We have audited the attached Balance Sheet of AVT NATURAL PRODUCTS
LIMITED, CHENNAI, as at 31st March 2012 and also the Statement of
Profit and Loss for the year ended on that date annexed thereto,
together with the Notes thereon and the 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 audit.
We have conducted our audit in accordance with the 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 the Companies (Auditor''s Report) Order, 2003, as amended
by the Companies (Auditor''s Report) (Amendment) Order, 2004, issued by
the Central Government in terms of Section 227 (4A) 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.
Further to the comments referred to above, we report that:
(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, proper books of account as required by law, have
been kept by the Company so far as appears from our examination of
(iii) The Company''s Balance Sheet and Statement of Profit and Loss read
with the Notes forming part thereof, dealt with by this Report, are in
agreement with the books of account.
(iv) In our opinion, the Balance Sheet and Statement of Profit and
Loss, dealt with by this Report, comply with the Accounting Standards
referred to in Section 211 (3C) of the Companies Act, 1956.
(v) Based on the written representations made by the Directors and
taken on record by the Board of Directors, we state that none of the
Directors is disqualified from being appointed as a Director in terms
of 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 read with the Notes
forming part thereof, 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 the Statement of Profit and Loss, of the PROFIT for
the year ended on that date; and
c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
i) a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of Fixed
b) Physical verification of major items of these assets has been
conducted by the Management during the financial year and no material
discrepancies were noticed on such verification.
c) No substantial part of fixed assets of the company has been disposed
off during the year.
ii) a) Physical verification of Inventory has been conducted by the
Management at reasonable intervals.
b) The procedures of physical verification of inventory 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 has maintained proper records of inventory and no
material discrepancies have been noticed on physical verification of
inventory as compared to book records.
iii) a) The Company has not granted any loans, secured or unsecured to
companies, firms or other parties covered in the register maintained
under section 301 of the Act, and hence the clauses (iii) (a), (b), (c)
& (d) of the Order is not applicable.
b) The Company has not taken any loans, secured or unsecured from
companies, firms or other parties, covered in the register maintained
under Section 301 of the Act and hence the clauses (iii) (e), (f) & (g)
of the Order are not applicable.
iv) The Company has adequate internal control procedures commensurate
with the size of the Company and the nature of its business for the
purchase of inventory, fixed assets and for the sale of goods or
v) a) The particulars of contracts or arrangements referred to in
section 301 of the Act 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, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under section 301 of
the Act and exceeding the value of five lakh rupees in respect of any
party during the year have been made at prices, which are reasonable
having regard to prevailing market prices at the relevant time.
vi) The Company has complied with the directives issued by the Reserve
Bank of India and the provisions of Section 58A and 58AA or other
provisions of the Companies Act, 1956 and the Companies (Acceptance of
Deposits) Rules, 1975 with regard to the deposits accepted from the
vii) The Company has an Internal Audit system commensurate with its
size and nature of its business.
viii) We have broadly reviewed the books of account relating to
materials, labour and other items of cost maintained by the company
pursuant to the Rules made by the Central Government for the
maintenance of cost records under section 209 (1)
(d) of the Companies Act, 1956 and we are of the opinion that prima
facie the prescribed accounts and records have been made and
ix) a) The company is regular in depositing with appropriate
authorities undisputed statutory dues including provident fund,
investor education and protection fund, employees'' state insurance,
income-tax, sales-tax, wealth-tax, service-tax, customs duty,
excise-duty, cess and other statutory dues applicable to it. No
undisputed statutory dues were outstanding as at the last day of the
financial year for a period of more than six months from the date they
b) The details of disputed statutory dues are as under:
Name Nature Amount Amount Forum where
of of disputed Paid dispute is
the Statute the dues (Rs.) (Rs.) pending
Andhra APGST 1,15,34,804 35,40,491 Sales Tax
Pradesh 1999/00 to Appellate
General 2004/05 Tribunal
Sales Tax Act Assessments
APGST 27,02,181 27,02,181 High Court
1996/97 to of Andhra
Kerala KGST 2000/01 8,81,527 8,80,588 Deputy
General to 2004/05 Commissioner
Sales Tax Act (Appeals)
Karnataka KST 2006/07 27,516 - Joint
Sales Tax Act Assessment Commissioner
Service Tax Service Tax
for 5,41,50,000 - CESTAT,
Act the 2005-2009 Bangalore
x) The Company has no accumulated losses. The Company has not incurred
cash loss in the current financial year or in the immediately preceding
xi) The Company has not defaulted in repayment of dues to banks.
xii) 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 /
xiv) The Company is not dealing or trading in shares, securities,
debentures or other investments.
xv) The Company has given a letter of comfort for loans taken by the
ultimate subsidiary from banks.
xvi) The Company has applied the term loans for the purpose for which
they were obtained.
xvii) According to the information and explanations given to us, no
funds raised on short-term basis have been used for long-term
xviii) The Company has not made any preferential allotment of shares
during the year.
xix) The Company has not issued any debentures.
xx) The Company has not raised any money by public issues during the
xxi) According to the information and explanations given to us, no
fraud on or by the company has been noticed or reported during the
For SURI & CO.,
Firm''s Regn. No. : 004283S
Place : Chennai Partner
Date : 30th May 2012 Membership No. 18525