options chain Auditors report

SHREE BENZOPHEN INDUSTRIES LIMITED ANNUAL REPORT 2006-2007 AUDITORS REPORT To The Members of Shree Benzophen Industries Limited Baroda 1. We have audited the attached Balance Sheet of Shree Benzophen industries Limited as at 31st March 2007, the Profit and Loss Account for the year ended on that date 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 have 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 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, 2004 issued by the Central Government of India in terms of sub-section (4A) of section 227 of the Companies Act,We enclosure 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 and profit and loss account dealt with by this report are in agreement with the books of account. (iv) In our opinion,the balance sheet and profit and loss account dealt with this report comply with the accounting standards referred to in sub- section (3C) of section 211 of the Companies Act,1956. (v) On the basis of written representations received from the directors, as on 31st March 2007 and taken on record by the Board of Directors, we report that none of the directors is disqualified as on 31st March 2007 from being appointed as 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 2007. (b) In the case of the profit and loss account, of the lacs for the year ended on that date; For S.G. Bhagwat & Co Chartered Accountants (S.G. Bhagwat) Place: Baroda Partner Date: 10th August 2007 Membership No.30849 Annexure to the auditors retort referred to in paragraph 3 of our report of even date. Re : Shree Benzophen Industries Limited (i) (a) The records maintained by the company foe fixed assets regarding particulars including quantitative details and situation of fixed assets are incomplete and are not updated in certain cases. (b) All the assets have not been physically verified by the management during the year but there is a regular programme of verification which, in our opinion, is reasonable having regard to the size of the company and the nature of its assets. No material discrepancies were noticed on such verification. (c) The Company has not disposed off substantial part of fixed assets during the year. (ii) (a) The inventory has been physically verified during the year by the management. In our opinion, the frequency of verification is reasonable. (b) The procedures of physical verification of inventories 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. The discrepancies noticed on verification between the physical stocks and the book records were not material. (iii)(a) The Company has not granted any loans, secured or unsecured to companies, firms or other parties covered in the register maintained under section 301 of the act and therefore clauses (b),(c),and (d) are not applicable. (e) The company has taken loans from six parties covered in the register maintained under section. 301 of the Companies Act,1956. The maximum amount involved during the year was Rs. 141,43,939./- and the year-end balance of loans taken from such parties was Rs. 1,28,13,800/-. (f) No Rate of interest has been stipulated and no other terms and conditions have been specified in respect of the loans taken by the company from the parties and a company listed in the register maintained under section 301 of the Companies Act, 1956 .In our opinion the loans taken are not, prima facie, prejudicial to the interest of the company. (g) As stated, there are no stipulations as to the payment of interest or principal. (h) Since there are no stipulations as to the repayment, there is no overdue amount of loan taken by the company from the company and 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 adequate internal control procedures commensurate with the size of the company and the nature of its business with regard to purchases of inventory, fixed assets and with regard to the sale of goods. During the course of our audit, we have not observed any continuing failure to correct major weaknesses in internal controls. (v)(a) According to the information and explanations given to us, we are of the opinion that the transactions that need to be entered into the register maintained under section 301 of the Companies Act, 1956 have been so entered. (b) The company has entered into a transaction for job work made in pursuance of contracts or arrangements entered in the register maintained under section 301 of the Companies Act, 1956 for Rs 5,26,892/-. In absence of comparative instances, we are unable to comment as. (xix) The company has not issued any debentures in the year under report. (xx) The company has not raised monies by public issues during the year, hence the question of disclosure and verification of end use of such monies does not arise. (xxi) According to the information and explanations given to us, no fraud on or by the company has been noticed or reported during the course of our audit. For S.G. Bhagwat & Co Chartered Accountants (S.G. Bhawat) Place: Baroda Partner Date: 10th August 2001 Membership No.30849