| We have audited the attached Balance Sheet of P.R.CEMENTS LIMITED,
VIJAYAWADA, as at 30th June, 2012 and the Statement of Profit and Loss
for the year ended on that date annexed thereto which we signed in
reference to this report. 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 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 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.
1. 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 give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the said
Order.
2. Further to our comments in the annexure referred to in paragraph 1
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 purpose of our
audit.
ii) In our opinion proper books of account as required by law have been
kept by the company so far as it appears from our examination of those
books.
iii) The Balance Sheet and Statement of Profit and Loss dealt with by
this report are in agreement with the books of account.
iv) In our opinion, the Balance Sheet and Statement of Profit and Loss
dealt with by this report comply with the accounting standards referred
to in sub-section (3C) of Section 211 of the Companies Act, 1956,
except Accounting standard (AS-15) relating to employee benefits.
v) In our opinion and based on written representation received from
directors, and taken on record by the Board of Directors, none of the
Directors is disqualified on 30th June, 2012 from being appointed as a
Director in terms of Clause (g) of sub-section (1) to 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 with significant
accounting policies and other 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:
b) In so far as it relates to balance Sheet, of the state of affairs of
the Company as at 30th June 2012 And
b) In so far as it relates to Statement of Profit and Loss, of the
profit of the Company for the year ended on that date.
ANNEXURE TO THE AUDITORS' REPORT :
Referred to as in paragraph 1 of our report of even date.
1. In respect of its Fixed assets:
(a) The company has maintained proper records showing full particulars
including details and situation of fixed assets.
(b) As explained to us, all the fixed assets have not been physically
verified by the management during the year but there is a program of
verification in phased periodical manner at regular intervals, which in
our opinion is reasonable, having regard to the size of the company and
the nature of its assets. No material discrepancies were noticed on
such physical verification.
(c) During the year, the company has not disposed of substantial part
of the Assets. According to the information and explanations given to
us, we are of the opinion that no transactions are affected involving
disposal of assets so as to affect going concern status of the company.
2. In respect of its Inventories:
(a) As explained to us, inventories have been physically verified
during the year by the management at regular intervals. In our opinion,
the frequency of verification is reasonable.
(b) In our opinion and according to the information and explanations
given to us, 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 has maintained proper records of inventories. In our
opinion and according to the information and explanations given to us,
the discrepancies noticed on verification between the physical stocks
and the book records were not material, have been properly dealt with
in the books of account.
3. In respect of loans secured or unsecured, granted or taken by the
company from/to companies, firms or other parties covered in the
register maintained under section 301 of the companies act, 1956.
a. The Company has taken loan aggregating Rs.331.89 lakhs from
Companies, firms or other parties covered in the registered maintained
under section 301 of the Companies Act, 1956.
b. According to the information and explanations given to us, we are
of the opinion, the terms and conditions on which loan taken by the
company from such parties listed in the register maintained under
section 301 of the companies act, 1956 are not, prima facie,
prejudicial to the interest of the company.
c. There is no overdue amount in-respect of loan taken from parties
listed in the register maintained under section 301 of the Companies
Act, 1956, the question of statement on the steps taken for payment of
the Principal, and overdue amount of more than one lakh does not arise.
d. During the year the Company has not granted any loans to Companies,
firms or other parties covered in the registered maintained under
section 301 of the Companies Act, 1956.
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 purchase of inventory, fixed assets and for the sale
of goods. During the course of audit, based on audit procedures
applied, we have not observed any continuing failure to correct major
weaknesses in internal controls.
5. In respect of transactions covered under section 301of the
Companies act,1956:
(a) In our opinion and according to the information and explanations
given to us the transactions, contracts or arrangements that are need
to be entered into the register maintained under section 301 of the
Companies Act, 1956, have been so entered.
