1. We have audited the attached balance sheet of Batliboi Ltd., as at
31st March, 2011 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 Company''s
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 misstatements. 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 reasonable basis for
our opinion.
3. As required by the Companies Auditor''s Report Order, 2003, issued
by the Company Law Board in terms of sub-section (4A) of section 227 of
the Companies Act, 1956 as amended by the Companies (Auditor''s Report)
(Amendment) Order, 2004, 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 and proper returns adequate for the purposes of our audit
have been received from the branches not visited by us;
iii. The report on the accounts of Udhna Plant audited by the branch
auditors of the Company have been forwarded to us and have been
appropriately dealt with in preparing our report;
iv. The balance sheet, profit and loss account and cash flow statement
dealt with by this report are in agreement with the books of account
and with the audited returns received from the branch of the Company;
v. 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;
vi. On the basis of written representations received from the -
directors and taken on record by the Board of Directors, we report
that''none of the directors of the Company is disqualified as on 31st
March, 2011 from being appointed as director of the Company under
Clause (g) of sub-section (1) of section 274 of the Companies Act,
1956;
vii, In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read with the
significant accounting policies and notes to accounts in schedule 17
give the information required by the Companies Act, 1956, in the manner
so required and give a true and fair view in conformity with accounting
principles generally accepted in India:
(a) I n the case of the balance sheet, of the state of affairs of the
Company as at 31s1 March, 2011.
(b) in the case of the profit and loss account, of the profit 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.
ANNEXURE REFERRED TO IN OUR REPORT TO THE MEMBERS OF BATLIBOI LTD. FOR
THE YEAR ENDED 31st MARCH, 2011
Our statement on the-matters specified in para 4 and 5 of the Companies
(Auditors Report) Order, 2003 (the Order) as amended by the
Companies (Auditor''s Report) (Amendment) Order, 2004, is given below.
In preparing the said statement, we have considered the statements made
under the aforesaid order by the branch auditors who audited the
accounts of the Company''s Udhna plant.
1. a. The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
b. The fixed assets have been physically verified by the management
during the year at reasonable intervals having regard to the size of
the Company and the nature of its assets. The discrepancies noticed on
such verification were, in our opinion, not material and have been
properly dealt with in the books of account.
c. Since there is no disposal of substantial part of fixed assets
during the year, the preparation of financial statements on a going
concern basis is not affected on this account.
2. a. Physical verification of inventory has been conducted by
the management at reasonable intervals during the year except in case
of inventory lying with third parties where confirmations have been
obtained.
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. The Company is maintaining proper records of inventory. The
discrepancies noticed on physical verification of inventory as compared
to book records were not material and the same have been properly dealt
with in the books of account.
3. Based on audit procedures applied by us and according to the
information and explanations given to us, 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 Companies
Act, 1956. Therefore, sub-clause (b) to (d) of sub-para (iii) of para 4
of the Order is not applicable.
4. a Based on audit procedures applied by us and according to
the information and explanations given to us, the company has taken
unsecured loans from four parties covered in the register maintained
under section 301 of the Companies
Act, 1956. The maximum amount involved during the year wasRs. 132.00 Lacs
and the year end balance aggrega tes Rs. 122.00 Lacs.
b. In our opinion, the rate of interest and other terms and conditions
on which the aforesaid loans have been taken are prima facie, not
prejudicial to the interest of the company.
c. The Company is regular in repaying the principal amounts on
aforesaid loans taken as stipulated and has been regular in the payment
of interest.
5. In our opinion and according to the information and explanations
given to us, having regard to the explanation that some of the items
purchased are under specific marketing arrangements or goods of
technical specification in respect of which comparable alternative
quotations are not available, there is an adequate internal control
system commensurate with the size of the Company and the nature of its
business, for the purchase of inventory and fixed assets and for the
sale of goods and services. During the course of our audit, we have not
observed any continuing failure to correct major weaknesses in the
internal control system of the Company.
