| We have audited the attached Balance Sheet of SHREE MAHAGANGA SUGAR
MILLS LIMITED as at 31st March 2011, issued by the Company law board in
terms of section 227(4A) of The Companies Act, 1956 and explanation
given to and the basis of such checks as we consider appropriate. We
enclose in the Annexure statements on the matter specified in the
paragraph 4 and 5 of the said order Further to our comments in the
annexure referred to in paragraph in 1 above, state that,
(a) We have obtained all the information and explanation which to the
best of our knowledge and belief were necessary for the purpose of the
audit.
In our opinion, the company has kept proper books of accounts as
required by law so far, as appears from examination of such books.
(c) The Balance Sheet, the Profit & Loss Account and the Cash Flow
Statement dealt with by this report are in agreement with the books of
accounts.
(d) In our opinion the Profit & Loss Account, The Balance Sheet and the
Cash Flow Statement dealt with by this report comply with the mandatory
Accounting standards referred to in sub section 211 (3C) of The
Companies Act, 1956.
(e) On the basis of written representations received from the Directors
as on March 31, 2011 and taken on record by the Board Of Directors, we
report that none of the Directors are disqualified as on 31st March
2011 from being appointed as Directors in terms of clause (g) of sub
section 274 of the Companies Act 1956.
(f) In our opinion and to the best of our information and according to
explanation given to us, the sales 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 give a true and fair view in conformity with the
accounting principles generally accepted in India:
(I) In case of the Balance Sheet, of the state of affairs of the
company as at 31st March 2011 and
(II) In case of the Profit & Loss Account, of the loss of the company
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
Re SHREE MAHAGANGA SUGAR MILLS LIMITED.
(Referred to in paragraph 1 of our report on even date)
1. The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets. The fixed
assets have been physically verified by the management during the year
and no material discrepancies were noticed on such verification.
2. 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.
3. The Company has maintained proper records of inventory. As
explained to us, there were no material discrepancies noticed on
physical verification of inventory as compared to the book records.
4. In our opinion the rate of interest and other terms and conditions
on which loans have been taken from companies, firms or other parties
listed in the register maintained under section 301 and from companies,
under the same management as defined under sub section (1-B) of section
370 of Companies Act,19. are prima facie not prejudicial to the
interest of the company.
5. The company has not granted any loans to companies, firms or other
listed in register maintained under section 301 of Companies Act, 1956
or to the companies under same management under sub section (1-B) of
section 370 of Companies Act, 1956.
6. There are no interest free advances in the nature of loans given to
employees during the year.
7. 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 raw materials, components, stores, plant and machinery,
equipment, and other assets and for the sale of goods.
8. In our opinion and according to the information and explanations
given to us, there are no transactions of purchase of goods and
materials and sale of goods, materials and services made.
9. As explained to us there is no unserviceable or damaged stores, raw
materials and finished goods.
10. The Company has not accepted deposits from the public within the
meaning of section 58-A of the Companies Act, 1956 and the rules framed
there under.
11. As explained to us, the Company does not have any significant
realisable by-product or scrap.
12. In our opinion, the Company has an internal audit commensurate
with the size of the Company and the nature of the business.
13. To the best of our knowledge and according to the information and
explanation provide to us the Central Government has not prescribed the
maintenance of cost records under section 209(1 )(d) of the Companies
Act, 1956.
14. 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, (as amended) are not
applicable to the company.
15. As explained to us and from our examination of the books of
accounts the Provident Fund and Employees State Insurance Act is not
applicable to the Company.
16. According to the information and explanations given to us, no
undisputed amounts payable in respect of Income-Tax, Wealth Tax,
Customs Duty and Excise Duty, Cess and any other statutory dues, have
been generally regularly deposited with the appropriate authorities
except for the few cases. 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 2011 for a period of more than
six months.
17. As appears from our examination the records and according to the
information and explanations given to us, no personal expenses have
been charged to revenue account other than those payable under
contractual obligation or in accordance with generally accepted
business practice.
18. The company is not a sick industrial company within the meaning of
clause (0) of sub section 3 of the Sick Industrial Companies (Special
Provisions) Act, 1985.
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
year.
For Uday Pasad and Associates
Chartered Accountants
sd/-
Place: Mumbai (Uday Pasad)
Date: 2nd September, 2011 Proprietor
M. No. 46581
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