| 1. We have audited the attached Balance sheet of GUJARAT BULK PACKS
LTD. as at 31st March 2011, the profit and loss account and also the
cash flow statements 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 from material misstatement. An audit
includes examining, on a test, 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 India in terms of subsection(4A) of
section 227 of the Companies Act, 1956, We enclosed 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 it appears from our examination of
those books.
(iii) The Balance sheet, Profit and Loss account and cash flow
statements dealt with by this report are in agreement with the books of
account.
(iv) In our opinion, the Balance sheet, Profit and loss and cash flow
statements dealt with by this report comply with accounting standards
referred to in sub-section (3C) of section 211 of the companies act,
1956.
(v) On the basis of written representation received from the directors,
as on 31st March,2011 and taken on record by the Board of directors, we
report that none of the directors is disqualified as on 31/03/2011 from
being appointed as a director, in terms of clause (g) of sub-section(l)
of section 274 of the companies act, 1956.
(vi) In our opinion and to the best of our information and according to
the explanation given to us, they said account 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.
(a) In the case of the Balance Sheet, of the state of affairs of the
company as at 31st March 2011,
(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 flow for the
year ended on that date.
REF: GUJARAT BULK PACKS LTD.
Referred to in paragraph 3 of our report of even date,
1.
a) The company is maintaining proper records showing full particular
including quantitative details and situation of Fixed assets.
b) The fixed assets are physically verified by the management during
the year. We are informed that no material Discrepancies were noticed
on such verification.
c) In our opinion the company has not disposed off substantial part of
its fixed assets during the year and the going concern status of the
company is not affected.
2.
a) The inventory has not been physically verified during the year by
the management. Because the inventory has been given to State Bank of
India as security against Loan.
b) The procedures of physical verification of inventories is not
applicable in view of above.
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.
3. The Company has granted/taken unsecured loans to / from the
companies / firms or other parties listed in the register maintained
under section 301 of the Companies Act, 1956 and/or to the Companies
under the same management, as defined under sub section (IB) of the
Companies Act, 1956.
4. In our opinion and according to the information and explanations
given to us, there is 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. 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 transactions that 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 explanation
given to us, the transaction 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 rupees five lakhs in
respect of any party during the year have been made at prices which are
reasonable having regard to prevailing market price at the relevant
time.
6. The company has not accepted any deposits from the public within
the meaning of Sections 58 A of the Act and the rules framed there
under.
7. In our opinion, the company has an internal audit system
commensurate with the size and nature of its business.
8. a) The company is regular in depositing with appropriate
authorities undisputed statutory dues including provident fund,
employee's state insurance, income tax, sales tax, custom duty, cess
and other material statutory dues applicable to it.
b) According to the information and explanation given to us, there are
no dues of sale tax, income tax, customs duty, excise duty and cess
which have not been deposited on account of any dispute.
9. The Company has accumulated losses as at 31st March,2011 and it has
not incurred any cash losses in the financial year ended on that date
or in the immediately preceding financial year.
10. In our opinion and according to the information and explanations
given to us, the company has defaulted in repayment of dues to a
financial institution and banks.
11. The company has not granted any loans and advances on the basis of
security by way of pledge of shares and other securities.
12. 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.
13. In our opinion , the company is not a dealer or trader in share,
securities, debenture and other investment.
14. In our opinion and according to the information and explanations
given to us, the company has not given any guarantee for the loan taken
by others from banks or financial institutions during the year.
15. In our opinion, the term loan has been applied for the purpose for
which it was raised.
16. According to the information and explanations given to us and on
an overall examination of the balance sheet of the company, we report
that short term fund have not been used for the long term uses.
17. During the period covered by our audit report, the company has not
raised any money through the public issue.
18. According to the information and explanations given to us, no
fraud on or by the company has been noticed during the course of our
audit.
19. The other clauses of paragraph 4 of the companies (Auditor's
Reports) order 2003 are not applicable in the case of the company for
the current year, since in our opinion there is no matter which arises
to be reported in the aforesaid order.
PLACE: AHMEDABAD. FOR, D.V.DAVE &CO.,
DATE: 02/09/2011 CHARTERED ACCOUNTANTS,
(CA D.V.DAVE)
PROPRIETOR | 