We have audited the attached Balance Sheet of CITURGIA BIOCHEMICALS
LIMITED as at 31st March 2012, and also the Profit & Loss Account and
Cash Flow Statement for the year ended 31st March 2012 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.
We 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 also includes
assessing the accounting principles used and significant estimates made
by management as well as evaluating the overall financial statements
presentation. We believe that our audit provides a reasonable basis for
We report that: -
1. As required by the Company''s (Auditor''s Report)(amendment)
order, 2004 notified by the Central Government of India in the
Department of Company Affaires (vide notification no. GSR 766 (E) dated
25.11.2004 in terms of sub-section (4A) of section 227 of the Companies
Act, 1956 (1 of 1956) we enclose in the Annexure hereto a statement of
the matters specified in paragraph 4 and 5 of the said order.
2. Further to our comments m the Annexure referred to in paragraph 1
above and subject to our following observations and subject to the
notes to the accounts given in schedule ''N'' annexed to the Balance
i. Pursuant to the order of the State Government of uttarakhand under
which the whole premises of the company at Rishikesh have been ceased
and under Government possession due to which the very existence of the
company has come at a stake,
ii. Pursuant to the order of the Hon''ble High Court of Uttarakhand
and thereafter the consequential orders of Hon''ble BIFR and State
Government due to which substantial part of the sanctioned
rehabilitation scheme i.e. change of land use and redevelopment of
surplus land stands cancelled,
iii. Non-provision for the loss of Rs. 329.68 Lacs being the value of
inventories in the real estate division which have come at stake due to
cancellation of change of land use and non provision of consequential
losses which are not quantifiable at this stage as the matter is
pending before the Hon''ble Supreme Cotuit of India. As a result the
losses have been understated to this extent,
iv. Inability to physically verify various fixed assets, plant and
machinery and inventories and part of books of accounts lying at
Rishikesh premises which are under Government seal,
v. Non-availability of bank balance confirmation certificates and
unconfirmed balances of Sundry Creditors and inter corporate deposits,
VI. Despite all the above points the annual accounts of the company
have been prepared on going concern concept in anticipation of getting
justice from the Apex Court.
3. Further to our comments in Annexure referred to point no. 2 above
we report that
a. We have obtained all die information and explanations which to the
best of our knowledge and belief were necessary for the purposes of our
b. In our opinion proper books of accounts required by aw have been
kept by the company so far as appears from our examination of those
c. I he balance Sheet & Profit and Loss Account dealt with by this
report are in agreement with the books of account.
d. In our opinion the Balance Sheet & Profit and Loss account dealt
with by this report comply with the accounting standards referred to in
sub-section (3c) of section 211 of the companies Act, 1956.
e. In our opinion, and based on information & explanations given to us
non of the directors are disqualified as on 31st March, 2012 from being
appointed as a director in terms of clause(g) our sub-section(l) of
section 274 of the companies Act, 1956
f. In our opinion and to the best- of our information and according to
the explanations giver to us the said accounts read together with the
significant Accounting Policies and other notes thereon give the
information required by Companies Act, 1956 in the manner so required
and present a true and fair view in conformity with the accounting
principal generally accepted in India.
i. In so far as it relates to Balance Sheet, of the state of affairs
of the Company as at 31st March 2012 and
ii. In so far as it relates to Profit & Loss account of the loss for
the period ended on that date.
iii. In so far as it relates to the cash and fund flow statement for
the period ended on that date.
Annexure to the Auditors Report
(Referred to in Paragraph 1 of our report of even date on the accounts
for the period ended 31st March, 2012 of CITURGIA BIOCHEMCIALS LIMITED)
(i) (a) As explanation given by the management in respect of its fixed
assets in schedule D forming part of accounts regarding the lock out by
State Government of at the Rishikesh Plant, subject
The company has maintained proper records of fixed assets showing full
particulars including quantitative details and location of fixed assets
at head office.
(b) Assets were not physically verified during the period by the
management in view of lockout by State Government of Uttarakhand at
Rishikesh plant as disclosed.
(u) (a) As per information and explanation received from the management
the inventory has not been physically verified during the period under
audit due to lockout at Rishikesh plant.
