1. We have audited the attached Balance Sheet of RAJASTHAN PETRO
SYNTHETICS LTD, as at 31st March 2012, the related Statement of Profit
and Loss for the year ended on that date annexed thereto, and the Cash
Flow Statement of the company for the year ended on that date, which we
have signed under reference to this report. 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
2. 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
3. As required by the Companies (Auditors'' Report) Order, 2003 issued
by the Central Government in terms of Section 227 (4A) of the Companies
Act. 1956, and on the basis of such checks as considered appropriate
and according to the information and explanation given to us during the
course of our audit, we enclose in the Annexure hereto a statement on
the matters specified in paragraphs 4 and 5 of the said Order.
4. Further to our statement mentioned in the Para 3 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 out
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 books
of the Company,
c) The Balance Sheet and Statement of Profit and Loss and Cash Flow
dealt with by the report are in agreement with the Books of Account of
d) In our opinion, the Statement of Profit & Loss and Balance Sheet and
Cash Flow Statement comply with the mandatory Accounting Standards
referred to in Sub-Section 3 (c) of Section 211 of the Companies Act,
e) According to the information and explanation given to us and on the
basis of written representations received from the Directors as on 31st
March 2012 of the Company and taken on record by the Board of Directors
we report that none of the Directors is disqualified as on 31st March
2012, 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 financial statements read with the
notes thereon and Significant Accounting Policies 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 31st March 2012
(ii) In the case of the Statement of Profit and Loss of the Profit of
the Company for the year ended on that date;
(iii) in case ot the cash flow statement, of the cash flows for the
year ended on that date.
1. (a) The Company has now office equipments as fixed assets at the
close of year, the fixed Assets Register of which is being prepared.
(b) The Company has physically verified the Office equipments during
the year which in our opinion is reasonable having regard to the size
of the Company and the nature of the assets.
(c) The Company has not disposed off major fixed assets during the year.
2.(a) There are no Inventories of stores and spares and
(b) There is no purchase of store and spares during the year.
3. The Company has neither granted nor taken any loans, secured or
unsecured to / from Companies, firm or other parties covered in the
register maintained under section 301 of the Companies Act, 1956.
4. 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 the nature of its
business with regard to purchase of fixes assets and with regard to
income from transportation and contract clearing & forwarding services.
5. The Company has neither given nor taken any loan to / from any
Company covered in the register maintained under section 301 of the
Companies Act, 1956, and accordingly clause (v) of para-4 of the Order
is not applicable to it.
6. The company has not accepted and deposits from the public with in
the meaning of section 58A and 58AA of the Act and the rules framed
7. A firm of Chartered Accountants has conducted the internal audit of
the Company for the year under audit. On the basis of the reports
submitted by the internal auditors to the management, in our opinion
the internal audit is system commensurate with the size of the Company
and nature of its business.
8. The Company has not maintained cost records during the year under
audit, as there was no manufacturing activity.
9. According to the information and explanation given to us in respect
of statutory and other dues.
(a) During the year no deduction were made towards provident Fund and
Employee''s state Insurance. The Company was regular in depositing with
appropriate authorities Income Tax, and other statutory dues deducted
by it during the year.
Undisputed Statutory dues amounting to Rs. 1.64 Lacs in respect of
Provident Fund, Rs. 21.39 Lacs in respect of ESI, Rs. 8.59 Lacs in
respect of Sales Tax, Rs. 0.10 Lacs in respect of Cenvat payable,
Rs.4.87 Lacs in respect of Textile Committee cess and Rs.0.13 Lacs in
respect of TDS were outstanding as at 31st March, 2012 for the period
of more than 6 month from the date they became payable.
(b) Details of Sales Tax, Income Tax, Custom Duty not deposited on
account of disputes are as under:
Sl Status Nature of Taxes Amount
Involved Forum where dispute
No (Rs. In
1. Central Excise
Act, 1944 Excise Duty 169.23 Supreme Court
2. Central Excise
Act, 1944 Excise Duty 4.67 C.E.S.T. Delhi
3. Central Excise
Act, 1944 Excise Duty 3.23 Dy.Commissioner of
4. Sales Tax
Department Sales 63.46 Rajasthan Tax Board
5. Central Excise
Act, 1944 Exise Duty 2.33 Central Excise &
6. Central Excise
Act, 1944 Service Tax 1.11 Asst. Commissioner
of Central Excise &
7. Income Tax Act,
1961 Income Tax (For
AY 08-09) 1584.66 CIT(A)
10. There are accumulated losses of Rs, 3.140.61 lacs as on 31st March
2012 which is more than 50% its networth. The company has not Incurred
cash losses in the current year and in the immediately preceding year
11. There are no loans from any Financial Institution or banks. Hence,
clause (xi) of paragraph 4 of the order is not applicable.
12. According to the information and explanation given to us, the
company has not granted loans and advances on the basis of the security
by way of pledge of shares, debenture and other securities
13. Clause (xiii) of the Order is not applicable to the Company as the
company is not a Chit Fund Company or Nidhi/ mutual benefit fund/
14. In ouf opinion, the Company is not dealing in or trading in
shares, securities, debenture, and other investments. Accordingly, the
provisions of clauses 4 (xiv) of the Companies (Auditors Report) Order
2003 are not applicable to the Company. However, all investments have
been held by it in its own name or nominees.
15. According to the information and explanations given to us, Company
has not given any guarantees for loans taken by others from bank or
16. According to the information and explanations given to us. no term
loans were raised during the years.
17. According to the information and explanation 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 beer* used for long-term
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 during the year.
19. During the year covered By our audit report the Company has not
issued secured debentures
20. The Company has not raised any money by public issue during the
year covered by our report.
21. Based upon the audit procedures performed and as per the
information and explanation given to us, no fraud on or by the Company
has been noticed or reported during the year.
For M B R & Co.
Place : New Delhi
Date: 30.05.2012 (CA. MUKESH SHARMA)
M No. 511275
ICAI''S FRN 021360N