1. We have audited the attached Balance Sheet of Glittek Granites
Limited as at 31st March, 2009 and also the Profit & Loss Account and
the Cash Flow Statement for the year ended on that date annexed
thereto. These financial statements are the responsibility of the
companys management. Our responsibility is to express an opinion on
these financial 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
financial statements are free of material mis-statement. 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 management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
3. As required by the Companies (Auditors Report) Order, 2003 and as
amended by the Companies (Auditors Report) Amendment Order, 2004,
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
4. Further to our comments in the Annexure referred to above, we
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 Balance Sheet, Profit & Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account;
iv) In our opinion, the Balance Sheet, Profit & Loss Account and Cash
Flow Statement dealt with by this report 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 representation received from the
directors, as on March 31, 2009, and taken on record by the Board of
Directors, we report that none of the directors is disqualified as on
March 31, 2009 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 to the best of our information and according to the
explanations given to us, the said 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 31 st March, 2009;
b) in the case of the Profit & Loss Account, of the profit for the year
ended on that date; and
c) in the case of Cash Flow Statement, of the cash flows for the year
ended on that date.
ANNEXURE REFERRED TO IN PARAGRAPH 3 OF OUR REPORT OF EVEN DATE TO THE
MEMBERS OF GLITTEK GRANITES LTD. ON THE ACCOUNTS AS AT AND FOR THE YEAR
ENDED 31 ST MARCH, 2009
1. (i) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
(ii) Fixed Assets have been physically verified by the management
during the year based on a phased programme of verifying all the assets
over a period of three years, which in our opinion is reasonable having
regard to the size of the Company and the nature of its fixed assets.
As informed, no material discrepancies were noticed on such
(iii) There was no substantial disposal of fixed assets during the
2. (i) The management has conducted physical verification of inventory
at reasonable intervals during the
year. In our opinion, the frequency of such verification is reasonable.
(ii) The procedures of physical verification of inventory followed by
the management are, in our opinion, reasonable and adequate in relation
to the size of the Company and the nature of its business.
(iii) The Company is maintaining proper records of inventories and no
material discrepancies were noticed on physical verification as
compared to book records.
3. (i) During the year the Company has taken unsecured loans of Rs.
41.75 Lacs from three companies and
Rs. 10.30 Lacs from four other parties covered in the register
maintained under Section 301 of the Companies Act, 1956. Out of which
Rs. 0.20 Lacs has been repaid to one of the company and Rs. 6.10 Lacs
has been repaid to four other parties. The total amount involved is Rs.
74.02 Lacs. Unsecured Loan of Rs. 21.60 lacs taken in previous year
from one of the company has been repaid. Year end balance of all loans
taken is Rs. 46.33 Lacs.
(ii) In our opinion and according to the information and explanations
given to us, the terms and conditions of such unsecured loan taken are
not prima-facie prejudicial to the interest of the Company.
(iii) There are no stipulations as to the payment of the principal
amount and interest in respect of unsecured loan.
(iv) 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 Companies Act, 1956.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business with regard to purchase of inventory and fixed assets and for
the sale of goods and services. During the course of our audit, no
major weakness has been noticed in the internal control in respect of
5. (i) 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 have been so entered. (ii)
Transactions made in pursuance of such contract or arrangements have
been made at prices which are reasonable having regard to the
prevailing market prices at the relevant times.
6. The Company has not accepted any deposits from the public.
7. In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
8. As explained to us, maintenance of cost records has not been
prescribed by the Central Government under Section 209(1 )(d) of the
Companies Act, 1956.
9. (i) The Company has been regular in depositing undisputed statutory
dues including Provident Fund, Investor
Education and Protection Fund, Employees State Insurance, Income Tax,
Sales tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess and
other material Statutory Dues as applicable with the appropriate
authorities in India.
(ii) At the end of financial year there were no dues of Sales Tax,
Income Tax, Custom Duty, Wealth Tax, Service Tax, Excise Duty and cess
which have not been deposited on account of any dispute except as set
SI. Name of the Statute Nature of dues Amount Forum where
No. (Rs. in Lacs) pending
1. The Karnataka Tax on Penalty on Entry 3.30 The Karnataka
Entry of Goods Act, Tribunal
10. The companys accumulated losses at the end of the financial year
are less than Fifty One Percent of its net worth and it has not
incurred any cash losses in the current and immediately preceding
11. Based on our audit procedures and as per the information and
explanations given by the management, we are of the opinion that the
Company during the year has not defaulted in repayment of dues to
financial institutions, banks. The Company has not issued any
12. According to the information and explanations given to us and
based on the documents and records produced to us, the Company has not
granted loans and advances on the basis of security by way of pledge of
shares, debentures and other securities.
13. In our opinion, the Company is not a chit fund or a nidhi/mutual
benefit fund/society. Therefore, the provisions of clause 4 (xiii) of
the Companies (Auditors Report) Order. 2003 are not applicable to the
14. In our opinion, the Company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly, the
provisions of Clause 4 (xiv) of the order are not applicable to the
15. According to the information & explanations given to us the
Company has not given guarantee for loans taken by others from banks or
16. Based on information and explanations given to us by the
management, the term loans were applied for the purpose for which the
loans were obtained.
17. On the basis of review of utilisation of funds on overall basis,
related information as made available to us and as represented to us by
the management, funds raised on short-term basis have not been used for
long term investment.
18. During the year the Company has made preferential allotment of
shares to parties or companies covered in the register maintained under
Section 301 of the Companies Act, 1956. The Price at which the share
has been issued is not prejudicial to interest of the company.
19. The Company has not issued any debentures during the period
covered by our report.
20. The Company has not raised any money from the public during the
21. During the course of our examination of the books of account
carried out in accordance with the generally accepted auditing
practices in India, we have neither come across any instance of fraud
on or by the Company nor have been informed of such case by the
For Rungta & Rungta
CA S. K. Roortgta
25, R.N. Mukherjee Road, Kolkata - 700 001 Partner
The 30th day of June, 2009 Membership No.: 15234