1. We have audited the attached Balance Sheet of Haldyn Glass Gujarat
Limited as at 31st March, 2009 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 Companies [Auditors Report] Order, 2003 as amended
by Companies [Auditors Report] [Amendment] Order, 2004 [together the
Order], issued by the Central Government of India in terms of
sub-section [4A] of section 227 of the Companies Act, 1956 we give in
the annexure a statement on the matters specified in paragraphs 4 and 5
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, 2009 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 31 st March, 2009; 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
[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 on 31st March, 2009.
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.
[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] During the year the Company has carried out the rebuilding and
expansion of existing furnace and installed/ upgraded plant and
machinery. In the process company has disposed / discarded some
unusable parts of old plant and machinery, furnace and moulds. 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, during the year the Company has not granted any loans
secured or unsecured to 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.
v] In our Opinion and according to the information and explanations
given to us, during the year the Company has taken unsecured loan of
Rs. 3 crore from a company 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.
vi] 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, sale of goods and
services.
vii] 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] 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 Companies Act, 1956 exceeding the value of Rupees Five Lacs in
respect of any party during the year have been made at prices which are
resonable having regard to prevailing market prices at that time.
viii] 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.
ix] In our opinion, the Company has an adequate internal audit system
commensurate with the size and the nature of its business.
x] 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, service tax, sales
tax, customs duty and excise duty at the year end for a period of more
than six months from the date they became payable. However the Wealth
tax arrears of Rs. 1.28 Lacs as at the last day of financial year were
outstanding for a period of more than six months from the date they
became payable.
[c] Disputed dues in respect of Sales Tax - aggregating to Rs.425.02
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 dispute is pending Assessment Year Amount
[Rs. in 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 4.67
DCST, Appeal - 4, Vadodara 1999 - 2000 8.31
DCST, Appeal - 4, Vadodara 2000 - 2001 35.75
DCST, Appeal - 4, Vadodara 2001 - 2002 150.96
DCST, Appeal - 4, Vadodara 2002 - 2003 214.08
DCST, Appeal - 4, Vadodara 2003 - 2004 37.81
Total 739.55
Less : Liability recognized 314.53
Balance 425.02
xi] The Company does not have accumulated losses as on 31st March, 2009
and has not incurred cash losses in current year and immediately
preceding financial year.
xii] 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 debentureholders.
xiii] 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.
xiv] In our opinion and according to the information and explanation
given to us, the Company is not a Dealer / Trader in the securities.
xv] 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,
xvi] 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.
xvii] 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.
xviii] The Company has not made any preferential allotment during the
year.
xix] 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.
xx] The Company has not raised any money by public issue during the
year.
xxi] 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 : June 25, 2009 Membership No. 30760
