We have audited the attached Balance Sheet of GUJARAT CONTAINERS
LIMITED as at 31st March, 2012, the Profit and Loss Account and also
the Cash Flow Statement of the Company for the year ended on that date,
annexed thereto, read with the notes 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 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 from material misstatement. An audit also 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 and we report that:-
I. a. We have obtained all the information and explanations which to
the best of our knowledge and belief were necessary for the purpose of
b. In our opinion, proper books of accounts as required by law have
been kept by the Company, so far as it appears from our examination of
c. The Balance Sheet, Profit and Loss Account and the Cash Flow
Statement dealt with by this Report are in agreement with the books of
d. In our opinion, the Balance Sheet and Profit and Loss Account dealt
with by Report, comply with the accounting standards referred to in
Section 211 (3C) of the Companies Act, 1956 except as referred to in
para (f) below and Notes to accounts.
e. On the basis of written representation received from the directors,
as on 31s1 March, 2012 and taken on record by the Board of Directors,
we report that none of the directors is disqualified as on 31st March,
2012 from being appointed as a director in terms of clause(g) of
sub-section (1) of section 274 of the Companies Act. 1956.
f. In our opinion and to the best of our information and according to
the explanations to us the said accounts, read together with
Significant Accounting Policies and Notes thereon, and in particular
the following mentioned notes
i) Note No.(J)in other notes on Accounts Regarding non provision of
gratuity as The liability on this account as on 31st March, 2012 as
evaluated by the company is Rs.38,49,350/- and liability up to previous
Year was Rs. 35,96,489/-.
ii) Note No. (K) Regarding provision of Arrears depreciation of Rs.
52,59,816/- of past years has been provided in current year give the
information ap 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 .
(1) In the case of Balance Sheet, of the state of affairs of the
Company as at 31st March, 2012.
(2) In the case of Profit and Loss Account, of the PROFIT of the
Company for the year ended on that date.
(3) In the case of Cash Flow Statement, of the Cash Flows for the year
ended on that date
II. As required by the Companies (Auditor''s Report) Order, 2003
issued by the Central Government of India in terms of Section 227 (4A)
of the Companies Act, 1956 and on the basis of such checks of and
records of the as were considered appropriate and as per the
information and explanations given to us during the course of our
audit, we further report on the matters specified in Para 4 & 5 of the
said order as under:-
1. In respect of its fixed assets:-
a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets. Fixed
assets Register has been maintained in computer.
b) The management has physically verified fixed assets of the Company
during the year. No material discrepancies were noticed on such
c) As a substantial part of fixed assets has not been disposed off
during the year, the question of sale of substantial part of fixed
assets affecting going concern does not arise.
2. In respect of its inventories:
a) The inventory of the Company has been physically verified by the
management at the year end. 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
the size of the Company and the nature of its business.
c) In our opinion and according to the information and explanations
given to us, the Company has maintained proper records of its inventory
and there were no material discrepancies noticed on physical
verification having regard to the size of the operations of the Company
and the company has made proper entries to write off the unusable,
defective and Obsolete stocks.
3. In respect of loans, secured or unsecured, granted or taken by the
Company, to or from companies, firms or other parties covered in the
register maintained under section 301 of the Companies Act 1956,
according to the information and explanations given to us:
a) The Company has not granted any loans, secured or unsecured to
companies, firms or other parties listed in the register maintained U/s
301 of the Companies Act, 1956. However, the company has taken
unsecured loans from Four Directors amounting to Rs. 2,32,71,630 and
repaid loan amounting Rs. 2,28,93,551 during current financial year,
whose outstanding is aggregating to Rs. 18.104.22.1688 /- (STATEMENT IN
LIEU of ADVT.)
b) The rates of Interest and other terms and conditions of the
unsecured loans from the Directors are not prejudicial to the interests
of the Company. The repayment of the loans and interest payment
schedule is not stipulated by the Company, in respect of loans from
Directors, hence the question of overdue does not arise. However, in
respect of Unsecured Deposits from Directors, aggregating to Rs. 8.37
lacs, an interest of Rs. 2.17 lacs is provided and accrued in books, to
be paid on maturity date as per terms of Deposit.
