AUDITOR
To the Members of
KANDHARI RUBBERS LIMITED, UDAIPUR
1. We have audited the attached Balance Sheet of KANDHARI RUBBERS LIMITED as at
31st March, 2013 and also the Profit & Loss Account and cash flow statement
for the period ended on that date annexed thereto. These financial statements are the
responsibility of the management of the Company. 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 mis-statement. 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 the management as well as evaluating the overall
financial statements presentation. We believe that our audit provides a reasonable basis
for our opinion.
3. As required by the companies Act (auditors report) Order, 2003 issued by the
Central Government of India in term of Sub-Section (4A) of Section 227 of the Companies
Act, 1956 and on the basis of such checks of Books and records of the Company as we
considered appropriate and according to the information and explanation given to us, 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 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 it appears from our examination of such books..
c. The Balance Sheet and profit and Loss Account and cash flow statement dealt with by
this Report comply with the mandatory accounting standards referred to in Section 211 (3C)
of the Companies Act 1956.
d. The Balance Sheet and Profit & Loss account referred to in this report are in
agreement with the books of account.
e. Based on the written representations received from the Directors of the Company as
on March 31st, 2013 and taken on record by the Board of Directors, we report that none of
the directors is disqualified as on 31st March, 2012 from being appointed as a
director in terms of clause (g) of sub-section (1) of Section 274 of the Companies Act,
1956.
5. Note No. 26 regarding preparation of accounts on going concern basis
6 Attention is invited to:
a Non - provision for margin money in the form of FDRs on account of time barred
guarantees given by bank and interest thereupon as referred in Note No. 1 (III) (amount
unascertainable).
b Non -provision for depreciation aggregating toRs.6461610.00 as referred in Note No.
13.
c Non - provision for interest aggregating to Rs. 6146390.00 as referred in Note No.
15.
d Non - provision (amount unascertainable) for interest on bank borrowing as referred
in Note No 16.
e Non- provision (amount unascertainable) for interest on loans and advances as
referred in Note No. 18.
f. No accounting enteries passed on by the company for sales of Immovable and movable
assets of the company by Secured creditors of the company on 02-01-2008 and 31-01-2008 for
Rs 5 Crore .
g. Effect of sales of assets by secured creditors not given under heading secured loans
shown in balance sheet.
h. No TPS Deducted on the payment liable for make TPS
We further report that, without considering items mentioned at 6(a), 6(d ) & 6(e)
above, the effect of which could not be determined, had the observations made by us in
items at 6 (b) & (c) above been considered, the loss for the period would have been
Rs. 122.05 Lacs ( as against the reported figure of profit Rs. 04.03 Lacs ) and
Liabilities and provisions would have been Rs. 155.51 Lacs ( as against the reported
figure of Rs 29.43 Lacs ). Had the un-provided depreciation for the years 1998-99 to
2011-13 and interest to Financial Institutions for the year 2001-02 to 2012-13 also been
considered the accumulated loss up to 31.03.13 would have been Rs. 2283.84 Lacs.
7. Subject to the foregoing, in our opinion and to the best of our information and
according to the explanations given to us, the said accounts subject to our observations
read together with other 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 Balance Sheet, of the state of affairs of the Company as at 31st
March, 2013
ii. In the case of the Profit and Loss Account, of the loss for the year ended on that
date.
|
For :- M/S C.KJagetia & Co., |
|
Chartered Accountants |
|
Sd |
| Udaipur |
Chandresh Kumar Jagetia |
| 25 August, 2013 |
Proprietor |
|
M.N,.74511 |
ANNEXURE TO THE AUDITORS REPORT
(Referred to in paragraph (3) of our Report of even date)
1. In respect of its fixed assets:-
(a) The Company has maintained records in loose leaf showing full particulars including
quantitative details and situation of its fixed assets.
There is no fixed assets in existence as company Immovable and movable assets possessed
and sold out by the FTs and as reported by management the illegal possession and sales of
Immovable and movable assets of the company is challenged before honorable RHC Jodhpur
through writ .by the company.
2. In respect of its inventories:-
(a) There is no Inventory in existence as company Immovable and movable assets
possessed and sold out by the FIs and as reported by management the illegal possession
and sales of Immovable and movable assets of the company is challenged before Honorable
RHC Jodhpur through writ .by the company
3. In respect of loans Secured or Unsecured, granted or taken by the Company to/from
Companies, firms or other parties covered in the register maintained under section 301 of
the Companies Act, 1956:-
(a) According to the information and explanation given to us, the company has granted
unsecured interest free loans to 5 parties aggregating to Rs 69.70 lacs and the Company
has not taken any loans, secured or unsecured from Companies, firm or other parties
covered in the register maintained under section 301of the Companies Act, 1956.
