Bajaj Hindusthan
BSE: 500032 | NSE: BAJAJHIND | ISIN: INE306A01021 | Sugar
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| Auditor's Report | Year End : Sep '08 |
We have audited the attached Balance Sheet of BAJAJ HINDUSTHAN LIMITED,
as at 30th September, 2008, the Profit and Loss Account annexed thereto
and also the Cash Flow Statement of the Company for the year ended on
that date. 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.
1. 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 mis-statement. 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 statement
presentation. We believe that our audit provides reasonable basis for
our opinion.
2. As required by the Companies (Auditors Report) Order, 2003 (CARO,
2003), (as amended) issued by the Central Government of India in terms
of Section 227(4A) of the Companies Act, 1956, we annex hereto a
Statement on the matters specified in paragraph 4 and 5 of the said
Order.
3. Further to our comments in the Annexure referred to in paragraph 2
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 purposes 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 such
books;
(c) The Balance Sheet, Profit and Loss Account and the Cash Flow
Statement dealt with by the report are in agreement with the books of
account of the Company;
d) In our opinion, the Balance Sheet, the Profit and Loss Account and
the Cash Flow Statement comply with the Accounting Standards referred
to in Section 211 (3C) of the Companies Act, 1956, to the extent
applicable;
(e) On the basis of the written representations received from the
Directors, and taken on record by the Board of Directors, we report
that none of the Directors are disqualified, as on 30th September,
2008, from being appointed as a Director in terms of Clause (g) of
sub-section (1) of Section 274 of the Companies Act, 1956;
(f) Without qualifying our opinion, we draw attention to Note 5 (c) on
Schedule 16 to the financial statements regarding remuneration paid to
the managerial personnel which is in excess of the limits laid down
under Schedule XIII to the Companies Act, 1956 and is subject to the
approval of Central Government, for which an application has been made.
Pending approval, the excess remuneration is being held in trust for
the Company by the respective managerial personnel.
(g) 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, 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 the affairs of
the Company as at 30th September 2008;
(b) in the case of the Profit and Loss Account, of the loss for the
year ended on that date; and
(c) in the case of Cash Flow Statement, of the cash flows for the year
ended on that date.
Annexure referred to in paragraph 2 of our Auditors Report of even
date on the Accounts for the year ended 30th September, 2008 of Bajaj
Hindusthan Limited.
On the basis of such checks as we considered appropriate and in terms
of information and explanations given to us, we state that:-
i) The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets. Additions
and deductions made during the year as per Companys practice, will be
entered in the said records during the current year (i.e.2008-2009). As
explained to us, fixed assets have not been physically verified by the
Management this year also and, as such, discrepancy, if any, could not
be ascertained;
As per the information and explanation given to us on our enquiries,
the disposal of assets during the year were not substantial so as to
have an impact on the operations of the company, or affect its going
concern;
ii) (a) As explained to us, the inventories have been physically
verified by the management at reasonable intervals during the year
and/or at the close of the year;
(b) As explained to us, the procedures of physical verification of the
inventory followed by the management are, in our opinion, reasonable
and adequate in relation to the size of the Company and the nature of
its business;
(c) According to the inventory records produced to us for our
verification, we are of the opinion that the Company is maintaining
proper records of its inventory. Further, discrepancies noticed on
physical verification of inventories, if any, referred to above, as
compared to book records, though not material, have been properly dealt
with in the books of account;
iii) The Company has not taken/granted any loans, secured or unsecured
from/to Companies, firms or other parties listed in the register
maintained under Section 301 of the Companies Act, 1956, except loans
granted on current account to its Subsidiaries, the rate of interest
and terms and conditions were not prima-facie prejudicial to the
interest of the Company. The outstanding dues as at the year end from
Subsidiary Company amounted to Rs. 3910.92 million.
iv) In our opinion and according to the information and explanations
given to us, there are generally adequate internal control system,
commensurate with the size of the Company and the nature of its
business with regard to the purchase of inventory and fixed assets and
for the sale of goods. There was no sale of services during the year.
