Gwalior Polypipes Ltd.की ऑडीटर रिपोर्ट

Mar 31, 2014

1. We have audited the accompanying financial statements of Gwalior Polypipes Limited (the "Company"), which comprise the Balance Sheet as at March 31,2014, Statement of Profit and Loss and Cash Flow Statement for the year ended on that date, and a summary of significant accounting policies and other explanatory information, which we have signed under reference to this report.

Management''s Responsibility for the Financial Statements

2. The Company''s Management is responsible for the preparation of these financial statements that give a true and fair view of the financial position and financial performance and cash flows of the Company in accordance with the Accounting Standards notified under ''the Companies Act,1956'' of India (the "Act") read with the General Circular 15/2013 dated 13th September, 2013 of Ministry of Corporate Affairs in respect of Section 13 3 of the Companies Act* 2013. This responsibility includes the design, implementatibn and maintenance of internal control relevant to the preparation and presentation of the financial statements that give a true and fan- view and are free from material misstatement, whether due to fraud or error.

Auditors''Responsibility

3. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

4. An audit involves performing procedures to obtain audit evidence, about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors'' judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditors consider internal control relevant to the entity''s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity''s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by Management, as well as evaluating the overall presentation of the financial statements.

5. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

6. In our opinion, and to the best of our information and according to the explanations given to us, the accompanying financial statements give the informationrequired by the Act in die 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 theCompany as at March 31,2014;

b) in the case of die Statement of Profit and Loss, of the loss for the year ended on that date; and

c) in the case of die Cash Flow statement, of me cash flows for die year ended on that date. Report on Other Legal and Regulatory Requirements

7. As required by me Companies (Auditor''s Report) Order, 2003 (as amended) issued by me 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 paragraphs 4 and 5 of die said order, on the basis of such checks of me books and records of me company as we considered appropriate and me information and explanation given to us during the course of our audit.

8. As required by section 227(3) of die Act, we report that:

(a) we have obtained all me information and explanations which, to the best of our knowledge and belief, were necessary for die purpose of our audit;

(b) in our opinion, proper books of account as required by law have been kept by die Company so far as appears from our examination of those books;

(c) die Balance Sheet, Statement of Profit and Loss and Cash Flow Statement dealt witii by tiiis Report are in agreement wim die books of account;

(d) in our opinion, the Balance Sheet, Statement of Profit and Loss and Cash Flow Statement dealt widi by tiiis report comply wiui die Accounting Standards notified under Companies Act, 1956 read witii die General Circular 15/2013 dated 13di September, 2013 of Ministry of Corporate Affairs in respect of Section 133 ofmeCompaniesAct,2013;

(e) on the basis of written representations received from the directors as on March 31,2014, and taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2014, from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the Act.

(f) since the Central Government has not issued any notification as to the rate at which the cess is to be paid under section 441A of the Companies Act, 1956 nor has it issued any Rules under the said section, prescribing the manner in which such cess is to be paid, no cess is due and payable by the Company.

Annexure to the Auditors'' Report

The Annexure referred to in our report to the members of Gwalior Polypipes Limited (''the Company'') for the year ended March 31, 2014. We report that:

(i) (a) The Company has not maintained fixed asset register showing full particulars including quantitative details and situation of fixed assets.

(b) We are informed that the fixed assets have been physically verified by the management during the year and no material discrepancies were noticed on such verification.

(c) There was no substantial disposal of fixed assets during the year.

(ii) (a) As per the information furnished, the inventories have been physically verified during the year by the management.

(b) In Our opinion and according to the information and explanations given to us 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) The Company is maintaining proper records of inventory. In our opinion, discrepancies noticed on physical verification of stocks were not material in relation to the operations of the Company and the same have been properly dealt with in the booksof account.

