| We have audited the attached balance Sheet of Super Syncotex India
limited as at 31st March, 2012 and Statement of Profit & Loss for the
year ended on that date annexed thereto, and Cash Flow Statement for
the year ended on that. These financial statements are the
responsibility of the Company's management. Our responsibility is to
express an opinion on these financial statements based an our audit.
01. 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 misstatement. An audit
includes examining on text basis evidence supporting the amounts and
disclosures in the financial statements. An audit also includes
assessing the accountings 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.
02. 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 enclose in the annexure a
statement on the matters specified in paragraph 4 and 5 of the said
order.
03. The company is registered as a sick company with BIFR. The hon'ble
BIFR has passed on order on 23/6/2009 for the merger of Spinning Unit
(the industrial undertaking situated at Khari ka Lamba, Gulabpura Dist
Bhilwara) into Suzuki Textiles Ltd. Accounting treatement of assets and
liabilities and consequential effect thereof has been given in
accordance with said order in FY 2009-10.
04. 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 purpose of our
audit;
(b) In our opinion, proper books of account as required by law have
been kept by the Company so for as appears from our examination of
those books;
(c) The Balance Sheet Statement of Profit & Loss and Cash Flow
Statement referred to in this repair are in agreement with the books of
account.
(d) Except as otherwise stated in accounting policies and Notes on
financial statements, in our opinion, the Balance sheet, the Statement
of profit & loss and Cash Flow Statement complied with accounting
standards specified u/s 211(3C) of the companies Act, 1956.
(e) In our opinion and based on information and explanations given to
us, none of the directors are disqualified as on 31/03/2012 from being
appointed as directors in terms of clause (g) of sub-section (#) of
section 274 of the companies Act, 1956.
(f) In our opinion and to the best of our information and according to
the explanations given to us, the said balance sheet statement of
profit and loss and Cash flow statement read together with the notes to
financial statements referred and subject to-
(i) Note No. 10.1 Physical verification of Inventories could not be
carried out during the year. Values of inventories have been taken as
stated in scheme approved by BIFR.
(ii) Note No. 12.1 Bank balances being subject to reconciliation and
confirmation.
(iii) Note No. 5.2 and 11.2 regarding balances of trade payables and
trade receivable respectively, being subject to confirmation, give the
information required by the Companies Act, 1956, in the manner so
required and give a true & fair view in conformity with the accounting
principles generally accepted in India.
(i) In so far as it relates to the Balance Sheet, at the state of
affairs of the company as at 31st March, 2012.
(ii) In so far as it relates to the Statement of Profits 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
Flow of the company for the year ended an that date.
ANNEXURE TO AUDITOR'S REPORT
TO THE MEMBERS OF SUPER SYNCOTEX (INDIA) LTD.
I. in Respect of its fixed Assets
(a) The company has maintained proper records to show full particulars
including quantitative details and situation of fixed assets on the
basis of available information.
(b) As explained to us, Physical verification of fixed assets has been
conducted during the year to the best of our knowledge, no material
discrepancies have been noticed on such verification.
(c) The company has the merged Spinning unit (Industrial Undertaking at
Khari Ka Lamba, Gulabpura) to Suzuki Textiles Limited in pursuance of
the scheme approved by BIFR, which has resulted into transfer of
substantial assets during Fy 2009-10. As explained to us by the
management, residuary undertaking of the Company would be a going
concern of the Company.
II. In respect of its inventories;
(a) as explained to us, physical verification of Inventories has not
been conducted by the management.
(b) In our opinion and according to information and explanations given
to us, the procedures of physical verification of inventories needs to
be made adequate in relation to the size of the company and the nature
of its business.
(c) On the basis of information and records made available, the Company
has maintained proper records of Inventories but in absence of physical
verification, the discrepancies between physical inventory and book
records can not be commented upon.
III. In respect of loans:
(a) As per Information end explanations given to us, the company has
not granted any loans, secured or unsecured to companies, firms or
parties covered the register maintained under section 301 of the
companies Act, 1956. Accordingly clause (b) (c) & (d) are not
applicable.
(b) The Company has taken loans from 9 parties covered in the register
maintained under section 301 of the Companies Act, 1956, Maximum amount
outstanding was Rs. 1331672/- and year end balance was Rs. 1331672/-
(c) As explained to us, the unsecured loans have been taken interest
free, as such are prima facie not prejudicial to the interest of the
company.
