1) We have audited the attached Balance Sheet of Kalpena Industries
Ltd. as at 31 March 2009 and the Profit and 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 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
3) As required by the Companies (Auditors Report) Order, 2003 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 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 purposes of our
b. 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
c. The Balance Sheet and Profit and Loss Account and Cash Flow
Statement dealt with by this report are in agreement with the books of
d. In our opinion, Balance Sheet, Profit and Loss Account 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 written representations received from the
directors, as on 31 March 2009 and taken on record by the Board of
Directors, we report that none of the directors is disqualified as on
31 March 2009 from being appointed as a director in terms of clause
(g) of sub-section (I) of section 274 of the Companies Act, 1956.
f. In our opinion and 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;
i. in the case of the Balance Sheet, of the state of affairs of the
Company as at 31 March 2009 and
ii. in the case of the Profit and Loss Account, of the Profit for the
year ended on that date,
iii. in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Annexure referred to in paragraph 3 of the Auditors Report of even date
to the members of Kalpena Industries Ltd. of the accounts for the year
ended 31st March 2009.
i) a) The company has maintained proper records showing full
particulars including quantitative details and situation of Fixed
b) As explained to us, all 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 the company and the nature of those assets. No
material discrepancies were noticed on such verification.
c) There was no substantial disposal of the Fixed Assets.
ii) a) As explained to us, inventories have been physically verified
during the year by the management at reasonable intervals.
b) In our opinion and according to the information and explanations
given to us, the procedure of physical verification of inventories
followed by the management is reasonable and adequate in relation to
the size of the company and nature of its business.
c) The company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stocks and
the book records were not material having regard to the size of
operation of the company and have been dealt with in the books of
iii) a) According to information and explanations given to us, the
Company has not granted any loans, secured or unsecured, to companies,
firms or other parties listed in the Register maintained under Section
b) According to information and explanations given to us, the Company
has not taken any loans, secured or unsecured, from companies, firms or
other parties listed in the Register maintained under Section 301
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 the nature of its
business with regard to purchases of inventory, fixed assets and with
regard to the sale of goods. During the
course of our audit, we have not observed any continuing failure to
correct to major weaknesses in internal controls.
v) In our opinion and according to the information and explanations
provided by the management, we are of the opinion that there are no
contracts or arrangements that need to be entered into the register
maintained under section 301 of the Companies Act, 1956.
vi) According to the information and explanations given to us, the
Company has not accepted any deposit from public.
vii) In our opinion, the company has an internal audit system
commensurate with the size and nature of its business.
viii) According to the information and explanations given to us the
Central Government has not prescribed for the maintenance of cost
records under section 209(1)(d) of the Companies Act, 1956.
ix) a) The company is regular in depositing undisputed statutory dues
including Provident Fund, Investor Education Protection Fund,
Employees State Insurance, Income Tax, Sales Tax, Wealth Tax, Service
Tax, Customs Duty, Excise Duty, Cess and other material statutory dues
with the appropriate authorities during the year.
b) According to the records of the Company, there are no dues of Income
Tax, Sales Tax, Wealth Tax, Service Tax, Customs Duty, Excise Duty and
Cess which have not been deposited on account of any dispute except as
Name Nature Amount Period Forum
of of involved of where
Statue Dues (dues which dispite
identified the is
to the amount pending
extent not relates
Excise Excise 29,34,769/- F.Y. 1996-97 CEGAT
Income Income 1,21,263/- A.Y. 2002-03 Income
Tax Act Tax Tax
x) There are no accumulated losses of the company. The company has not
incurred cash losses during the financial year covered by our audit and
the immediately preceding financial year.
xi) In our opinion and according to the information and explanations
given to us, the company has not defaulted in repayment of dues to a
financial institution, bank.
xii) In our opinion and according to the information and explanation
given to us, no loans and advances have been granted by the company on
the basis of security by way of pledge of shares, debentures and other
xiii) 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
xiv) 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
xv) According to the information and explanation given to us, the
company has not given any guarantee for loans taken by others from
banks or financial institutions.
xvi) In our opinion, and according to the information and explanations
given to us, on an overall basis the term loans have been applied for
the purpose for which they were obtained.
xvii) According to the information and explanations given to us, on an
overall examination of the balance sheet of the company, we report that
the no funds raised on short-term basis have been used for long-term
investment. No long-term funds have been used to finance short-term
assets except permanent working capital.
xviii) 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
xix) There are no debentures issued and outstanding at the year end.
xx) The Company has not raised any money by public issue during the
xxi) According to the information and explanations given to us and
representations made by management and based upon the audit procedures
performed, we report that no fraud on or by the company has been
noticed or reported during the course of our audit.
For D. C. Dharewa & Co.
D. C. Dharewa
Place Kolkata Proprietor
Date : 27th Day of June, 2009 (Membership No. 53838)