(hi) (a) As per the information furnished, the Company has not granted any loans, secured or unsecured, to companies, firms or other parties covered in the register maintained u/s 301 of the Companies Act, 1956. The balances in current account due from Companies, firms or other parties covered in the register maintained u/s 301 of the Companies Act, 1956 are not in the nature of loans and are without any stipulation or condition attached thereto

(b) As the Company has not granted any loans, secured or unsecured to companies, firms or other parties covered in the register maintained u/s 301 of the Companies Act, 1956, the Clause (iii) (b) to (d) of the Order is not applicable.

(c) As per the information furnished, the Company has not taken any loans secured or unsecured from companies, firms or other parties covered in the register maintained u/s 301 of the Companies Act, 1956, hence the Clause (iii) (f) and (g) of the Order is not applicable.

(iv) In our opinion and according to the information and explanations given to us, there is adequate internal control system commensurate with the size of the Company and the nature of its business with regard to purchase of inventory and fixed assets and for the sale of goods and services. (v) (a) In our opinion and according to the information and explanation given to us, we are of opinion that the particulars of the contracts and arrangements have been entered into a register in pursuance of section 301 of the Act. (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 and exceeding the value of five lacs rupee in respect of any party during the year have been made at prices which are reasonable having regard to prevailing market prices at the relevant time. (vi) In our opinion, the Company has not accepted any deposits during the year in contravention of section 58-Aand 58AA of the Companies Act, 1956, and the rules framed there under.

(vii) The Company does not have a formal internal audit system. However, according to the information and explanation given to us, operating control systems are commensurate with the size of the company and nature of its business. (viii) The Central Government has prescribed maintenance of cost records under section 209(1 )(d) . of the Companies Act 1956 in respect of company''s product. (ix) (a) According to the information and explanations given to us and records of the company examined by us, in our opinion the company has not yet deposited undisputed statutory dues on account of Sales-tax, Central Sales Tax, Entry Tax, VAT with the appropriate authorities. In case of others the amount has been paid timely except some delays in few cases.

According to the information and explanations given to us, the details of undisputed statutory dues in arrears as at 31.03.2014 for a period of more than 6 months from the date they became payable, are as follows.

Name of the statute Nature of the dues Amount (Rs.)

1. MP Sales Tax Act Entry Tax Rs. 4,28,908/-

2. Central Sales Tax Act(MP) Central Sales Tax Rs. 4,41,610/-

3. Central Sales Tax Act(Raj.) Central Sales Tax Rs. 13,61,098/-

4. MP Sales Tax Act Sales Tax Rs. 8,18,544/-

b) According to the information and explanations given to us, the details of disputed statutory dues in arrears, as at 31.03.2014aire as follows:

Name of the statute Nature of the dues Amount (Rs.) Forum where dispute is pending

1.MP Sales Tax Act Sales Tax Rs. 29,00,394/-Under Appeal before High Court, Gwalior

2.MP Sales Tax Act Deferred Sales Tax Rs. 61,54,725/-Under Appeal before High Court, Gwalior

(x) Accumulated losses of the Company as on 31.03.2014 are Rs. 89,371,250/-. The Company has incurred cash losses during the current financial year amounting to 2,193,777/- as against cash profit of Rs. 599,003/- during the last year. The company was declared as a sick industrial company in terms of Section 3(l)(o) of Sick Industrial Companies (Special Provisions) Act, 1985 vide BIFR order dated 9th September, 2009 and IFCI was appointed as the operating agency for formulating the scheme of rehabilitation. Subsequently, BIFR abated the reference against which the company filed an appeal before the AAIFR, which was dismissed on the ground that BIFR had already abated the matter. Since the abatement by BIFR was without considering the matter on merit, the company has filed a writ petition before the Hon''ble M. R High Court.

(xi) The Company had enjoyed cash credit facility from State Bank of India, which was recalled and the bank filed a suit before the Debt Recovery Tribunal in 2003. Subsequently, the said loan was assigned to Kotak Mahindra Bank Limited (KMBL), pursuant to the execution of a deed of assignment on January 16,2006. KMBL had issued a notice dated July 6,2007 to the company u/s 13(2) of SARFAESIAct, 2002. The Company has also filed an application before the Debt Recovery Tribunal against the symbolic possession of assets taken by KMBL u/s 13(4) of SARFESAI ACT, 2002 on 28th /29th November, 2011.

