| 1. We have audited the attached balance sheet of Himgiri Foods Limited
as at 31st March 2010, that profit and 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 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 the 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 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.
3. As required by the Companies (Auditor's Report) order 2003 issued by
the Central Government of Indian 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
order.
4. Further to our comments in the Annexure referred, to above, we
report that
(i) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit.
(ii) 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 books.
(iii) The balance sheet, profit and loss account and cash flow
statement dealt with by this report are in agreement with the books of
account.
(iv) 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.
(v) On the basis of written representations received from the
directors, as on 31st March 2010 and taken on record by the Board of
Directors, we report that none of the directors is disqualified as on
31st 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
(vi) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read together with note
no.6 regarding sale of plant & machinery by bank note no.7 regarding
insurance claim and note no. 8 regarding litigation with Dena Bank and
other notes thereon gives the information required under 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
(a) in the case of the balance sheet, of the state of affairs of the
company as at 31st March 2010.
(b) in the case of the profit and loss account, of the loss for the
year ended on that date; and
(c) in the case of the cash flow statement, of the cash flows for the
year ended on that date.
ANNEXURE TO THE AUDITORS REPORT Re. HIMGIRI FOODS LIMITED (Financial Year
2009-2010) Referred to in paragraph 3 of our report of even date.
(i) Most of the assets has been sold by the Bank and the company is
maintaining proper record showing full particulars including
quantitative details and situation of fixed assets.
(ii) There is no inventory on the date of Balance sheet.
(iii) The Company has not granted or taken any loan from other
companies covered in the register maintained under
(iv) 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. During the course of our audit, we have not observed any
continuing failure to correct major weaknesses in internal controls.
(v)(a) According to the information and explanations given to us, we are
of the opinion that the transactions that need to be entered into the
register maintained under section 301 of the Companies Act, 1956 have
been so entered.
(b) There were no transactions during the year in pursuance of
contracts or arrangements with the parties covered u/s 301 of the
companies Act 1956 exceeding the value of Rs. 5 lacs in respect of any
party.
(vi) In our opinion and according to the information and explanations
given to us, the company has not accepted any deposits to which the
provisions of sections 58A and 58AA of the Companies Act, 1956 and the
Companies (Acceptance of Deposits) Rules 1975 are applicable.
(vii) The company has an in-house internal audit system and also an
audit committee commensurate with the size and nature of its business.
(viii) The central government has not prescribed the maintenance of
cost records under clause (d) of sub section (1) of section 209 of the
Act.
(ix)(a) There are no undisputed statutory dues outstanding including
provident fund, investor education protection fund, employees state
insurance, income tax, sales tax, wealth tax, custom duty, excise duty,
cess and other material statutory dues applicable to it.
(b) According to the information and explanations given to us, there is
no disputed dues of sales tax, income tax, custom duty, wealth tax,
excise duty and cess which have not been deposited on account of any
dispute and there are no dues outstanding on date of balance sheet.
(x) In our opinion, the accumulated losses of the company are more than
50% of its networth. The company has incurred cash losses of Rs.
15192304/- during the financial year covered under our audit and
Rs.4080501/- in the immediately proceedings financial year.
(xi) The Company had taken term loan and working capital (fund based
and non fund based) from bank in the past for which the bank had filed
suit for recovery and had started recovery proceedings.
(xii) The Company has not granted any loans or advances during the year
on the basis of security by way of pledge of shares, debentures and
other securities.
(xiii) 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 (auditor's Report) order, 2003 are not applicable to the
company.
(xiv) The company has not done any trading in shares during the year
(xv) The Company has not given any guarantee for loans taken by others
from banks or from financial institutions.
(xvi) The loan from bank were applied for the purpose for which these
were granted.
(xvii) According to the information and explanations given by 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
investment. No long terms funds have been used to finance short terms
assets except permanent working capital
(xviii) The company has not made any preferential allotment of shares to
parties and companies covered in the registered maintained u/s. 301 of
the Act.
(xvix) The Company has not issued any debentures. Therefore, the
question of creating security does not arise.
(xx) During the year, the company has not raised any money by way of
public issue and hence para 4(xx) of the order is not applicable.
However, The money raised by public issue in the past was deployed and
the enduse was for the purpose for which it was raised.
(xxi) According to the information and explanation given to us, no
fraud on or by the Company has been noticed or reported during the
course of our audit.
Place : Ahmedabad For SUDHIR J.SHAH
Date : *10.05.2010 (Chartered Accountants)
Sd/-
( SUDHIR J.SHAH )
PROPRIETOR. | 