We have audited the attached Balance Sheet of M/S MAHARASHTRA SEAMLESS
LIMITED as at 31 st March 2012 and also the annexed Statement of
Profit and Loss Account and the Cash Flow Statement for the year ended
on that date (together referred to as ''financial statements''). 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
We conducted our audit in accordance with the 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 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 our opinion.
As required by the Companies (Auditor''s Report) Order, 2003, issued by
the Central Government of India in terms of Section 227(4A), of the
Companies Act 1956, we enclose in the Annexure a statement on the
matters specified in paragraphs 4 & 5 of the said order.
Further to our comments in the Annexure referred to above, we report
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 such
c) The Balance Sheet, Profit & 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 have been prepared in
compliance with the Accounting standards referred to in Sub Section
(3C) of Section 21 I of the Companies Act, 1956.
e) On the basis of the written representations received from the
directors and taken on record by the Board of Directors, we report that
none of the said directors are disqualified as on 31 st March 2012,
from being appointed as directors in terms of clause (g) ofsub-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 financial statements read
together with significant accounting polices and notes thereon 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:
In the case of Balance Sheet, of the state of affairs of the Company as
at 31 st March, 2012 and,
In the case of the Statement of Profit & Loss Account, of the Profit of
the Company for the year ended on that date
In case of the Cash Flow Statement, of the cash flows for the year
ended on that date.
ANNEXURE TO AUDITORS'' REPORT OF MAHARASHTRA SEAMLESS LIMITED (Annexure
referred to in our report of even date)
1. (a) The company has maintained proper records showing full
particulars including quantitative details and situation of fixed
(b) The company has a phased programme of physical verification of its
fixed assets which, in our opinion, is reasonable having regard to the
size of the Company and the nature of its assets. As explained to us,
the management during the year has physically verified all the fixed
assets of the Company and no material discrepances between the book
records and the physical verification were noticed on such
(c) Fixed assets disposed off during the year, were not substantial
and, therefore, ,t does not affect the going concern assumption,
2. (a) As explained to us, the inventories of finished goods, sem,
finished goods, stores, spare parts and raw materials except raw
material in transit, lying with the third parties, have been physically
verified by the management during the year. In our opinion, the
frequency of verification is reasonable.
(b) In our opinion and according to the information and explanations
given to us, 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.
(c) The company has maintained proper records of inventories. As
explained to us, there were no material discrepances noticed on
physical verification of inventory as compared to the book records.
3. In respect of loans, secured or unsecured, granted or taken by the
company to / from companies, firms or other parties covered in the
register maintained under section 301 of the Companies Act, 1956:
(a) The company has granted loans to six companies during the year. The
maximum amount involved during the year was Rs. 233 18 lacs the year end
balance of loan granted to such companies was 7 12031.87 lacs. The
company has taken loan during the year from one company. The maximum
amount involved during the year was Rs. 137.74 lacs, the year end balance
of loan taken from such company was Rs. I 32.54 lacs.
(b) In our opinion and according to the information and explanations
given to us, the rate of interest and other terms and conditions are
not prima face prejudicial to the interest of the company
(c) In respect of loans granted by the company the interest payments
are regular and the principal amounts are being received /renewed on
the due dates. In respect of loans taken by the company, the interest
payments are regular and the principal amount is repayable on demand.
(d) There is no overdue amount in respect of the above loans,
4. In our opinion, there is an adequate internal control procedure
commensurate with the size of the company and the nature of its
business for the purchase of stores, raw material including components,
plant and machinery, equipment and other assets, and for the sale of
goods. Further, on the basis of our examination of the books and
records of the company in accordance with the generally accepted
auditing practices, we have neither come across, nor have we been
informed the existence of major weakness in the internal control
procedures and systems.
5. (a) As per the audit procedures applied by us, and according to the
information and explanations given to us by the management, the
transactions which are required to be entered in the register
maintained under section 301 of the Act have been so entered.
(b) As per the audit procedures applied by us and as per the
information and explanations given to us, with respect to the
transactions as entered in the register maintained under section 301,
with any party during the financial year, the prices at which these
have been made are reasonable having regard to the prevailing, market
prices at that time.
