Grabal Alok Impex Ltd merged Auditor Reports

GRABAL ALOK IMPEX LIMITED ANNUAL REPORT 2010-2011 AUDITORS REPORT TO THE MEMBERS OF GRABAL ALOK IMPEX LIMITED. 1. We have audited the attached Balance Sheet of GRABAL ALOK IMPEX LIMITED (the Company) as at 31 March 2011, the Profit and Loss Account and the Cash Flow Statement of the Company 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 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, the Profit and Loss Account and the Cash Flow Statement dealt with by this report are in agreement with the books of account; (d) In our opinion, the Balance Sheet, the Profit and Loss Account and the 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 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 31 March 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 31 March 2011 and taken on record by the Board of Directors, none of the Directors is disqualified as on 31 March 2011 from being appointed as a director in terms of Section 274(1)(g) of the Companies Act, 1956. For Deloitte Haskins & Sells For Gandhi & Parekh Chartered Accountants Chartered Accountants [Firm Registration No : 117366W] [Firm Registration No : 120318W] R.D. Kamat Devang B. Parekh Partner Partner Membership No: 36822 Membership No: 105789 Place: Mumbai Date : 30th July, 2011 I 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) According to the information and explanations given to us, physical verification of major portion of fixed assets as at 31 March 2011 was conducted by the management during the year, which is reasonable having regard to the size of the company and nature of its business and no material discrepancies were noticed on such verification. (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. (ii) In respect of its inventories: (a) As explained to us, inventories (except stocks lying with third parties, confirmation has been obtained in respect of such inventory) have been physically verified during the year by the management at reasonable intervals. (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 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 not granted loans, secured or unsecured to companies, firms or other parties covered in the Register maintained under Section 301 of the Companies Act, 1956 and accordingly, clause (iii) (a) to (d) of CARO are not applicable to the Company. In respect of loans, secured or unsecured, taken by the Company from companies, firms or other parties covered in the Register maintained under Section 301 of the Companies Act, 1956, according to the information and explanations given to us: (a) The Company has taken loans from a party during the year. At the year- end, the outstanding balance of such loans taken was Nil and the maximum amount involved during the year was Rs. 5,912 Lakhs. (b) The rate of interest and other terms and conditions of such loans are, in our opinion, prima facie not prejudicial to the interests of the Company. (c) The payment of principal amount and interest is on demand and on that basis, the same is regular. (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 purchases of inventory and fixed assets and sale of goods and services. During the course of our audit, we have not observed any major weakness in such internal control system. (v) In respect of contracts or arrangements entered in the register maintained in pursuance of section 301 of the Companies Act, 1956: (a) To the best of our knowledge and belief and according to the information and explanations given to us, the particulars of contracts or arrangements referred to in Section 301 that needed to be entered in the register have been so entered. (b) Where each of such transaction is in excess of Rs. 5 lakhs in respect of any party, the transactions have been made at prices which are prima facie reasonable having regard to the prevailing market prices at the relevant time. (vi) The Company has not accepted any deposits from the public and hence the directives issued by the Reserve bank of India and the provisions of Sec 58A, 58AA or any other relevant provisions of the Act and the Companies (Acceptance of Deposit) Rules, 1975 with regard to the deposits accepted from the public are not applicable to the Company. (vii) In our opinion, the internal audit functions carried out during the year by firm of Chartered Accountants appointed by the Management have been commensurate with the size of the Company and the nature of its business. (viii) According to the information and explanations given to us, the Central Government has not prescribed maintenance of cost records under clause (d) of sub-section (1) of section 209 of the Act for the products of the Company. Accordingly,, the provisions of clause 4(viii) of the CARO are not applicable to the Company. (ix) According to the information and explanations given to us in respect of statutory dues: (a) The Company has generally been regular in depositing undisputed dues, including Provident Fund, Investor Education and Protection Fund, Employees State Insurance, Income-tax, Sales Tax, Service Tax, Custom Duty, Cess, and other material statutory dues applicable to it with the appropriate authorities during the year, except for delays in depositing VAT and service tax dues. (b) There were no undisputed amounts payable in respect of Income-tax, Custom Duty, Sales Tax, Service Tax, Cess and other material statutory dues, in arrears as at 31 March 2011 for a period of more than six months from the date they became payable, except for service tax under Finance Act, 1994, based on reverse charge mechanism quantified (based on internal assessment done by the management) at Rs. 9.10 lakhs (due on various dates). As informed, the Company is in the process of depositing such amount as on the date of the audit report. (c) According to the information and explanations given to us, there are no dues in respect of Income-tax, Sales Tax, Service Tax, Custom Duty, Excise Duty and Cess which have not been deposited as on 31 March 2011 on account of disputes. (x) The company neither has accumulated losses at the end of the year, nor incurred cash losses during the current and immediately preceding financial year. (xi) In our opinion and according to the information and explanations given to us, the Company has not defaulted in the repayment of dues to banks, financial institutions and debenture holders. (xii) According to the information and explanations given to us, the company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and any other securities. Accordingly, clause 4 (xii) of the order is not applicable to the company. (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. Accordingly clause 4 (xiii) of the order is not applicable to the company. (xiv) In our opinion and according to the information and explanations given to us, the company is not dealing in or trading in shares, securities, debentures or investments. Accordingly clause 4 (xiv) of the order is not applicable to the Company. (xv) In our opinion, according to the information and explanation given to us, the company has given guarantees for loans taken by an Associate company from financial institutions. As per the information & explanation given to us, the terms and conditions of the guarantees are not prima facie prejudicial to the interest of the Company. (xvi) On the basis of the records examined by us, and relying on the information compiled by the Company for co-relating the funds raised to the end use of term loans, we have to state that, the company has, prima-facie, applied the term loans for the purposes for which they were obtained, other than amounts temporarily invested pending utilisation of the funds. (xvii) In our opinion and according to the information and explanations given to us and on an overall examination of the Balance Sheet, we report that funds raised on short-term basis have not been used during the year for long-term investment. (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. Accordingly, the clause 4(xviii) of the order is not applicable to the Company. (xix) During the year, the Company issued and redeemed 5,000 debentures of Rs. 100,000 each in respect of which the security was created and released on redemption. (xx) The company has not raised any money by 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 For Gandhi & Parekh Chartered Accountants Chartered Accountants [Firm Registration No : 117366W] [Firm Registration No : 120318W] R.D. Kamat Devang B. Parekh Partner Partner Membership No: 36822 Membership No: 105789 Place: Mumbai Date : 30th July, 2011.