Prakash Solvent Extractions Ltd.की ऑडीटर रिपोर्ट

Mar 31, 2011

1. We have audited the annexed Balance Sheet of PRAKASH SOLVENT EXTRACTIONS LIMITED as at 31st March 2011 and also the annexed profit & Loss account of the Company for the year ended on that date. These financial statements are the responsibility of the management of the company. Our responsibility is to express opinion on these financial statements based on our audit.

2. We have conducted our audit in accordance with auditing standards generally accepted in India. Those standards require that we plan and perform 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 presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion.

3. As required by the Companies (Auditors Report) order, 2003 issued by the Central Government in terms of sub section (4A) of Section 227 of the Companies Act 1956, and on the basis of such checks as we may have considered appropriate and according to the information and explanations given to us, we set out in annexure a Statement on the matters specified in the paragraph 4 and 5 of the said order.

4. Further to our comments in the Annexure referred to in paragraph 3 above, we report that :-

1. We have obtained all the information and explanation which to the best of our knowledge and behalf were necessary for the purpose of our audit.

2. In our opinion proper books of accounts as required by law have been kept by the company so far as appear from our examination of these books.

3. The Balance Sheet and the profit & Loss account dealt with by the report are in agreement with the books of accounts

4. In our opinion, these financial statements have been prepared in compliance with the applicable accounting standards referred to in Sub Clause [3c] of Section 211 of the Companies Act, 1956.

5. Based on the basis of the written representations made by all the Directors of the company as on 31st March 2011 and taken on record by the Board of Directors of the Company and in accordance with the information and explanations as made available, the Directors of the company do not, prima facie, have any disqualification as referred to in clause (g) sub-section 1 to the Section 274 of the Companies Act, 1956.

6. In our opinion and to the best of our information and according to the explanations given to us, the Balance Sheet and Profit and Loss account together with the Notes thereon and attached thereto give in the prescribed manner the information required by the Companies Act, 1956 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 affair of the company at 31st March 2011and

b. In case of Profit & Loss account, of the profit for the year ended on that date.

c. In case of cash flow as on that date.

ANNEXURE REFERRED TO IN PARAGRAPH 3 OF THE AUDITORS' REPORT TO THE MEMBERS OF PRAKASH SOLVENT EXTRACTIONS LIMITED ON THE ACCOUNTS FOR THE YEAR ENDED 31ST MARCH 2011.

1. In respect of Fixed Assets :

a. The Company has maintained proper records to show full particulars including quantitative details and situation of the fixed assets.

b. During the year, majority of the fixed assets have been physically verified by the management on the basis of phased programmed of verification of the assets over a reasonable time. No material Discrepancies were noticed on verification of the assets made during the year.

c. In our opinion, the company has not disposed of substantial part of fixed assets during the year and the going concern status of the Company is not affected.

2. In respect of inventories :

a. The management has conducted physical verification of inventory at reasonable intervals.

b. The procedures of physical verification of inventory followed by the management are reasonable and adequate in relation to the size of the Company and its nature of business.

c. The company is maintaining proper records of inventory and as explained to us there were no material discrepancies noticed on physical verification of inventory, as compared to the book records.

3. In respect of loans, secured or unsecured, granted or taken by the Company to/from companies, firms or parties covered in the register maintained under section 301 of the Companies Act, 1956 :

a. The company has not taken loans from any parties covered in the Register maintained under section 301 of the Companies Act, 1956.

b. The Company has not granted any loans during the year.

c. In our opinion, the rate of interest and other terms and conditions on which the loans has been obtained and or given from the parties listed in register maintained under Sec. 301 of the Companies Act, 1956 are prima facial not prejudicial to the interest of the Company.

d. The parties have repaid the Principal amounts as stipulated and have been regular in Payment of interest.

e. There are no overdue amounts more than one lakhs.

4. In our opinion and as per the information and explanation given to us there are adequate internal control procedure commensurate with the size of the company and nature of its business with regards to purchases of new materials, stores, plant and machinery equipment and other assets and for sale of goods. During the course of our audit, we have not observed any continuing failure to correct major weakness in internal control.

5. In respect of transactions covered under Section 301 of the Companies Act, 1956 :

a. In our opinion and according to the information and explanations given to us, transactions that need to be entered into the Register in pursuance of section 301 of the Companies Act, 1956 have been so entered.

b. So far we have been able to ascertain, the company has entered into transactions for purchase of goods an materials and sale of goods, materials and services in pursuance of contract or agreements entered in the Register maintained under Sec. 301 of the Companies Act, 1956 as aggregating during the year to Rs.500,000/ – of more in respect of each party. These transactions have been made at prices which are reasonable having regard to prevailing market prices available with the company for such goods and services or the prices at the relevant time.

6. In respect of Fixed Deposits :

a. In our opinion and as per information and explanation given to us the Company has not accepted any deposit from public.

7. In respect of internal audit systems : a. In our opinion, the Company has an internal audit system commensurate with the size and its nature of business.

