We have audited the attached Balance Sheet of M/s Nature Hue Chem.
Limited as at 31st March, 2011 and also the Profit & Loss A/c 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.
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 management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
As required by the companies (Auditor''s Report) order, 2003 including
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 & 5 of the said order.
Further to our comments in the Annexure referred to above, we report
i. We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of our
ii. 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
iii. The Balance Sheet and Profit & Loss A/c dealt and cash flow
statement with by this report are in agreement with the books of
iv. In our opinion, the Balance Sheet and Profit & Loss A/c deal 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 written representations received from the Directors,
as on 31st March, 2011, and taken on record by the Board of Directors,
we report that none of the Directors is disqualified as on 31st March,
2011 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 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.
a. In the case of Balance Sheet, of the state of affairs of the
company as at 31st March'' 2011; and
b. In the case of the Profit & Loss A/c, of the Profit for the year
ended on that date.
c. In the case of cash flow statement, of the cash flows for the year
ended on that date.
I. a. The Fixed Assets register is being maintained by the Company
showing full particulars including quantitative details and situation
of Fixed Assets.
b. We are informed that the Fixed Assets were physically verified at
reasonable intervals during the year. No serious discrepancies were
noticed on such verification.
c. None of the fixed assets of the company have been disposed off
during the year so the question of affecting the going concern does not
arises at all.
II. a. We are; informed that the stock of finished goods, stores,
spare parts and raw material have been physically verified by the
management on quarterly basis during the period.
b. The procedure of the physical verification of the stock followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business. .
c. Company is maintaining proper records of inventory. No material
discrepancy was found during the physical verification. However the
normal wastage of raw material into the process of finished goods have
been reported during the year also but that is not material having
regard to the nature of industry as it is normal loss.
III. The Company has granted unsecured loans to companies, firms or
Other parties listed in the Registers maintained U/S 301 of the
Companies Act 1956 The total no. of Party are 1 and maximum amount
outstanding during the year '' aggregates to Rs. 166. Lacs and year end
balances was Rs.0.93 Lacs.
b. In our opinion & according to the information given to us the rate
of interest & terms & condition of the loan given by the company are
not prejudicial to the interest of the company.
c. As explained to us there is no Stipulation regarding repayment of
principal '' amount & interest thereon.
d. As stated above, since there is no stipulation regarding repayment
of principal amount. Hence the question of over due amount is more than
lacs does not arises.
e. The Company has not taken any loans, secured or unsecured from
companies, firms- or other parties listed in the Registers maintained
U/S 301 of the Companies Act 1956 (1 of 1956). Hence the other
information is not given here.
IV. 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 nature of its -business
for the purchase of stores, raw materials including components, plant
and machinery, equipment and other assets and for the sale of goods.
There is no such major weakness, which requires any corrective steps.
V. As explained to us, no transactions have been carried out during
the year, which is required to be entered in the register maintained
U/s 3 01 of the Act. ''
VI. The company has not accepted any public deposit hence this clause
is not applicable. ''
VII. In our opinion, the Company has an internal audit system
commensurate with its size and nature of its business.
VIII. Central Government has not prescribed maintenance of cost
records U/s 209 (l)(d) in respect of the any of the products and hence
Para 4(viii) of CARO'' 2003 is not applicable.
IX. a. According to the information and explanations given to us and
according to the books and records as produced and examined by us. In
our opinion, undisputed statutory dues including provident fund,
employee''s state insurance, income tax, sales tax, wealth tax, customs
duty, excise duty, cess and other material statutory dues applicable to
the Company have generally been regularly deposited with the
appropriate authorities. According to the information and explanations
given to us, no undisputed amounts payable in respect of income tax,
wealth tax, sales tax, customs duty, excise duty and cess were in
arrears, as at 31st March 2011 for a period of more than six months
from the date they became payable.
b. As informed by the management, there is no disputed amount pending
under the sales tax, , income tax, customs, and wealth tax, excise duty
cess hence the question relating to the forum where the dispute is
pending does not arise at all.
X. The company does not have accumulated losses of more than 50% of
its net worth as at 31st March 2011 and have not incurred cash losses
during the financial year ended on the date and cash losses in the
immediately preceding financial year.
XI. The company has not taken any loan from financial institution;
hence this clause is not applicable. -
XII. In our opinion and 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
XIII. The provision of any special status as specified under Clause
(xiii) of the Order are not applicable to the Company. ''
XIV. In our opinion and according to the information and explanations
given to us, the company is not a dealer or trader in securities.
XV. The company has not given guarantees for loans taken by others
from bank or financial institution.
XVI. Company has. taken vehicle loan from ICICI Bank and application of
Fund has been utilized for the required purpose.
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 funds raised on short-term basis have been used for long-term
investment by the Company.
XVIII. During the year under audit the company has not made any
allotment of shares so the question of preferential allotment and
pricing of the share whether it is prejudiced are does not arise.
XIX. The company has not issued debentures; hence question of creation
of securities does not arise.
XX. The company has not raised any money through the public issue
during the year so the question of end use of money & the issue is not
XXI. According to the information and explanations given to us, during
the year no fraud on or by the Company has been noticed or reported.
FOR, MADHURESH GUPTA & CO.
(FIRM REG. NO. 005910C)
DATE : 10-08-2011