1) We have audited the attached Balance Sheet of Kalpena Industries
Ltd. as at 31st March 2012 and the Profit and Loss Account and 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 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 statement
presentation. We believe that our audit provides a reasonable basis for
3) As required by the Companies (Auditor''s Report) Order, 2003 as
amended by the Companies (Auditor''s Report) (Amendment) Order 2004
(together the Order), issued by the Central Government of India in
terms of sub- section (4A) of section 227 of The Companies Act., 1956
of India (the ''Act'') and on the basis of such checks of the books and
records of the Company as we considered appropriate and according to
the information and explanations given to us, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
4) Further to our comments in the Annexure referred to in paragraph 3
above, we report that :
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 account as required by law have
been kept by the company so far as appears from our examination of
c. The Balance Sheet and Profit and Loss Account and Cash Flow
Statement dealt with by this report are in agreement with the books of
d. In our opinion, 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. 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 clause
(g) of sub-section (I) of section 274 of the Companies Act, 1956.
f. In our opinion 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 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 2012 and ii. in the case of the Profit and
Loss Account, of the Profit for the year ended on that date. iii. in
the case of the Cash Flow Statement, of the cash flows for the year
ended on that date.
Annexure refereed to in paragraph 3 of the Auditors Report of even date
to the members of Kalpena Industries Ltd. on the accounts of for the
year ended 31st March 2012.
i) a) The company is generally maintaining proper records showing full
particulars including quantitative details and situation of Fixed
b) As per the information and explanation given to us, fixed assets are
physically verified by the management during the year, which in our
opinion, is reasonable having regard to the size of the company and the
nature of its assets. The discrepancies noticed on such verification
were not material.
c) There was no substantial disposal of the Fixed Assets.
ii) a) As explained to us, the inventories of the company except stock
in transit, have been physically verified by the management at
b) In our opinion and according to the information and explanations
given to us, the procedure of physical verification of inventories
followed by the management is reasonable and adequate in relation to
the size of the company and nature of its business.
c) The company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stocks and
the book records were not material having regard to the size of
operation of the company and have been dealt with in the books of
iii) a) According to information and explanations given to us, the
Company has not granted any loans, secured or unsecured, to companies,
firms or other parties listed in the Register maintained under Section
301 of the Act.
b) According to information and explanations given to us, the Company
has not taken any loans, secured or unsecured, from companies, firms or
other parties listed in the Register maintained under Section 301 of
iv) In our opinion and according to the information and explanations
given to us, having regard to the explanation that some of the products
of the company are of special nature and suitable alternative sources
are not readily available for obtaining comparable quotations, there is
generally an adequate internal control system commensurate with the
size of the company and the nature of its business with regard to
purchase of inventory and fixed assets and the sale of goods and
services. Read with the above, during the course of our audit, we have
not observed any major weakness or continuing failure to correct any
major weakness in the internal control system of the company in respect
of these areas.
v) In our opinion and according to the information and explanations
provided by the management, we are of the opinion that there are no
contracts or arrangements that need to be entered into the register
maintained under section 301 of the Companies Act, 1956.
vi) The Company has not accepted any deposit from public in terms of
section 58A and 58AA and the relevant provisions of the Companies Act,
vii) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
viii) We have broadly reviewed the books of accounts maintained by the
company in respect of product, where pursuant to the rules need by the
central government of India, the maintenance of cost records has been
prescribed under clause (d) of subsection (1) of sec 209 of the Act and
are of the opinion that prima facie, the prescribed accounts and
records have being made and maintained. We have not, however, made a
detail examination of the record with a view to determine wheter they
are accurate or complete.
ix) a) According to the information and explanations given to us and
the records of the Company examined by us, in our opinion, the Company
is generally regular in depositing the undisputed statutory dues
including provident fund, investor education and protection fund,
employees'' state insurance, income- tax, sales-tax, wealth tax, service
tax, custom duty, excise duty, cess and other material statutory dues
as applicable, with the appropriate authorities. As at 31st March''
2012, there were no arrears in respect of the aforesaid dues for a
period of more than six months from the date they became payable.
b) According to the information and explanations given to us and the
records of the Company examined by us, the particulars of dues of
income-tax, sales-tax, wealth tax, service tax, customs duty, excise
duty and cess as applicable as at 31st March'' 2012, which have not been
deposited on account of a dispute are as follows -
Name of Statue Nature of Dues Amount Period of
which Forum where
Thousands) the amount
relates dispute is
Excise Act Excise Duty 2,935 F.Y. 1996-97 CEGAT
Value Added Tax Value Added
Tax 44,705 F.Y. 2004-05 Jt. Comm. of
6,093 F.Y. 2005-06 Sales Tax,
34,441 F.Y. 2006-07 Beliaghata,
Central Sales Tax Central Sales
Tax 6,912 F.Y. 2004-05 Jt. Comm. of
21,757 F.Y. 2005-06 Sales Tax,
10,110 F.Y. 2006-07 Beliaghata,
x) There are no accumulated losses of the company. The company has not
incurred cash losses during the financial year covered by our audit and
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 a
financial institution and banks as at the Balance Sheet date.
xii) 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) The provisions of any special statue applicable to chit fund /
nidhi / mutual benefit fund / societies are not applicable to the
xiv) In our opinion the company, is not dealing in or trading in
shares, securities, debentures and other investments.
xv) In our opinion and according to the information and explanations
given to us, the Company has not given any guarantee for loan taken by
others from bank or financial institution during the year.
xvi) According to the information & explanation given to us, the Term
Loan are being applied by the company for the purpose for which the
loan were obtained.
xvii) According to the information and explanations given to us, on an
overall examination of the balance sheet of the company, we report that
the no funds raised on short-term basis have been used for long-term
xviii)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.
xix) There are no debentures issued and outstanding at the year end.
xx) The Company has not raised any money by public issue during the
xxi) According to the information and explanations given to us and
representations made by management and based upon the audit procedures
performed, we report that no fraud on or by the company has been
noticed or reported during the course of our audit.
For D.C. DHAREWA & CO.
Firm Registration No. 322617E
Date : 24th August, 2012 (MEMBERSHIP NO. 53838)