(xii) The company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities

(xiii) The provisions of any special statute applicable to chit fund/nidhi/mutual benefit fund/Societies are not applicable to the company

(xiv) In our opinion, the company is not a dealer or trader in shares, securities, debentures and other investments.

(xv) In our opinion and according to the information and explanations given to us, there is no guarantee given by the company, for the loans taken by others from banks.

(xvi) No term loans were taken by the company during the year under audit. The question of applications of these funds does not arise.

(xvii) On the basis of an overall examination of the Balance Sheet of the company, in our opinion and according to the information and explanations given to us the company has not raised funds on short term basis that have been used for long term investment.

(xviii) The company has not made any preferential allotment of shares to parties and companies covered in the Register maintained under section 301 of the Act during the year.

(xix) The company has not raised any money from the issue of debentures.

(xx) The company has not raised any money by Public issue during the year.

(xxi) During the course of our examination of the books and records of the company, carried out in accordance with the generally accepted auditing practices in India, and according to the information and explanation given to us, we have neither come across any instance of fraud on or by the company, noticed or reported during the year nor have we been informed of any such case by the management.

For SNMG & CO. Chartered Accountants FRN0.04921N

Place: New Delhi (Rakesh Kumar) Dated: 18 July 2014 Partner M. No. 083911

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Mar 31, 2012

We have audited the attached Balance Sheet of M/s. Gwalior Polypipes Limited as at 31st March 2012 and also the Statement of Profit and Loss Account and the Cash Flow Statement 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.

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.

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 the said order.

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) Proper books of account as required by law have been kept by the company so far as appears from our examination of those books;

(iii) The Balance Sheet, Statement of Profit and Loss Account and Cash Flow Statement dealt with by this report are in agreement with the books of account;

(iv) In our opinion, the Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by this report comply with the accounting standards referred to in sub-section 3(C) of section 211 of the Companies Act, 1956;

(v) On the basis of written representations received from all the five directors, as on 31st March 2012, and taken on record by the Board of Directors, we report that they are not disqualified as on 31st March 2012 from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the Companies Act, 1956. We are unable to express any opinion about the other Director;

(vi) In our opinion and to the best of our information and according to the explanations given to us, the said accounts, read with the 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;

(a) in the case of the Balance Sheet, of the state of affairs of the Company as at 31st March 2012

(b) in the case of the Statement of Profit and Loss Account, of the Profit for the year ended on that date; and

(c) 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 1 thereof)

As required by the Companies (Auditors' Report) Order, 2003 issued by the Company Law Board in terms of Section 227 (4A) of the Companies Act, 1956, in our opinion and on the basis of such checks of the books and records as we considered appropriate and according to the best of our knowledge and belief, we report that:

(i)(a) We have been informed that the Company has maintained proper records showing full particulars, including quantitative details and situations of fixed assets. However, the said records were not made available for our verification during the audit as the same are being updated pursuant to ICAI Statement in para4(i)(a) of the CARO, 2003.

(b) As per the information and explanations given to us, physical verification of fixed assets has been carried out by the management during the year and no material discrepancies were noticed on such verification.

(c) During the year, the Company has not disposed of any substantial/major part of fixed assets.

(ii)(a) As per the information furnished, the inventories have been physically verified during the year by the management.

(b) In our opinion and according to the information and explanations given to us 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) The Company is maintaining proper records of inventory. In our opinion, discrepancies noticed on physical verification of stocks were not material in relation to the operations of the Company and the same have been properly dealt with in the books of account.

(iii)(a)As per the information furnished, the Company has not granted any loans, secured or unsecured, to companies, firms or other parties covered in the register maintained u/s 301 of the Companies Act, 1956. The balances in current account due from Companies, firms or other parties covered in the register maintained u/s 301 of the Companies Act, 1956 are not in the nature of loans and are without any stipulation or condition attached thereto.

(b) As the Company has not granted any loans, secured or unsecured to companies, firms or other parties covered in the register maintained u/s 301 of the Companies Act, 1956, the Clause (iii)(b) to (d) of the Order is not applicable.

