| We have audited the attached Balance Sheet of LLOYD ROCKFIBRES LIMITED
as at 31st March, 2014 and also the Profit and Loss Account of the
Company 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 this
financial statement based on our audit.
1. 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 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 the management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion and report thereto:
2. As required by the Companies(Auditor's Report) Order, 2003 issued
by the Central Government in terms of section 227(4A) of the Companies
Act, 1956 and on the basis of such checks of the books and records of
the company, as we considered appropriate, we enclose in the annexure a
statement on the matters specified in the said Order.
3. Further to our comments in annexure referred to in paragraph(2)
above:
a) We have obtained all the information and explanations which to the
best of our knowledge and belief are necessary for the purpose of our
audit;
b) In our opinion proper books of accounts as required by law have been
kept by the company so far, as appears from our examination of such
books;
c) The Balance Sheet and Profit & Loss Account dealt with by this
Report are in agreement with the books of accounts and;
d) In our Opinion the Balance Sheet and Profit & Loss Account comply
with the accounting standards referred to in sub-section (3c) of
Section 211 of the Companies Act, 1956.
e) On the basis of written representations received from the directors
and taken on record by the Board of Directors, we report that none of
the Directors is disqualified as at 31st March, 2014 from being
appointed as a Director in term of Clause (g) of Sub Section (i) 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, read together with the significant
accounting policies in Schedule13 and notes appearing thereon give the
information required by the Companies Act, 1956,in manner so required
and give a true and fair view in conformity with the accounting
principles generally accepted in India.
(i) In the case of the Balance Sheet of the state of affairs of the
Company as at 31st March, 2014,
(ii) In the case of the Profit & Loss Account, of the Loss for the year
ended on that date; and
(iii) In the case of the Cash Flow Statement, of the Cash Flows for the
year ended on that date.
ANNEXURE TO AUDITORS' REPORT
ANNEXURE REFERRED TO IN PARAGRAPH 2 OF OUR REPORT OF EVEN DATE
(i) (a) The Company has maintained proper records showing full
particulars Including quantitative details and locations of the fixed
assets.
(b) All the assets have been physically verified by the management
during the year. There is a regular programme of verification 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 verification.
(c) During the year, the company has not disposed of any part of the
plant & machinery.
(ii) (a) The inventory has been physically verified during the year by
the management. In our opinion, the frequency of verification is
reasonable.
(b) 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 is maintaining proper records of inventory. No
discrepancy noticed on verification of physical stocks and the books
records.
(iii) (a) The Company took unsecured loan, from Companies, listed in
the Register maintained under Section 301 of the Companies Act, 1956.
In respect of the said loans maximum amount outstanding at any time
during the year is Rs 2,02,34,757/- and the closing balance as at
31-03-2014 is Rs. 1,84,94,757/-. It has been explained by the
management that the said sums were taken for rehabilitation of the
Company.
(b) According to information and explanations given to us and in our
opinion, terms and conditions in respect of unsecured loans taken by
the company are not prima-facie prejudicial to the interest of the
Company.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size and nature of the Company's business with
regards to purchase of inventory, fixed assets and with regard to the
sale of goods. 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 explanation given to us,
during the year, there were no contracts or arrangements that were
required to be entered in the register maintained u/s 301 of
Companies Act.1956.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under Section 301 of
the Companies Act, 1956 and exceeding Rupees Five Lacs or more in
respect of each party during the year, have been made at prices which
are reasonable having regard to the prevailing market prices wherever
available at the relevant time.
(vi) The company has not accepted any deposits as defined under
sections 58A and 58AA of the companies Act, 1956 and the Companies
(Acceptance of Deposits) Rules 1975.
(vii) The company is required to maintain Cost records as per section
209(1) (d) of the Companies Act, 1956. The Company is also required to
get the records audited by a qualified Cost Accountant. A compliance
report is also required to be filed with the Central Government. The
Company has not complied with these requirements.
(viii) (a) The Company is regular in depositing with appropriate
authorities undisputed statutory dues including provident 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 amount payable in respect of income tax, wealth tax, sales
tax, customs duty and cess were in arrears, as at March 31, 2014 for a
period of more than six months from the date they became payable.
(c) According to the information and explanations given to us, there
are no dues of sale tax, income tax, customs duty, wealth tax, service
tax, excise duty and cess which have not been deposited on account of
any dispute.
(ix) In our opinion, the accumulated losses of the company at the year
end are more than its net worth. The company has incurred cash losses
during the financial year covered by our audit. The Company's heavy
accumulated loses of Rs. 14,92,01,236/- (Previous Year Rs.
13,49,28,910/-) is contrary to the fundamental accounting assumption of
'Going Concern' and dependent on the company's ability to infuse
requisite funds and resume normal operations. An application U/s 15(1)
of SICA to the Hon'ble BIFR for registration has been declined.
(x) 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 (Auditors Report) Order, 2003 are not applicable to the
company.
(xi) In our opinion, the company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly, the
provision of clause 4(xiv) of the Companies (Auditors Report) Order,
2003 are not applicable to the company.
(xii) According to the information and explanation given to us the
company has not given any guarantees for loans taken by others from
bank or financial institutions.
(xiii) In our opinion, the Company has not taken any term loan during
the period under review.
(xiv) According to the information and explanations given to us and on
overall examinations of the Balance Sheet of the company, we report
that no funds raised on short term basis have been used for long term
investments.
(xv) According to the information and explanations given to us, the
company has not made preferential allotment of shares during the year
to parties and companies covered in the register maintained under
section 301 of the Act.
(xvi) According to the information and explanations given to us, during
the period covered by our audit report, the company has not issued
debentures.
(xvii) The company has not raised money by way of public issues during
the period under review.
(xviii) Based upon the audit procedures performed for the purpose of
reporting the true and fair view of the financial statements and as per
the information and explanations given by the management, we report
that no fraud on or by the Company has been noticed or reported during
the course of our audit.
For DUBEY & CO.
CHARTERED ACCOUNTANTS
Place: New Delhi Sd/-
Date: 26.05.2014 (DEEPAK DUBEY)
PROPRIETOR
M.NO . 086349 | 