| We have audited the attached Balance Sheet of PESTICIDES AND BREWERS
LIMITED as of 319 March, 2012 and the Statement of Profit & Loss
Account and the Cadi Flow Statement of the company 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
We have 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 misstatements. An audit
includes examining, on a. test basis, evidence supporting die amounts
3nd disclosures in financial statements. An audit also includes
assessing the accounting principles used and significant estimates by
die management, as well as evaluating die overall financial statement
presentation. We believe that cur audit provides a reasonable basis for
our opinion.
We report that
1. As required by the companies (Auditor's Report) order, 2003
issued by die company Law Board in terms of section 227 (4A) of tlje
Companies Act, 1956, and on the basis of such check as we considered
necessary and as per the information and explanations given to us, we
enclose in the annexure a statement on the matters specified in
paragraphs 4 and 5 of the said order
2. Further to our comments in die Annexure referred to in paragraphs
1 above, we report that:
a) Subject to Note No. 11 regarding non- availability of the
particulars of investments, we have obtained all the information
and explanation, which to the besl of our knowledge and belief were
necessary for the purpose of our audit,
b) The company does not provide for accruing liability for gratuity the
amount of which is not material, but charges in the year of payment
Subject to die same, in our opinion, proper books of accounts, as
required by law have been kept by the company so far as it appears from
oor examination of the books.
c) The Balance Sheet and Statement Profit and Loss dealt with by this
report are in agreement with die books of account
d) In our opinion, the Balanced Sheet, the statement of Profit and Loss
and Cash Flow Statement dealt with by this report comply with the
Accounting Standards referred to in Sub Section (3C) of Section 211 of
die Companies Act 1956 except, that provision for gratuity and leave
encashment and certain disclosure as required under Accounting Standard
IS (AS-15) "Employees Benefits" have not been made.
e) On the basis of representation made by Directors of the company and
taken on record by the Board of Directors, none of the directors of die
company are disqualified from being appointed as directors of the
company under clause (g) of sub-section (l)of section 274 of the
Companies Act, 1956.
f) In pur opinion and to the best of our knowledge and according to the
information and explanations given to us, (he accounts read with other
notes thereon and subjects to:
i). Note No. 25.8(d), regarding non-provision of doubtful debts
aggregating to Rs.3,335,734/- and Note No.25.7 regarding non provision
of accruing liability in respect of gratuity and leave salary, the
amounts which had not been ascertained and to that extent profit for
the year is overstated and consequent overstatement of current assets
and understatement of liabilities,
ii) Note No.25.5 regarding non- confirmation of certain balances, and
other notes 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 principle generally accepted in India.
(a). In tfye case of Balance Sheet of the state of affairs of the
company as at 31* March, 2012;
(b). In tlie case of the statement Profit and Loss, of the profit for
the year ended on the date; and
(c). In the case of die Cash Flow Statement, of the cash flows few the
year ended on that date
Annexure to Auditor's Report Referred to in Paragraph 1 of oar report
of even date
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.
B.We a*e informed that the company conducts physical verification of
all the fixed assets in a phased manner. Accordingly, some of the fixed
assets have been so verified during the year. However the Company has
not physically verified fixed assets having aggregate book value of Rs.
78,835/- at its Kolkata branch In our opinion, having regards to the
size of the company and die nature of its fixed assets, the frequency
of conducting physical verification of the fixed assets is reasonable.
No material discrepancies were noticed on such physical verification.
C.During the year, the company has not disposed off substantial part of
its fixed assets and therefore, the question of affecting die going
concern' status of the company does not arise.
2. In respect of its inventories:
(a)We fe informed that the inventories have been physically verified
by the management at reasonable intervals.
(b)In our opinion and according to the information and explanations
give to us, the procedure 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, the discrepancies noticed upon physical verification
of inventories were not imperial as compared to die bodes records and
have been properly dealt with in the books of account
3. The company has not granted or taken any loan secured or unsecured
from any company, firm or other parties listed in the register
maintained under section 301 of the companies Act, 1956.
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 for the purpose of inventory and fixed assets and for the sale
of goods. During the course of our audit, we have not observed any
major weaknesses in internal controls.
5.1 As per the information and explanations given to us and records
produce before us, the transactions that need to be entered in
the register in pursuance of section 301 of the companies Act, 1956,
have been so entered.
5.2 Each of this transactions as entered into register in pursuance of
section 301 of die companies Act, 1956, have been made at the price
which are reasonable having regards to prevailing market price at that
relevant time.
6. The Company has not accepted any deposits from public.
7. The Company did not have internal audit system during the year. '
8. The Central Government has not prescribed maintenance of cost
records under section 209 (1) (d) of Companies Act, 1956 in respect of
any of the products of the company.
9. In respect of statutory dues:
a. Company is generally regular in depositing the statutory dues and
there are no undisputed amounts payable in respect t of income tax,
wealth tax, custom duty and excise duty, which were due for more than
six months from the date they became payable.
b. Following disputed liabilities remains unpaid:
Nature
of Dues Amount Rs./Lacs Period Forum where
dispute is
pending
i) Water
Charges 7.31 Past Years Thane Municipal
Corporation
10. The Company does not have any accumulated losses at the year end
of die financial year and it has not incurred any cash loss in the
current or in the immediately preceding financial year.
11.1 The company has not defaulted in repayment of its (hies to the
bank.
11.2 The company has no dues payable to financial institution and
debenture holders.
12 In our opinion and according to the information and explanations
given to us, no loans and advances have been granted by the Company on
the basis of security by way of pledge of shares, debentures and other
securities and therefore, 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, clause 4(xiii) of the Oder is not
applicable.
14 The Company is not dealing or trading in shares, securities
debentures and other investments. Therefore, Clause 4(xiv) of the Order
is not applicable.
15 The Company has not given guarantee for loans taken by others from
banks or financial institution and therefore, clause 4(xv) of the order
is not applicable.
16 The Company has not taken any terms loans and therefore, Clause
4(xvi) of the Order is not applicable.
17 According to the information and explanations given to us and on an
overall examination of the Balance Sheet of the Company ,we are of the
opinion that the Company has not utilized funds raised on short terms
basis for long term investment and vice versa
18 The company has not made preferential allotment of share to parties
and companies covered in the register maintained under section 301 of
the companies act, 1956 and therefore, clause 4(xvi) of the order is
not applicable.
19 The Company has not issued any debentures and hence, Clause (xix) of
die Order is not applicable.
20 The company has not raised any money by way of public issue during
the year and therefore, clause 4(xx) of the order is not applicable
21 In our opinion and according to the information and explanations
given to us, no fraud on or by the Company has not been noticed or
reported during the year.
For M.APARIKH & Co.
CHARATERED ACCOUNTANTS
MUMBAI,
DATE: 25/8/2012 NAME: AJIT C. SHAH .
PARTNER
MEMBERSHIP NO. 13097
ICA1 Registration NO.107556W |