(c) As per the information furnished, the Company has taken unsecured loan, from two Directors and the maximum amount involved in such transactions during the year and the balance at the end were Rs.21.40 Lacs and Rs 17.38 Lacs respectively. The balances in current account due to Companies, firms or other parties covered in the register maintained u/s 301 of the Companies Act, 1956 are not in the nature of loans and are without any stipulation or condition attached thereto.

(d) There are no conditions attached with respect to the rate of interest and repayment of the loan taken from the Directors.

(e) In case of loans from Directors the amounts have not become overdue and are repayable on demand.

(iv) In our opinion and according to the information and explanations given to us, there is adequate internal control system commensurate with the size of the Company and the nature of its business with regard to purchase of inventory and fixed assets and for the sale of goods and services.

(v) In our opinion and according to the information and explanations provided by the management, we are of the opinion that the particulars of contracts or arrangement referred to in Section 301 of the Act have been entered in the register required to be maintained under that section.

(vi) The Company has not accepted any deposits during the year from the public within the meaning of the provisions of Section 58A and 58AA or any other relevant provisions of the Companies Act, 1956 and rules made thereunder. Hence, the Clause (vi) of the order is not applicable.

(vii) In our opinion, the Company has an internal audit system commensurate with the size of the Company and the nature of its business.

(viii) We are informed that the Central Government has not prescribed maintenance of the cost records u/s 209(1 )(d) of the Companies Act, 1956 in respect of the Company's products.

(ix)(a)According to the information and explanations given to us and the records examined by us, there have been delays in depositing with appropriate authorities undisputed statutory dues including provident fund, employees' state insurance, sales tax, and other material statutory dues applicable to it.

(b) According to the information and explanations given to us, the details of undisputed statutory dues in arrears, as at 31.03.2012 for a period of more than 6 months from the date they became payable, is as follows:

Name of the statute Nature of Amount the dues (Rs.)

1. MP Sales Tax Act Entry Tax Rs. 4,28,908/-

2. Central Sales Tax Act (MP) Central Sales Tax Rs. 4,41,610/-

3. Central Sales Tax Act (Raj.) Central Sales Tax Rs. 2,84,588/-

4. MP Sales Tax Act Sales Tax Rs. 8,18,543/-

5. Rajasthan Sales Tax Act Sales Tax Rs. 3,77,225/-

(b) According to the information and explanations given to us, the details of disputed statutory dues in arrears, as at 31.03.2012 is as follows:

Name of the Nature of Amount Forum where statute the dues (Rs.) dispute is pending

1. MP Sales Tax Act Sales Tax Rs. 29,00,3947/- Under Appeal before High Court, Gwalior

2. MP Sales Tax Act Deferred Rs. 61,54,7257/- Under Appeal Sales Tax before High Court, Gwalior

(x) Accumulated losses of the Company as on 31.03.2012 are Rs. 84,915,520/-. The Company has earned cash profits during the current financial year amounting to 4,124,477/- as against cash Profit of Rs. 5,844,743/- during the last year. The company has been declared as a sick industrial company in terms of Section 3(1 )(0) of Sick Industrial Companies (Special Provisions) Act, 1985 vide BIFR order dated 9th September, 2009 and IFCI has been appointed as the operating agency for formulating the scheme of rehabilitation. Subsequently, BIFR has abated the reference against which the company has filed an appeal before the AAIFR.

(xi) Based on our examination of the records and the information and explanations given to us, the Company has not granted any loans and/or advances on the basis of security by way of pledge of shares, debentures and other securities.

(xii) Clause (xiii) of the Order is not applicable to the Company as the Company is not a chit fund Company or nidhi/mutual benefit fund/society.

(xiii) The Company is not dealing and trading in shares, securities, debentures and other investments.

(xiv) According to the information and explanations given to us, the Company has not given guarantee for loans taken by other from banks or financial institutions.

(xv) According to the information and explanations given to us, no term loans have been raised by the Company during the year.

