We have audited the attached Balance Sheet of SHREY CHEMICALS LIMITED
as at 31st March 2012 and also the annexed Profit and Loss Account of
the Company 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 misstatements. An Audit includes
examining, on a test basis, evidence supporting the amount and
disclosures in financial principles used and significant estimates
made by the management as well as evaluating the overall-financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
As per the Companies (Auditors report), order, 2003 issued by the
Central! Government of India in terms of Section 227 (4-A) of the
Companies Act, 1956, we - do hereby state that the company is exempted
under the Companies (Auditors report) order, 2003, on the matter
specified paragraph 4 and 5 of the said order.
Further to our comments in the Annexure referred to above, we report
1, We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of our
2. In our opinion, proper books of accounts as required by Law have
been kept by the Company so far as appears from our examination of the
3. The Balance Sheet & Profit. & Loss Account dealt with by this
report-is in agreement with the. books of accounts and comply with the
Accounting Standards referred to in Sub- Section 3(C) of section 211 of
the Companies Act, 1956.
4. According to information and explanations given'' to ,us and on the
basis of written representations from the directors of the Company,
none of the Director is disqualified from being appointed as a director
of the Company, under section 274(1) (g) of the Companies Act, 1956.
5. In ,our opinion and to the best of our information and according to
the explanation given to us, they said Balance Sheet and the Profit and
Loss Account, together with the notes thereon give the information
required by the Companies Act, 1956 in the manner so required and give
a true and fair view: -
a) In the case of the Balance Sheet of the state of affairs of the
Company as at 31st March, 2012 and
b) In the case, of the Profit & Loss Account of the Profit for the year
ended on that date. ''
(Referred to in paragraph 1 of our report of even date)
i) (a) The Company is maintaining proper records showing full
particulars, including quantitative details and situation of fixed
(b) All the Assets have been physically verified by the management
during to the year and there is regular program of Verification which,
in our opinion, is reasonable having regard to the size of the company
and the nature of its assets, No material discrepancies were noticed on
(c) In our opinion and according to the information and explanation
given, to us the company has not, disposed off substantial part of
fixed assets during the year ;
ii) (a) In our opinion, physical verification of inventory has been
conducted by Management at reasonable intervals.
(b) The procedure of Physical Verification of inventory not followed by
iii) (a) As informed to us, the company has not granted loans, secured
or unsecured to companies, firms or other parties covered in the
register maintained under section 301 of the Act. The yearend Balance
of Loan is Rs.2,69,09,798/-
(b) In our opinion the rate of interest and other .terms and conditions
on which loans have been taken from/ granted to companies, firms or
other parties listed in the register maintained under section 301 of
the companies Act,1956 are not, prima facie, prejudicial to the
interest of the company.
(c) In respect of the aforesaid loans, the amount is received on
demand, the company is receiving the principal amount as & when
demanded & has not been receiving any interest.
(d) The aforesaid loan is received on demand & therefore the
Question of overdue amount does not arise.
(e) The company had not taken loan, secured or unsecured from
companies, firms or others parties covered in the register maintained ''
under section 301 of the Act. and the yearend balance of loans taken
to such parties was Rs.NIL /-
(f) In our opinion the rate of interest and other terms and conditions
on which loans have been taken from companies, firms or other parties
listed in the register maintained under section 301 of the companies
Act,1956 are not, prima facie, prejudicial to the interest of the
(g) In respect of the aforesaid loans, the amount is payable on demand,
¦ the company is repaying the principal amount as & when demanded & has
not been paying any interest.
(h) The aforesaid loan is repayable on demand & therefore the question
of overdue amount does not arise,
iv) In our opinion and according to information & explanations given to
us, there are adequate internal control procedures commensurate with
the size of the company and the nature of its business for the
purchase of inventory and Fixed assets. During the course of audit, no
major weakness has been noticed in these internal controls.
v) According to the information and explanations given to us, we are of
the opinion that the transactions that need to be entered into the
register maintained under section 301 of the companies Act, 1956 have
been so entered.
vi) In our opinion, according to the information and explanations given
to us, the company has not taken any deposit from the public.
vii) In our opinion the company has an internal audit system
commensurate with its size and nature of its business.
viii) The company has no need to maintained Cost records has been
prescribed by the Central Government under clause (d) of sub section
(1) of section 209 of the Act.
ix) (a) The company is generally regular in depositing with the
appropriate authorities, undisputed statutory dues including Provident
Fund, Income tax, Sales-tax, Excise Duty, investors education and
protection fund, wealth Tax, Custom Duty, Cess, and other material
Statutory dues applicable to it. As on 31-03-2010 undisputed Amount of
Rs. 534456/-, Rs. 327.02/- and Rs. 78062/- were outstanding for a
period of more than six month from the date they became payable in
respect of Sales Tax arrears for a period of more than six month from
the date they became payable as at 31st March 2011.
(b) According to the information and explanation given to us, there are
no cases of non-deposits with the appropriate authorities of disputed
dues of sales tax /excise duty /custom duty / wealth tax / cess.
x) The company has no any accumulated losses at the end of the current
financial year. The company has not incurred any cash losses in current
xi) According to the information and explanations given to us, the
company is hot defaulting any repayment of loan.
xii) According to the information and explanations 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 securities.
xiii) The company is not a chit fund or a nidhi mutual benefit fund /
society. Therefore, the provision of clause 4 (xiii) of the Companies
(Auditor''s Report) Order 2003 is not applicable to the company.
xiv) According to the information and explanations given to us, the
company is not dealing or trading in Shares, Securities, debentures and
other investments. Accordingly, the provisions of clause 4 (xiv) of the
Companies (Auditor''s Report) Order 2003 is not applicable to the
xv) In our opinion, and explanation given to us the terms and condition
on which the company has no given guarantees for loans taken by others
from Bank or Financial Institutions are, prima facie, not prejudicial
to the interest'' of the company.
xvi) According to the information and explanations given to us company
has not received any loan during the year.
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
xviii)The company has not made preferential allotment of shares to
parties and companies covered in the Register maintained under section
301 of the Act.
xix) According to the information and explanations given to us, no
debentures and/or preference shares have been issued during the year.
xx) The company has not raised any money through a public issue.
xxi) Based upon the .audit procedures performed and information and
explanations given to us, we report that no fraud on or by the Company
has been noticed or reported during the course of our audit
For, Gaurang Vora & Associates
Firm No. 103110W
Membership : 39526
PLACE : AHMEDABAD
Date : September 01, 2012.