1 We have audited the attached Balance Sheet of POLYCON International
Limited as at March 31, 2012, the Statement of 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) 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.
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, the Statement of Profit and Loss and Cash Flow
Statement dealt with by this report are in agreement with the books of
(d) In our opinion, the Balance Sheet, Statement of Profit & Loss and
Cash Flow Statement dealt with by this report are in compliance 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 March 31,2012 and taken on record by the Board of Directors, we
report that none of the Directors is disqualified as on March 31, 2012
from being appointed as a directors 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, they said accounts read together with the
Significant Accounting Policies 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 :
(i) In the case of the Balance Sheet, of the state of affairs of the
Company as at March 31,2012 ;
(ii) In the case of the Statement of Profit and Loss, of the profit for
the year ended on that date; and
(iii) In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Referred to in Paragraph 3 of the Auditors'' Report of even date to the
Members of Poly con International Limited on the financial statements as
of and for the year ended 31st March, 2012
1 (a) The Company is maintaining proper records
showing full particulars, including quantitative details and situation,
of fixed assets.
(b) As explained to us, all the fixed assets have been physically
verified by the management in a phased periodical manner, which in our
opinion is reasonable, having regard to the size of the Company and
nature of its assets. No material discrepancies were noticed on such
(c) in our opinion, the Company has not disposed off a substantial part
of its fixed assets during the year and the going concern status of the
Company is not affected.
2 In respect of its inventories:
(a) The inventories have been physically verified during the year by
the management. In our opinion, the frequency of verification is
(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 the inventories. As
explained to us, there were no material discrepancies noticed on
physical verification of inventories as compared to the book records.
3 The Company has neither granted not taken any loans, secured or
unsecured, to/from companies, firms or other parties covered in the
register maintained under Section 301 of the Act. Consequently, clauses
(iii)(b), (iii)(c), (iii)(d), (iii)(f) and (iii)(g) of paragraph 4 of
the Order are not applicable.
4 In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business for the
purchases of inventory and fixed assets and for the sale of goods.
During the course of our audit, we have not observed any continuing
failure to correct major weaknesses in internal control system.
5 In respect of the contracts or arrangements referred to in Section
301 of the Companies Act, 1956:
(a) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements that need to be entered in the register maintained under
section 301 of the Companies Act, 1956 have '' been so entered.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of
contracts/arrangements entered in the Register maintained under section
301 of the Companies Act, 1956 and exceeding the value of Rs. 5,00,000
in respect of each party during the year have been made at prices which
appear reasonable as per information available with the Company.
6 The Company has not accepted any deposits from the public within the
meaning of Section 58A and 58AA of the Act and the rules framed there
7 In our opinion, the Company has an internal audit system commensurate
with its size and the nature of its business.
8 We have broadly reviewed the books of account maintained by the
Company in respect of products where, pursuant to the rules made by the
Central Government of India, the maintenance of cost records has been
prescribed under clause (d) of sub-section(1) of Section 209 of the Act,
and are of the opinion that, prima facie, the prescribed accounts and
records have been made and maintained. We have not however, made a
detailed examination of the records with a view to determine whether
they are accurate or complete.
9 In respect of statutory dues :
(a) According to the records of the Company, 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
have been generally regularly deposited with the appropriate
authorities. According to the information and explanations given to us,
no undisputed amounts payable in respect of the aforesaid dues were
outstanding as at March 31,2012 for a period of more than six months
from the date of becoming payable.
(b) The disputed statutory dues aggregating Rs. 1,95,802 that have not
been deposited on account of disputed matters pending before
appropriate authorities are
Sr. Name of the Nature of the Amount Period to
which the Forum where
No. Statute Dues (Rs.) amount
Sales Tax Sales Tax 97422 2000-01 Dy. Commissioner
1944 Excise Duty 86547 31.10.2001
to Central Excise
1944 Excise Duty 11833 2007-08 Dy. Commissioner
& Customs Appel
TOTAOL Rs. 195802
10 The Company does not have accumulated losses at the end of the
financial year. The Company has not incurred cash losses during the
financial year covered by the audit and in the immediately preceding
11 Based on our audit procedures and according to the information and
explanations given to us, we are of the opinion that the Company has
not defaulted in repayment of dues to financial institutions and banks.
12 In our opinion and according to the explanations given to us and
based on the information''s available, no loans and advances have been
granted by the Company on the basis of security by way of pledge of
shares, debentures and other securities.
13 In our opinion, the Company is not a chit fund/nidhi/ mutual benefit
fund/society. Therefore, the provisions of clause (xiii) of paragraph 4
of the Order are not applicable to the Company.
14 The Company has maintained proper records of the transactions and
contracts in respect of dealing or trading in shares, securities,
debentures and other investments and timely entries have been made
therein. All shares, securities, debentures and other investments have
been held by the Company in its own name.
15 In our opinion, and according to the information and explanations
given to us, the Company has not given any guarantee for loans taken by
others from banks or financial institutions during the year.
16 The Company has raised new term loans during the year. The term
loans outstanding at the beginning of the year and those raised during
the year have been applied for the purposes for which they were raised.
17 According to the information and explanations given to us and on an
overall examination of the Balance Sheet of the Company, we are of the
opinion that there are no funds raised on short-term basis that have
been used for long-term investment.
18 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 has not issued any debentures during the year, and does
not have any debentures outstanding as at the year end.
20 The Company has not raised any monies by way of public issues during
21 During the course of our examination of the books and records of the
Company, carried out in accordance with the generally accepted auditing
practices in India, and according to the information and explanations
given to us, we have neither come across any instance of material fraud
on or by the Company, noticed or reported during the year, nor have we
been informed of any such case by the Management.
FOR A.NATANI & CO.
Firm Reg. No. 07347C
Date : 30.05.2012
CA ASHOK KUMAR NATANI