ANNUAL REPORT 2005-2006
THE MEMBERS OF
CENLUB INDUSTRIES LTD.
1. We have audited the attached Balance Sheet of M/s. Cenlub Industries
Ltd., as at 31st March 2006, the Profit and Loss Account and also 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 statement a 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 financial statements
are free of material misstatement. An audit includes examination, 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 statements. We believe that our audit provides a
reasonable basis for 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 & 5 of the said order.
4. Further to our comments in the annexure referred to above, we report
i. 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.
ii. 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 those books.
iii. The Balance Sheet, Profit And Loss Account and Cash Flow statement
dealt with are in agreement with by this report with the books of accounts.
iv. In our opinion, the Balance Sheet, Profit And Loss Account and Cash
Flow statement comply with the accounting standards referred to in sub-
section (3C) of Section 211 of the Companies Act, 1956.
v. On the basis of the written representations received from the directors
as on 31st March 2006, and taken on record by the Board of Directors, we
report that none of the directors is disqualified as on 31st March 2006
from being appointed as a director in terms of clause (g) of sub-section
(1) of Section 274 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 Accounting
policies and 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:
a) In the case of the Balance Sheet, of the state of affairs of the company
as at 31st March, 2006
b) In the case of the Profit and Loss account of the profit of the company
for the year ended on that date and in the case of Cash Flow Statement, of
the Cash Flow for the year ended on that date.
For SATISH SINGLA & CO.
PLACE: FARIDABAD (SATISH SINGLA)
DATE : 10.8.2006 M.NO: 80836
ANNEXURE TO THE AUDITOR'S REPORT
Referred to in paragraph 3 of our Report of even data:
1. (a) The company has maintained proper records showing full particulars
including quantitative details and situation of its fixed assets.
(b) A Major portion of the fixed assets have been physically verified by
the management during the year and there is a regular program of
verification which in our opinion, is reasonable having regard to the size
of the company and the nature of its assets. According to the information
and explanations given to us, no material discrepancies have been noticed
to such physical verification as compared to the book records.
(c) During the year the Company has disposed off some items of the vehicle.
According to the information and explanation given to us, we are of the
opinion that the sale of the said items of vehicle has not affected the
going concern of the company.
2) (a) Physical verification has been carried out by the Management in
respect of inventory at reasonable intervals including as on 31.03.2006 as
per the records reviewed by us.
(b) Based on explanations and records produced by company, in our view, in
relation to the size of the Company and the nature of the procedure of
physical verification of inventory followed by the Management during the
accounting year are reasonable and adequate.
(c) The Company is maintaining proper records of inventory. As per the
information furnished by the management, no material discrepancy was
observed between physical inventories and the books records, and the same
has been properly dealt with in the books of account.
3) The company has during the year, neither granted nor taken any loans,
secured or unsecured from companies, firms or other parties covered in the
register maintained under Section 301 of the Companies Act, 1956 and
accordingly the question of repayment of principal interest or any
overdoes, is not relevant
4) In our opinion and according to the information and explanations given
to us during the course of audit, there are internal control procedures,
generally considered adequate, commensurate with the size of the Company
and the nature of its business for purchases of inventory, fixed assets and
with regard to sale of goods. During the course of our audit, we have not
observed any continuing failure to correct major weakness in internal
5) (a) According to the information and explanation given to us, contracts
or arrangements entered into by the Company during the year that are
required to entered into the register maintained under section (301) of the
Companies Act 195 have been entered in the register.
(b) According to the information and explanation given to us, the Company
has entered into transactions during the year exceeding the value of rupees
of five lakhs in respect of a company required to be noted in the register
maintained under section 301 of the Companies Act 1956. In our opinion the
transactions of purchases have been made at prices, which are reasonable
having regard to prevailing market prices for each goods or materials.
6) The Company has not accepted, during the year any deposits requiring
compliance of the provisions of Section 58 A & section 58 AA of the
Companies Act, 1956 and the rules framed thereunder with regard to
acceptance of deposits.
7) The Company has an internal audit system, which in our opinion is
considered as commensurate with the size of the Company and the nature of
8) As explained to us, the Central Government has not prescribed under
Section 209(1)(d) of the Companies Act 1956, the maintenance of cost
records in respect of the Company's business.
9) (a) (I) The Company, is regular in depositing with appropriate
authorities, undisputed statutory dues including Provident Fund investor
education and protection fund E.S.I. income tax, wealth tax, sales tax
custom duty, excise duty, cess and other material statutory dues applicable
(II) According to the information and explanations given to us, no
undisputed amounts payable in respect of Income Tax, Wealth Tax, Sales Tax,
custom Duty, cess and Excise Duty were outstanding as at 31st March 2006
for a period of more than six months from the date they became payable.
(b) According to the information and explanations given to us, there are no
dues of the income tax, wealth tax, sales tax, custom duty which have not
been deposited on account of any dispute.
10) The Company has neither accumulated losses at the end of the financial
year nor incurred cash losses during the year and in the immediately
11) In our opinion and according to the information and explanations given
to us, the Company has not defaulted in repayment of dues to any financial
institution or bank. The Company does not have any debenture holders.
12) According to the information and explanations given to us the Company
has not granted loan/advance on the basis of security by way of pledge of
snares, debentures and other securities, and accordingly, the maintenance
of records in this regard is not relevant for the year.
13) The Company is not a chit fund, nidhi or mutual benefit society and
accordingly the provisions of para 4(xiii) of the Companies (Auditor
Report) Order 2003, are not applicable to the company.
14) The company has maintained proper records for transactions & contracts
of trading of shares and timely entries have been made. Shares held are in
the name of company.
15) In accordance with the information and explanations given to us,
Company has not given any guarantees for loans taken by others from bank of
16) In accordance with the information and explanations given to us,
company has taken term loan during the year and this term loan has been
applied for the purpose for which it was obtained.
17) According to the information and explanation 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 investment.
No long term funds have been used to finance short term assets, except
permanent working capital.
18) The company has not raised any money by public issue during the year.
19) According to the information and explanation given to us, no fraud on
or by the Company has been noticed or reported during the course of our
20) The Company did not have any outstanding debentures during the year.
21) 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.
For SATISH SINGLA & CO.
Place: FARIDABAD (SATISH SINGLA)
Date : 10.08.2006 M.NO: 80836