4. In our opinion and according to the information and explanation
given to us there is adequate internal control procedure commensurate
with the size of the Company and nature of its business for the
purchase of inventory and fixed assets and for the sale of goods.
5. In our opinion and according to the explanations given to us the
Company has entered the transaction that needs to be entered in the
register maintained U/s 301 of the Companies Act, 1956 and these
transactions have been made at prices which are reasonable having
regard to the prevailing market prices at time of the transaction.
6. The Company has accepted deposits from public within the meaning of
Section 58A of the Companies Act, 1956 and rules framed there under. In
our opinion and according to the explanations given to us, the company
has complied with the directives issued by the Reserve Bank of India
and the provisions of Section 58A of the Companies Act, 1956 and the
rules made there under in respect of the Fixed Deposit accepted
7. The internal audit of the Company has been conducted by company''s
own staff. In our opinion, the internal audit system is commensurate
with the size and nature of its business, but the system requires to be
8. The Central Government has not prescribed maintenance of cost
records, under section 209 (1) (d) of the Companies Act, 1956 in
respect of the industry to which the company belongs. Hence, the
Company has not maintained such records.
9. According to the information and explanations given to us in
respect of statutory dues:
a) The Company has been depositing the undisputed statutory dues
including provident fund, Investor Education and Protection Fund,
Employees State Insurance, Income Tax, Sales Tax, Wealth Tax, Custom
Duty, Excise Duty, Cess and any other statutory dues (which are
applicable) with the appropriate authorities during the year. However,
there is no undisputed statutory dues outstanding for a period of more
than six months as at 31s'' March, 2012 from the date they became
payable.In case of Investor Education and Protection Fund due, for
which the company was liable in respect of depositing the Excess Share
Application money of Rs. 3,16,149/- lying in separate bank account of
the Company with the Banker who have not yet submitted the reconciled
list of outstanding due to refund holders
b) There are no disputed dues that have not been deposited in respect
of Income Tax, Sales Tax, Wealth Tax, Custom Duty, Excise Duty, Cess or
any other matters which is disputed and pending with the relevant
10. In our opinion, the company has no accumulated loss as at the
year-end; and that the company has not incurred Cash Loss in the
current financial year as well in the immediately past financial year.
11. On the basis of the information and explanations given to us, by
the management, the Company has not defaulted in repayment of dues to
banks during the year. The Company has no dues to any financial
institutions or debenture holders during the year.
12. On the basis of information and explanations given to us, the
Company has not granted loans or advances on the basis of security by
way of pledge of shares, debentures and other securities.
13. The nature of the Company''s activities during the year is such
that clauses (xiii) and (xiv) of paragraph 4 of the Companies (Auditors
Report) Order, 2003 are not applicable to the Company for the year.
14. According to information and explanation given to us, the Company
has not given any guarantee for loans taken by others from banks or
15. On the basis of examination of books of accounts, we would like to
state that the Company has not availed any Term Loans during the year.
16. On the basis of information and explanations given to us and on an
overall examination of the Balance Sheet and the Cash Flow Statement of
the Company, we report that the Company has not prima facie, used the
funds raised on short term basis during the year, for long term
investment and as explained, Long term funds have been partly utilized
to finance core working capital.
17. The Company has not made any preferential allotment of shares
during the year.
18. . The Company has not issued any debentures during the year.
19. The Company has not raised any money by public issue during the
20. To the best of our knowledge and belief an according to the
information and explanations given to us, no fraud on or by the Company
was noticed or reported during the year.
For V. K. SHASTRI & CO. Place : VADODARA
Chartered Accountants Date : 22/05/2012