We have audited the attached Balance sheet of ROCK HARD PETROCHEMICAL
INDUSTRIES LIMITED as at 31st March 2009 and also the Profit & Loss
Account and the Case Flow Statement 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 our audit.
We conducted our audit in accordance with 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. And it also 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 (Auditors report) order, 2003, as amended
by the Companies (Auditors report) (Amendment) order 2004 (together
the Order) issued by the Central Govt, of India in terms of
Sub-section (4A) of Section 227 of the Companies Act, 1956, and on the
basis of such checks as we considered appropriate, and according to the
information and explanations given to us, 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
(i) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
(ii) In our opinion the company as required by law has kept proper
books of account so far as it appears from our examination of the
(iii)The Balance Sheet and Profit and Loss Account and cash flow
Statement dealt with by this report are in agreement with the books of
(iv) In our opinion, the Balance Sheet and Profit and Loss Account and
cash flow Statement dealt with by this report comply with the
accounting standards referred to in sub-section (3C) of section 211 of
the Companies Act, 1956.
(v) Based on the written representation made by the directors of the
company and die
informations and explanations as made available as on 31 March 2009
the directors of the company do not prima facie have any
disqualification as referred to in amended section 274 (1) (g) 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 2 956.
(vii) The Company had discontinued operation of its unit. Situated at
Agar w.e.f. July 2003 , The entire fixed assets lying at agar have been
attached by the sales tax department and are in possession of Tahsildar
Agar .The bank has also taken symbolic possession of the assets .The
company as such has lost its status as a going concern.
(viii)There have been thefts of certain assets from the erstwhile
factory site of the company at Agar, District sajapur, Madhya Pradesh.
An FIR for such mishap has been filed by police department agenst the
miscreants who were responsible for this theft , however as per
management on verification of the assets it has been notice that most
of the assets were taken by the miscreants and is supposed to be in
possession of police department after seizer of the vehicles. The whole
of the property situated there is still under the possession of the
Tahsildar Agar Allahabad bank and/or sales Tax department.
(ix) The honorable high court, Indore has appointed Shri Rattan Lai
Chandak, Nagpur as arbitrator in dispute with M/s Shree comical Raipur
therefore the balance Invoice if any shall be raised only after receipt
of arbitration award..
(x) The company has also initiated legal proceedings against Shree
comical prop. Survi Export. Private Ltd. for the recovery of there
outstanding against supply of machinery & Technical Know-how.
(xi) Attention is drawn to note No. 3 regarding insurance claims
pending since long time, note no. 4 regarding non provision of sundry
debtors outstanding for more then six month Note no. 6 regarding non
provision of inter corporate deposit given & interest thereon Note no.
11 regarding non conformation of debit credit & bank balances.
(xii) Subject to Para (vii), (viii),(ix),(x),(xi),(xii),(xiii) above in
our opinion and to the best of our information and according to the
explanations given to us, the said accounts read together with the
accounting policies and notes thereon given 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 31 March 2009 and.
(b) In the case of Profit and Loss Account of the : Loss of the
company 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.
ANNEXURE REFERRED TO IN PARAGRAPH 1 OF THE AUDITORS REPORT OF EVEN
DATE ON ACCOUNTS OF M/S. ROCK HARD PETROCHENMICAL INDUSRIES LIMITED FOR
THE YEAR ENDED31ST MARCH, 2009.
(1) (a) Since the fixed assets are in possession of Tahsildar Agar as
such we are not in the position to comment on its quantitative details
(b) Since the fixed assets are in possession of Tahsildar Agar as such
The management is not in the position to comment on its quantitative
details and situation
(c) The operation of the company is discontinued which effects its
going concern status.
(2) The company has no stock of inventory during the year.
(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. The
details are as under:
No. of Parties Loan granted (Rs. In Lacs) Loan taken (Closing Balance)
1 NIL 60,31 Lacs
(a) In our opinion and according to the information and explanation
given to us, the company has taken loans from four parties aggregating
to Rs. NIL/- in earlier years. The loan is interest free and is
repayable on demand.