(xvi) According to our information and explanations given to us the funds raised on short term basis have not been used for long term investment

(xvii) The Company has not made any preferential allotment of shares during the year.

(xviii) The Company has not issued any debentures during the current year or previous year.

(xix) The Company has not raised any money by public issues during the year covered by our report

(xx) As per the information and explanations given to us, no fraud on or by the company has been noticed or reported during the year.

For SNMG & Co. Chartered Accountants Reg. No. 004921N

(Rakesh Kumar) Partner M. No. 083911

Place : New Delhi Dated: 16th August, 2012

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Mar 31, 2010

We have audited the attached Balance Sheet of M/s. Gwalior Polypipes Limited as at 31 st March 2010 and also the Profit and Loss Account and the Cash Flow Statement for the year ended on that date annexed thereto. These financial statements are the responsibility of the Companys Management. Our responsibility is to express an opinion on these financial statements based on our audit.

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.

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 the said order.

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) Proper books of account as required by law have been kept by the company so far as appears from our examination of those books;

(iii) The Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by this report are in agreement with the books of account;

(iv) In our opinion, the Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by this report comply with the accounting standards referred to in sub-section 3(C) of section 211 of the Companies Act, 1956;

(v) On the basis of written representations received from all the five directors, as on 31 st March 2010, and taken on record by the Board of Directors, we report that they are not disqualified as on 31 st March 2010 from being appointed as a director in terms of dause (g) of sub-section (1) of section 274 of the CompaniesAct, 1956.

(vi) In our opinion and to the best of our information and according to the explanations given to us, the said accounts, read with the notes thereon, give the information required by the CompaniesAct, 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 31 st March 2010

(b) in the case of the Profit and Loss Account, of the Profit forthe year ended on that date; and

(c) in the case of the cash flow statement, of the cash flows forthe year ended on that date.





ANNEXURE TO THE AUDITORS REPORT (Referred to in paragraph 1 thereof)

As required by the Companies (Auditors Report) Order, 2003 issued by the Company Law Board in terms of Section 227 (4A) of the Companies Act, 1956, in our opinion and on the basis of such checks of the books and records as we considered appropriate and according to the best of our knowledge and belief, we report that:

(i)(a) We have been informed that the Company has maintained proper records showing full particulars, including quantitative details and situations of fixed assets. However, the said records were not made available for our verification during the audit as the same are being updated pursuant to ICAI Statement in para 4(i)(a) of the CARO, 2003.

(b) As per the information and explanations given to us, physical verification of fixed assets has been carried out by the management during the year and no material discrepancies were noticed on such verification.

(c) During the year, the Company has not disposed of any substantial/major part of fixed assets.

(ii)(a) As per the information furnished, the inventories have been physically verified during the year by the management.

(b) In our opinion and according to the information and explanations given to us 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) The Company is maintaining proper records of inventory. In our opinion, discrepancies noticed on physical verification of stocks were not material in relation to the operations of the Company and the same have been properly dealt with in the books of account.

(iii)(a) As per the information furnished, the Company has not granted any loans, secured or unsecured, to companies, firms or other parties covered in the register maintained u/s 301 of the Companies Act, 1956. The balances in current account due from Companies, firms or other parties covered in the register maintained u/s 301 of the Companies Act, 1956 are not in the nature of loans and are without any stipulation or condition attached thereto.

(b) As the Company has not granted any loans, secured or unsecured to companies, firms or other parties covered in the register maintained u/s 301 of the Companies Act, 1956, the Clause (iii)(b) to (d) of the Order is not applicable.

(c) As per the information furnished, the Company has taken unsecured loan, from two Directors and the maximum amount involved in such transactions during the year and the balance at the end were Rs.(49.74) Lacs and Rs 21.24 Lacs respectively. The balances in current account due to Companies, firms or other parties covered in the register maintained u/s 301 of the Companies Act, 1956 are not in the nature of loans and are without any stipulation or condition attached thereto.

(d) There are no conditions attached with respect to the rate of interest and repayment of the loan taken from the Directors.

