Bajaj Hindusthan Sugar & Industries Ltd merged Auditor Reports

BAJAJ HINDUSTHAN SUGAR AND INDUSTRIES LIMITED ANNUAL REPORT 2008-2009 AUDITORS REPORT TO THE MEMBERS We have audited the attached Balance Sheet of BAJAJ HINDUSTHAN SUGAR AND INDUSTRIES LIMITED as at 30th September, 2009, and the related Profit and Loss Account and Cash Flow Statement for the year ended on that date annexed thereto, which we have signed under 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. 1. 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 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 reasonable basis for our opinion. 2. As required by the Companies (Auditors Report) Order, 2003 (CARO, 2003), (as amended) issued by the Central Government of India in terms of Section 227(4A) of the Companies Act,1956, we annex hereto a Statement on the matters specified in paragraph 4 and 5 of the said Order. 3. Further to our comments in the Annexure referred to in paragraph 2 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 such books; (c) The Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by the report are in agreement with the books of account of the Company; (d) In our opinion, the Balance Sheet, Profit and Loss Account and Cash Flow Statement comply with the Accounting Standards referred to in section 211 (3C) of the Companies Act, 1956, to the extent applicable; (e) On the basis of the written representations received from the Directors, as on 30th September, 2009 and taken on record by the Board of Directors, we report that none of the Directors is disqualified as on 30th September, 2009, from being appointed as a Director in terms of Clause (g) of sub-section (1) of Section 274 of the Companies Act, 1956; (f) 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: (a) in the case of the Balance Sheet, of the state of the affairs of the Company as at 30th September, 2009; (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 Cash Flow Statement, of the cash flows for the year ended on that date. For and on behalf of DALAL & SHAH Chartered Accountants SHISHIR DALAL Partner Place : Mumbai, Membership No. 37310 Date : December 15, 2009. ANNEXURE REFERRED TO IN PARAGRAPH 2 OF OUR AUDITORS REPORT OF EVEN DATE ON THE ACCOUNTS FOR THE YEAR ENDED SEPTEMBER 30, 2009 OF BAJAJ HINDUSTHAN SUGAR AND INDUSTRIES LIMITED: On the basis of such checks as we considered appropriate and in terms of information and explanations given to us, we state that:- i) The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets. Additions and deductions made during the period as per Companys practice, will be entered in the said records during the current period. As explained to us, there is a regular programme of physical verification, which is reasonable, having regard to the size of the Company and the nature of fixed assets. As explained to us there were no material discrepancies noticed on such verification during the year; As per the information and explanation given to us on our enquiries the disposal of assets during the year were not substantial so as to have an impact on the operations of the Company, or affect its going concern; ii) (a) As explained to us, the inventories have been physically verified by the management at reasonable intervals during the period and/or at the close of the year; (b) As explained to us, the procedures of physical verification of the inventory followed by the management are, in our opinion, reasonable and adequate in relation to the size of the Company and the nature of its business; (c) According to the inventory records produced to us for our verification, we are of the opinion that the Company is maintaining proper records of its inventory. Further, discrepancies noticed on physical verification of inventories, if any, referred to above, as compared to book records, though not material, have been properly dealt with in the books of account; iii) The Company has obtained loans on current account from its Holding Company, the rate of interest and terms and conditions whereof are not prima facie prejudicial to the interest of the Company. Apart from it, 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; iv) In our opinion and according to the information and explanations given to us, there are generally adequate internal control system commensurate with the size of the Company and the nature of its business with regard to the purchase of inventory and fixed assets and for the sale of goods. There was no sale of services during the year. During the course of our audit, no major weaknesses in internal control system had come to our notice; v) On the basis of the audit procedures applied by us, and according to the information and explanations given to us on our enquiries on this behalf and the records produced to us for our verification, there contracts or arrangements that need to be entered into the register required to be maintained under Section 301 of the Companies Act, 1956 have been so entered; vi) The Company has not accepted any deposits from the public during the year; vii) In our opinion, the Company has an internal audit system commensurate with the size and nature of its business. viii) We have broadly reviewed the books of account maintained by the Company pursuant to the rules made by the Central Government for maintenance of cost records under Section 209(1)(d) of the Companies Act, 1956 in respect of Companys products to which the said rules are made applicable and are of the opinion that prima facie the prescribed accounts and records have been made and maintained. We have, however, not made a detailed examination of the records with a view to determine whether they are accurate. ix) (a) According to the records of the Company, the Company has been generally regular in depositing with statutory authorities, undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Employees State Insurance, Income tax, Sales tax, Wealth tax, Service tax, Customs Duty, Excise Duty, Cess and other material statutory dues applicable to it. According to the information and explanations given to us, no undisputed amounts payable in respect of income tax, sales tax, wealth tax, service tax, customs duty, excise duty and cess were outstanding, at the year end for a period of more than six months from the date they became payable. (b) On the basis of our examination of the documents and records of the Company and the information and explanations given to us upon our inquiries in this regard, there were no disputed amounts payable in respect of Income-tax, Sales Tax, Wealth-tax, Service tax, Customs Duty and Excise Duty/cess and not deposited with the appropriate authorities other than those stated hereunder: STATUTE FORUMS BEFORE WHOM PENDING TOTAL Commissioner Tribunal High Court Supreme Appeals Court Rs. Rs. Rs. Rs. Rs. 1. Excise Duty 77,57,038 - - - 77,57,038 x) The Company did not incur any cash loss during the year, though it had incurred cash loss in the immediately previous accounting year. As at the end of the financial year, its accumulated losses were not in excess of the fifty percent of its net worth. xi) Based on the information and explanations given by the management, we are of the opinion that the Company has not defaulted in repayment of dues to financial institutions and 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) All investments held by the Company at the close of the period are held in its own name. xiv) The Company has not given any guarantee for loans taken by others from banks or financial institutions. xv) Based on the information and explanations given to us by the management the term loans were applied for the purpose for which the loans were obtained. xvi) According to the information and explanations given to us and on 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. xvii) The Company has not made any preferential allotment of shares to companies/firms/parties covered in the register maintained under section 301 of the Companies Act, 1956. xviii) In our opinion and according to the information and explanations given to us, the Company has not issued any secured debentures during the period covered by our report. Accordingly, provisions of clause (xix) of the Companies (Auditors Report) Order, 2003 are not applicable. xix) The Company has not raised any money by public issues during the year. xx) During the course of our examination of the books and records of the Company, carried out in accordance with the generally accepted auditing practices in India, and according to the information and explanations given to us, we have neither come across any instance of fraud on or by the Company, noticed or reported during the year, nor have we been informed of such case by the management. In view of the nature of activities carried on by the Company clause no. (xiii) of CARO, 2003 is not applicable to the Company. For and on behalf of DALAL & SHAH Chartered Accountants SHISHIR DALAL Partner Place : Mumbai, Membership No. 37310 Date : December 15, 2009