Chambal Fertilisers and Chemicals
BSE: 500085 | NSE: CHAMBLFERT | ISIN: INE085A01013 | Fertilisers
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| Auditor's Report | Year End : Mar '09 |
1. We have audited the attached Balance Sheet of Chambal Fertilisers
and Chemicals Limited (the Company) as at March 31, 2009 and also the
Profit and Loss Account and the Cash Flow Statement for the year ended
on that date annexed thereto, in which are incorporated financial
statements of Shipping Division of the Company audited by other
auditors. 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 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 misstatement. 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 a reasonable basis
for our opinion.
3. As required by the Companies (Auditors Report) Order, 2003 (as
amended) issued by the Central Government 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 for as appears from our examination of
those books and proper returns adequate for the purposes of our audit
has been received from Shipping Division not visited by us. The Branch
Auditors Report of the Shipping Division have been forwarded to us and
have been appropriately dealt with; 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 and audited returns from the
Shipping Division; 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; v. On the basis of the written
representations received from the directors, as on March 31, 2009, and
taken on record by the Board of Directors, we report that none of the
directors is disqualified as on March 31, 2009 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 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 March 31, 2009;
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 Cash Flow Statement, of the cash flows of the Company
for the year ended on that date.
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) Fixed assets have been physically verified by the management during
the year based on a phased programme of verifying all the assets over a
period of two years, which in our opinion is reasonable having regard
to the size of the Company and the nature of its fixed assets. No
material discrepancies were noticed on physical verification.
(c) There was no substantial disposal of fixed assets during the year.
(ii) (a) The management has conducted physical verification of
inventory at reasonable intervals during the year.
(b) 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 and no
material discrepancies were noticed on physical verification. (iii)
(a) The Company has granted loans to three companies covered in the
register maintained under section 301 of the Companies
Act, 1956. The maximum amount involved during the year was Rs.3000 lacs
and the year end balance of loans granted to such parties is Rs.1000
lacs.
(b) In our opinion and according to the information and explanations
given to us, the rate of interest and other terms and conditions for
such loans are not prima facie prejudicial to the interest of the
Company.
(c) In respect of loans granted, repayment of the principal amount is
as stipulated and payment of interest is also regular.
(d) There is no overdue amount of loans granted to companies listed in
the register maintained under section 301 of the Companies Act, 1956.
(e) As informed, the Company has not taken any loans, secured or
unsecured from companies, firms or other parties covered in the
register maintained under section 301 of the Companies Act, 1956.
Therefore, provisions of clauses 4(iii) (f) and (g) of the Companies
(Auditors Report) Order, 2003 (as amended) are not applicable to the
Company.
(iv) In our opinion and according to the information and explanations
given to us, 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, no major weakness has been
noticed in the internal control system in respect of these areas.
(v) (a) According to the information and explanations provided by the
management, we are of the opinion that the particulars of contracts or
arrangements referred to in section 301 of the Act that need to be
entered into the register maintained under section 301 have been so
entered.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements exceeding value of Rupees five lakhs have been entered
into during the financial year at prices which are reasonable having
regard to the prevailing market prices at the relevant time.
(vi) In respect of deposits accepted, in our opinion and according to
the information and explanations given to us, directives issued by the
Reserve Bank of India and the provisions of sections 58A, 58AA or any
other relevant provisions of the Companies Act, 1956 and the rules
framed there under, to the extent applicable, have been complied with.
We are informed by the management that no order has been passed by the
Company Law Board, 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 the maintenance of cost records under section
209(1) (d) of the Companies Act, 1956, and are of the opinion that
prima facie, the prescribed accounts and records have been made and
maintained. (ix) (a) According to the information and explanations
given to us and the books and records examined by us, the Company has
been regular in depositing with appropriate authorities undisputed
statutory dues including provident fund, investor education and
protection fund, employees state insurance, income-tax, sales-tax,
weallh-tax, service tax, customs dutv. excise dutv. cess nnH invesror
eaucanon ana protection fund, employees state insurance, income-tax,
wealth tax, service tax, sales-tax, customs duty, excise duty, cess and
other undisputed statutory dues were outstanding at the year end for a
period of more than six months from the date they became payable.
(c) According to the records of the Company, there are no dues
outstanding of income-tax, sales tax, wealth-tax, service tax, custom
duty, excise duty and cess on account of any dispute, other than the
following:
Name of the Statute Nature of the Dues
Rajasthan Sales-Tax Act, 1994 Disallowance of VAT credit on stock
lying on 01-04.2006
Rajasthan Sales-Tax Act, 1994 Sales tax demand on usage of natural
gas other than urea manufacture.
Service Tax Service tax demand on intellectual
property rights services.
Service Tax Service tax demand on services
received from non residents.
Amount
(Rs. in lacs) Period to which the Forum where dispute is pending
amount relates
22.18 2006-07 Rajasthan Tax Board, Ajmar
352.34 1996 to 2001 Rajasthan High Court,Jodhpur
126.60 2006-07 Commissioner (Excise and Customs)
18.33 2002-03 to 2005-06 Commissioner Excise (Appeals)
(x) The Company has no accumulated losses at the end of the financial
year and it has not incurred any cash losses in the current and
immediately preceding financial year. (xi) Based on our audit
procedures and as per the information and explanations given by the
management, we are of the opinion that the Company has not defaulted in
repayment of dues to a financial institution, bank or debenture
holders. (xii) According to the information and explanations given to
us and based on the documents and records produced to us, the Company
has not granted loans and advances on the basis of security by way of
pledge of shares, debentures and other securities. (xiii) In our
opinion, the Company is not a chit fund or a nidhi/mutual benefit
fund/society. Therefore, the provisions of clause 4 (xiii) of the
Companies (Auditors Report) Order, 2003 (as amended) are not
applicable to the Company. (xiv) In respect of dealing/trading in
shares, securities, debentures and other investments, in our opinion
and according to the information and explanations given to us, proper
records have been maintained of the transactions and contracts and
timely entries have been made therein. The shares, securities,
debentures and other investments have been held by the Company in its
own name. (xv) According to the information and explanations given to
us, the Company has given guarantee for loans taken by its subsidiaries
from bank/financial institutions, the terms and conditions whereof in
our opinion are not prima-facie pre judicial to the interest of the
Company. (xvi) Based on information and explanations given to us by
the management, term loans were applied for the purpose for which the
loans were obtained. (xvii) According to the information and
explanations given 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. (xviii) The Company has
not made any preferential allotment of shares to parties or companies
covered in the register maintained under section 301 of the Companies
Act, 1956. (xix) Based on books and records produced to us by the
management, securities have been created in respect of debentures
issued, wherever required. (xx) The Company has not raised any money
through a public issue during the year. (xxi) Based upon the audit
procedures performed for the purpose of reporting the true and fair
view of the financial statements and as per 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 course of our audit.
For S.R. BATLIBOI & CO.
Chartered Accountants
Place : Gurgaon
Date : May 15, 2009
per MANOJ GUPTA
Partner
Membership No.: 83906 |
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| Source : Religare Technova | |
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