Parekh Aluminex Ltd Auditor Reports

PAREKH ALUMINEX LIMITED ANNUAL REPORT 2011-2012 AUDITORS REPORT To The Members of Parekh Aluminex Limited We have audited the attached Balance Sheet of Parekh Aluminex Limited as at March 31, 2012 and also the statement of Profit & Loss and the Cash Flow Statement for the year ended on that date annexed thereto. 1. 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 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, 2003, as amended by the Companies (Auditors Report) (Amendment) Order, 2004, issued by the Central Government of India in terms of Sub-Section (4A) Section 227 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 that: (a) We have obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the purpose of our audit; (b) In our opinion, proper books of account as required by law, have been maintained by the Company so far as it appears from our examination of such books of the Company; (c) The Balance Sheet, statement of Profit & Loss and Cash Flow Statement dealt with by this report are in agreement with books of account of the Company; (d) In our opinion, Balance Sheet, statement of Profit & Loss and Cash Flow Statement dealt with by this report comply with the Accounting Standards as referred to in Sub-Section (3C) of Section 211 of the Companies Act, 1956; (e) On the basis of the written representations received from the Directors, as on March 31, 2012 and taken on record by the Board of Directors, we report that none of the directors of the Company are disqualified as at March 31, 2012, from being appointed as a director, in terms of clause (g) of Sub-Section (1) 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, 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 March 31, 2012; (ii) In the case of the Statement of Profit & Loss, of the profit for the year ended on that date; and (iii) In the case of the Cash Flow Statement, of the cash flows for the year ended on that date. For C.V. Pabari & Co. Chartered Accountants Firm Registration No. 114402W Chetan Pabari Place: Mumbai Proprietor Date : August 25, 2012 Membership No. 047924 ANNEXURE TO THE AUDITORS REPORT: Referred to in paragraph 3 of our Report of even date to the members of Parekh Aluminex Limited on the financial statements for the year ended March 31, 2012. 1. In respect of Fixed Assets: (a) The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets. (b) The Company has a programme for physical verification of the fixed assets, which in our opinion is reasonable having regards to the nature of business. Accordingly, the Fixed Assets have been physically verified by the management at the end of the year and no material discrepancies were noticed on such verification. (c) During the year, Company has disposed off some of the fixed assets. In our opinion and according to the information and explanations given to us, fixed assets disposed off were not substantial and therefore has not affected the going concern assumption. 2. In respect of its inventories: (a) As explained to us, the inventory has been physically verified by the Management during the year at reasonable interval. In our opinion, the frequency of verification is reasonable. (b) In our opinion and according to the information and explanations given to us, the procedures of physical verification of inventory followed by the Management are 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 and on the basis of the records of inventory, the Company is maintaining proper records of inventory. The discrepancies noticed on physical verification of inventory as compared to the book records were not material and have been properly dealt with in the books of account. 3. According to the information and explanations given to us, Company has not granted/taken any secured or unsecured loan to Companies, Firms or other parties covered in the Register maintained under Section 301 of the Companies Act, 1956. Therefore, sub-clause (b), (c), (d), (e), (f) and (g) of (iii) of the said Order are not applicable for the year under review. 4. In our opinion and according to the information and explanations given to us, there are adequate internal control systems commensurate with the size of the Company and nature of its business with regard to the purchase of inventory, fixed assets and with regard to the sale of goods and services. During the course of our audit, we have not observed any continuing failure to correct major weakness in the internal control systems. 5. In respect of transactions entered in the registered maintained in pursuance of Section 301 of the Companies Act, 1956, (a) In our opinion and according to the information and explanations given to us, we are of the opinion that the transactions that needed to be entered into Register maintained under Section 301 have been so entered. (b) According to the information and explanations given to us and excluding certain transactions of purchase of goods and material of special nature for which alternate quotations are not available, where each of such transactions is in excess of five lacs rupees in respect of any party, in our opinion, the transactions have made at prices which are prima facie reasonable having regard to the prevailing market prices at the relevant time. However, with regard to the Management Service Contract with a party, as service is of specialized nature it is not possible to ascertain the market price for the same. 6. In our opinion and according to the information and explanations given to us, the Company has not accepted any deposits from public and therefore, the provisions of Section 58A and 58AA or any other relevant provisions of the Companies Act, 1956 and Companies (Acceptance of Deposits) Rules, 1975 are not applicable to the Company. 7. In our opinion, Company has an internal audit system commensurate with the size and the nature of its business. 8. We have broadly reviewed the books of accounts maintained by the Company in respect of products where, pursuant to the Rules made by the Central Government of India, the maintenance of cost records has been prescribed under clause (d) of Sub-Section (1) of Section 209 of the Act, and are of the opinion that, prima facie, the prescribed accounts and records have been made and maintained. We have not, however, made a detailed examination of the records, with a view to determine whether they are accurate or complete. 9. Statutory and Other Dues: (a) According to the records of the Company and information and explanations given to us, the Company has been generally regular in depositing undisputed statutory dues including Provident Fund, Income-Tax, Sales-Tax, Customs Duty and other statutory dues with the appropriate authorities during the year; (b) According to the records of the Company and information and explanations given to us, disputed Excise Duty demands aggregating to Rs.2,26,818/- have been deposited but the matter is pending with Central Excise & Service Tax Appellate Tribunal. 10. The Company does not have accumulated losses as at the end of the financial year and has not incurred any cash losses during current financial year and the immediately preceding financial year. 11. Based on our audit procedures and on the basis of information and explanations given by the Management, we are of the opinion that the Company has not defaulted in the repayment of dues to Financial Institutions and Banks. 12. 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 other securities. 13. The provisions of any Special Statute applicable to Chit Fund, Nidhi or Mutual Benefit Fund/Societies are not applicable to the company. 14. Based on the records examined by us and according to the information and explanations given to us, we are of the opinion that the Company does not deal or trade in shares, securities, debentures and other investments. 15. According to the information and explanations given to us, the Company has given guarantee of Rs. 125 Million for loans taken by others from Banks and Financial Institutions. 16. To the best of our knowledge and belief and according to the information and explanations given to us, term loans availed by the Company were prima facie, applied by the Company during the year for the purposes for which the loans were obtained. 17. According to the Cash Flow Statement and records examined by us and according to the information and explanations given to us, on overall basis, funds raised on short term basis have, prima facie, not been used during the year for long term investment. 18. The Company has not made any preferential allotment of shares to parties or companies covered in the Register maintained under Section 301 of the Companies Act, 1956. 19. According to the information and explanations given to us, the Company has not issued any debentures during the year under review and securities or charges have been created in respect of debentures issued. 20. The Company has not raised any money by public issues during the year. 21. During the course of our examination of the books and records of the Company 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 course of our audit. For C.V. Pabari & Co. Chartered Accountants Firm Registration No. 114402W Chetan Pabari Place: Mumbai Proprietor Date : August 25, 2012 Membership No. 047924