We have audited the attached Balance Sheet of PG FOILS LIMITED as at
31st March 2006 and also the Profit & Loss Account and Cash Flow
statement for the period 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.
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
(1) As required by the Companies (Auditors Report) Order 2003 issued
by the Central Government of India in terms of sub-section (4A) of the
section 227 of the Companies Act, 1956, and on the basis of such checks
as we considered appropriate and according to the information and
explanations given to us during the course of Audit, we enclose in the
annexure hereto a statement on the matter specified in paragraph 4 & 5
of the said order.
(2) Further to our comments in the annexure referred to in paragraph
above, we state 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
(b) In our opinion, proper books of accounts as required by law have
been kept by the Company so far as appears from our examination of
(c) The Balance Sheet and the Profit & Loss Account & Cash Flow
statement dealt with in this report are in agreement with the books of
(d) In our opinion the Profit & Loss Account and Balance Sheet and Cash
Flow statement dealt with in this report comply with the Accounting
Standards referred to in sub-section (3C) of section 211 of Companies
(e) On the basis of the written representations received from the
Directors as on 31st March 2006 and taken on record by the Board of
Directors, we report that none of the Directors is disqualified as on
31st March, 2006 from being appointed as a director in terms of clause
(g) of Sub-section (1) of Section 274 of the Companies Act, 1956, and
(f) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts subject to the point
number 1(g), 1(h), 8 & 14 of schedule P of Notes On Accounts, read
together with the other notes and significant Accounting Policies give
the information as required by the Companies Act, 1956 in the manner as
required and present a true and fair view in confirming with the
accounting principals generally accepted in India.
(1) In the case of the Balance Sheet, of the state of affairs of the
company as at 31st March, 2006
(2) In the case of the Profit & Loss Account, of the Profit for the
financial year ended on 31st March 2006.
(3) In the case of Cash Flow statement, of the Cash Flows for the year
ended on 31st March 2006.
For H.M.SINGHVI & CO.
Place : Pipalia Kalan (H.M.SINGHVI)
Date: 24th August 2006 Proprietor
ANNEXURE TO THE AUDITORS REPORT
1. In respect of its fixed assets.
a) The company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets on the
basis of available information.
b) As explained to us, the fixed assets have been physically verified
by the management during the year in a phased periodical manner, which
in our opinion is reasonable, having regard to the size of the Company
and nature of its assets. No material discrepancies were noticed on
such physical verification
c) In our opinion, the Company has not disposed off substantial part of
fixed assets, which has bearing on the going concern assumption.
2. In respect of its inventories
a) As explained to us, inventories have been physically verified by the
management at regular intervals during the year.
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 are reasonable and adequate in relation to
the size of the Company and the nature of its business.
c) The Company has maintained proper records of inventories. As
explained to us, there were no material discrepancies noticed on
physical verification of inventory as compared to the book records.
3. The company has not granted/taken any loans or advances in the
nature of loans to parties covered in the register maintained under
section 301 of the companies Act, 1956 during the year. Hence, the
question of reporting whether the terms and conditions of such loans
are prejudicial to the interest of the company, whether reasonable
steps for recovery/re-payment of overdue of such loans are taken does
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 stores, raw materials including
components, packing materials, plant and machinery, equipment and other
assets and with regard to sale of goods. During the course of our
audit, no major weakness has been noticed in the internal control
5. a) Based on the audit procedures applied by us and according to the
information and explanations provided by the management, we are of the
opinion that the transactions that need to be entered into the register
maintained under section 301 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 registers maintain under section 301 and
exceeding the value of five lakh rupees in respect of any party during
the year have been made at prices which are reasonable having regard to
prevailing market prices at the relevant time.
6. According to the information and explanation provided by the
management, in our opinion the company has not accepted any deposit and
has such question of compliance of sanction 58, 58 AA and other
relevant provisions dont apply.
7. The company has an internal audit system.
8. We have been informed by the management, no cost records has been
prescribed under section 209(1) (d) of the companies Act, 1956 in
respect of product manufactured by the company.
9. a) The company is regular in depositing undisputed statutory dues
including Provident Fund, Investor Education and Protection Fund,
Income Tax, Sales Tax, Custom Duty, Excise duty, cess and other
statutory dues except Wealth Tax with the appropriate authorities.
According to the information and explanations given to us, following,
undisputed amounts payable in respect of the aforesaid dues were
outstanding as at 31st March 2006 for a period of more than six months
from the date of becoming payable Turnover Tax 47467 Surcharge on
Turnover Tax 7081 Wealth Tax 48500 b) Following dues are not deposited
on account of disputes pending at various forums.
Name of the Nature Amount in Period to Forum which
statue of dues Rs which it it is pending
Central Sales Declarations 30,52,813.00 A.Y. 2003-04 CTO, Pali
Tax Act form
Rajasthan Sales Declaration 26,985.00 A.Y. 2003-04 CTO, Pali
Tax Act Forms
10. The Company has not incurred cash loss in the current year and in
the immediately preceding financial year and there are no accumulated
losses in the balance sheet as on 31st March 2006.
11. Based on our audit procedures and on the information and
explanation given by the management, we are of the opinion that the
company has not defaulted in repayment of dues to banks.
12. According to the records of the company, in our opinion according
to information and explanation given to us, the Company has not granted
any loans and advances on the basis of security by way of pledge of
share, debentures and other securities.
13. As the Company is not a chit fund, nidhi, mutual benefit fund or
society the provisions of clause 4(xiii) of the companies (Auditors
Report) order, 2003 is not applicable to the Company.
14. As the Company is not dealing or trading in shares, securities,
debentures and other investments, the provision of clause 4(xiv) of the
Companies (Auditors Report) order, 2003 is not applicable to the
15. According to the records of the company and the information and
explanations provided by the management the company has not given any
guarantee for loans taken by others from bank or financial instructions
16. According to the records of the company, the company has not
obtained any term loans. Hence, comments under the clause 4(xvi) are
not called for.
17. According to the information and explanations received, we report
that the company has not applied short-term borrowings for long-term
investments and vice versa.
18. According to the records of the company and the information and
explanations provided by the management, the Company has not made any
preferential allotment of shares during the year.
19. According to the records of the company, the Company has not issued
any debentures during the year.
20. The Company has not raised any money by way of public issue during
the period covered by our audit report.
21. As per the information and explanations given to us, no material
fraud on or by the Company has been noticed during the year.
For H.M.SINGHVI & CO.
Camp : Pipalia Kalan (H.M.SINGHVI)
Date : 24th August, 2006 Proprietor