1. We have audited the attached Balance Sheet of Haldyn Glass Gujarat
Limited as at March 31, 2008 and also the Profit and Loss Account and
the Cash Flow statement of the Company 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 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 management, as well as evaluating the overall financial statement
presentation. 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 section 227 [4A] of the
Companies Act, 1956, we give in the Annexure, a statement on the
matters specified in paragraphs 4 of the said Order.
4. Further to our comments in the Annexure referred to in paragraph 3
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 purpose 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
such books.
[c] The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account.
[d] In our opinion, the Balance Sheet, Profit and 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.
[e] On the basis of the written representations received from the
Directors and taken on record by the Board of Directors, we report that
none of the Directors is disqualified as on 31st March, 2008 from being
appointed as a Director in terms of clause [g] of sub section [1] of
section 274 of the Companies Act, 1956.
Subject to above in our opinion and to the best of our information and
according to the explanations given to us, the said accounts read with
significant accounting policies and other 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;
i] In the case of Balance Sheet of the state of affairs of the Company
as at March 31, 2008;
ii] In the case of Profit and Loss Account of the profit for the year
ended on that date, and
iii] In the case of Cash Flow Statement, of the cash flows for the year
ended on that date.
Annexure to the Auditors Report
Haldyn Glass Gujarat Limited
[Referred to in paragraph 3 of our report of even date]
i] The nature of the Companys business / activities during the year is
such that clauses [viii] & [xiii] of paragraph 4 of the Companies
[Auditors Report] Order, 2003 are not applicable to the Company for
the year ended March 31, 2008.
ii] In respect of its Fixed assets:
[a] The Company has maintained proper records showing full particulars
including quantitative details and the location of Fixed Assets.
However, the same needs updation.
[b] The Company has physically verified certain assets during the year
in accordance with a program of verification, which in our opinion
provides for physical verification of the fixed assets at reasonable
intervals. According to the information and explanations given to us no
material discrepancies were noticed on such verification.
[c] In our opinion and according to the information and explanations
given to us, the Company has not made any substantial disposals during
the year.
iii] In respect of its inventory:
[a] The inventory has been physically verified by management during the
year. In our opinion the frequency of verification is at reasonable
intervals.
[b] In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management were reasonable and adequate in relation to
the size of the Company and the nature of its business.
[c] In our opinion and according to the information and explanations
given to us, the Company has maintained proper records of its inventory
and no material discrepancies were noticed on physical verification.
iv] In our opinion and according to the information and explanations
given to us, the Company during the year has not granted any loans
secured or unsecured to/from companies, firms or other parties as per
register maintained under section 301 of the Companies act 1956.
Accordingly paragraph [iii] [b], [c] and [d] of the order are not
applicable.
In our Opinion and according to the information and explanations given
to us, the Company during the year has taken unsecured loans from
company of Rs. 4 crore as per register maintained under section 301 of
the Companies act 1956. The rate of interest and other conditions for
loan taken are prima facie not prejudicial to the interest of the
company.
v] 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 nature of its business
with regards to purchase of inventory, fixed assets, sales of goods and
services.
vi] In respect of transactions entered in the register maintained in
pursuance of section 301 of the companies Act, 1956;
[a] To the best of our knowledge and belief and according to the
information and explanations given to us, transactions that needed to
be entered into the register have been so entered.
[b] Transactions made in pursuance of contracts or arrangements entered
into the register maintained under section 301 and exceeding the value
of five lacs rupees in respect of any party during the year, these in
our opinion and according to the information and explanations given to
us, have been made at prices which are reasonable having regard to
prevailing market prices at the relevant time.
vii] The Company has not accepted any deposits from the public.
Therefore, the provisions of section 58A and 58AA of the companies act,
1956, and rules framed there under and the directives issued by the
Reserve Bank of India are not applicable.
viii] In our opinion, the Company has an adequate internal audit system
commensurate with the size and the nature of its business.
ix] According to the information and explanations given to us in
respect of statutory and other dues;
[a] The Company has been generally regular in depositing undisputed
statutory dues, including Provident Fund, Investor Education and
Protection Fund, Employees State Insurance, Income Tax, Sales Tax,
Wealth-Tax, Customs Duty, Excise Duty, Cess and any other statutory
dues with the appropriate authorities during the year.
[b] According to information and explanations given to us there are no
undisputed amounts payable in respect of income tax, wealth tax,
service tax, sales tax, customs duty and excise duty were outstanding
at the year end for a period of more than six months from the date they
became payable. However the Gratuity Contribution arrear as at the
last day of financial year outstanding for a period of more than six
months from the date they become payable Rs. 15.99 lacs
[c] Disputed dues in respect of Sales Tax - aggregating to Rs.443.44
lacs - pending before Sales Tax Authorities [including appeal to be
filed] have not been deposited since the matters are pending before
relevant Appellate Authorities, as listed below:
Authority where the Assessment Year Amount [Rs. In
dispute is pending Lacs]
DCST, Appeal - 2, Vadodara 1995-1996 51.12
DCST, Appeal - 2, Vadodara 1996-1997 124.70
DCST, Appeal - 2, Vadodara 1997-1998 112.15
DCST, Appeal - 2, Vadodara 1998-1999 33.81
DCST, Appeal - 4, Vadodara 1999-2000 8.31
DCST, Appeal - 4, Vadodara 2000-2001 2.04
DCST, Appeal - 4, Vadodara 2001-2002 150.96
DCST, Appeal - 4, Vadodara 2002-2003 214.08
DCST, Appeal - 4, Vadodara 2003-2004 37.82
Total 734.99
Less: Liability recognised 291.55
Balance 443.44
x] The Company does not have accumulated losses as on March 31, 2008
and has not incurred cash losses in current year and immediately
preceding financial year.
xi] Based on our audit procedures and on the information and
explanations given by the management, we are of the opinion that the
Company has not defaulted in the repayment of dues to financial
institutions, banks and debenture-holders in view of deferment
received.
xii] According to the information and explanations given to us, the
Company has not given any loans and advances on the basis of security
by way of pledge of shares, debentures and other securities.
xiii] In our opinion and according to the information and explanation
given to us, the Company is not a dealer / Trader in the securities.
xiv] In our opinion and according to the information and explanations
given to us, no guarantees have been given by the Company for loans
taken by others from banks and financial institutions,
xv] Based on information and explanation given to us by the management,
the term loans were applied for the purpose for which the loans were
obtained.
xvi] According to the information and explanation given to us and on
overall examination of the Balance Sheet of the Company we report that
no funds raised on short term basis [net of cash accruals during the
year] have prima facie been used during the year for long term
investment for acquisition of fixed assets.
xvii] The Company has not made any preferential allotment during the
year.
xviii] According to the information and explanations given to us and
the records examined by us, securities have been created in respect of
the debentures issued.
xix] The Company has not raised any money by public issue during the
year.
xx] 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.
For CHATURVEDI SOHAN & CO.
Chartered Accountants
Sohan Chaturvedi
Place : Mumbai Partner
Dated : July 30, 2008 Membership No. 30760
