1. We have audited the attached Balance Sheet of SOLID CONTAINERS
LIMITED as at 31 March 2010, and 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 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 from 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 section 227(4A) of the
Companies Act, 1956, and on the basjs of such checks as we considered
appropriate and according to the information and explanations given to
us, we enclose in the annexure a statement on the matters specified in
paragraph 4 and 5 of the said order to the extent applicable.
4. Further to our comments in the Annexure referred to above, we
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 accounts as required by Law have
been kept by the company, so far as appears from our examination of the
c) The Balance Sheet and Profit and Loss Account 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 to the extent applicable to the Company.
e) On the basis of 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 31 March 2010 from being appointed
as a director in terms of clause (g) of sub-section (1) 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 read together with the
notes thereon, give in the prescribed manner the information required
by the Act, but in view of Note No. 4 regarding substantial operating
losses due to closure of commercial operations of the company and in
the absence of any rehabilitation measures the company is no longer a
going concern. The Gompany has not made adjustment to accounts relating
to recoverability of recorded asset amounts and in respect of
liabilities as might be necessary for compilation, where the Company is
no longer a going concern. The effect on the Loss for the year and Net
Worth of the company is unascertained.
Considering the impact of above, the accounts does not 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 March 2010;
(ii) In the case of Profit and Loss Account, the loss for the year
ended on that date; and
(iii) In the case of Cash Flow Statement, of the cash flow of the
company for the year ended on that date.
ANNEXURE REFERRED TO IN PARAGRAPH 3 OF AUDITORS REPORT TO THE MEMBERS
OF SOLID CONTAINERS LIMITED ON THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH
(1) (a) As explained to us, the company has maintained proper records
showing full particulars including quantitative details and situation
of fixed assets but the same have not been produced for verification as
reported to be untraceable.
(b) The fixed assets are not physically verified during the year.
(c) During the year, the Company has not sold a substantial part of
(2) Due to closure of commercial operations company is not having any
inventory during the year and hence, clauses (ii) a, (ii) b, (ii) c of
the Order regarding inventories are not applicable to the company.
3) (a) The Company has not granted any loans, secured or unsecured to
companies, firms or other parties covered in the register maintained
under section 301 of the Act. Accordingly the requirements of the
clause (b), (c) and (d) are not applicable.
(b) The company has not taken any loans, secured or unsecured from
companies, firms or other parties covered in the register maintained
under section 301 of the companies Act. Accordingly, sub-clause (f)
and (g) are not applicable.
4) In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the company and the nature of its business. However,
there are no purchases of inventory, fixed assets and sale of goods and
services during the year.
5) In our opinion and according to the information and explanation
given to us, there are no transactions that need to be entered in to
register in pursuance of section 301 of the Act.
6) According to the information and explanations given to us, the
company has not accepted any deposits from the public during the year.
7) As informed to us, the company did not have Internal Audit System
during the year.
8) In view of closure of manufacturing activities, the report on the
maintenance of cost records as prescribed by the Central Government
under section 209 (1)(d) of the Companies Act, 1956 is not required.
(9) a) According to information and explanation given to us and on the
basis of examination of records of the company, the company is regular
in depositing with appropriate authorities undisputed statutory dues
including provident fund, investor education and protection fund,
employees state insurance, income tax, sales tax/Value Added Tax,
wealth tax, service tax, custom duty, excise duty, cess and other
material statutory dues applicable except delay in few cases. There are
no undisputed amounts payable in respect of the aforesaid dues
outstanding as at 31 March 2010 for a period of more than six months
from the date they became payable.
b) According to the records of the company disputed dues in respect of
income tax, wealth tax, service tax, sales tax, custom duty, excise
duty and cess which have not been deposited are as under:
Name of the Nature of Amount Forum where dispute
Statutes Dues in Rupees is pending
Central Excise Act Excise Duty 1,894,007 Commissioner of
(FY 2007-08) Central Excise, Dadar.
Central Excise Act Excise Duty 292,787 Assistant Commissioner
(FY 1994 - 95) Central Excise, Kalyan
Central Excise Act Excise Duty 58,549 Assistant Commissioner
(FY 1994 - 95) Central Excise, Dadar
Central Excise Act Excise Duty 1,434,197 Assistant Commissioner
(FY 1983 - 85) Central Excise, Kalyan
10) According to the records of the company and in our opinion, the
Companys accumulated losses at the end of the financial year are more
than fifty percent of its net worth. Further, the Company has incurred
cash losses during the financial year ended March 31, 2010 and in the
immediately preceding financial year.
11) The company has not taken loans from Financial Institutions or
Banks and has not issued debentures. Therefore para 4(xi) of the order
is not applicable.
12) According to the information and explanation given to us, the
company has not granted any loans or advances on the basis of security
by way of pledge of shares, debentures and other securities.
13) The provisions of any special statue applicable to Chit
Fund/Nidhi/Mutual benefit Fund/ Society are not applicable to the
14) The nature of Companies business / activities during the year does
not include dealing in shares, securities, debentures or other
investments; hence the requirement of offering comments on clause (xiv)
is not applicable.
15) The Company has not given any guarantee for loans taken by others
from bank or financial institutions.
16) As the Company has not taken any term loan, hence para 4(xvi) of
the order is not applicable.
17) On the basis of review of utilization of funds which is based on an
overall examination of the Balance Sheet of the Company and related
information as made available to us, we report that no funds raised on
short-term basis have been used for long-term purposes.
18) As the company has not made any preferential allotment of shares to
parties or companies covered in the register maintained under section
301 of the Act, para 4(xviii) of the order is not applicable.
19) As the company has not issued any debentures during the year, para
4(xix) of the order is not applicable.
20) The company has not raised any money by way of public issues during
21) On the basis of our examination and according to the information
and explanations given to us, no fraud on or by the company has been
noticed or reported during the year.
For MGB & Co
Firm Registration No. 101169W
Membership No.: 48215
Place : Mumbai
Date : 23 August, 2010