1. We have examined the attached Balance Sheet of Yuvraaj Hygiene
Products Limited., (formerly Intensive Air Systems Ltd) as at March
31, 2012 and also the Profit and Loss account and Cash flow statement
for the year ended on that date. These financial statements are the
responsibility of the 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. These 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 amount and
the 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
3. As required by the Companies (Auditor''s Report) Order, 2003 (CARO)
issued by the Central Government in terms of Section 227(4A) of the
Companies Act, 1956, we enclose in the Annexure a statement on the
matters specified in paragraph 4 and 5 of the said order.
4. Further to our comments in the Annexures, we report as follows:
(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 it appears from our examination of
(c) the Balance Sheet, the Statement of Profit and Loss and the Cash
Flow Statement dealt with by this report are in agreement with the
books of account;
(d) In our opinion, the Balance Sheet, the Statement of Profit and Loss
and the Cash flow statement dealt with by this report are in compliance
with the Accounting Standards referred to in Section 211(3C) of the
Companies Act, 1956;
(e) Subject to Non-Availability of entire set of documents which were
destroyed in the fire in the factory, in respect of the period from
01/04/2011 to date of fire on 29/05/2011, on the basis of the
information and explanation given to us, in our opinion, the accounts
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 March 31, 2012.
ii. in the case of Statement of Profit and Loss, of the loss of the
Company for the year ended on that date; and
iii. in the case of the Cash flow statement of the cash flows of the
group for the year ended on that date.
5 On the basis of written representations received from the Directors
as on 31st 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 Section 274(l)(g)
of the Companies Act, 1956.
ANNEXURE TO THE AUDITORS REPORT
(Referred to in paragraph 4 of our Report of even date on the Accounts
for the year ended on Marcfh 31, 2012 of Yuvraaj
Hygiene Products Limited)
i. In respects of fixed assets:
(a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets.
(b) A substantial portion of the fixed assets have been physically
verified by the management during the year and in our opinion the
frequency of such verification is reasonable having regard to the size
of the Company and the nature of its assets. No material discrepancies
were noticed on such physical verification.
(c) Fixed assets were destroyed by fire during the year as the factory
caught fire on 29/05/2011 and insurance claim had been filed. According
to the information and explanations given to us, we are of the opinion
that the impairment of fixed assets has not affected the going concern
status of the Company.
ii. In respect of inventory:
i. The inventories have been physically verified during the year by
the management, after taking into consideration the stock destroyed by
fire during the relevant period. In our opinion the frequency of
verification is reasonable.
ii. The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
iii. In our opinion and according to the information and explanation
given to us, the Company is maintaining proper records of inventory.
The discrepancies noticed on verification between physical stocks and
the book records were not material and have been properly dealt with in
the books of account.
iii. The Company has not granted unsecured loans and inter-corporate
deposits to companies covered in the Register maintained under Section
301 of the Act. Hence the provisions of clause (iii)(b),(c) (d) of
paragraph 4 are not applicable to the Company.
(a) The Company has taken unsecured loans from directors and relatives
thereon. TherroSximum amount involved in the current year amounted to Rs.
11.27 lakhs ji -
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
purchase of inventory and fixed assets and for the Work Done. During
the course of our audit, we have not observed any major weakness in
internal control system
v. Subject to non-applicability of sub-clause(b) of clause (v),we
report that Based on the audit procedures applied by us and 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 have been entered in the register
required to be maintained under that section.
vi. The Company has not accepted any deposits from the public within
the meaning of Sections 58A and 58AA of the Act and the rules framed
there under. Therefore, the provisions of Section 58A, 58AA and any
other relevant provisions of the Companies Act, 1956 and the rules
framed there under with regard to deposits accepted from the public are
not applicable to the Company.
vii. The Company does not have an internal audit system commensurate
with the size and nature of its business.
viii. The maintenance of cost records as required by rules made by the
Central Government of India, under clause (d) of subsection (1) of
Section 209 of the Act are not applicable to the Company.
ix. Subject to non-applicability of sub-clause(b) of clause (v),we
report that According to the records of the Company, Income Tax, Sales
Tax, Wealth Tax, Service Tax, Customs Duty, Excise Duty, Cess and other
material statutory dues applicable to it have been generally regularly
deposited during the year with the appropriate authorities. According
to the information and explanations given to us, no undisputed amounts
payable in respect of above were in arrears, as at March 31, 2012 for a
period of more than six months from the date on which they became
x. The Company does have accumulated losses at the end of the
financial year. The Company has incurred cash loss during the financial
year covered by our audit. The Company has incurred cash loss during
the immediately preceding financial year
xi. In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to
Financial Institutions & Banks.
xii. Based on our examination of the records and the information and
explanations given to us, the Company has not granted any 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 (Auditor''s Report) (Amendment) Order, 2004 are
not applicable to the Company
xiv. In our opinion the Company is not dealing in or trading in shares,
securities, debentures and other investments. Accordingly, the
provisions of clause 4 (xiv) of the Companies (Auditor''s Report)
(Amendment) Order, 2004 are not applicable to the Company
xv. In our opinion, the terms and conditions on which the Company has
not given guarantees for loans taken by others from banks or financial
institutions, the terms and conditions, whereof in our opinion, are
prejudicial to the interest of the Company.
xvi. In our opinion, the term loans have been applied for the purpose
for which they were raised.
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 short-term funds have been used for long-term investments.
xviii. According to the information and explanations given to us, the
Company has not made any preferential allotment of shares to parties
and companies covered in the register maintained under section 301 of
the Companies Act, 1956.
xix. The Company has not created any security / charge in-respect of
secured debentures issued and outstanding at the year end.
xx. The Company has not raised any money by way of public issue during
xxi. According to the information and explanations given to us, no
fraud on or by the Company has been noticed or reported during the
course of our audit.
For P.P.Jayaraman & Co., For GMK Associates
Chartered Accountants Chartered Accountants
(FRN: 104139W) (FRN: 006945S)
P. P. Jayaraman G. Satyanarayana Murty
M. No. 041354 M. No. 029919
Place: Thane Place:Hyderabad
Date: 28th May 2012 Date: 28th May 2012