Madras Cements
BSE: 500260 | NSE: MADRASCEM | ISIN: INE331A01037 | Cement - Major
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- Chairman's Speech
- Auditors Report
- Notes To Accounts
- Accounting Policy
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| Auditor's Report | Year End : Mar '09 |
1. We have audited the attached Balance Sheet of Madras Cements
Ltd., Rajapalayam as at 31st March, 2009, the Profit and Loss
account and 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 our opinion.
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
have annexed hereto a statement on the matters specified in
paragraphs 4 and 5 of the said 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 audit;
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 those books;
c) The Balance Sheet, Profit and Loss Account and Cash Flow
statement dealt with by this report are in agreement with the
books of account;
d) In our opinion, the Balance Sheet, Profit and Loss Account
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;
e) As per representations made by the Company and its Directors,
no Director is disqualified 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 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, 2009;
ii. in the case of the Profit and Loss Account, of the profit
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 Company for the year ended on
that date.
ANNEXURE TO THE AUDITORS’ REPORT
With reference to paragraph 3 of our report to the shareholders
of Madras Cements Ltd. of even date, in our opinion and to the
best of our knowledge and belief and as per the information and
explanations given to us and on the basis of the books and
records examined by us in the normal course of audit, we report
that:
i a The Company has maintained proper records showing full
particulars including quantitative details and situation of
fixed assets. b The management at reasonable intervals has
physically verified the fixed assets of the company and no
material discrepancies were noticed on such verification. c The
fixed assets disposed during the year were not substantial and
therefore the going concern status of the company has not been
affected. ii a The management has conducted physical
verification at reasonable intervals in respect of its
inventory.
b The procedure of physical verification of inventory followed
by the management is reasonable and adequate in
relation to the size of the company and the 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.
iii a The company has granted loans aggregating to Rs.40 crores
(maximum outstanding at any time during the year Rs.40 crores,
outstanding as on 31-Mar-2009 – Rs.30 crores) to 4 parties
listed in the register maintained under section 301 of the
Companies Act, 1956.
b The rate of interest and other terms and conditions of loans
given by the company are not, prima facie,
prejudicial to the interest of the company. c The payment of
the principal amounts and the interest wherever applicable are
regular. d There is no overdue amount with respect to above
loans. e The company has taken loans aggregating to Rs. 5.69
crores (maximum outstanding at any time during the
year Rs. 5.69 crores, outstanding as on 31-Mar-2009 - Rs 0.11
crores) from 1 party listed in the register
maintained under section 301 of the Companies Act, 1956. f The
rate of interest and other terms and conditions of the loans
taken by the company are not, prima facie,
prejudicial to the interest of the company.
g The loans given/taken by the company are repayable on demand
and have been received/paid on demand.
iv The company has an internal control system which is adequate
and is 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
and services. There are no major weaknesses in internal control
system. v a Particulars of contracts or arrangements referred
to in Section 301 of the Companies Act, 1956 have been so
entered in the register required to be maintained under that
section. b These transactions have been made at prices which
are reasonable having regard to the prevailing market
prices at the relevant time.
vi The company has accepted deposits from the public and the
directives issued by the Reserve Bank of India
and the provisions of section 58A and 58AA or any other relevant
provisions of the Act and the rules framed there under where
applicable have been complied with.
vii The company has an internal audit system commensurate with
its size and nature of its business.
viii The cost accounts and the records prescribed by the Central
Government under clause (d) of sub-section (1)
of section 209 of the Companies Act, 1956 have been made and
maintained.
ix a The company is regular in depositing undisputed statutory
dues including Provident Fund, Investor Education and Protection
Fund, Employees’ State Insurance, Income-tax, Sales-tax, Wealth
tax, Service tax, Customs Duty, Excise Duty, cess and other
statutory dues with the appropriate authorities.
b The disputed statutory dues aggregating to Rs 106 crores that
have not been deposited on account of matters pending before
appropriate authorities are as under :
Sl. Name of the statute where dispute is pending Amount
No. Forum (Rs. in crores)
1 Sales Tax Act Assessing Authority 0.12
Assistant Commissioner, Appeals 5.09
Appellate Tribunal 2.53
High Court 0.89
2 VAT Act Appellate Tribunal 1.32
High Court 0.21
3 Central Excise Act
and CENVAT Credit Rules Assistant/Additional
Commissioner 3.54
Commissioner Appeals 4.48
Appellate Tribunal 79.31
High Court 0.19
Supreme Court 0.02
4 Service Tax Assistant Commissioner,
Adjudication 0.20
Commissioner, Appeals 1.46
Appellate Tribunal 6.64
Total 106.00
x The Company has no accumulated losses and has not incurred any
cash losses during the financial year covered by our audit or in
the immediately preceding financial year.
xiThe Company has not defaulted in repayment of dues to financial
institutions, banks or debenture holders. xii TheCompany has not
granted any loans or advances on the basis of security by way of pledge
of shares, debentures and other securities. xiii The company is not a
chit fund or a nidhi/mutual benefit fund/society. Therefore, the
provisions of clause 4 (xiii) ofthe Companies (Auditor’s Report) Order,
2003 are not applicable to the company. xiv The company is not dealing
or trading in shares, securities, debentures and other investments.
Therefore, the provisions of clause 4(xiv) of the Companies (Auditor’s
Report) Order, 2003 are not applicable to the company. xv The terms
and conditions of the guarantee given by the Company for loans taken by
others from banks or financial institutions are not prima facie
prejudicial to the interests of the company. xvi The Company has
raised new term loans during the year and these have been applied for
the purposes for which they were raised. xvii The funds raised on
short-term basis have not been used for long-term investment. 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 Companies Act, 1956. xix The company has no outstanding
amount under Debentures that require creation of security/charge. xx
The company has not raised any money by way of public issues during the
year.
xxi No fraud on or by the company has been noticed or reported
during the year.
For M.S.JAGANNATHAN & N. KRISHNASWAMI For CNGSN & ASSOCIATES
Chartered Accountants Chartered Accountants
P.SANTHANAM C.N.GANGADARAN
Partner Partner
Membership No. 18697 Membership No. 11205
Chennai 29-5-2009 |
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| Source : Religare Technova | |
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