8. To the best of our knowledge and according to information given to us, the Central Government has not prescribed maintenance of cost records under sec. 209 (i) (d) of the Companies Act, 1956 in respect of any of the products of the Company.

9. In respect of statutory dues :

a. According to the records of the company, the Company is regular in depositing undisputed statutory dues including the Provident Fund dues, ESIS dues, Income tax, Sales tax and other statutory dues applicable to it with the statutory authorities.

b. According to information and explanation given to us, there are no undisputed amounts payable in respect of income Tax, Sales Tax, customs duty and excise duty which have remained outstanding as on 31st March 2011 for a period of more than six months from the date they become payable.

c. According to information and explanations given to us, there are no statutory dues which have not been deposited as on 31st March 2011 on account of any dispute.

10. The company has got accumulated losses at the end of the financial year and it has not incurred any cash losses in the current and immediately preceding financial year.

11. According to information and explanations given to us, and based on the documents and records produced before us, the Company has not defaulted in repayment of dues to financial institution, banks or debenture holders.

12. According to information and explanations given to us, and based on the documents and records produced before us, the Company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities. Therefore the provisions of clause 4(xii) of the Companies (Auditor's Report) order,2003 are not applicable to the Company.

13. In our opinion and according to the information and explanations given to us, the nature of activities of the Company does not attract any special statute applicable to chit fund and nidhi / mutual benefit fund / societies. Therefore the provisions of clause 4(xiii) of the Companies (Auditor's Report) order,2003 are not applicable to the Company.

14. In our opinion the company is not dealing in or trading in shares, securities, debentures and other investments. Therefore the provisions of clause 4(xiv) of the Companies (Auditor's Report) order,2003 are not applicable to the Company.

15. Based on our audit procedures and according to information and explanations given to us the company has not given guarantees for loans taken by others from a Bank or financial institution.

16. In our opinion the term loans have been applied for the purpose for which they were raised.

17. According to the information and explanations given to us and on an overall examination of the Balance Sheet of the Company, we are of the opinion that no funds raised on short term basis have been used for long term assets. No long term funds have been used to finance short term assets.

18. During the year, the Company has not made any preferential allotment of shares to parties and companies covered in the register maintained under section 301 of the Companies Act, 1956.

19. The company has not raised any money by public issue and accordingly the provisions of clause 4 (xx) of the Companies (Auditor's Report) order,2003 are not applicable to the Company.

20. The Company has not raised any money by issue of Debentures.

21. In our opinion and according to the information and explanations given to us, no fraud on or by the Company has been noticed or reported during the year that causes the financial statements to be materially misstated.

For Ajay B. Garg

Chartered Accountant

A Garg

Mumbai,

Dated : 12th August 2011

---

Mar 31, 2010

1. We have audited the annexed Balance Sheet of PRAKASH SOLVENT EXTRACTIONS LIMITED as at 31st March 2010 and also the annexed Profit & Loss account of the Company for the year ended on that date. These financial statements are the responsibility of the management of the company. Our responsibility is to express opinion on these financial statements based on our audit.

2. We have conducted our audit in accordance with auditing standards generally accepted in India. Those standards require that we plan and perform 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 presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion.

3. As required by the Companies (Auditors Report) order, 2003 issued by the Central Government in terms of sub section (4A) of Section 227 of the Companies Act 1956, and on the basis of such checks as we may have considered appropriate and according to the information and explanations given to us, we set out in annexure a Statement on the matters specifed in the paragraph 4 and 5 of the said order.

4. Further to our comments in the Annexure referred to in paragraph 3 above, we report that :- 1. We have obtained all the information and explanation which to the best of our knowledge and behalf were necessary for the purpose of our audit.

2. In our opinion proper books of accounts as required by law have been kept by the company so far as appear from our examination of these books.

3. The Balance Sheet and the Profit & Loss account dealt with by the report are in agreement with the books of accounts

4. In our opinion, these financial statements have been prepared in compliance with the applicable accounting standards referred to in Sub Clause [3c] of Section 211 of the Companies Act, 1956.

5. Based on the basis of the written representations made by all the Directors of the company as on 31st March 2010 and taken on record by the Board of Directors of the Company and in accordance with the information and explanations as made available, the Directors of the company do not, prima facie, have any disqualifcation as referred to in clause (g) sub-section 1 to the Section 274 of the Com- panies Act, 1956.

6. In our opinion and to the best of our information and according to the explanations given to us, the Balance Sheet and Profit and Loss account together with the Notes thereon and attached thereto give in the prescribed manner the information required by the Compa- nies Act, 1956 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 affair of the company at 31st March 2010and

b. In case of Profit & Loss account, of the Profit for the year ended on that date.

c. In case of cash fow as on that date.

Annexure referred to in paragraph 3 of the Auditors Report to the members of PRAKASH SOLVENT EXTRACTIONS LIMITED on the accounts for the year ended 31st March 2010.

