| We have audited the attached Balance Sheet of ICCON OIL & SPECIALITIES
LIMITED as at 31st March 2012 and the Statement of Profit and Loss for
the year ended on that date annexed thereto and Cash Flow Statement for
the year ended on that date. 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 misstatements. An audit includes
examining, on a test basis, evidence supporting the amounts and
disclosures in financial statements. An audit also includes t 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.
As required by the Companies (Auditor's 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 hereto a
statement on the matters specified in paragraphs 4 and 5 of the said
Order.
Further to our comments in the Annexure referred to in paragraph 2
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 purposes of our
audit;
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 books;
c) The Balance Sheet, the Statement of Profit and Loss and Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
d) In our opinion the Balance Sheet, the Statement of Profit and Loss
and Cash Flow Statement dealt with by this report comply with the
mandatory Accounting Standards referred in sub- section (3C) of section
211 of the Companies Act, 1956;
e) On the basis of written representations received from directors as
on 31st March, 2012 and taken on record by the Board of Directors, we
are of the opinion that none of the directors are disqualified as on
31st March, 2012 from being appointed as directors in terms of clause
(g) of sub-section (1) of section 274 of the Companies Act 1956;
I) Attention is Invited to Note No.24 regarding preparation of
financial statements on going concern basis although accumulated losses
of the Company exceed its net worth. We are informed that the reference
of the Company is registered with the Board for Industrial and
Financial Reconstruction under Section 15 of that Act.
ii) Attention is also invited to Note No.5 regarding non-provision of
interest expense on term loans and cash credit, Subject to the above,
in our opinion and to the best of our information and according to the
explanations given to us, the said accounts read together with the
Significant Accounting Policies and other notes thereon give the
information required by the ' Companies Act, 1956, in the manner so
required, and present a true and fair view, in conformity with the
accounting principles generally accepted in India:
(i) in so far as it relates to Balance Sheet, of the state of affairs
of the Company as at 31st March, 2012; and
(ii) in so far as it relates to the Statement of Profit and Loss, of
the Loss of the Company for the year ended on that date.
(iii) in so far as it relates to the Cash Flow Statement, of the Cash
flows of the Company for the year ended on that date.
ANNEXURE TO AUDITOR'S REPORT
Referred to in Paragraph 2 of our report of even date
1. In respect of its fixed assets: -
a. The Company has maintained records showing full particulars
including quantitative details and situation of its fixed assets and
the same is being updated.
b. As explained to us, the fixed assets have been physically verified
by the Management at the end of the accounting year, which in our
opinion is reasonable, having regard to the size of the Company and
nature of its assets. No material discrepancies were noticed on such
physical verification as compared to the book records.
c. In our opinion, the Company has not disposed of substantial part of
fixed assets during the year.
2. In respect of its inventories:
Since there is no stock-in-trade of either raw materials or finished
goods during the year under review, above clause is not applicable to
the Company.
3. In respect of loans, secured or unsecured, granted or taken by the
Company to/from companies, firms or other parties covered in the
register maintained under Section 301 of the Companies Act, 1956:
Company has not taken any loan from parties covered in the register
maintained under section 301 of the Companies Act, 1956. Maximum
Balance outstanding during the year is Rs.
1,85,606/- and closing balance is Rs. 1,85,606/-. In our opinion and
accordinq to the information and explanations given to us the interest
and other terms and conditfit said loans are not prima facie
prejudicial to the interest of the Company
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. During the course of our audit, we have not observed any
major weaknesses in internal controls.
5. In our opinion and according to the information and explanations
given to us, there are no transactions made in pursuance of contracts
or arrangements that need to be entered into the register maintained
under Section 301 of the Companies Act, 1956.
6. The Company has not accepted any deposits from the public.
7. The Company does not have any formal Internal audit system.
8. During the year Company has not carried out any Manufacturing or
Trading activity, and hence, maintenance of cost records under Section
209 (1) (d) of the Companies Act, 1956 does not arise.
9. In respect of statutory dues:
a. According to the records of the Company, undisputed statutory dues
including Provident Fund, Employees' State Insurance, Income Tax, Sales
tax, Wealth Tax, Customs Duty, Exdse Duty, Service tax, Cess and other
statutory dues have been generally regularly deposited with the
appropriate authorities. According to the information and explanations
given to us, no undisputed amounts payable in respect of the aforesaid
dues were outstanding as at 31st March, 2012 for a period of more than
six months from the date of becoming payable, except Statutory Bonus
Rs. 65,551, Gratuity payable Rs. 1,00,000/- and Leave Encashment
Rs.1,63,131/
b. According to the information and explanations given to us, there
are no disputed statutory dues that have not been deposited on account
of matters pending before appropriate authorities.
10.. The Company has accumulated losses exceeding its net worth and has
incurred cash losses during the year and has incurred cash loss in the
immediately preceding previous year.
11. The company has defaulted In repayment of dues to banks in respect
of term loans and cash credit amounting to Rs. 11,59,01,248/-. No
repayment has been made in respect of the same since March 2002.
Further, no provision / payment have been made in respect of interest
accrued and due on the same.
12. In our opinion and according to the information and explanation
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.
13. In our opinion, the Company is not a chit fund or a nidhi/mutual
benefit fund/ society. Therefore, clause 4(xiii) of the Companies
(Auditor's Report) Order 2003 is not applicable to the Company.
14. The Company has not entered into transactions and contracts in
respect of dealing and trading in shares, securities, debentures and
other investments.
15. The Company has not given guarantees for loans taken by others
from banks or financial Institutions.
16. The Company has not raised any new term loans during the year.
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 no short-term funds have been utilized for the long-term purpose.
18. During the year, the Company has not made any preferential
allotment of shares to parties and companies covered in the Register
maintained under Section 301 of the Companies Act, 1956.
19. The Company has not issued any debentures during the year. '
20. No new public issue was made by the Company during the year.
21. In our opinion and according to the information and explanations
given to us, no fraud on or by the company has been noticed or reported
during the year that causes the financial statements to be materially
misstated.
For RAJENDRA & CO.
Chartered Accountants
(Firm Registration
No. 1Q8355VW.
APURVA R. SHAH
Partner
Membership No. 47166
PLACE: Mumbai
Dated: 31st August 2012
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