6. According to the information and explanations given to us, the
company has not accepted any deposits during the year from the public
within the provisions of Section 58A & 58AA of the Companies Act, 1956
and the Companies (Acceptance of Deposit) rules 1975 have been complied
7. In our opinion the company has an internal audit system
commensurate with the nature and size of its business,
8. We have broadly reviewed the cost records maintained by the company
pursuant to the order made by the Central Government for the
maintenance of cost records, u/s 209(l)(d) of the Companies Act, 1956
and are of opinion that prima -face the prescribed records and accounts
have been maintained by the company. However, we have not made a
detailed examination of these records to verify whether they are
accurate or complete.
9. (a) 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, Custom Duty, Excise Duty, Cess and other statutory dues
with the appropriate authorities during the year. According to the
information and explanations given to us, no undisputed amounts payable
in respect of the aforesaid dues were outstanding as at 31 st March
2012 for a period of more than six months from the date of becoming
(b) According to the information and explanations given to us, details
of dues of income tax, Sales tax, Custom Duty, Wealth Tax, Excise Duty
and Cess which have not been deposited as on 31 st March, 2012 on
account of any dispute are given below:
Name of Nature of Dues Forum where Period to
which the Amount
the Statute dispute is
relates (Rs. in
Sales Tax Demand for Sales Tax Maharashtra
Sales Tax 2001-2002 4.65
Excise Duty Demand for Excise
Duty CESTAT Jan. 1998-
June 1999 18.70
CESTAT May 1998-
Appeal Feb. 1999 -
March 1999 0.84
CESTAT Dec. 1999 2.42
CESTAT April 2000-
July 2000 5.03
CESTAT May 2000-
Aug. 2001 3.74
CESTAT Oct. 2002 0.37
CESTAT 2001-2002 3.58
Appeal 2002-2003 12.12
Commissioner 2005-2006 3.46
Appeal 2007-2008 315.22
Income Tax Demand for
Income Tax Commissioner
Appeal 2006-2007 35.58
10. There are no accumulated losses at the end of the year. There are
no cash losses during the financial year and in the immediately
preceding financial year.
11. According to the information and explanations given to us and as per
the books of accounts examined by us, the company has not defaulted in
the repayment of dues to the financial institutions / banks.
12. According to the information and explanations given to us, the
company has not granted any loans and advances on the basis of security
byway of pledge of shares, debentures and other securities.
13. In our opinion, the company is not a Chit Fund/N,dh,/Mutual Fund/
Society Therefore, clause 4(x,„) of the Companies (Auditor''s Report)
Order 2003 are not applicable to the company.
14. In our opinion, the company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly the
provisions of clause 4(x,v) of the Companies (Auditors Report) Order,
2003 are not applicable to the Company.
15. In our opinion and according to the information and explanations
given to us, the terms and conditions of the corporate guarantees given
by the company for loan taken by other company from banks are not prima
face prejudicial to the interest of the company.
16. According to the information and explanations given to us, the
company has not obtained any term loan during the year: accordingly
clause (xvi) of paragraph 4 of the Order are not applicable to the
17. According t o the information and explanations given to us and as
per the books and records examined by us, as on the date of Balance
Sheet, the funds raised by the Company on short-term basis have not
been applied for long-term investments and vice versa.
18. According to the information and explanations given to us, during
the year, 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.
19. The company does not have any debentures outstanding, as on the
Balance Sheet date, hence, the clause 4(x,x) of the order ,s not
20. The company has not rased any money through the public issue during
the year. Accordingly, clause 4(xx) of the order is not applicable.
21. According to the information and explanations given to us, and on
the basis of our examination of the books and records of the company
earned out in accordance with the generally accepted auditing practices
in India, we have not come across any such instance of fraud on or by
the company, noticed and reported during the year.
For KANODIA SANYAL & ASSOCIATES
Firm''s Regn. No. 008396N
Place : New Delhi Partner
Dated : 8th August, 2012 Membership No. 016121