1. We have audited the attached Balance Sheet of Jai Mata Glass
Limited, as at 31st March, 2012, the Statement of Profit and Loss and
also the Cash Flow Statement for the year ended on that date annexed
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.
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 the management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for ouropinion.
3. As required by the Companies (Auditor''s Report) Order, 2003 as
amended by the Companies (Auditor''s Report) (Amendment) Order, 2004
issued by the Central 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 and 5 of the said
4. Attention is invited to Note No.28.21 (b) on Financial Statements
regarding non-provision of interest & other levies on statutory dues &
the consequential effect on the loss. The amount is unascertainable.
5. Subject to our comments in the Annexure referred to in paragraph 3
& 4, 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
(ii) In ouropinion, proper books of account as required by law have
been kept by the Company so far as appears from our examination of
(iii) The Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement dealt with by this report are in agreement with the books of
(iv) In ouropinion, the Balance Sheet, Statement of Profit and Loss 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 at 31st March, 2012, and taken on record by the Board of
Directors, we report that none of the directors is disqualified as at
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;
(vi) In our opinion and to the best of our information and according to
the explanations given to us, the said financial statements together
with the notes thereon and attached thereto give, in the prescribed
manner, the information required by the Companies Act, 1956, 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 6f affairs of the
Company as at 31st March, 2012;
(b) In the case of the Statement of Profit and Loss, of the Loss for
the year ended on that date; and
(c) In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
ANNEXURE REFERRED TO IN PARAGRAPH 3 OF OUR REPORT OF EVEN DATE TO THE
MEMBERS OF JAI MATA GLASS LIMITED ON THE FINANCIAL STATEMENTS AS AT AND
FOR THE YEAR ENDED 31 st MARCH 2012.
1. The Company has generally maintained proper records showing full
particulars including quantitative details and situation of fixed
2. The fixed assets have been physically verified by the management
during the year according to a regular programme of periodic
verification in a phased manner which in our opinion is reasonable
having regard to the size of the Company and the nature of its assets.
No material discrepancies were noticed on such verification.
3. No substantial part of fixed assets has been disposed off during
the year, which has bearing on the going concern status of the Company.
4. The inventory (except in transit) has been physically verified
during the year by the management. In our opinion, the frequency of
verification is reasonable.
5. The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the Company and nature of its business.
6. The Company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stocks and
the book records were not material.
7. a) According to the information and explanation given to us, the
Company has taken unsecured loans from two companies listed in the
register maintained under Section 301 of the Act and the maximum amount
involved during the year aggregated to Rs. 592.55 lacs and the year-end
balance amounted to Rs. 322.48 lacs.
b) According to the information and explanation given, the rate of
interest charged is prima facie not prejudicial to the interest of the
Company. There are no other terms and conditions for the loan taken.
c) As explained to us, the payment of principal amount is payable on
demand and payment of interest is regular.
d) In respect of loan taken by the Company, this is payable on demand
and therefore the question of overdue amount does not arise and the
provisions of sub-clause (d) of clause 4(iii) of the order are not
applicable to the Company.
8. The Company has not granted any loan, secured or unsecured, to
companies, firms and other parties as listed in the Register maintained
undersection 301 of the Companies Act, 1956.
9. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business with regard to purchase of inventory, fixed assets and with
regard to sale of goods. During the course of our audit, no major
weakness has been noticed in internal controls.
10. According to the information and explanations given to us, we are
of the opinion that the transactions that need to be entered into the
Register maintained u/s 301 of the Companies Act, 1956 have been so
11. In our opinion and according to the information and explanations
given to us, the Company has not entered into contracts or arrangements
exceeding '' 5.00 lacs in value with companies in which Directors are
interested as listed in the Register maintained under Section 301 of
the Companies Act, 1956.
12. In our opinion and according to the information and explanation
given to us, the Company has not accepted any deposit from the public
within the meaning of Sections 58A & 58AA of the Companies Act, 1956
and the rules framed there under.
13. In our opinion, the Company has an internal audit system
commensurate to the size and nature of its business.
14. The Central Govt, has not prescribed maintenance of the cost
records by the Company under Section 209 (1)(d) of the Companies Act,
1956, therefore the provision of clause 4(viii) of the Companies
(Auditor''s Report) Order, 2003 is not applicable to the Company.
15. According to the records and information & explanations given to
us, the Company has not been regular in depositing undisputed statutory
dues including Provident Fund, Employees State Insurance, Income Tax,
Service Tax, Custom Duty, Excise Duty, Cess and other material
statutory dues with the appropriate authorities and there are
undisputed statutory dues payable for a period of more than six months
from the date they became payable for the year ending 31 st March, 2012
as given below:
Nature of Dues Amount (Rs.)
Service Tax 3277850
Barrier Tax 1036036
Sales Tax 13031401
Mandi Tax 187606
However, it is to be read together with comments in Para No. 4 in the
Auditor''s Report and Note No. 29.26
(b) on Financial Statements.
16. According to the information and explanations given to us and the
records of the Company examined by us, the particulars of dues of
Excise Duty and Sales Tax, as at 31st March, 2012 which have not been
deposited on account of dispute, areasfollows:-
Sr. Name of the Nature of the From where Amount
No. Statute Dues dispute is Pending (Rs. in
I. Central Excise Excise Duty Appellate Tribunal,
Act, 1944 Delhi. 24.76
II. Income Tax Act, Income Tax Hon''ble High Court
1961 Himachal Pradesh 23.84
17. The accumulated losses of the Company are more than fifty per cent
of its net worth. The Company has not incurred any cash losses during
the financial year covered by our audit, and in the immediately
preceding financial year.
18. The Company has no dues to financial Institutions or banks as at
the Balance Sheet date.
19. According to the information and explanation 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.
20. The Company is not a Chit Fund or a Nidhi/ mutual benefit
fund/society. Therefore, the provision of clause 4 (xiii) of the
Companies (Auditor''s Report) Order, 2003(hereafter referred to as the
said Order) are not applicable to the Company.
21. The Company is not dealing in or trading in shares, securities,
debentures & other investments. Accordingly, the provisions of clause
(xiv) of the said Order are not applicable to the Company.
22. According to the information and explanation given to us, the
Company has not given any guarantees for loans taken by others from
banks or financial institutions.
23. According to the information and explanation given to us, the
Company has not received any term loan during the year.
24. The Company has not made any preferential allotment of shares to
parties and companies covered in the register maintained under section
301 of the Act during the year under report.
25. The Company did not have any outstanding debenture during the
26. The Company has not raised any money through a public issue during
27. Based on examination of documents and records made available and
on the basis of information and explanations given to us, the Company
has not used funds raised on short basis for long term investments and
28. To the best of our knowledge and belief and according to the
information and explanations given to us, no fraud on or by the Company
was noticed or reported during the year
For P. K. Maheshwari & Co.
P. K. Maheshwari
Place . New Delhi (Partner)
Date. June 06,2012. Membership No. 7850