citric india ltd share price Auditors report

CITRIC INDIA LIMITED ANNUAL REPORT 2009-2010 AUDITORS REPORT TO THE MEMBERS CITRIC INDIA LIMITED 1. We have audited the attached Balance Sheet of Citric India Limited as at 31st March 2010 and also the Profit and Loss Account and 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 financial statements. An audit also includes assessing the accounting principles used and 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 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 hereto 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 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 those books; c) The Balance Sheet, Profit Loss Account and cash flow statement dealt with by this report are in agreement with the books of account; d) In our opinion, the Profit & Loss Account and Balance Sheet complied with Mandatory Accounting Standard referred to in Section 211 (3C) of the Companies Act, 1956. e) On the basis of written representations received from the directors, as on March 31, 2010 and taken on record by the Board of Directors we report that none of the directors is dis-qualified as on March 31, 2010 from being appointed as directors in terms of clause (g) of sub-section (1) of section 274 of the Companies Act, 1956; f) We draw attention to note number 1 (b) in respect to arrears of dividend on cumulative preference shares and note number 3(iv) in respect of depreciation. g) In our opinion and to the best of our information and according to the explanations give 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 subject to Clause (f) above: (i) In the case of the Balance Sheet, of the state of Affairs, of the Company as at 31st March 2010; (ii) In the case of the Profit and Loss Account of the loss of the Company for the year ended on that date; and (iii) In the case of the Cash flow statement of cash flows for the year ended on that date. Place: Mumbai For BATLIBOI & PUROHIT Date : 30th July, 2010 Chartered Accountants Firm Reg.No. 101048W Sd/- Kaushal Mehta Partner Membership No. 111749 ANNEXURE TO THE AUDITORS REPORT Annexure referred to in paragraph 3 of our report of even date i. The Company has maintained proper records of fixed asset s showing full particulars including quantitative details and situation of fixed assets. The management during the year has not physically verified the fixed assets. The company has not disposed any substantial portion of fixed assets during the year. ii. As the company has no inventory sub-clause (a), (b), (c) of clause (ii) is not applicable. iii. (a) The company has granted interest free loan without repayment schedule of the principal amount to 3 parties covered under register maintained under section 301 of the Companies Act, 1956. Maximum amount due in the year was Rs. 6,66,033/- Year end balance was nil. (b) Loan given was interest free without repayment stipulation so we can not comment whether the terms and conditions of the loans are prejudicial to the interest of the company. There is no overdue amount at the end of the year. (c) The Company has taken loan from one party S.H. Khatod & Sons company covered in the register maintained under section 301 of the Companies Act, 1956. The maximum amount involved during the year was Rs. 11,45,000/- and the year-end balance of loans taken from such party was Rs. 7,45,000/-. (d) Loan taken was interest free without repayment stipulation so we can not comment whether the terms and conditions of the loans are prejudicial to the interest of the company. (e) As there are no stipulations for repayment we cannot comment on overdue amount of loans taken from companies listed in the registers maintained under section 301 of the Companies Act, 1956. iv. As the company has discontinued the operations clause in respect of internal control system is not applicable. v. (a) According to the information and explanations given to us, we are of the opinion that the particulars of contracts or arrangements referred to in section 301 of the Act that need to be entered into the register maintained under section 301 have been so entered. (b) In our opinion and according to the information and explanations given to us, there are no 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 Rupees Five lacs in respect of any party during the year have been made at prices which are reasonable having regard to prevailing market prices at the relevant time. vi. The Company has not accepted deposits from the public and consequently the directives issued by Reserve Bank of India, the provisions of Section 58A and 58AA of the companies act, 1956 are not applicable. vii. The provisions relating to internal audit are not applicable to the Company. viii. The Central Government has not prescribed maintenance of cost records under clause (d) of subsection (1) of section 209 of the Companies Act, 1956 for the Company. ix. (a) According to the records of the company, there is no delay in depositing the 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. (b) According to the information & explanations given to us, the dues in respect of sales tax, income tax, custom duties, wealth tax, excise duty, and cess that have been deposited with the appropriate authorities on account of dispute and the forum whether the disputes are pending are given below: Name of the Amount Forum where statute A.Y. (Rs.) dispute is pending Income Tax Act 2003-2004 19,19,644 Appeal before CIT (A) 11 Income Tax Act 2004-2005 79,454 Refund Adjusted in 2003-2004 Income Tax Act 2005-2006 1,12,615 Refund Adjusted in 2003-2004 x. There are accumulated loses at the end of the financial year are more than 50% of its net worth. The company has not incurred cash losses during the financial year covered by our audit and the immediately preceding financial year. xi. Based on our audit procedure and according to the information and explanations given to us by the management, we are of the opinion that the company has not defaulted in repayment of dues to the Banks or Debenture Holders. In case of Financial Institution SICOM Rs. 4,63,000 is in default. xii. The Company has not granted 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 or a society. Therefore the provisions of clause 4 (xiii) of the companies (Auditors report) order, (as amended) are not applicable to the company. xiv. In our opinion, the Company is not dealing in or trading in shares, securities, debentures and other investments. Accordingly, the provisions of clause 4(xiv) of the Companies (Auditors Report) Order, 2003 (as amended) are not applicable to the Company. xv. In our opinion and according to the information and explanations given to us, the terms and conditions on which the Company has not given guarantee for loans taken by others from banks or financial institutions are not applicable. xvi. The Company has not applied for any term loans. xvii. Based on the information and explanations given to us and on an overall examination of the balance sheet of the Company, the Company has not raised funds on short-term basis for the purpose of long-term investments. xviii. During the year, 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 debenture during the year. xx. The Company has not raised any money by public issue during the year xxi. Based on the audit procedures performed and 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 BATLIBOI & PUROHIT Chartered Accountants Firm Reg. No. 101048W Sd/- Kaushal Mehta Partner Membership No.111749 Place: Mumbai Date : 30th June, 2010.