(e) In case of loans from Directors the amounts have not become overdue and are repayable on demand.

(iv) In our opinion and according to the information and explanations given to us, there is adequate internal control system commensurate with the size of the Company and the nature of its business with regard to purchase of inventory and fixed assets and for the sale of goods and services.

(v) In our opinion and according to the information and explanations provided by the management, we are of the opinion that the particulars of contracts or arrangement referred to in Section 301 of the Act have been entered in the register required to be maintained under that section.

(vi) The Company has not accepted any deposits during the year from the public within the meaning of the provisions of Section 58A and 58AA or any other relevant provisions of the Companies Act, 1956 and rules made thereunder. Hence, the Clause (vi) of the order is not applicable.

(vii) In our opinion, the Company has an internal audit system commensurate with the size of the Company and the nature of its business.

(viii) We are informed that the Central Government has not prescribed maintenance of the cost records u/s 209(1 )(d) of the Companies Act, 1956 in respect of the Companys products.

(ix)(a) According to the information and explanations given to us and the records examined by us, there have been delays in depositing with appropriate authorities undisputed statutory dues including provident fund, employees state insurance, sales tax, and other material statutory dues applicable to it.

(b) According to the information and explanations given to us, the details of undisputed statutory dues in arrears, as at 31.03.2010 for a period of more than 6 months from the date they became payable, is as follows :

Name of the statute Nature of the dues Amount(Rs.)

1. MP Sales Tax Act Entry TaxRs. 4,28,908/-

2. Central Sales Tax Act (MP) Central Sales Tax Rs. 4,41,610/-

3. Central Sales Tax Act (Raj.) Central Sales Tax Rs. 2,84,588/-

4. MP Sales Tax Act Sales Tax Rs. 8,18,543/-

5. Rajasthan Sales Tax ActSales TaxRs. 6,87,344/-





(c) According to the information and explanations given to us, the details of disputed statutory dues in arrears, as at 31.03.2010 is as follows .



Name of the statute Nature of the dues Amount (Rs.) Forum where dispute is pending

1. MP Sales TaxAct Sales Tax Rs. 29,00,394/- UnderAppea. before High Court,

2.Income Tax Act Income Tax Rs. 2,85,813/- Under Appeal before CIT(A)

3. MP Sales Tax Act Deferred Sales Tax Rs. 61,54,725/- Under Appeal before High Court. Gwalior



(x) Accumulated losses of the Company as on 31.03.2010 are Rs. 90,933,181/-. The Company has earned cash profits during the current financial year amounting to 48,98,072/- as against cash Profit of Rs. 56,04,252/- during the last year. The company has been declared as a sick industrial company in terms of Section 3(1 )(0) of Sick Industrial Companies (Special Provisions) Act, 1985 vide BIFR order dated 9th September, 2009 and IFCI has been appointed as the operating agency foi formulating the scheme of rehabilitation.

(xi) Based on our examination of the records and the information and explanations given to us, the Company has not granted any loans and/or advances on the basis of security by way of pledge of shares, debentures and other securities.

(xii) Clause (xiii) of the Order is not applicable to the Company as the Company is not a chit fund Company or nidhi/mutual benefit fund/society.

(xiii) The Company is not dealing and trading in shares, securities, debentures and other investments.

(xiv) According to the information and explanations given to us, the Company has not given guarantee for loans taken by other from banks or financial institutions.

(xv) According to the information and explanations given to us, no term loans have been raised by the Company during the year.

(xvi) According to our information and explanations given to us the funds raised on short term basis have not been used for long term investment.

(xvii) The Company has not made any preferential allotment of shares during the year.

(xviii) The Company has not issued any debentures during the current year or previous year.

(xix) The Company has not raised any money by public issues during the year covered by our report.

(xx) As per the information and explanations given to us, no fraud on or by the company has been noticed or reported during the year.



For SNMG & Co.

Chartered Accountants Reg. No. 00492IN

Place : New Delhi

Dated: 17th April, 2010 , Rakesh Kumar,

Partner M.No. 083911