We have audited the attached Balance Sheet of Gujchem Distillers India
Limited (the 'Company') as at 31st March, 2012, the Statement of Profit
and Loss and the Cash Flow Statement for the year ended on that date
annexed thereto. 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 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 management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
In accordance with provisions of Section 227 of the Companies Act 1956,
we report that:
1. As required by the Companies (Auditor's Report) Order, 2003 as
amended by the Companies (Auditor's Report) (Amendment) Order, 2004
(together the 'Order') issued by the Central Government of India 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.
2. Further to our comments in the Annexure, referred to above, we
report that:
(a) we have obtained all the information and explanations which to the
best of our knowledge and belief, were necessary for the purposes of
our audit;
(b) in our opinion, proper books of account, as required by law, have
been kept by the Company so far as it appears from our examination of
those books;
(c) the Balance sheet, the Statement of Profit and Loss and the Cash
Flow Statement dealt with by this report are in agreement with the
books of account of the Company;
(d) in our opinion the Balance sheet, the Statement of Profit and Loss
and the Cash Flow Statement dealt with by this report comply with the
accounting standards referred to in Section 211(3C) of the Companies
Act, 1956, to the extent applicable; and
(e) on the basis of the written representations received from the
Directors as on 31st March, 2012 and taken on record by the Board of
Directors, we report that none of the Directors is disqualified as on
31st March, 2012 from being appointed as a Director in terms of Section
274(1)(g) of the Companies Act, 1956.
In our opinion and according to the explanations given to us, the said
financial statements read together with the Significant Accounting
Policies in Note 2 and Notes forming part of the financial statements
in Note 3 to 31 thereon, give the information required by the Companies
Act, 1956 in the manner so required and give a true and fair view;
(i) in the case of Balance Sheet, of the state of the Company's affairs
as at 31st March, 2012;
(ii) in the case of the Statement of Profit and Loss, of the profit for
the year ended on that date; and
(iii) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
ANNEXURE TO THE AUDITORS' REPORT
(Referred to in paragraph (1) of our Report of even date)
1. (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) All the fixed assets have not been physically verified by the
management during the year but there is a regular programme of
verification which, in our opinion, is reasonable having regard to the
size of Company and the nature of its assets. No material discrepancies
were notice on such verification.
(c) The Company has not disposed off any substantial part of its fixed
assets during the year, so as to affect its going concern status.
2. The Company did not carry any inventory during the year.
Accordingly, the Clauses 4 (a), (b) and (c) of the Order are not
applicable to the Company.
3. (a) According to the information and explanations given to us, the
Company has not granted any loans, secured or unsecured, to companies,
firms and parties covered in the Register maintained under Section 301
of the Companies Act, 1956. Accordingly, Clauses 4 (iii) (b), (c) and
(d) of the Order are not applicable to the Company.
(b) According to the information and explanations given to us, the
Company has not taken any loans, secured or unsecured, from companies,
firms and parties covered in the Register maintained under Section 301
of the Companies Act, 1956. Accordingly, Clauses 4 (iii) (f) and (g) of
the Order 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 procedures
commensurate with the size of the company and the nature of its
business with regard to purchase of inventory, fixed assets and for the
sale of goods and services. During the course of audit, we have not
observed any continuing failure to correct major weakness in internal
controls.
5. (a) 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 of Companies Act, 1956 have
been so entered.
(b) In our opinion and according to the information and explanations
given to us, there are no transactions made in pursuance of contract or
arrangements entered in the Register maintained under Section 301 of
the Companies Act, 1956 and exceeding the value of rupees five lakhs in
respect of any party during the year.
6. In our opinion and according to the information and explanations
given to us, the Company has generally complied with the provisions of
Sections 58A and 58AA of the Companies Act, 1956 and the Companies
(Acceptance of Deposit) Rule, 1975, except for non filing of return of
deposits, with regard to the deposits accepted from the public. During
the year, 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. The Company had appointed an independent firm of chartered
accountants as internal auditors up till for the year 1993-94. Due to
stoppage of the manufacturing activities of the Company, the internal
audit function has not been carried out since then.
8. As there are no manufacturing activities carried out during the
year, the requirements of the maintenance of cost records under Section
209 (1) (d) of the Companies Act, 1956 are not applicable to the
Company.
9. (a) The Company has been generally regular in depositing undisputed
statutory dues in respect of investor education and protection fund,
wealth tax, service tax, sales tax, VAT, custom duty, excise duty, cess
wherever applicable with appropriate authorities.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of excise duty, income tax,
wealth tax, service tax, customs duty, excise duty and cess were in
arrears, as at 31st March, 2012 for a period of more than six months
from the date they become payable.
(c) According to the information and explanations given to us, the
disputed dues which have not been deposited since the matters are
pending with the relevant forum are:
Nature of Nature of Amount Period to Forum where
Statute the dues which the dispute is
(Rs. lakhs) amount pending
relates
The Central Central Excise 16.62 1985-86 and A.O.
Excise and 1986-87 Central
Salt Act Excise
Department
10. The accumulated losses of the Company are not more than fifty
percent of its net worth. The Company has not incurred cash losses
during the financial year and in the immediately preceding financial
year.
11. Pursuant to the BIFR Order letter dated 16th September, 2003, in
our opinion and according to the information and explanations given to
us, the Company has not defaulted in repayment of dues to financial
institutions, debenture holders and banks.
12. According to the information and explanations given 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 nidhi/mutual
benefit fund/society Accordingly, the Clause 4 (xiii) of the Order is
not applicable to the Company.
14. According to the information and explanations given to us, the
Company is not dealing in or trading in shares, securities, debentures
and other investments. Accordingly, the Clause 4 (xiv) of the Order is
not applicable to the Company.
15. According to the information and explanations given to us, the
Company has not given any guarantee for loan taken by others from banks
or financial institutions.
16. According to the information and explanations given to us, the
Company has not accepted any term- loan during the year. Accordingly,
the Clause 4 (xvi) of the Order is not applicable to the Company.
17. According to the information and explanations given to us and on
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.
18. According to the information and explanations given to us, 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, during the year.
19. The Company has not issued any debentures during the year. Hence,
the reporting on Clause 4 (xix) of the Order pertaining to creation of
security or charge for debentures does not arise.
20. The Company has not raised money by way of public issue during the
year. Accordingly, Clause 4 (xx) of the Order is not applicable to the
Company.
21. During the course of our examination of the books and records of
the Company, carried out in accordance with the generally accepted
auditing practices in India, and according to the information and
explanations given to us, we have neither come across any instances of
material fraud on or by the Company, noticed or reported during the
year, nor have we been informed of such case by the management.
SHARP & TANNAN
Chartered Accountants
Registration No. 109982W
By the hand of
Milind P.Phadke
Partner
Membership No. 033013
Mumbai, 24th July, 2012
