We have audited the attached Balance Sheet of M/s HERMAN MILKFOODS LTD.
as at 31st March, 2009 and also the Profit & Loss Account of the
Company for the year ended on that date annexed thereto. 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.
We conducted our audit in accordance with auditing standards generally
accepted in India. Those Standards require that we perform the audit to
obtain reasonable assurance about whether the financial statements are
free from material misstatement. An audit includes examining, on 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.
1. As required by the Companies (Auditors Report) Order, 2003, issued
by the Ministry of Finance and Company Affairs (Deptt. of Company
affairs) of Government of India 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 & 5 of the said order.
2 Further to our comments in the Annexure referred to the above, we
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
b) In our opinion, proper books of accounts as required by law have
been kept by the company, so far as appears from our examination of
c) The Balance Sheet and Profit & Loss Account dealt with by this
report are in agreement with the books of account;
d) In our opinion the Balance Sheet and Profit & Loss Account dealt
with by this report comply with the accounting standards referred to in
the sub-section (3C) of the section 211 of the Companies Act, 1956.
e) On the basis of representations from the directors, as at 31-03-
2009 and taken on record by the Board of Directors, we report that none
of the directors are disqualified as on 31-03-2009 from being appointed
as director, in terms of clause (g) of sub-section (1) of Section 274
of the Companies Act, 1956.
iii) The Directors have taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of the act for safeguarding the assets of the company and
for preventing and detecting fraud and other irregularities.
The Directors have prepared the annual accounts on going concern basis.
In our opinion, subject to the information dealt with in the proceeding
paragraph in Annexure to this report, 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 (as
amended), in the manner so required, and give a true and fair view in
conformity with the accounting principles generally accepted in India.
i. In the case of the Balance Sheet, of the state of affairs of the
company as at 31st March, 2009 and
ii. In the case of the Profit and Loss Account of the profit for the
year ended on the date.
ANNEXURE TO AUDITORS REPORT
Annexure referred to in paragraph 1 of the Auditors Report to the
members of HERMAN MILKFOODS LTD. on the Accounts for the year ended
31st March, 2009.
1. a. The company has maintained reasonable records showing details of
b. Most of the fixed assets have been physically verified by the
management. We have been informed that no material discrepancies were
noticed on such verification.
c. No substantial part of fixed assets has been disposed off during
2.a. The inventory has been physically verified by the management
during the year.
b. In our opinion, 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. On the basis of our examination of the inventory records, in our
opinion, the company is maintaining proper records of inventory. The
discrepancies noticed on physical verification of inventory as compared
to book records were not material.
3. a. The company has not granted loans to companies, firms or other
parties covered in the register maintained u/s 301 of the Act.
b. The Company has not taken unsecured loans from companies firm or
other parties covered under the register maintained under section 301
of the act.
4. In our opinion and according to the information and explanation
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 fixed assets, inventory, and sale of good and services.
During the course of our audit, we have not observed any continuing
failure to correct major weakness in the aforesaid internal control
5. In our opinion and according to the information and explanation
given to us the transaction in pursuance of contracts or arrangements
have been made at prices which are reasonable having regard to
prevailing market prices at the relevant time.
6. In our opinion and according to the information and explanation
given to us, the Company has not accepted any deposits with the
provisions of section 58A and 58AA of the Companies Act, 1956 and the
rules framed there under.
7. In our opinion the Companys present internal audit system is
commensurate with its size and nature of business.
8. In our opinion and according to the information and explanation
given to us, we are of the opinion that the cost records as prescribed
by the Central govt. of India under section 209(1) (d) of the Act is
not applicable to this Company.
9. According to the Books and records as produced and examined by us
in accordance with the generally accepted auditing practices in India,
and also based on the management representations, in our opinion the
company is generally regular in depositing the undisputed statutory
dues including provident fund, Income Tax, where applicable with
appropriate authorities. There was no arrears outstanding in respect of
above for a period of more than 6 months as on 31.03.2009.
10. The company has accumulated losses as at 31st march, 2009 However;
it has not incurred any cash losses either during the financial year
ended on that date or in the immediately preceding financial year.
11. Based on our audit procedures and according to the information and
explanation given to us, the Company has not defaulted in any repayment
of dues to financial institution and banks.
12. The Company has not granted any loans or advances on the basis of
security by way of pledge of shares or other securities.
13. In our opinion, considering the nature of activities carried of
the Company during the year, the provisions of any special/ statutory
applicable to chit fund/ nidhi/ mutual benefit fund/ societies are not
applicable to it.
14. According to the information and explanations given to us, the
Company has not dealt or traded in shares, securities or other
investments during the year.
15. The company has not given any guarantee for loans taken by others
as on 31.03.2009 from banks or financial institutions.
16. The Company has not taken any term loan or other loan during the
year under audit.
17. On the basis of utilization of funds, which is based on overall
examination of the balance Sheet of the company, related information as
made available to us and as represented to us by the management, no
funds were raised on short term basis.
18. According to the information and explanations given to us, the
Company has not made preferential allotment of shares to parties and
companies covered in the Register maintained under section 301 of the
companies Act, 1956 during the year.
19. The Company has not issued any debentures that were outstanding
during the year under audit.
20. The Company has not raised any money by public issued during the
21. As per the information and explanation given to us and on the
basis of examination of records, no material fraud on or by the Company
was noticed or reported during the course of our Audit.
22. The company is not a sick industrial company within the meaning of
section 3(1 )(o) of the Sick Industrial Companies (Special provisions)
Act, 1985 as on the date of balance sheet.
Date: 01.09.2009 For TARANJEET & ASSOCIATES,
Place: Chandigarh CHARTERED ACCOUNTANTS,