(d) As explained to us, there are no stipulations for repayment of
principal.
IV. In our opinion and according to information and explanations given
to us, there are inadequate internal control procedures commensurate
with the size of the company and nature of its business with regard to
purchases of Inventory, fixed assets and with regard to the sale of
goods and services. During the course of our audit we have observed
continuing failure to ascertain the value of inventories and exercising
internal control for maintaining the usefulness of such inventories.
However, there was no purchase and sale of inventories during the year.
V. a) To the best of our knowledge and belief and according to the
information and explanations given to us, we are of the opinion that
the contract or arrangements 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 information and explanation given to
us, there were no transactions made in pursuance of contracts or
arrangements entered in the registers maintained under Section 301 and
exceeding the value of five lakh rupees in respect of any party during
the year.
VI. The Company has not taken deposits during the year within meaning
of section 58A and 58AA or any other relevant provisions of the Act and
Rules framed thereunder. However, the company has taken unsecured loan
of Rs. 4.58 lacs from director. Unsecured loan taken from related and
non related parties are continued to meet out the expenses. No order
has been passed by Company Law Board, NCLT, RBI or any other Tribunal
in respect of unsecured loan accepted by the company.
VII. In our opinion and according to information and explanations
given to us, the internal audit system of the Company was not
commensurate with its size and nature of its business.
VIII. As explained to us, The Central Government has not prescribed
maintenance of cost records under section 209(1) (d) of the Companies
Act, 1956 and since demerger of Khari Ka Lamba. Unit (Textile unit) the
company has not yet started any manufacturing of the product so as to
attract the provisions of section 209(1)(d).
IX. In respect to Statutory Dues:
(a) During the year, the company is regular in deposing undisputed
statutory dues wherever applicable including Provident Fund, Investor
Education and Protection Fund, Employees State Insurance, Income Tax,
Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise Duly, Cess and
other statutory dues, with appropriate authorities. There was no arrear
of outstanding statutory dues as at the last day of financial year for
a period of more than six months from the date they become payable.
(b) As explained to us, there was no disputed statutory dues which have
not been deposited by the company after demeger of Khari Ka Lamba Unit
and transfer to Transferee Company M/s. Suzuki Textiles Ltd.
X. The company has been declared as sick company by BIFR vide its order
dated 3.1.2006 in terms of section 3(1)(O) of the Sick Industrial
Companies (Special Provisions) Act, 1985.The company has accumulated
tosses of Rs.555.15 lacs as on 31.3.2012 and has incurred cash losses
during the current financial year, however it has not incurred cash
losses in the immediately preceding financial year.
XI. According to the information given to us, the company has no dues
of financial institutions, banks and debenture holders during the year.
XII. According to information and explanation 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 and hence maintenance
of adequate records for this purpose is not applicable.
XIII. In our opinion, the company is not chit fund or a Nidhi/mutual
benefit fund/society. Therefore the provisions of clause 4(xiii) of
the companies (Auditors Report) order, 2003 are not applicable to the
company.
XIV. In our opinion the company is not dealing in or trading in
shares, securities, debentures and other investment. Accordingly, the
provisions of clause 4(xiv) of the companies (Auditors Report) order,
2003 are not applicable to the company.
XV. In our opinion, the company has not given any guarantee for loans
taken by others from bank or financial institution.
XVI. The company has not taken any term loan during the year.
XVII. According to information and explanation given to us and on
overall examination of the balance sheet and Cash Flow Statement of the
company, we report that short term fund of Rs. 10.03 lacs has been
utilized for long term investment.
XVIII. According to information and explanation given to us, the
company has not made preferential allotment of shares to parties and
companies covered in the register maintained under section 301 of the
companies Act, 1956.
XIX. As explained to us, the company has not issued any debentures and
has not created security or charge during the year.
XX. The company has not raised any money by way of public issue during
the year.
XXI. To the best of our knowledge and belief and according to the
information and explanation given to us, no fraud on or by the company
has been noticed or reported during the year.
For S. S. SURANA & COMPANY
R. N. Goyal
Chartered Accountants
Partner
(Membership No. 07033)
PLACE: JAIPUR
DATE: 31st May, 2012
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