We have audited the attached Balance Sheet of ASHOK ALCO CHEM LIMITED,
as at 31st March, 2012 and also the Statement of Profit and Loss
Account for the year ended on that date annexed thereto and Cash Flow
Statement for the year ended on that date. 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
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 the management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
As required by Companies (Auditors Report) Order, 2003 as amended by
the Companies (Auditor's Report) (Amendment) Order, 2004 (together the
'Order') issued by the Central Government in terms of Section 227 (4A)
of the Companies Act, 1956, and on the basis of such checks of the
books and records of the Company 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 as above, we report that;
1. We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
2. 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
3. The Balance Sheet and Statement of Profit and Loss dealt with by
this report are in agreement with the books of accounts.
4. In our opinion, the Balance Sheet and Statement of Profit and Loss
dealt with by this report are in agreement with the accounting
standards referred to in sub-section (3C) of section 211 of the
Companies Act 1956.
5. According to information & explanations given to us and on the
basis of written representations received from the Directors of the
Company & taken on record by the Board of Directors, we report that
none of the Director is disqualified as on 31st March, 2012 from being
appointed as a Director in terms of clause (g) of subsection (1) of
section 274 of the Companies Act, 1956.
6. In our opinion and to the best of our information and according to
the explanations given to us, they said accounts subject to Note No. 1
for non provision of interest on sales tax dues aggregating to Rs.
66,67,265/- and read along with other notes to accounts 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.
a) In the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2012;
b) In the case of Statement of Profit and Loss Account, of the PROFIT
for the year ended on that date, and
c) In case of Cash Flow Statement, cash flow for the year ended on that
1. (a) The Company is in the process of updating the records
showing particulars, including quantitative details and situation of
(b) The fixed assets have been physically verified by the management &
we are informed that no major discrepancies were noticed on such
(c) In our opinion and according to the information and explanations
given to us, during the year the Company has not disposed of
substantial part of fixed assets and the going concern status of the
Company is not affected.
2. (a) The stock of Finished Goods, Raw materials, Stores and
consumables were physically verified by the Management at the year end;
(b) In our opinion and according to the information and explanations
given to us, the procedure of physical verification of stocks followed
by the management is 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 inventories. 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) According to the information and explanations given to us, the
Company has taken unsecured loans from one party covered in the
register maintained under Section 301 of the Companies Act, 1956 and
the maximum amount outstanding during the year was Rs. 21,33,800/- and
outstanding at the yearend was Rs. 2,29,303/-and the terms and
conditions of the loans are not prejudicial to the interest of the
(b) Deposits and advances given to parties listed under section 301 for
use of the assets or otherwise are free of interest. The loans or
advances in nature of loan from companies or parties listed in the
register maintained under section 301 of Companies Act 1 956 are, prima
facie, not prejudicial to the interest of the Company. There are no
stipulations as to repayments of loans.
4. In our opinion and according to the information and explanation
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 purchases of inventory, fixed asset and with regard to the sale of
goods. During the course of our audit, and according to the information
and explanations given to us, we have neither come across nor have been
informed of any continuing failure to correct major weaknesses in the
internal control system.
5. (a) According to the information and explanations given to us, we
are of the opinion that the particulars of contracts or arrangements
referred to in section 301 of the Companies Act, 1956 have been entered
in the register required to be maintained under that section; (b) In
our opinion and according to the information and explanations given to
us, transactions made in pursuance of such contracts or arrangements
exceeding value of rupees five lacs have been entered into during the
financial year at prices which are reasonable having regard to the
prevailing market prices at the relevant time.
6. The Company has not accepted any deposits from public and as such
provisions of Section 58A and Rules made there under, coupled with
directives issued by Reserve Bank of India are not applicable.
7. The Company has an internal audit system commensurate with the size
and nature of its business
8. The company has to maintain cost records pursuant to the Companies
(Cost Accounting Records) Rules, 2011 prescribed by the Central
Government under Section 209(1) (d) of the Companies Act, 1956, for its
manufacturing activities applicable to the Company for the year under
review and the same are certified by the Cost Accountant appointed by
the Company as proper.
9. (a) According to the records of the Company and information and
explanations given to us, the Company is generally regular in
depositing with appropriate authorities undisputed statutory dues
including Provident Fund, Employees State Insurance, Income Tax, Sales
tax, Wealth Tax, Service Tax, Customs duty, Excise Duty, Cess and other
material statutory dues applicable to it.
(b) According to the records of the Company and subject to method of
accounting consistently followed by it the undisputed amount payable to
appropriate authorities in respect of -
Name of the Nature of Dues Amount Financial
Year /s to Forum where
Statute Rs in lacs which the
relates is pending
Sales Tax Assessment dues 3.92 1993-1994 Commissioner
of Sales Tax
Sales Tax Assessment dues 25.17 2000-2001 Commissioner
of Sales Tax
Sales Tax Assessment dues 35.17 2001-2002 Commissioner
of Sales Tax
Sales Tax Assessment dues 45.46 2002-2003 Commissioner
of Sales Tax
Sales Tax Assessment dues 12.53 2003-2004 Commissioner
of Sales Tax
Sales Tax Assessment dues 24.12 2004-2005 Joint Commis
Sales Tax * Deferral 84.52 1993-1994
to 2000-2001 Commissioner
Act Demand Notice 26.30 1996-1997 ITAT, Mumbai
Act Demand Notice 99.37 1997-1998 Mumbai High
* The Company has obtained Installment facility in respect of the
Deferral dues and is regular in remitting the installments as
10. The Company has accumulated losses in excess of free reserves. The
company has not incurred cash loss during the year under review.
11. The Company has not defaulted in repayment of dues to financial
institution or banks or debenture holders.
12. The Company has not given any guarantees for loan taken by others
from banks and financial institutions.
13. According to the information and explanations given to us the
Company has not granted any loans or advances on the basis of security
by way of pledge of shares, debentures and other securities.
14. In our opinion, the Company is not a chit fund or a nidhi / mutual
benefit fund / society. Therefore, the provisions of clause 4 (xiii)
are not applicable to the Company.
15. The Company has invested in mutual funds. The Company has
maintained proper records of transactions and contracts and the same
have been held in the name of the Company.
16. According to the information and explanations given to us, the
Company has not taken any term loan during the year under review.
17. According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the Company, funds
raised on short-term basis, prima facie , have not been used during the
year for long-term investments.
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 Act.
19. The Company has not raised any money through a public issue during
20. To the best of our knowledge and belief and according to the
information and explanations given to us, no fraud on or by the Company
was noticed or reported during the year under review.
For R.A. KUVADIA & Co.
Place : Mumbai Proprietor
Date : 22.05.2012 M. No. 40087
FRN NO.: 105487W