Ras Extrusions Ltd Merged Auditor Reports

RAS EXTRUSIONS LIMITED ANNUAL REPORT 2009-2010 AUDITORS REPORT To The Members of RAS EXTRUSIONS LIMITED 1. We have audited the attached Balance Sheet of RAS EXTRUSIONS LIMITED, as at 30th September 2010, and also the Profit and Loss account and the Cash Flow statement 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 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 issued by the Central Government of India in terms of sub-Section (4A) of 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 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, Profit and Loss account and Cash Flow Statement dealt with by this report are In agreement with the books of account; iv) In our opinion, the Balance Sheet, Profit and Loss account and Cash Flow Statement dealt with by this report comply with the Accounting Standards referred to in sub-Section (3C) of Section 211 of the Companies Act, 1956 except In case of Retirement benefits as referred to In note no. 10 In Schedule 16; v) On the basis of written representations received from the directors, as on 30th September 2010 and taken on record by the Board of Directors, We report that none of the directors is disqualified from being appointed as a 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 read with 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: a. In the case of the balance sheet, of the state of affairs of the company as at 30th September 2010; b. In the case of the profit and loss account, of the profit of the company for the year ended on that date; and c. In the case of the cash flow statement, of the cash flows for the year ended on that date. For SANGANI & CO. Chartered Accountants (Pravin P Sangani) Proprietor Membership No. 005293 MUMBAI: November 15, 2010 ANNEXURE TO THE AUDITORS REPORT (Referred to in paragraph 3 of our report of even date) The Annexure referred to in the auditors report to the members of RAS Extrusions Limited for the year ended September 30, 2010. We report that: 1. a) The company has maintained proper records showing full particulars including quantitative details and situations of fixed assets. b) As explained to us, all the assets have been physically verified by the management during the year. No material discrepancies were noticed on such verification. c) Company has not sold any Fixed Assets during the year. Accordingly Clause 1(c) of the Order is not applicable. 2. a) The inventory, including stocks lying with third parties for which confirmation have been received from the concerned parties, Inventory has been physically verified during the period 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) We are of the opinion that the company is generally maintaining proper records of inventory. The discrepancies noticed on verification between the physical stocks and the books records were not material and the same have been properly dealt within the books of accounts. 3. a) As explained to us and based on the information given to us we are of the opinion that 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. b) In view of the above clause (b) and (c) and (d) are not applicable. c) The Company had taken interest free deposit of Rs. 7.00 Lacs from a Company which is covered in the Register maintained under Section 301 of the Companies Act, 1956. The Maximum amount involved during the year was Rs. 7.00 Lacs. Year end balance Rs. 7.00 Lacs. The company has not granted any Loan / Deposit to companies, firms and other parties covered in the Register maintained under Section 301 of the Companies Act, 1956. d) In our opinion and based on the explanation given to us, other terms & conditions on which interest free deposit have been taken by the company listed in the Register maintained under Section 301 of the Companies Act, 1956, are not prima facie, prejudicial to the interest of the company. e) As per the terms & conditions of the interest free deposit taken and based on the explanation given to us, there is no stipulation as to repayment of Principal amount during the year. 4. 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, for purchases of inventory, fixed assets, for the sale of goods and for services. No major weaknesses have been noticed in the internal control. 5. In our opinion, and according to the information and explanations given to us, the particular of contracts or arrangements referred to in section 301 of the Act have been entered in the register required to be maintained under that section and the transactions made in pursuance of such contracts or arrangements have been made at prices which are reasonable with regard to the prevailing market prices at the relevant time. 6. The Company has not accepted any deposits from public during the year under review, therefore the directive issued by Reserve Bank of India and Section 58A & Section 58AA or any other relevant provisions of the Act and the rules framed thereunder are not applicable to the company. 7. In our opinion the company has an internal audit system commensurate with the size and nature of its business. 8. According to the information and explanations given to us, the Central Government has not prescribed the maintenance of cost records under clause (d) of sub-section (1) of Section 209 of the Companies Act, 1956 in respect of services carried out by the Company. 9. a) According to the review of the records of the company, there have been some delays in depositing of undisputed statutory dues such as Provident Fund, Profession Tax, Income Tax, Cess, Sales Tax with the appropriate authorities. Dues in respect of Service-tax, Excise duty have been paid to the respective authority though there have been delays in few cases. There were no dues payables in respect of Investor Education and Protection Fund, Wealth-tax. As explained to us the company has been advised that Employees State Insurance Act is not applicable, as the factory is situated in non-implementable area. b) According to the information and explanations given to us, no undisputed amounts payable in respect of Income-tax, Wealth-tax, Sales-tax, Service Tax, Custom duty, Excise duty, Cess, etc., were outstanding as at 30th September, 2010 for a period of more than six months from the date they become payable. c) According to the information and explanations given to us, there are no dues of Income-tax, Sales-tax, Wealth-tax, Service Tax, Custom duty, Cess etc. which have not been deposited on account of any dispute. 10. The accumulated losses of the company are more than fifty percent of its net worth. The company has incurred cash loss during the financial year covered by our audit and has incurred cash loss during the immediately preceding financial year. 11. According to the information and explanations given by the Management, The Company does not have any dues to financial institution or banks or debenture holders, hence this clause is not applicable. 12. The company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities. 13. In our opinion and according to the information and explanations given to us, provisions of any special statute applicable to chit fund, nidhi or mutual benefit fund / societies are not applicable to the Company. 14. Based on our examination of documents and records, we are of the opinion that the company is not dealing or trading in shares, securities, debentures and other investments. 15. The company has not given any guarantee for loans taken by others from banks or financial institutions. 16. The term loans have been applied for the purpose for which they were raised. 17. According to the information and explanation provided to us by the management and based on the overall review of the Cash Flow Statement as at 30th September 2010, prima-facie, we are of the opinion that, funds raised from short term sources were not used for long term application during the accounting year covered by our report. 18. The company has made Preferential allotment of shares to Companies covered in the Register maintained under Section 301 of the Companies Act, 1956 with compliance of the order of the BIFR for rehabilitation of the Company. 19. The company has not issued any debentures during the year. Accordingly clause 4(xix) of the Order is not applicable. 20. The company has not raised any money by public issue of securities. 21. According to the information and explanations given by the management, we report that no fraud on or by the company has been noticed or reported during the year. For SANGANI & CO. Chartered Accountants (Pravin P Sangani) Proprietor Place: MUMBAI Membership No. 005293 Date : November 15, 2010