1. We have audited the attached Balance Sheet of HIND INDUSTRIES
LIMITED as at March 31,2009 and the Profit and Loss account and also
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 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 enclose in the Annexure hereto, a statement on
the matters specified in paragraphs 4 and 5 of the said Order.
4. Provision for Sundry Debtors pending adjustment. (ReferNote C.8of
Notes forming part of Balance Sheet.)
5. Further to our comments in the Annexure referred to in paragraph
(3) above, we report that:
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
audit.
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
those books;
iii. The Balance Sheet, Profit and 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 and Profit and Loss Account and
Cash Flow Statement dealt with by this report comply with the mandatory
accounting standards referred to in Section 211 (3C) of the Companies
Act, 1956.
v. On the basis of the written representations received from the
Directors of the Company, as on March 31st, 2009 and taken on record by
the Board of Directors, we report that none of the Directors is
disqualified as on March 31st, 2009 from being appointed as a Director
in terms of Section 274(1 )(g) of the Companies Act, 1956.
vi. Subject to para (4) above and in our opinion and to the best of our
information and according to the explanations given to us, the said
accounts read together with significant accounting policies and subject
to other notes give the information as 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 Company
as at 31 March, 2009;
b) In the case of the Profit and Loss Account, of the profit for the
year ended on that date; and
c) in the case of Cash Flow Statement, of the cash Flow of the company
for the year ended on that date.
ANNEXURE TO AUDITORS REPORT
(Referred to in paragraph [3] of our report of even date)
I) In respect of its fixed assets:
a. The Company is maintaining proper records showing full particulars,
including quantitative details and situation of fixed assets.
b. As informed to us, most of the fixed assets have been physically
verified by the management during the year in accordance with a phased
programme of verification which, in our opinion, is reasonable having
regard to the size of the Company and nature of its fixed assets. No
material discrepancies were noticed on such verification as per
explanation and information given to us.
c. In our opinion, the company has not disposed off substantial part
of fixed assets during the year and the going concern status of the
company is not affected.
II) In respect of its inventories :
a. As explained to us, inventories have been physically verified by
the management in accordance with perpetual inventory program at
regular intervals during the year.
b. In our opinion, the procedures of physical verification of
inventory followed by management are, reasonable and adequate in
relation to the size of the Company and the nature of its business.
c. The Company is maintaining proper record of inventories. As
explained to us there were no material discrepancies noticed in
physical verification as compared to book records.
Ill) In regard to Loans and Advances :
a. The company has granted loans secured or unsecured to companies,
firms or other parties covered in the register maintained under Section
301 of the Companies Act, 1956 and total amount outstanding at the year
end is Rs. 2675.74 lakhs from two parties. However the terms &
conditions as regard thereto are not prima-facie prejudice to the
interest of the company.
b. As informed, the company has not taken any fresh loan, secured or
unsecured from companies, firms or other parties covered in the
register maintained under Section 301 of the Companies Act, 1956.
c. According to the records of the company examined by us and the
information and explanations given to us, there is no overdue amount of
loans taken or granted to companies, firms or other parties listed in
the registers maintained under section 301 of the companies Act, 1956.
IV) 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 for the
purchase of the inventory, fixed assets and for sale of goods. During
the course of our audit we have not observed any continuing failure to
correct major weaknesses in internal controls.
V) In our opinion and according to the information and explanations
given to us, there are no contracts or arrangements that need to be
entered into the register maintained under Section 301 of the Companies
Act, 1956.
VI) The Company has not accepted any deposits from the public within
the meaning of Section 58A of the Companies Act, 1956 and therefore we
have no comments to offer.
VII) In our opinion and according to the information and explanations
given to us, the Company has an internal audit system commensurate with
the size and nature of -ts business.
VIII) To the best of our knowledge and as explained, the Central
Government has not prescribed the maintenance of cost records under
clause (d) of sub section (1) of Section 209 of the Companies Act,
1956, for the products of the^Company.
IX) In respect of statutory dues :
a) Undisputed statutory dues including Provident Fund, Investor
Education and Protection Fund, Employees State Insurance Fund, Income
Tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty,
Value Added Tax, Central Sales Tax, Cess and other material statutory
dues applicable to it, have generally been regularly deposited with the
appropriate authorities except a sum of Rs. 8.80 lakhs payable to
Income Tax Department in view of disputed claims.
b) According to the information and explanations given to us, no
undisputed amounts payable in respect of aforesaid dues were
outstanding, at the year end for a period of more than six months from
the date they became payable.
X) The Company does not have any accumulated losses at the year end.
However it has not incurred any cash losses in the 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 repayment of dues to financial
institutions/ banks as at the year-end and renegotiated settlement has
been accepted.
XII) 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.
XIII) In our opinion, the company is not a chit fund or Nidhi / mutual
benefit fund/ society.
XIV) In our opinion, the company is not dealing in or trading in
shares, securities, debentures and other investment.
XV) According to the information and explanations given to us, the
Company has given guarantee for loans taken by its subsidiary from a
bank, the terms and conditions whereof in our opinion are not
prima-facie prejudicial to the interest of the Company.
XVI) Based on the information and explanations given to us, the term
loans raised earlier have been applied for the purpose for which the
loans were obtained.
XVII) 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 prima-facie for
long-term investment by the Company
XVIII) The Company has not made any preferential allotment of shares to
any parties or companies covered in the register maintained under
section 301 of the Companies Act, 1956.
XIX) The Company does not have any outstanding debentures during the
year.
XX) The Company has not raised any money by way of public issue during
the year.
XXI) Based upon the audit procedures performed and information and
explanations given by the management, we report that no fraud on or by
the Company has been noticed or reported during the year that causes
the financial statements to be materially misstated.
For M. K. AGGARWAL & CO.
Chartered Accountants
(ATUL AGGARWAL)
PLACE: New Delhi Partner
DATE: 13.8.2009 (M. No. 99374)
