Report on the Financial Statements ''
We have audited the accompanying financial statements of RAJASTHAN
PETRO SYNTHETICS LTD. (the Company), which comprise the Balance
Sheet as at 31 March, 2013, and the Statement of Profit and Loss and
Cash Flow Statement for the year then ended and a summary of
significant accounting policies and other explanatory information.
Management''s responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
accounting standards referred to in subsection (3C) of section 211 of
the Companies Act, 1956 (the Act). This responsibility includes the
design, implementation and maintenance of internal control relevant to
the preparation and presentation of the financial statements that give
a true and fair view and are free from material misstatement, whether
due to fraud or error.
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments; the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design the
audit procedures that are appropriate in the circumstances. An audit
also includes evaluating the appropriateness of accounting policies
used and reasonableness of the accounting estimates made by the
management, as well as evaluating the overall presentation of the
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
(i) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31 March, 2013;
(ii) in the case of the Statement of Profit and Loss, 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.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors'' Report) Order, 2003,
(the Order) issued by the Central Government of India in terms of
sub-section (4A) of Section 227 of the Act, we give in the Annexure a
statement on the matters specified in . paragraphs 4 and 5 of the
Order, to the extent applicable to the Company.
2: As required by section 227(3) of the Act, we report that:
i- a. we have obtained all the information and explanations which to
the best of our knowledge and belief were necessary for the purpose of
b. in our opinion proper books of accounts as required by the law have
been kept by the Company, so far as appears from our examination of
those books ;
c. The Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement dealt with by this report are in agreement with the books of
d. In our opinion, the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement 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, 2013 and taken on record by the Board of Directors,
none of the directors is disqualified as on 31* March, 2013 from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956;
Referred to in paragraph 3 of our report of even date on the accounts
of the Company for the year ended 31 March 2013.
1 (a) The Company has now Office equipments as fixed assets at the
close of year, the fixed Asset Register of which is being prepared.
(b) The Company has physically verified the Office equipments during
the year which in our opinion is reasonable having regard to size of
the company and the nature of the assets.
(c ) The Company has not disposed off major fixed assets during the
2. The Company does not have any Inventory therefore this clause is
3 The Company has neither granted nor taken any loans, secured or
unsecured to/from Companies, firm or other parties covered in the
register maintained under section 301 of the Companies Act, 1956.
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 fixed assets and with regard to
income from Billing Agency for C&F operations.
5. The Company has not entered in to any transactions with any Company
covered in the register maintained under section 301 of the Companies
Act, 1956, and accordingly clause (v) of Para-4 of the Order is not
applicable to it.
6. The company has not accepted and deposits from the public within
the meaning of Section 58A and 58AA of the Act and the rules framed
7. A firm of Chartered Accountants has conducted the internal audit of
the Company for the year under audit. On the basis of the reports
submitted by the internal auditors to the management, in our opinion
the internal audit is system commensurate with the size of the Company
and nature of its business.
8 The Central Government has not prescribed maintenance of cost records
for the type of services in which the Company is engaged.
9. According to the information and explanation given to us in respect
of statutory and other dues.
(a) During the year no deduction were made towards Provident Fund and
Employee''s State Insurance. The Company was regular in depositing with
appropriate authorities Income Tax, and other statutory dues deducted
by it during the year.
Undisputed Statutory dues amounting to Rs. 1.48 Lacs in respect of
Provident Fund, Rs. 21.39 Lacs in respect of ESI, Rs. 8.59 Lacs in
respect of Sales Tax, Rs. 0.10 Lacs in respect of Cenvat payable, Rs.
4.87 Lacs in respect of Textile Committee cess and Rs. 0.13 Lacs in
respect of TDS were outstanding as at 31*'' March, 2013 for the period
of more than 6 month from the date they became payable.
(b) According to the records of the Company, the dues of customs,
service tax, excise duty, income tax, which have not been deposited on
account of disputes and the forum where the dispute are pending, are as
SI. Status Nature of Taxes Amount Involved Forum where
No (Rs. In Lacs)
Act, 1944 Excise Duty 169.23 Supreme Court
Act, 1944 Excise Duty 4.67 C.E.S.T. Delhi
Act, 1944 Excise Duty 3.23 Dy. Commissioner
4 Sales Tax
Department Sales Tax 63.46 Rajasthan Tax
Act, 1944 Excise Duty 2.33 Central Excise &
Act, 1944 Service Tax 1.11 Asst. Commissioner
of Central Excise
7 Income Tax
Act, 1961 Income Tax
(For AY 08-09) 1584.66 ITAT Delhi
10. There are accumulated losses of Rs. 3,119.83 lacs as on 31 **
March 2013 which is more than 50% its net worth. The company has not
Incurred cash losses in the current year and in the immediately
11. There are no loans from any Financial Institution or banks. Hence,
clause (xi) of paragraph 4 of the order is not applicable.
12. According to the information and explanation given to us, the
company has not granted loans and advances on the basis of the security
by way of pledge of shares, debenture and other securities, hence,
clause (xii) of order is not applicable.
13. Clause (xiii) of the Order is not applicable to the Company as the
company is not a Chit Fund Company or Nidhi/ mutual benefit fund/
14. In our opinion, the Company is not dealing in or trading in
shares, securities, debenture, another investments. Accordingly, the
provisions of clauses 4 (xiv) of the Companies (Auditors Report) Order,
2003 are not applicable to the Company. However, all investments have
been held by it in its own name or nominees.
15. According to the information and explanations given to us, Company
has not given any guarantees for loans taken by others from bank or
16. According to the information and explanations given to us, no term
loans were raised during the years.
17. According to the information and explanation given to us and on an
overall examination of the Balance Sheet of the Company, we report that
no funds raised on short-term basis have been used for long-term
18. The Company has not made any preferential allotment of shares to
parties and companies covered in the Register maintained under section
301 of the Companies Act, 1956 during the year.
19. During the year covered by our audit report the Company has not
issued secured debentures.
20. The Company has not raised any money by public issue during the
year covered by our report.
21. Based upon the audit procedures performed and as per the
information and explanation given to us, no fraud on or by the Company
has been noticed or reported during the year.
For M B R & Co.
Place: New Delhi
Date : 30th May, 2013 (CA. MUKESH SHARMA)
M. No. 511275
ICAI''S FRN 021360N