1. We have audited the attached Balance Sheet of Suraj Industries
Limited as at March 31, 2009 and also 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
company s 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 mis-statements. 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 the 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 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. Attention is drawn to note no 4&5 of part B of Schedule J to the
effect that these accounts have been prepared without following the
going concern assumption on the closure & cessation of the business by
the company and disposal of major assets in preceding years.
5. 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 purpose 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 those
c) The Balance Sheet, Profit and Loss Account and Cash Flow Statement,
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 as referred to in section 211(3C) of the Companies Act, 1956.
e) On the basis of written representations received from the directors,
as on 31st March, 2009, and taken on record by the Board of Directors,
we report that none of the directors is disqualified as on 31sl March,
2009 from being appointed as a director in terms of clause (g) of
sub-section (1) of section 274 of the Companies Act, 1956.
f) To the best of our knowledge & belief, the provisions of Section
441A of the Companies Act, 1956 regarding the levy & collection of cess
on turnover or gross receipts of the Company, have not yet been
notified by the Central Government. Accordingly, we are unable to
express our opinion on the compliance of the said section in terms of
clause(g) of sub-section 3 of section 227 of the Companies Act, 1956
and clause 9 of the Annexure attached to this report.
g) In our opinion and to the best of our information and according the
explanations given to us, the said accounts, together with the notes
thereon, 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 March 31, 2009; and
II. in the case of the Profit and Loss Account, of the profit of the
company, for the year ended on that date.
III. in the case of 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 SURAJ INDUSTRIES LIMITED FOR THE YEAR ENDED MARCH
1. a) The company has maintained proper records showing full
particulars including quantitative details and situation of fixed
b) During the year, Fixed assets of the Company have been physically
verified by the management which, in our opinion, is reasonable having
regard to the size of the company and the nature of its fixed assets.
As mentioned to us no serious discrepancies were noticed by the
management on such verification.
c) The company has not disposed off its fixed assets during the year,
which may affect the going concern assumption as these accounts are
prepared without following the going concern assumption.
2. a) Since there is no inventory as at the end of the year with the
company hence clause relating to physical verification and maintaining
of proper records of inventory is not applicable for the year.
3. a) The company has not taken any loan secured or unsecured from
companies, firms or other parties covered in the register maintained
under section 301 of the Companies Act, 1956.
b) There are no companies, firms or other parties covered in the
register maintained under section 301 of the Companies Act, 1956 to
which the company has granted loans.
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 for the purpose of purchase and sale of goods, material, fixed
assets and services. During the course of our audit, on random test
check basis, no major weakness has been noticed in the internal
controls in respect of these areas.
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) According to the information and explanations given to us, there are
no transactions made in pursuance of contracts or arrangements entered
in the register maintained under section 301 and exceeding the value of
five lakhs rupees, in respect of any party during the year.
6. To the best of our knowledge & belief and according to information
& explanations given to us, the company has complied with the
provisions of sections 58A, 58AA and other applicable provisions of the
Companies Act, 1956 and rules framed thereunder, wherever applicable,
for accepting deposits from public.
7. Consequent to cessation of operations in both the segments of the
company viz Vanaspati and the liquor division in the earlier years, the
internal audit was not carried out by the company during the year in
view of the size and nature of the business carried on by the company
during the year.
8. Pursuant to the rules made by the Central Government for the
maintenance of cost records in respect of the Vanaspati segment, under
section 209 (1) (d) of the Companies Act, 1956, we are of the opinion
that, prima facie, the prescribed accounts and records, relating to
materials, labour and other items of cost, have not been made and
maintained for the year as there was no manufacturing activity for the
year under review.
9. a) According to the records of the company, the company is
generally regular in depositing with appropriate authorities,
undisputed statutory dues including Investor Education Protection Fund,
Employees State Insurance, Income Tax, Sales Tax, Wealth Tax, Service
Tax, Custom Duty, Excise Duty, Cess and other statutory dues applicable
to it except i) an amount of Rs.907/- on account of
Provident fund outstanding as at close of the year which has since been
deposited by the company with the authorities, ii) an amount of Rs.
419/- is due on account of Central Sales tax.
b) According to die records of the company and information and
explanations given to us, there are no dues of Sales Tax, Income Tax,
Custom Duty, Service Tax, Wealth Tax, Excise Duty and Cess on account
of any dispute.
10. The company has accumulated losses of Rs. 1019.71 lacs, which are
more than fifty percent of its net worth as at March 31st2009. It has
not incurred cash losses during the year and in the preceding year.
11. 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 banks. However, there
are no dues payable to financial institutions or debenture holders.
12. According to information and explanations given to us and based on
the documents and records produced before 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. In our opinion, the company is not a chit fund or a nidhi / mutual
benefit fund / society. Therefore, there is no special statute
applicable to the company, hence provisions related to requirement of
NOF, prudential norms for income recognition, appraisal of credit
proposal etc. are not required to be complied by the company.
14. Based on our examination of the records, in our opinion, the
company is not dealing in or trading in shares, securities, debentures
and other investments. Accordingly, the provisions of clause regarding
proper records of transactions and contracts in respect of shares etc.,
is not applicable to the company.
15. Based on our audit procedure and on the information and
explanations given by management, die Company has not given any
guarantee for loans taken by others from bank or financial
18. According to the information and explanation given to us, the
company has not made any preferential allotment of shares during the
19. The company has not issued any debentures during the year.
20. The company has not raised any money through a public issue during
21. Based upon the audit procedures performed for the purpose of
reporting true and fair view of the financial statements and as per the
information and explanations given by the management, we report that no
fraud on or by the company has been noticed or reported during the
course of our audit.
For TAS ASSOCIATES
Place: NOIDA Partner
Date : July 31, 2009 M. No: 090582