1) We have audited the attached Balance Sheet of RAGHOJI CEMENT
MANUFACTURING COMPANY LTD., as at 31st March, 2010 for the year ended
on that date annexed thereto. These financial statements are the
responsibility of the companys management. Our responsibility is to
express an opinion on these financial statements based on audit.
2) We conducted our audit in accordance with auditing standards
generally accepted in India. Those Standards generally require that we
plan and perform the audit to obtain reasonable assurance about weather
the financial statements are free of material misstatement. An audit
includes examining on 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 (Auditors Report) Order 2003, as
amended by the Companies (Auditors Report) (Amendment) Order, 2004,
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 and 5 of the said Order.
4) 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 belief knowledge and 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 the
c) The Balance Sheet dealt with by this report is in agreement with the
books of account.
d) In our opinion the Balance Sheet dealt with this report are in
compliance with the mandatory accounting standards referred to in sub-
section (3C) of section 211 of the Companys Act 1956.
e) On the basis of written representations received from the Directors,
as on 31st March, 2010 and taken on record by the Board of Directors,
we report that none of the Directors is disqualified as on 31st March,
2010 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 Balance sheet read with the notes
thereon give the required information subject to Note Nos. 1 to 12 to
the Notes to and forming part of the Balance Sheet as at 31.03.2010.
Subject to the our observation in (f) above, the said financial
statement read together with other notes appearing on Schedule 12, 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 the Balance Sheet, of the state of Affairs of the
Company as at 31st March, 2010.
ANNEXURE TO THE AUDITORS REPORT
(Referred to in Paragraph (I) of our Report of even date to the members
of Raghoji Cement Manufacturing Company Limited as at and for the year
ended 31st March. 2010)
i. Fixed Assets:
a) The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
b) All assets have been physically verified by the management during
the year but there is a regular programme of verification which in our
opinion, is reasonable having regard to the size of the company and the
nature of its assets. No discrepancy was noticed on verification of
c) During the year, the company has not disposed off any of the major
part of the fixed assets, which has an affect on the going concern
ii. The Company has maintained proper records of inventory.
iii. The Company has not granted Unsecured Advance to a Company under
the same Management as defined the under Section 370 (IB) of the
Companies Act, 1956. According to the information and explanations
furnished 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 Companies Act, 1956.
iv. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurating with the size and nature of the Company and the nature
of its business with regard to the purchase of materials, fixed assets
and sale of goods. During the course of our audit, we have not observed
any continuing failure to correct major weaknesses in internal control.
v. According to the information and explanations given to us, the
company has not entered into any transactions that need to be entered
into the register in pursuance of Section 301 of the Act.
vi. The Company has not accepted any deposits from the public during
the year which required the compliance of directives issued by the
Reserve Bank of India and the provisions of Sections 58A and 58AA of
the Companies Act, 1956 and the rules formed there under.
vii. Maintenance of cost records has been prescribed by the Central
Government under Section 209(1) (d) of the Companies Act, 1956.
However, since the Company has not commenced Production activities the
prescribe Cost Records are not maintained.
viii. a) According to the records of the Company, Provident Fund and
Employees State Insurance Schemes are inoperative as there are no
b) According to the information and explanations given to us, there are
no undisputed amounts payable in respect of Income-Tax, Sales Tax,
Customs Duty, Excise Duty and Cess which were in arrears as at 31st
March, 2010 for a period of more than six months from the date they
c) According to the information and explanations given to us, there are
no dues of Income-Tax, Sales Tax, Customs Duty, Excise Duty and Cess,
which have not been deposited on account of any dispute.
ix. Company has not granted any loans or advances on the basis of
security by way of pledge of shares, debentures and other securities.
x. In our opinion, the company is not a chit fund or nidhi/ mutual
benefit fund/ society. Therefore, the provisions of the clause 4(xiii)
of the Companies (Auditors Report) order, 2003 are not applicable to
xi. Company is not dealing or trading in shares, securities,
debentures and other investments.
xii. According to the information and explanations given to us, the
company has not given any guarantee for loans taken by others from bank
or financial institutions the terms and conditions whereof are
prejudicial to the interest of the company.
xiii. Company has not obtained any term loans during the financial year
xiv. According to the information and explanations given to us and from
an overview of the financial statement, we report that no fund raised
on short term basis have been used for Long term Investments and no
fund raised on long term basis have been used for short term
xv. Company has not made any of the preferential allotment of shares
during the financial year 2009-2010.
xvi. Company has not issued any debentures during the financial year
2009-2010. The Provision of the Clauses 4(xix) of the Companies
(Auditors Report) Order, 2003 requiring comment on the creation of
securities in respect of debentures issue is not applicable to the
xvii. According to the information and explanations given to us no
fraud on or by the company has been noticed or reported during the
course of our audit.
For DHANVANT PATIL & CO
PLACE: GULBARGA DHANVANT PATIL
DATE: 18.08.2010 PARTNER