Shree Vaani Sugars & Industries Ltd merged Auditor Reports

SHREE VAANI SUGARS AND INDUSTRIES LIMITED ANNUAL REPORT 2003-2004 AUDITORS REPORT To, The Member of Shree Vaani Sugars and Industries limited 1) We have audited the attached Balance Sheet of Shree Vaani Sugars and Industries limited as at March 31st, 2004 and the related Profit and loss Account for the year ended on that date annexed thereto and the cash flow statement for the year ended on that date. These financial statements are the responsibility of the management of the company. Our responsibility is to express an opinion on these financial statements 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 &wxiail statements are free of material misstatement. An audit includes, examining on a test basis, evidence supporting the amounts and disclosures in the firanciat statements, An audit also includes assessing the accounting principles used and significant estates 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 reqtrif by the Comities (Auditors Report) Order 2003 issued by the Central Government of India th term of Section 227 (4A) of the Companies Act 1956 of India, 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 ail the information and explanations which to the best of our knowledge and belief were necessary for the purpose`s of our audit. b) 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. c) The Balance sheet and profit and loss Account dealt with by this report are in agreements with the books of account. d) In our opinion, these fipanwciat statements have been prepared in compliance with the applicable accounting standards referred to in Section 211 (3C) of the Companies Act, 1956. e) Based on the representations made by all the Directors of the Company as on March 31, 2004 and taken on record by the Board of Directors of the Company. and in accordance With the Information and explanations as made available, the Directors of the Company do not, prima face, have any disqualification as referred to in blause (g) of sums (t) to Section 274 of the Companies Act, 1956. f) In Out 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: (i) In the case of the Balance Sheet, of the state of affairs of the Company as at March 31, 2004; (ii) In the case of the Profit and Loss Account, of the loss for the year ended on that date, and (iii) In the case of cash flow statement, of the cash flows for the year ended on that date. For C.RAMACHANDRAM & Co., Chartered Accountaints. C. RAMACHANDRAM Partner Membership No: 25834 Place: HYDERABAD Date : 28.05.2004 ANNEXURE TO THE AUDITORS REPORT (a) The Company has maintained fixed assets register. we are informed that the fixed assets register is being updated, (b) As explained to us the fixed assets have been physically verified by the management during the year in a passed periodical manner, which in our opnion is reasonable. However, the discrepanices between the book records and physical verification, it any, will be reconciled after updating work is completed (c) in our opinion the company has not disposed of substantial part of fixed assets during the year and the going concern status of the company is not affected. 2.(a) As explained to us the inventories have been physically verified during the year by the management. In our opinion, the frequency of verification is reasonable. (b) In our opinion and according to the information and explanation given to us, the procedures of physical verification of inventory followed by the management are reasonable and adequate in relation to ths size of the Company and the nature of its business. (c) On the basis of our exnation of the inveiary records in our opinion Company is maintainer proper records of inventory. The discrepancies nocced on physical verification of inventory as compared to book records were not materal. 3. a) The Company has taken loan from one party covered in the register under section 301 of the Companies Act, 1956. The maximum amount involved during the year was Rs.Nil and the year end balance of loans taken from party was Rs.5.00 lakhs. The Company has not given any loans to parties covered in the register maintained under section 301 of the Companies Act, 1956 b) In our opinion the rate of interest wherever applicable and other terms and conditions on which loans have been taken from Companies, firms or other partices listed in the register maintained under section 301 of the Comparsas Act, 1966 are not, prima fade, prejudicial to the Interest of the company. c) In respect of loans taken by the company the principal amount is repayable on demand., d) There is no over due amounts in respect of loans taken by the company 4. In our opinion and according to the information and explanations been 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, the have not observed any continuing failure to correct major weaknesses in irk controls. 5.(a) In our opinion and aging to the informatiors and explanations given to us, transactions that need to be entered into the register in pursuance of section 301 of Act, have been so entered. (b) In our opinion and according to the information and explanations given to us, the transactions made in pursuance of contracts of agents entered into the register in pursuance of Section 301 of the Act and exceeding the of rupees Five Lakhs in respect of any party during the year, have been at prices which are reasonable haves regard to the prevailing market prices at arse relevant time. 6. The Company has not accepted any deposits from the public within the meaning of sections 58A and 58AA of the Act and the rules framed there under. 7. In our opinion, the Company has an internal audit system commensurate with its size and nature of its business. 8. We have broadly reviewed the books of accounts maintained by the company in respect of manufacturing of sugar and generation of power where, pursuant to the Rules made by the Central Govemmett of India, the maintenance of cost records has been prescribed under clause (d) of subsection (1) of Section 209 of the Act and are of the opinion that prima fate. the prescribed accounts and records have been and We have rtes, however, mach a detailed examination of tho records with a view to determine whether they are accurate or complete. 9. The company is regular in depositing with approprate authorities undisputed statutory dues including provident fund, investor education prodection fund, employees` employees" state insurance, income tax, sales tax, wealth tax, custom duty, excise duty, cess and other materiel statutory dues applicable to it. b) According to the Information and explanations given to us, no undisputed amounts payable in respect of income tax wealth tax sales tax. customs duty, excise duty and were in arrears. as at 31.012004 for a period of more than six months from the date they became payable. c) According to the information and explanations given to us, there ant) no dues of sales, tax, income tax, customs duty, wealth tax, excise duty and cess which ,not loon deposited on account of any dispute. 10. In our opinion the accumulated tosses, of the company are not more than 50% of its net worth. The Company has incurred Rs.11,94,498/- towards cash losses during the financial yeard covered by our audit and for the immediately preceding financial year the cash losses were Rs. 8,96,79,948/- 11. According o the teams of the Company examined by us and the information and explanation given to us, the Company has not defaulted in repayment of dues to any institution or bank as at the balance sheet date. 12. In our opinion has not granted arty loans and advances on the basis of security by way shares, debentures arid other securities. 13. In our opinion the company is not a chit fund or a ntdhi mutual benefit fund / society. therefore, the provisions of clause 4(xiii) of the companies (Auditors Report) Order, 2003 are not applicable to the company. 14. In our opinion the company is not dealing in or trading in shares, securities, debentures and other investments. Accordingly the provision of clause 4(xiv) of the Companies (Auditor Report) Order, 2003 are not applicable to the Company 15. In our opnion and according to the information and explanations given to us, the company has not given arty rararttee for loans taken by others from banks or financial institutions during the year. 16. The company has not raised any new term loans during the year. The term loans outstanding at the beginning of the year there applied for the purposes for which they were raised. 17. According to the information and explanations givers to us and on an overall examination of the balance sheet of the company, we report that no funds raised on short-term basis have been used for long-term investment. No long-term funds have been used to finance short-term assets except permanents working capital. 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 during the year. 20. The Company has not raised any money by way of public issue during the year. 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 causes the financial statements to be materially misstated. For C. RAMACHANDRAM & CO., Chartered Accountants C. RAMACHANDRAM Partner Membership No: 25834 Place: HYDERABAD Date : 28.05.2004