(b) In our opinion and according to the information and explanation
given to us the rate of interest, wherever applicable and other terms
and conditions are not prima facial prejudice to the interest of the
(c) The company has not granted loans except as explained to us. The
company has given loans / advances to members of the staff without
charging any interest on the said loans/ advances. The said loans/
advances are being regularly repaid in installments at regular
intervals as stipulated.
(4) In our opinion and according to the information and explanation
given to us mere are adequate internal control procedures that
commensurate with the size of the company and the nature of its
business for the purchase of inventory and fixed assets and for the
sale of goods. During the course of our audit, we have not observed
any major weaknesses in internal control system of the company.
(5) In our opinion and according to the information and explanation
given to us, the transactions of purchase and sale of goods, materials
and services made, in pursuance of contracts or arrangements entered in
the registers maintained under section 301 of the Companies Act, 1956,
aggregating during the period of Rs. 5,00,000/- or more in respect of
each party have been made at prices which are reasonable having regards
to prevailing market prices for such goods materials or services or the
price at which transactions for similar goods, materialized or services
have been made other parties.
(6) In our opinion and according to the information and explanations
given to us, the Company has complied with the provisions of Section 58
A of the Companies Act, 1956 & the Companies (Acceptance of deposit)
Rules, 1975 framed there under with regard to the deposits accepted
from the Shareholder.
(7) The company has no formal internal audit department as such but its
internal control procedure ensure reasonable internal checking of
financial and other records that commensurate with the size of the
company and the nature of its business.
(8) The maintenance of cost records has not prescribed by the Central
Government under section 209 (1) (D) of the Companies Act. 1956 (1 of
1956) for the year under review for the products manufactured by the
Company and are of the opinion that prima facie, the prescribed
accounts and records have been made and maintained.
(9) a) According to the records of the Company. Provident Fund dues
have not generally been regularly deposited during the year with the
appropriate authorities. There are no overdue amounts outstanding as at
31 March, 2009, over Six Months.
b) According to the information and explanation given to us, no
undisputed amounts payable in respect of income tax, wealth tax, sales
tax, customs duty and excise duty were outstanding as at 31 March 2009
for a period of more man six months from the date they became payable.
The Following Disputed dues of income tax, wealth tax, sales tax,
customs duty and excise duty were outstanding as at 31 March 2009
Item Forum where pending Amount Rs. In lac
Sales Tax M.P. High Court 176
(10) The Company has incurred loss Rs. 1007722- during the financial
year and the company is a sick industrial company within the mining of
sick industrial company (Special Provision Act 1985). We have informed
that the company has filed reference under Sec. 15(1) of SICA however
the same has been struck down by the board as non-maintainable.
ll)According to the information and explanation given to us the
company, has defaulted in repayment of dues to financial institutions
and bank as at 31 March, 2009, The details are as under :-
Nature of loan Due Date Amount Remark
Cash Credit/ Book debt/ From Sep. 2005 Book Balance The bank has filled
documentary Bills Rs. 74 Lacs suit against the
(Allahabad bank) company before
for Rs. 88 Lac
(12) In our opinion and according to the information and explanation
given to us no loans and advances have been granted by the company on
the basis of security by way of pledge of shares, debentures and other
(13) The company has not made investment in the nature of shares,
debentures and other investments.
(14) The Company is not dealing or trading in shares, securities,
debentures and other investments,
(15) The company has not given guarantees for loan taken by others from
banks or financial institutions.
(16) The company has not raised any new terms loans during the year.
(17) According to the information and explanation given to us and on an
overall examination of the Balance Sheet of the Company, we are of the
opinion that the company has not utilised from short term sources
towards repayment of long term borrowings during the year.
(18) 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 has not created securities in respect of debentures
(20) The Company has not raised any money by way of public issue during
(21) In our opinion and according to the information and explanation
given to us, no fraud on or by the company has been noticed or reported
during the year that causes the financial statements to be materially
For Rishi Sekhri & Associates
Place: Mumbai CA Rishi Sekhri
Dated: 3rd September, 2009 Proprietor
Membership No: 126656