prakash ceramics ltd share price Auditors report
PRAKASH CERAMICS LIMITED
ANNUAL REPORT 2011-2012
AUDITORS REPORT
TO
THE MEMBERS OF
PRAKASH CERAMICS LIMITED
We have audited the annexed Balance Sheet of PRAKASH CERAMICS LIMITED as on
31st March 2012 and also the Profit & Loss Account for the period 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.
We conducted our audit in accordance with accounting 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 management, as well as evaluating the
overall financial statements presentation. We believe that our audit
provides a reasonable basis for our opinion.
(1) As required by the Companies (Auditor Report) Order, 2003 issued by the
Department of Company Affairs in terms of Section 227(4A) of the Companies
Act 1956, we give in the Annexure a statement on the matters specified in
the said order to the extent applicable.
(2) 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.
(3) 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 such books.
(4) The Balance sheet and Profit and Loss Account dealt with by the report
are in agreement with the books of accounts.
(5) In our opinion, the Balance Sheet, Profit & Loss Account, and Cash Flow
statement dealt with by this report comply with the Accounting Standard
referred to in sub-section (3c) of Section 211 of the Companies Act, 1956.
(6) On the basis of written representation received from the Directors and
taken on records by the Board of Directors, we report that none of the
Directors is disqualified as at 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.
(7) In our opinion and to the best of our information and according to the
explanations given to us, the said accounts read together with the Notes
thereon, particularly the note no 4 regarding inter corporate investment
and Loans thereon give the information required by the Companies Act, 1956
in the manner so required and give a true and fair view:
(a) In case of the Balance Sheet, of the state of affairs of the Company as
at 31st March 2012 and;
(b) In case of Profit and Loss Account, of the Profit of the Company for
the year ended on that date.
(c) In case of Cash Flow Statement, of the cash flows for the year ended on
that date.
For, Y. D. & Co
CHARTERED ACCOUNTANTS
FRN: 018846N
CA RAKESH PURI
PLACE: LUDHIANA PARTNER
DATE : 01.09.2012 M. No.: 092728
ANNEXURE TO THE AUDITORS REPORT:
Annexure referred to in Paragraph 3 of the Auditors Report of Even date to
the Member of PRAKASH CERAMICS LIMITED
1. The fixed assets register was not made available to us for verification,
However as explained to us the fixed assets have been physically verified
by the management at reasonable intervals and no materials discrepancies
have been noticed on such verification.
2. (a) As explained to us, inventories have been physically verified by the
management at regular intervals during the year.
(b) In our opinion, the procedures of physical verification of stocks
followed by the management are reasonable and adequate in relation to the
size of the company and nature of its business.
(c) The Company is maintaining proper records of inventory.
3. (a) As per information and explanation given to us, the company has not
granted loans to parties covered in the register maintained under section
301 of the Companies Act, 1956. Hence, clause (iii)(a), (b), (c) & (d) are
not applicable to the company.
(b) As per information and explanation given to us, the company has not
taken loans from parties covered in the register maintained under section
301 of the Companies Act, 1956. Hence, clause (iii)(e), (iii)(f) and
(iii)(g) are not applicable to the company.
4. In our opinion and according to the information and explanation given to
us there are adequate internal control procedures commensurate with the
size of the Company and nature of its business for the purchase of
inventory and for the sale of goods. During the course of audit, we have
not observed the continuing failure to correct major weakness in internal
controls.
5. In opinion and according to the information and explanation given to us,
there are no transactions of purchase and sales or services of goods and
materials and made in pursuance of contracts or arrangements entered in the
Registers maintained under section 301 of the Companies Act, 1956
aggregating during the year to Rs. 50000/- or more in respect of each
party.
6. The company has not accepted any deposits from public within the meaning
of provisions of section 58A & Section 58AA of the Companies Act, 1956.
7. In our opinion the company has an adequate internal audit system
commensurate with the size and nature of its business.
8. As informed to us the company is not required to maintain cost accounts
and records as prescribed by Central Government under section 290(1)(d) of
the Companies Act 1956.
9. According to the records of the company, statutory dues including
Investor Education and Protection fund, Income Tax and other statutory dues
have been generally deposited with the appropriate authorities. According
to the information and explanations given to us, no undisputed amounts
payable in respect of the aforesaid dues were outstanding as on 31st March,
2002 for a period of more than six months from the date of becoming
payable.
10. The accumulated losses of the Company are not more than fifty percent
of the net worth and the company has incurred cash loss in current
financial year, The Company has also incurred cash loss in the previous
financial year.
11. In our opinion and according to the information and explanations given
to us, Company has not defaulted in Repayment of any dues to financial
institutions or banks.
12. In our opinion and according to the information and explanation given
to us, no loans and advances have been granted by the company on the basis
of security by way of pledge of shares, debentures and other securities.
13. In our opinion, the Company is not a chit fund or a nidhi/mutual
benefit/society. Therefore, clause 4(xiii) of the Companies (Audit Report)
Order, 2003 is not applicable to the company.
14. In our opinion the Company has maintained records of transactions and
contracts in respect of investment in shares, mutual funds and other
investments and generally timely entries have been made therein. All the
shares, mutual funds and other investments held by the companies are in its
own name except to the extent of the exemption granted under section 49 of
the Companies Act, 1956.
15. In our opinion The Company has not given any guarantee for loans taken
by others from banks or financial institutions.
16. The Company has not raised any new term loans during the year.
17. On the basis of an overall examination of the Balance Sheet of the
Company and according to the information and explanations given to us, in
our opinion, funds raised on short term basis have not been used during the
year for long term investment and vice versa.
18. The Company has not made any preferential allotment of shares to
parties and companies covered in the register maintained under section 301
of the Act during the year.
19. The Company has not issued any debentures till date.
20. The Company has not raised any money by public issue during the year.
21. During the course of our examination of the books and records of the
company, carried out in accordance with the generally accepted audit
practices in India, 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 year, not have we been informed of
such case by the management.
For, Y. D. & Co
CHARTERED ACCOUNTANTS
FRN: 018846N
CA RAKESH PURI
PLACE: LUDHIANA PARTNER
DATE : 01.09.2012 M. No.: 092728