(b) In our opinion and according to the information and explanations
given to us, that the transactions made in pursuance of contracts or
arrangements entered in the register maintained under section 301 of
the Companies Act, 1956 and exceeding the value of Rs.
5 Lakhs with parties covered above during the year have been made at
prices which are reasonable having regard to prevailing market price at
the relevant time.
6. In our opinion and according to the information and explanations
given to us, the company has not accepted any Deposits from public to
which the directives issued by the Reserve Bank of India and the
provisions of sections 58A and 58AA of the Companies Act, 1956 and the
Companies (Acceptance of Deposits) Rules, 1975 framed there under
apply.
7. In our opinion, the Company has an independent 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 in respect of products where, pursuant to the Rules made by the
Central Government of India, the maintenance of cost records has been
prescribed under clause (d) of sub section (1) of section 209 of the
Act and are of the opinion that prima facie, the prescribed accounts
and records have been made maintained. We have not, however, made a
detailed examination of the records with a view to determine whether
they are accurate or complete.
9. In respect of statutory dues:
(a) According to the records of the company and as per the information
and explanations given to us, the company is generally, regular in
depositing with appropriate authorities undisputed current Statutory
dues including Provident fund, Investor education & protection fund,
Employee's 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, no
undisputed Amounts payable in respect of Income tax, Wealth tax, Sales
tax, Customs duty, Excise duty and Cess that were outstanding, as at
30th June, 2012 for a period of more than six Months from the date they
became payable except Sales tax Rs.178.69 lakhs.
(c) According to the information and explanation given to us, there are
no dues of Sale tax, Income tax, Custom duty, Wealth tax, Excise duty
and Cess, which have not been deposited on account of any dispute
except the following-
(Rs.in lakhs)
S.
No Name of the Statute Nature of the Amount. Rs Not Deposited Due
to
dues
Dispute Rs.
1 APGST Act-1957 Sales Tax 26.52 26.52
2 APGST Act-1957 Interest 234.77 234.77
3 Mines Department Interest 85.89 39.37
Total 347.18 300.66
10. In our opinion, the company has accumulated losses at the end of
the year exceeding its net worth but not incurred cash losses during
the financial year covered by our audit and in the immediately
preceding financial year.
11. As per the records of the Company and according to the information
and explanations given to us, there are no dues to the financial
institutions and banks. Hence, the question of default does not arise.
12. According to the information and explanations given to us, the
company has not given any loans and 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. Accordingly the provisions of clause 4(xiii) of
the Companies (Auditor's Report) Order, 2003 are not applicable to
the company.
14. In our opinion, the company is not dealing in or trading in
shares, securities, and debentures and other investments. Accordingly,
the provisions of clause 4(xiv) of the Companies (Auditor's Report)
Order, 2003 are not applicable to the company.
15. In our opinion, according to the information and explanations
given to us, the company has not given guarantees for loans taken by
the others from banks or financial institutions.
16. In our opinion, during the year the company has not raised fresh
terms loans.
17. In our opinion, according to the information and explanations
given to us and on an overall examination of statements and records of
the company, that the funds raised on short-term basis have, prima
facie, not been used during the year for long-term investment and vice
versa.
18. In our opinion, according to the information and explanations
given to us, the company has not issued debentures during the period
covered by our report.
19. In our opinion, the company has not raised money by way of public
issue for any specific purpose during the year.
20. In our opinion, the Company has not made any preferential
allotment of shares/securities during the year to parties and companies
covered in the register maintained under section 301 of the companies
act, 1956.
21. In our opinion, the Company is not required to
create/register/modify any security (Charge) as company is not
holding/issued any debentures.
22. According to the information and explanations given to us and
based on audit procedures performed, no fraud on or by the Company has
been noticed during the year.
Place : Hyderabad for RAMBABU & Co.,
Date : 29-08-2012 Chartered Accountants
Firm Reg.No.002976S
Sd/-
C. SATY APRAKAS H
Partner.
M.No.027183 | 