(b) In our opinion and according to the information and explanations given to us, the
loans to the parties have been given without interest and any terms and conditions for
repayment.
(c) No reasonable steps have been taken by the Company for recovery of the principal.
4. In our opinion and according to the information and explanations given to us, the
internal control procedures needs to be strengthened to bring it in line with the size of
the Company and the nature of its business, for the purchase of inventory, fixed assets
and for sale of goods. During the course of our audit we have not noticed any major
weakness in internal control procedures
5. In respect of transactions covered under section 301 of the Companies Act, 1956:-
In our opinion and according to the information and explanations given to us, there
were no transactions during the year that need to be entered in to the register in
pursuance of section 301 of the Companies Act, 1956.
6. The Company has not accepted any deposits from the public during the accounting year
within the meaning of Section 58A and 58AA of the Companies Act, 1956 and rules framed
there under.
7. In our opinion, the internal audit system in the Company needs to be strengthened to
bring it in line with the size of the Company and the nature of its business.
8. As informed to us, the Central Government has not prescribed for the maintenance of
cost records under section 209 (1) (d) of the Companies Act,1956 for any of the products
of the Company.
9. In respect of statutory dues:-
(a) According to the records of the Company, the Company is generally regular in
depositing undisputed statutory dues including Excise Duty, Sales tax and other material
statutory dues with appropriate authorities and there are no undisputed statutory dues
payable for a period of more than six months from the date they became payable as at 31st
March, 2012 except dues of Provident Fund Employees State Insurance as stated below:
| Name of statute |
Nature of the dues |
Amount |
| Provident Fund Act |
Provident Fund |
124284.79 |
| Employees State Insurance Act |
Employees State Insurance |
4385.79 |
(b) According to the records of the Company and the information and explanations given
to us, there are no dues in respect of Custom duty, Wealth tax, Excise Duty and Cess
matters on account of any dispute. The dues in respect of Sales tax which have not been
deposited with the appropriate authorities on account of dispute are as under:
| Name of statute where pending |
Nature of dues |
Amount |
Period |
Forum |
| Sales Tax Act |
Sales Tax |
2637439.00 |
2000-2001 |
CTO Special circle |
10. The accumulated losses of the Company as at 31 st March, 2012 exceed Hundred
percent of its net worth and the Company has incurred cash losses during the current year
and immediately preceding financial year.
11. According to the information and explanations given to us, the Company has
defaulted in repayment of dues to financial institutions and bank as follows:
| Name of |
Nature |
Amount |
Period |
| Institution |
|
(Lacs) |
|
| IFCI |
Term Loan |
244.29 |
2001-12 |
| IDBI |
Term Loan |
259.56 |
2001-12 |
| ICICI |
Term Loan |
110.79 |
2001-12 |
| SBI |
Working Capital |
246.08 |
2001-12 |
| IFCI |
Interest |
269.50 |
2001-12 |
| IDBI |
Interest |
286.29 |
200112 |
| ICICI |
Interest |
122.23 |
2001-12 |
| SBI |
Interest |
Unascertained |
2001-12 |
12. The Company has not granted any loans & advances on the basis of security by
way of pledge of shares, debentures and other securities, therefore clause 4(xii) is not
applicable.
13. The provisions of any special statue applicable to Chit Fund/Nidhi/Mutual benefit
funds/ Societies are not applicable to the Company, therefore clause 4(xiii) is not
applicable.
14. In our opinion, The Company is not dealing or trading in shares, securities,
debentures and other investments, therefore clause 4(xiv) is not applicable.
15. In our opinion and according to the information and explanations given to us, the
Company has not given any guarantees for loans taken by others from banks or financial
institution during the year, therefore clause 4(xv) is not applicable.
16. In our opinion and according to the information and explanations given to
us, on an overall basis, the term loan taken from the financial institutions have been
applied for the purpose for which they were obtained.
17. In our opinion and according to the information and explanations given to us, there
are no funds raised on short term basis which have been used for long term investment.
18. The Company has not made any preferential allotment of shares to parties and
Companies covered in the registered maintained under section 301 of the Companies Act,
1956. Accordingly clause 4(xviii) of the order is not applicable to the Company.
19. The Company has no debentures, therefore the clause 4(xix) of the order is not
applicable to the Company.
20. The Company has not raised money by public issues during the year, therefore the
clause 4(xx) of the order is not applicable to the Company.
21. In our opinion and according to the information and explanations given to us, no
fraud on or by the Company has been noticed or reported during the year, that caused the
financial statements to be to be materially misstated.
|
For :- M/S C.KJagetia & Co., |
|
Chartered Accountants |
|
Sd |
|
C. K. JAGETIA |
| Udaipur |
Proprietor |
| 25,August. 2013. |
M.N.074511 |
+91-9892691696
