 with regard to the sale of goods and services. During the course of our audit, we have not observed any continuing failure to correct major weaknesses in internal controls. (v) To the best of our knowledge and belief and according to the information and explanations given to us, we are of the opinion that there were no contracts or arrangements that need to be entered in the Register maintained under section 301 of the Companies Act, 1956. Consequently, requirement of clauses (v,a) and (v,b) of paragraph 4 of the order are not applicable. (vi) The Company has not accepted any fixed deposit during the year. (vii) The Company has an internal audit system, which in our opinion, is commensurate with the size of the Company and the nature of its business. (viii) We have broadly reviewed the books of accounts relating to materials, labor and other items of cost maintained by the company pursuant to the Rules made by the Central Government for the maintenance of cost records under section 209 (1) (d) of the Companies Act, 1956 and we are of the opinion that prima facie the prescribed accounts and records have been made and maintained. We have not however made a detailed examination of these records with a view to determine whether they are accurate and complete. (ix) (a) The Company is generally regular in depositing with appropriate authorities undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Employees State Insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess and other material statutory dues applicable to it. Further since the Central Government has till date not prescribed the amount of cess payable under section 441A of the Companies Act, 1956, we are not in a position to comment upon the regularity or otherwise of the Company in depositing the same. (b) There are no undisputed amounts outstanding as at March 31, 2011 for a period of more than six months from the date they became payable. (c) Following amounts have not been deposited as on March 31, 2011 on account of any dispute: Name of Statute Nature of Dues Amount Period to which Forum where (Rs. In amount relates the disputes Lacs) pending Central Excise 4.88 2008-2009 Central Excise Excise Duty Tribunal Act 2.88 2009-2010 Central Excise Tribunal 471.39 2002-2003, Assistant 2008-2009 Commissioner of Central Excise 917.56 2004-2005 DGFT 36.95 2008-2009 Commissioner of Central Excise Income 1032 2005-2006, CIT (Appeal) Tax Act 2006-2007 (x) The accumulated losses of the Company are not more than fifty percent of its net worth. The Company has not incurred any cash losses during the financial year covered by our audit and in the immediately preceding financial year. (xi) In our opinion and according to the information and explanations given to us, the Company has not defaulted in repayment of dues to financial institutions or banks. (xii) 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) The Company is not a chit fund or a nidhi/mutual benefit fund/ society. Therefore, the provisions of clause (xiii) of paragraph 4 of the order are not applicable. (xiv) In our opinion, the Company is not dealing in or trading in shares, securities, debentures and other investments. Therefore, the provisions of clause (xiv) of paragraph 4 of the order are not applicable. (xv) The Company has not given any guarantees for loans taken by others during the year. (xvi) To the best of our knowledge and belief and according to the information and explanations given to us, in our opinion, the Company has not obtained any term loan during the year. Therefore, the provisions of clause (xvi) of Paragraph 4 of the order are not applicable. (xvii) According to the information and explanations given to us and on an overall examination of the balance sheet of the Company, we report that funds raised on short-term basis have not prima facie, been used during the year for long-term investments. (xviii) According to the information and explanations given to us, the Company has not made any preferential allotment of shares during the year. (xix) According to the information and explanations given to us and the records examined by us, the Company has not issued any Secured Debentures during the year. (xx) The Company has not raised any money by public issue during the year. (xxi) Based upon the audit procedure performed by us and as per the information and explanations given to us, we report that no fraud on or by the Company has been noticed or reported during the course of our audit. For Sorab S. Engineer & Co. Firm Registration No. 110417W Chartered Accountants CA. Chokshi Shreyas B. Place: Ahmedabad Partner Date : May 14, 2011 Membership No. 100892