(b) Not applicable
(c ) In view of lockout the same is not applicable
(a) The company has not granted unsecured loans to any party covered in
the register maintained under section 301 of the companies Act, 1956.
(b) According to the information & explanations given to us the rate of
the interest and other terms & conditions in respect of unsecured loans
given by the company, are not facie prejudicial to the interest of
(c) In our opinion and according to the information and explanations
given to us, the receipt of principle amount and interest is regular.
(d) In our opinion and according to the information and explanations
given to us there are no overdue amounts in respect of the unsecured
loans given by the company.
(e) The company has not taken unsecured loans from party covered in the
register- maintained under section 301 of the companies act 1956.
(f) Whether the rate of interest and other terms and conditions of
loans taken by the company, secured or unsecured are prima facie
prejudicial to the interest of the company and ------Not
(g) Whether payment of the principal amount and interest are also
regular. Not Applicable
(IV ) In our opinion and according to the information and explanation
given to us, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business for the purchase fixed assets and other items and not pirma
facie prejudicial to the interest of the company.
(y) (a) Transactions that need to be entered into a register in
pursuance of section 301 of the Act have been entered.
(b) In our opinion and to the best of our knowledge each of these
transaction exceeding the value of Rs. 5 lacs in respect of any party
and in any one financial year, have been made at prices which are
reasonable having regard to the prevailing market prices at the
(vi) Since the company has not accepted any deposited from public
accordingly the provision requiring that whether the directives issued
by the Reserve Bank of India and the provisions of section 58 A and
58AA of the Act the rules framed there under, were applicable have been
complied with is not applicable to the company.
(vii) In view of lock out at calcium carbonate division at Rishikesh
the company has been unable to conduct the internal audit for the
period end report.
(viii) The provisions requiring maintenance of cost records as
prescribed by the Central Government under clause (d) of sub-section
(1) of section 209 of the Act are not applicable to the company.
(ix) (a) The provisions of investor Education and Protection Fund are
not applicable to the company. With reference to the provisions of the
Sales Tax , Wealth Tax, Customs Duty and Excise Duly/Cess are
applicable to the company. The company is not regular in depositing its
statutory dues in respect of ESIC, EPF & Income Tax with ''the
appropriate authorities A amount of Rs. 12.31 lacs is outstanding as
payable for statutory liabilities and as on 31.03.2012.
(b) As per records of the company'' there are disputed amounts payable as
at 31.03.2012 in respect of income tax, wealth tax, custom duty and
excise duty etc. Further as per notes of accounts liabilities towards
income tax, sales tax/excise and ESIC matter are lying with respective
tribunal/courts and the same are shown as contingent liability.
(x) In our opinion and to the best of our knowledge and as per
information and explanation received from the management the company
has not defaulted in repayment of dues to a bank.
(xi) The provisions requiring that, whether adequate documents and
records are maintained in cases where the company has granted loans and
advances on the basis of security by way of pledge of shares,
debentures and other securities are not applicable to the company.
(xii) To the best to our knowledge the provisions special statues
applicable to chit fund are not applicable to the company.
(xiii) Since the company is not dealing in shares and securities
comments under this clause of the order are not required.
(xiv) As per explanation/representation received from the management
the company has not given any guarantee for loans taken by others from
bank or financial institutions hence the provisions requiring whether
the terms and conditions whereof are prejudicial to the interest of the
company, are not applicable to the company.
(xv) The company has not availed any short-term loan from the bank to
the best of our knowledge & belief.
(xvi) The company has not utilized the funds on short-term basis for
long term investment and vice- versa.
(xvii) As per information given to us the company has not made
preterennal allotment of shares to parties and companies covered in the
Register maintained under section 301 of the Act.
(xviii) The provisions requiring that whether securities have been
created in respect of debentures issued, are not applicable to the
xix) The provisions requiring that, whether the management has
disclosed on the end use of money raised by public issues and the same
has been not applicable to the company which is prejudicial to the
interest of members of company.
xx) No fraud on or by the company has been noticed or reported during
For RANJAN GUPTA & CO.
Place: New Delhi
Date : 04/09/2012.