6. a. According to the information and explanations given to us,
we are of the opinion that the particulars of all contracts or
arrangements that need to be entered in the register maintained under
Section 301 of the Companies Act, 1956, have been so entered in a
summarized form.
b. In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts and
arrangements entered in the register maintained under Section 301 of
the Companies Act, 1956, and exceeding the value of Rs. 5,00,000 in
respect of any party, during the year, have been made at prices which
are reasonable having regard to the prevailing market prices at the
relevant time.
7. During the year, the Company has not accepted any deposits from the
public. In this regard there has not been any order by Company Law
Board, National Company Law Tribunal or Reserve Bank of India or any
Court or any other Tribunal.
8. In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
9. The Centra! Government has not prescribed maintenance of cost
records under clause (d) of sub-section (1) of section 209 of the
Companies Act, 1956.
10. a. During the year the Company has generally been regular in
depositing undisputed statutory dues including Provident Fund,
Employees'' State Insurance, Income-tax, Investor Education Protection
Fund, Sales-tax, Wealth Tax, Service Tax, Custom Duty and Excise Duty
and other material statutory dues applicable to it with the appropriate
authorities.
b. According to the information and explanations given to us, and the
records of the Company examined by us, no undisputed amounts payable in
respect of income tax, wealth tax, service tax, customs duty, excise
duty or cess were in arrears, as at 31st March 2011 for a period of
more than six months from the date they became payable.
. c. In respect of sales tax and excise duty dues not deposited
on account of disputes, the details of amounts involved and the forum
where the disputes are pending, are as under:-
Forum where dispute is pending Rs. Lacs
Sales Tax Appellate / Revisional
Authority-up to Commissioner Level 53.62
Sales Tax Appellate Authority-Tribunal 35.66
Central Excise Appellate Tribunal 1.24
11. The Company does not have accumulated losses as at 31st March,
2011. The Company has not incurred cash loss during the current
financial year but had incurred cash loss in the immediately preceding
financial year.
12. Based on audit procedures applied by us and according to the
information and explanations given to us, the Company has not defaulted
in repayment of its dues to Banks during the year.
13. According to the information and explanations given to us and
based on our examination of the books of account, the Company has not
granted any loans or advances on the basis of security by way of pledge
of shares, debentures and other securities.
14. The provisions of special statute applicable to chit fund / mutual
benefit fund / societies are not applicable to the Company.
15. In our opinion, the Company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly-the
provisions of Clause (xiv) of Para 4 of the Order are not appiicable.
16. In respect of guarantees given by the Company for loans taken by a
related party from banks, having regard to the
explanation that the Company has strategic business relationship with
the related party and the party has extended reciprocal guarantee /
charge on its current assets for financial assistance availed by the
Company, the terms and conditions of the guarantees are, in our
opinion, not prima facie prejudicial to the interests of the Company.
17. According to the information and explanations given to us and the
records of the Company examined by us, in our opinion, . wherever the
purpose is stipulated by the lender, the term loans raised during the
year have been applied for such purpose.
18. According to the information and explanations given to us and on
an overall examination of the balance sheet of the Company and the cash
flow statement, prima-facie, funds raised on short term basis have not
been utilised for long term investment.
19. The Company has made a preferential allotment of Redeemable
Non-cumulative Preference Shares during the year to parties covered in
the register maintained under section 301 of the Companies Act, 1956.
The price at which these shares have been issued is not prejudicial to
the interest of the company.
20. The Company has not issued any secured debentures during the year,
and accordingly, no securities were required to be created.
21. The Company has not raised any money by public issue during the
year. Therefore, the requirement of disclosure by the management on the
end use of money raised by public issue and verification of the same is
not applicable.
22. During the course of our examination of the books and records of
the Company carried out in accordance with the generally accepted
auditing practices in India 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.
For V. Sarvfcar Aiyar & Co.
Chartered Accountants
Firm Regn. No-109208W
Sd-
(S. Venkatraman)
Place: Mumbai Partner
Date: 18th May, 2011. Membership No.:034319
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