1. We have audited the attached Balance Sheet of APCOTEX INDUSTRIES
LIMITED as at 31st March 2010, and also the Proft and Loss Account and
the Cash Flow statement of the Company for the year ended on that date,
annexed thereto. These fnancial statements are the responsibility of
the Companys management. Our responsibility is to express an opinion
on these fnancial statements based on our audit.
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
fnancial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the fnancial statements. An audit also includes
assessing the accounting principles used and signifcant estimates made
by Management, as well as evaluating the overall fnancial statement
presentation. We believe that our audit provides a reasonable basis of
our opinion.
3. As required by the Companies (Auditors Report) Order, 2003, 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 and 5 of the said
order to the extent applicable.
4. Further to our comments in the Annexure referred to in paragraph 3
above, we state that:
(a) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of our
audit.
(b) In our opinion proper books of account as required by law have been
kept by the Company so far as appears form our examination of those
books.
(c) The Balance Sheet, the Profit and Loss Account and the Cash fow
Statement referred to in this report are in agreement with the books of
account.
(d) In our opinion, the Balance Sheet, the Proft and Loss Account and
the Cash Flow statement dealt with by this report comply with the
Accounting Standards referred to in Section 211(3C) of Companies Act,
1956.
(e) On the basis of the written representations received from the
directors, and taken on record by the Board of Directors, we report
that none of the directors is disqualifed 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 as per the information and according to the
explanations given to us, the said Accounts, read 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 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 on 31st March 2010.
(ii) In the case of the Proft and Loss Account, of the proft of the
Company for the year ended on that date; and
(iii) In the case of the Cash Flow Statement, of the cash fows for the
year ended on that date.
ANNEXURE REFERRED TO IN PARAGRAPH 3 OF THE AUDITORS REPORT TO THE
MEMBERS OF APCOTEX INDUSTRIES LIMITED FOR THE YEAR ENDED 31ST MARCH
2010
1) (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of the Fixed
Assets.
(b) There is a regular program of physical verifcation, which in our
opinion is reasonable, having regard to the size of the Company and the
nature of fxed assets. Material discrepancies noticed by the management
during the course of physical verifcation have been properly dealt
with.
(c) The Company has not disposed of substantial part of fxed assets
during the year.
2) (a) Inventories have been physically verifed by the management
during the year. In our opinion, the frequency of verifcation is
reasonable.
(b) The procedures of physical verifcation of stocks 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 is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stocks and
book records were not material and have been properly dealt with in the
books of account.
3) (a) The Company has not granted any loans during the year to any
parties covered in the register maintained under section 301 of the
Companies Act, 1956
(b) The rate of interest and other terms and conditions of the loan
given were prima facie not prejudicial to the interest of the Company.
(c) The payment of principal and interest was regular during the tenure
of the loan
(d) The Company has not accepted any loans during the year from the
parties covered in the register maintained under section 301 of the
Companies Act, 1956.
In view of clause 4 (iii)(e) of the Companies (Auditors Report) Order,
2003, clauses 4 (iii) (f & g) are not applicable to the Company.
4) In our opinion, and according to the information and explanations
given to us, there are adequate internal control systems commensurate
with the size of the Company and the nature of its business with regard
to the purchase of inventory and fxed assets and with regard to sale of
goods and services. We have not observed any major weakness in the
internal control system during the course of our audit.
5) (a) All the transactions with parties covered under section 301 of
the Companies Act, 1956 have been properly entered in the register
maintained under section 301 of the Act.
(b) In our opinion, and according to the information and explanations
given to us, the transactions of purchase of goods, materials or
services and sale of goods, materials or services, made in pursuance of
contracts or arrangements referred to in (a) above and exceeding the
value of Rs. 5 lakhs with any party during the year have been made at
prices which are reasonable having regard to the prevailing market
price at the relevant time.
6) In our opinion, and according to the information and explanations
given to us, directives issued by the Reserve Bank of India and the
provisions of sections Section 58A and 58AA or any other relevant
provisions of the Companies Act, 1956 and the rules framed there under,
to the extent applicable, have been complied with. We are informed by
the management that no order has been passed by the Company Law Board,
National Company Law Tribunal or Reserve Bank of India or any Court or
any other Tribunal.
7) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
8) As informed to us the Company maintains the cost records prescribed
under Sec. 209(1)(d) of the Companies Act, 1956. We have, however, not
checked those records or the statements prepared as per requirements.
9) (a) According to the information and explanations given to us and
the records of the company examined by us, in our opinion, the company
is generally regular in depositing the undisputed statutory dues
including provident fund, investor education and protection fund,
employees state insurance, income tax, sales tax, wealth tax, customs
duty, cess and other material statutory dues as applicable with
appropriate authorities. As explained to us, the company did not have
any dues on account of excise duty.
(b) According to the information and explanations given to us and the
records of the company examined by us, there are no dues of wealth tax,
service tax and cess as at 31st March, 2010 which have not been
deposited on account of dispute other than income tax, customs duty and
excise duty, which is as follows-
Name of Nature of Amount Period to Forum where
the Dues (Rs.In which the dispute is
Statute Lacs) amount pending
relates
Income Income Tax 3.75 2002-03 CIT(A)
Tax Act Penalty
Income Tax, Interest 26.38 2006-07 CIT (A)
Tax Act
Income Tax, Interest 7.16 2007-08 CIT (A)
Tax Act
Customs Custom Duty 506.00 August 2000 CESTAT
Act & Penalty to July 2004
Excise
Act Excise Duty 19.75 2002-03 Joint
& Penalty Commissioner
2003-04 CESTAT
2005-06 Assistant
Commissioner
2006-07 Assistant
Commissioner
2007-08 Assistant
Commissioner
10) The Company has no accumulated losses as at 31st March 2010 and it
has not incurred any cash losses in the fnancial year ended on that
date or in the immediately preceding fnancial year.
11) The Company has not defaulted during the year in repayment of dues
to any fnancial institutions, banks or debenture holders.
12) The Company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
13) As the Company is not a chit fund, nidhi, mutual beneft fund or
society, the provisions of clause 4(xiii) of the Companies (Auditors
Report) Order, 2003 is not applicable to the Company.
14) According to the information and explanations given to us, the
Company is not dealing or trading in shares, securities, debentures and
other investments.
15) The Company has not given any guarantees for loans taken by others
from Banks or Financial institutions during the year.
16) The Company has not taken any terms loans during the year.
17) According to the information and explanations given to us, the
Company has not applied short-term borrowings for long-term investment.
18) The Company has not made any preferential allotment of shares
during the year.
19) The Company has not issued any debentures during the year.
20) The Company has not raised any money by way of public issue during
the year.
21) As per the information and explanation given to us, no fraud on or
by the Company has been noticed or reported during the course of our
audit.
For Shah & Co.
Chartered Accountants.
Firm Registration No.: -109430W
H N SHAH
Partner
Membership No. 8152
Mumbai : 27th April,2010
