We have audited the attached Balance Sheet of Parekh Aluminex Limited
as at March 31, 2012 and also the statement of Profit & Loss and the
Cash Flow Statement for the year ended on that date annexed thereto,
1. 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 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 a 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 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, as
amended by the Companies (Auditor's Report) (Amendment) Order, 2004,
issued by the Central Government of India in terms of Sub-Section (4A)
Section 227 of the Companies Act, 1956, we enclose 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 in paragraph 3
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 maintained by the Company so far as it appears from our
examination of such books of the Company;
(c) The Balance Sheet, statement of Profit & Loss and Cash Flow
Statement dealt with by this report are in agreement with books of
account of the Company;
(d) In our opinion. Balance Sheet, statement of Profit & Loss and Cash
Flow Statement dealt with by this report comply with the Accounting
Standards as referred to in Sub-Section (3C) of Section 211 of the
Companies Act, 1956;
(e) On the basis of the written representations received from the
Directors, as on March 31, 2012 and taken on record by the Board of
Directors, we report that none of the directors of the Company are
disqualified as at March 31, 2012, from being appointed as a director,
in terms of clause (g) of Sub- Section (1) 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, said accounts 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 the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2012;
(ii) in the case of the Statement of Profit & Loss, of the profit 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 THE AUDITORS'REPORT Referred to in paragraph 3 of our
Report of even date to the members of Parekh Aluminex Limited on the
financial statements for the year ended March 31,2012.
1. In respect of Fixed Assets:
(a) The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets,
(b) The Company has a programme for physical verification of the fixed
assets, which in our opinion is reasonable having regards to the nature
of business. Accordingly, the Fixed Assets have been physically
verified by the management at the end of the year and no material
discrepancies were noticed on such verification,
(c) During the year. Company has disposed off some of the fixed assets.
In our opinion and according to the information and explanations given
to us, fixed assets disposed off were not substantial and therefore has
not affected the going concern assumption,
2. In respect of its inventories:
(a) As explained to us, the inventory has been physically verified by
the Management during the year at reasonable interval. In our opinion,
the frequency of verification is reasonable,
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventory
followed by the Management are reasonable and adequate in relation to
the size of the Company and the nature of its business,
(c) In our opinion and according to the information and explanations
given to us and on the basis of the records of inventory, the Company
is maintaining proper records of inventory. The discrepancies noticed
on physical verification of inventory as compared to the book records
were not material and have been properly dealt with in the books of
account,
3. According to the information and explanations given to us. Company
has not granted / taken any secured or unsecured loan to Companies,
Firms or other parties covered in the Register maintained under Section
301 of the Companies Act, 1956. Therefore, sub-clause (b), (c), (d),
(e), (f) and (g) of (iii) of the said Order are not applicable for the
year under review,
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control systems commensurate
with the size of the Company and nature of its business with regard to
the purchase of inventory, fixed assets and with regard to the sale of
goods and services. During the course of our audit, we have not
observed any continuing failure to correct major weakness in the
internal control systems,
5. In respect of transactions entered in the registered maintained in
pursuance of Section 301 of the Companies Act, 1956,
(a) In our opinion and according to the information and explanations
given to us, we are of the opinion that the transactions that needed to
be entered into Register maintained under Section 301 have been so
entered,
(b) According to the information and explanations given to us and
excluding certain transactions of purchase of goods and material of
special nature for which alternate quotations are not available, where
each of such transactions is in excess of five lacs rupees in respect
of any party, in our opinion, the transactions have made at prices
which are prima facie reasonable having regard to the prevailing market
prices at the relevant time. However, with regard to the Management
Service Contract with a party, as service is of specialized nature it
is not possible to ascertain the market price for the same,
6. In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposits from public and
therefore, the provisions of Section 58A and 58AA or any other relevant
provisions of the Companies Act, 1956 and Companies (Acceptance of
Deposits) Rules, 1975 are not applicable to the Company,
7. In our opinion. Company has an internal audit system commensurate
with the size and the nature of its business,
8. We have broadly reviewed the books of accounts maintained by the
Company in respect of products where, pursuant to the Rules made by the
Central Government of India, the maintenance of cost records has been
prescribed under clause (d) of Sub-Section (1) of Section 209 of the
Act, and are of the opinion that, prima facie, the prescribed accounts
and records have been made and maintained. We have not, however, made a
detailed examination of the records, with a view to determine whether
they are accurate or complete,
9. Statutory and Other Dues:
(a) According to the records of the Company and information and
explanations given to us, the Company has been generally regular in
depositing undisputed statutory dues including Provident Fund,
Income-Tax, Sales-Tax, Customs Duty and other statutory dues with the
appropriate authorities during the year;
(b) According to the records of the Company and information and
explanations given to us, disputed Excise Duty demands aggregating to Rs.
2,26,818/- have been deposited but the matter is pending with Central
Excise & Service Tax Appellate Tribunal,
10. The Company does not have accumulated losses as at the end of the
financial year and has not incurred any cash losses during current
financial year and the immediately preceding financial year,
11. Based on our audit procedures and on the basis of information and
explanations given by the Management, we are of the opinion that the
Company has not defaulted in the repayment of dues to Financial
Institutions and Banks,
12. According to the information and explanations given to us, the
Company has not granted any loans and advances on the basis of security
by way of pledge of shares, debentures and other securities,
13. The provisions of any Special Statute applicable to Chit Fund,
Nidhi or Mutual Benefit Fund/ Societies are not applicable to the
company,
14. Based on the records examined by us and according to the
information and explanations given to us, we are of the opinion that
the Company does not deal or trade in shares, securities, debentures
and other investments,
15. According to the information and explanations given to us, the
Company has given guarantee of Rs. 125 Million for loans taken by others
from Banks and Financial Institutions,
16. To the best of our knowledge and belief and according to the
information and explanations given to us, term loans availed by the
Company were prima facie, applied by the Company during the year for
the purposes for which the loans were obtained,
17. According to the Cash Flow Statement and records examined by us
and according to the information and explanations given to us, on
overall basis, funds raised on short term basis have, prima facie, not
been used during the year for long term investment,
18. The Company has not made any preferential allotment of shares to
parties or companies covered in the Register maintained under Section
301 of the Companies Act, 1956,
19. According to the information and explanations given to us, the
Company has not issued any debentures during the year under review and
securities or charges have been created in respect of debentures
issued,
20. The Company has not raised any money by public issues during the
year,
21. During the course of our examination of the books and records of
the Company and according to the information and explanations given to
us, we have neither come across any instance of fraud on or by the
Company, noticed or reported during the course of our audit,
For C.V. Pabari & Co,
Chartered Accountants
Firm Registration No.114402W
Chetan Pabari
Place: Mumbai Proprietor
Date : August 25, 2012 Membership No. 047924 |