| We have audited the attached Balance Sheet of M/s THAPAR EXPORTS
LIMITED as at 30th June, 2012 and also the profit & Loss Account and
also 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.
01. We conducted our audit in accordance with the Auditing Standards
generally accepted in India. These 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
our opinion.
02. As required by the Companies (Auditors Report) Order, 2003 and
Companies (Auditors Reports) (Amendment) order 2004 issued by the
Central Government of India in terms of sub-section (4A) 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 order.
03. Further to our comments in the Annexure referred to above, we
report that:
(a) We have obtained all the information and explanation, which to the
best of our knowledge and belief were necessary for the purpose of our
audit.
(b) In our opinion, Proper books of accounts as required by law have
been kept by the company so for as appears from our examination of such
books.
(c) The Balance Sheet and Profit & 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 and Profit & 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.
(e)On the basis of written representations received from the directors
as on 30th June, 2012, and taken on record by the Board of Directors,
we report that none of the Directors other than Nominee Director of
PSIDC are prima facie as on 30th June, 2010 disqualified 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 financial statements read
together with the Significant Accounting policies and other notes
thereon give the information required by the Companies Act 1956, and in
the manner so required and give a true & 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 30th June, 2012 and:
(ii) In the case of the Profit & Loss Account, of the profit / loss for
the year ended on that date: and
(iii)In the case of the cash flow statement, of the cash flows for the
year ended on that date.
ANNEXURE TO AUDITORS REPORT
(REFERRED TO IN PARAGRAPH (2) OF OUR REPORT OF EVEN DATE ON THE
STATEMENT OF ACCOUNTS FOR M/s THAPAR EXPORTS LIMITED AS AT AND FOR THE
YEAR ENDED 30th JUNE, 2012)
1. a) The Company has maintained proper records showing full
particulars including quantities details and situation of its fixed
assets.
b) All Fixed assets have been physically verified by the management
during the year. No material discrepancies were noticed on such
verification.
c) The Company did not dispose off a substantial part of fixed assets
during the year.
2. a) The inventory has been,physically verified" during the year by
the management. In our opinion, the frequency of verification is
reasonable.
b) 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 is maintaining proper records of. inventory. The
discrepancies noticed on verification between the physical stocks and
the book records were not material and were property dealt with in the
books of accounts.
3. a) The company has not granted loans secured or unsecured to
companies, firms or other parties covered in the register maintained
under Section 301 of the Companies Act 1956. As the Company has not
granted any loan secured or unsecured, to the parties listed in the
register maintained under section 301of the Companies Act 1956,
paragraphs (iii) (a),{b),(c) & (d) of order are not applicable.
b) The company has not taken loans secured or unsecured from companies,
firms or other parties covered in the register maintained under
Section, 301 of the Companies Act 1956, as such paragraphs (iii) (e)
(f) & (g) of the order are not applicable.
4 . In our opinion and according to the information and explanation
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 major weaknesses in
internal controls.
5. a) According to the information and explanations given to us, we are
of the opinion that the particulars of contracts or arrangements
referred to in section 301 of the Act, have been entered in the
register required to the maintained under that section.
b) In our opinion and according to the information and explanation
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under section 301 of
the Companies Act, 195 6 and exceeding the value of rupees five lakhs
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 . In our opinion and according to the information and explanation
given to us, the company has not accepted deposits from the public,to
which the provisions of section, 58A, 58AA or any other relevant
provisions of the Act and the Companies (Acceptance of Deposits) Rules,
1975 are applicable. As per explanation given to us ,no order has" been
passed by the Company Law Board or National Company Law tribunal or
Reserve Bank of India or any court or any other Tribunal in this
respect.
7. In our opinion, the company has an internal audit system
commensurate with the size and nature of its business.
8. We have broadly reviewed the books of account maintained by the
company pursuant to the Rules made by the Central Government for the
maintenance of cost records under section 209(1)(d) of the Companies
Act, 1956 and we are of the opinion that prima facie the prescribed
accounts and records have been made and maintained. However we have not
made a detailed examination of the said records with a view to
determine whether they are accurate or complete.
9. a) According to information and explanations given to us, the
company has been regular in depositing with appropriate authories
undisputed statutory dues including provident fund, employees state
insurance, income tax, sales tax, wealth tax, service tax, customs
duty, excise duty, cess and other material statutory dues applicable to
it.
b) According to the information and explanations given to us, no
undisputed amounts payable in respect of income tax, wealth tax,
service tax, sales tax, customs duty, excise duty, cess were in
arrears, as at 30th June, 2012 for a period of more than six months
from the date they became payable.
c) According to the information and explanations given to us, the
following are the particulars of dues on account of sale tax, income
tax, custom duty, wealth tax, service tax, excise duty and cess which
have not been deposited on account of any dispute.
Name of Nature of Amount Period to Forum where
the dues (Rs.in
Crore) which amount dispute
statutory relating pending
Indian Custom 6.03 (Cr.) 1999-2000 The Director
Custom, Duty General, Foreign
Act Interest & Trade,Udyog-
Penalty Bhawan, New Delhi
However liability in this regard,has been provided.
10. The accumulated loss of the Company as at 30th June, 2012 are not
less than Fifty percent of its net worth. The Company has incurred cash
losses for the year ended 30th June, 2010 and also in the immediately
proceeding year.
11. The company has paid all dues of P.S.I.D.C.Ltd. Under one time
settlement.
12. According to the information and explanations given to us the
company has not granted any loans and advances on the basis of security
by way of pledge of shares and other securities. Accordingly clause 4
(XII) of the order is not applicable.
13. 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
company.
14. According to the information and explanations given to us the
company is not dealing in or trading" in shares, securities, debentures
and other investments. Accordingly, the provisions of clause 4(xiv) of
the Companies (Auditors Report) Order,2003 are not applicable to the
company.
15 . In our opinion, and according to information and explanations
given to us the company has not given guarantees for loans taken by
others from banks Or financial institutions.
16. In our opinion, and according to information and explanations given
to us the term loans have been applied for the purpose for which they
were raised.
17. According to the information and explanations given to us and 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 except permanent working capital.
18. 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
the Act during the year.
19. According to the information explanations given to us during the
year covered by our audit report,the company has not issued any
debentures.
20. There has not been any public issue during the year.
21.According to the information and exlanation given to us,no fraud on
or by the company has been noticed or reported during the course of our
audit.
22. The compant is a sick Industrial Company within the meaning of
clause (o) of section (3) of the Sick Industrial Companies (Special
Provisons)Act,1985.Birf had declared the company as a Sick Industrial
Company in vide letter no.387/2001, 139-2004, 147/2004, 66/2005 abd
33/2008 dated 10/02/2010. Company was declared Sick Industrial vide
processing heli down dated 03/02/2010.
For VIMAL DIXIT & ASSOCIATES
CHARTERED ACCOUNTANTS
Sd/-
PARTNER
Place: Ludhiana
Date :04/12/2012
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