During the course of our audit, no major weaknesses in internal control
had come to our notice;
v) (a) On the basis of the audit procedures applied by us, and
according to the information and explanations given to us on our
enquiries on this behalf and the records produced to us for our
verification, the contracts or arrangements that need to be entered
into the register required to be maintained under Section 301 of the
Companies Act, 1956 have been so entered;
(b) The transactions so entered, aggregating in excess of Rs.5,00,000/-
in respect of each party during the year, have been, in our opinion, as
per the information and explanation given to us, made at prices, which
are reasonable, having regard to the prevailing market prices available
with the Company for such transactions or prices at which transactions
for similar goods have been made with other parties at the relevant
time;
vi) In our opinion, and according to the information and explanations
given to us, the Company has complied with the directives issued by the
provisions of Section 58A, 58AA or any other relevant provisions of the
Companies Act 1956 and the Companies (Acceptance of Deposits) Rules,
1975 with regard to the deposits accepted from the public. According to
the information and explanations given to us, no order has been passed
by the Company Law Board or National Company Law Tribunal or Reserve
Bank of India or any Court or any other Tribunal.
vii) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
viii) We have broadly reviewed the books of account maintained by the
Company pursuant to the rules made by the Central Government for
maintenance of cost records under Section 209(1 )(d) of the Companies
Act, 1956 in respect of Companys products to which the said rules are
made applicable and are of the opinion that prima facie the prescribed
accounts and records have been made and maintained. We have, however,
not made a detailed examination of the records with a view to determine
whether they are accurate.
ix) (a) According to the records of the Company, the Company has been
generally regular in depositing with statutory authorities, undisputed
statutory dues including Provident Fund, Investor Education and
Protection Fund, Employees State Insurance, Income tax, Sales tax,
Wealth tax, Service tax, Customs Duty, Excise Duty, Cess and other
material statutory dues applicable to it. According to the information
and explanations given to us, no undisputed amounts payable in respect
of income tax, sales tax, wealth tax, service tax, custom duty excise
duty and cess were outstanding, at the year end for a period of more
than six months from the date they became payable.
(b) On the basis of our examination of the documents and records of the
Company and the information and explanations given to us upon our
inquiries in this regard, disputed amounts payable in respect of
Income-tax, Sales Tax, Wealth-tax, Service tax, Customs Duty and Excise
Duty / cess not deposited with the appropriate authorities are as
follows:
Sr. STATUTES FORUMS BEFORE WHOM PENDING TOTAL
NO
Commissioner Tribunal High Supreme
Appeals Court Court
Rs. Rs. Rs. Rs. Rs.
1 Sales Tax 11,86,213 1,84,240 33,00,612 - 46,71,065
2 Excise
Duty 26,25,50,170 6,62,29,157 - - 32,87,79,327
x) Based on the information and explanations given by the management,
we are of the opinion that the Company has not defaulted in repayment
of dues to financial institutions, banks or debenture holders.
xi) All investments held by the Company at the close of the year are
held in its own name.
xii) The Company has given guarantee for loans taken by its subsidiary
from a bank, the terms and conditions whereof in our opinion are not
prima facie prejudicial to the interest of the Company.
xiii) Based on the information and explanations given to us by the
management the term loans were applied for the purpose for which the
loans were obtained.
xiv) According to the information and explanations given to us and on
overall examination of the balance sheet of the Company, we report that
no funds on short- term basis have been used for long- term investment.
xv) According to the information and explanations given to us and
records examined by us, in respect of secured debentures issued during
the year, security/charge is pending for creation.
xvi) As per the information and explanation given to us on our
enquiries in this behalf, there were no frauds on or by the Company has
been noticed or reported during the year.
In view of the nature of activities carried on by the Company clause
no. (xiii) of CARO, 2003 is not applicable to the Company. Further, in
view of the absence of conditions pre-requisite to the reporting
requirement of clauses (x), (xii), (xviii), and (xx) the said clauses
are, at present, not applicable
For and on behalf of
DALAL & SHAH
Chartered Accountants
SHISHIR DALAL
Partner
Membership No. 37310
Mumbai,
December 21, 2008.
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| Source : Religare Technova | |
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