1. In respect of Fixed Assets :

a. The Company has maintained proper records to show full particulars including quantitative details and situation of the fixed assets.

b. During the year, majority of the fixed assets have been physically verifed by the management on the basis of phased programme of verifcation of the assets over a reasonable time. No material discrepancies were noticed on verifcation of the assets made during the year.

c. In our opinion, the company has not disposed of substantial part of fixed assets during the year and the going concern status of the Company is not affected.

2. In respect of inventories :

a. The management has conducted physical verifcation of inventory at reasonable intervals.

b. The procedures of physical verifcation of inventory followed by the management are reasonable and adequate in relation to the size of the Company and its nature of business.

c. The company is maintaining proper records of inventory and as explained to us there were no material discrepancies noticed on physi- cal verifcation of inventory, as compared to the book records.

3. In respect of loans, secured or unsecured, granted or taken by the Company to/from companies, frms or parties covered in the register maintained under section 301 of the Companies Act, 1956 :

a. The company has not taken loans from any parties covered in the Register maintained under section 301 of the Companies Act, 1956.

b. The Company has not granted any loans during the year.

c. In our opinion, the rate of interest and other terms and conditions on which the loans has been obtained and or given from the parties listed in register maintained under Sec. 301 of the Companies Act, 1956 are prima facia not prejudicial to the interest of the Company.

d. The parties have repaid the Principal amounts as stipulated and have been regular in Payment of interest.

e. There are no overdue amounts more than one lakhs.

4. In our opinion and as per the information and explanation given to us there are adequate internal control procedure commensurate with the size of the company and nature of its business with regards to purchases of new materials, stores, plant and machinery equipment and other assets and for sale of goods. During the course of our audit, we have not observed any continuing failure to correct major weakness in internal control.

5. In respect of transactions covered under Section 301 of the Companies Act, 1956 :

a. In our opinion and according to the information and explanations given to us, transactions that need to be entered into the Register in pursuance of section 301 of the Companies Act, 1956 have been so entered.

b. So far we have been able to ascertain, the company has entered into transactions for purchase of goods an materials and sale of goods, materials and services in pursuance of contract or agreements entered in the Register maintained under Sec. 301 of the Companies Act, 1956 as aggregating during the year to Rs. 500,000/- of more in respect of each party. These transactions have been made at prices which are reasonable having regard to prevailing market prices available with the company for such goods and services or the prices at the relevant time.

6. In respect of Fixed Deposits :

a. In our opinion and as per information and explanation given to us the Company has not accepted any deposit from public.

7. In respect of internal audit systems :

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

8. To the best of our knowledge and according to information given to us, the Central Government has not prescribed maintenance of cost records under sec. 209 (i) (d) of the Companies Act, 1956 in respect of any of the products of the Company.

9. In respect of statutory dues :

a. According to the records of the company, the Company is regular in depositing undisputed statutory dues including the Provident Fund dues, ESIS dues, Income tax, Sales tax and other statutory dues applicable to it with the statutory authorities.

b. According to information and explanation given to us, there are no undisputed amounts payable in respect of income Tax, Sales Tax, customs duty and excise duty which have remained outstanding as on 31st March 2010 for a period of more than six months from the date they become payable.

c. According to information and explanations given to us, there are no statutory dues which have not been deposited as on 31st March 2010 on account of any dispute.

10. The company has got accumulated losses at the end of the financial year and it has not incurred any cash losses in the current and im- mediately preceding financial year.

11. According to information and explanations given to us, and based on the documents and records produced before us, the Company has not defaulted in repayment of dues to financial institution, banks or debenture holders.

12. According to information and explanations given to us, and based on the documents and records produced before us, the Company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities. Therefore the provisions of clause 4(xii) of the Companies (Auditors Report) order,2003 are not applicable to the Company.

13. In our opinion and according to the information and explanations given to us, the nature of activities of the Company does not attract any special statute applicable to chit fund and nidhi / mutual benefit fund / societies. Therefore the provisions of clause 4(xiii) of the Companies (Auditors Report) order,2003 are not applicable to the Company.

14. In our opinion the company is not dealing in or trading in shares, securities, debentures and other investments. Therefore the provisions of clause 4(xiv) of the Companies (Auditors Report) order,2003 are not applicable to the Company.

15. Based on our audit procedures and according to information and explanations given to us the company has not given guarantees for loans taken by others from a Bank or financial institution.

16. In our opinion the term loans have been applied for the purpose for which they were raised.

17. According to the information and explanations given to us and on an overall examination of the Balance Sheet of the Company, we are of the opinion that no funds raised on short term basis have been used for long term assets. No long term funds have been used to fnance short term assets.

18. During the year, the Company has not made any preferential allotment of shares to parties and companies covered in the register main- tained under section 301 of the Companies Act, 1956.

19. The company has not raised any money by public issue and accordingly the provisions of clause 4 (xx) of the Companies (Auditors Report) order,2003 are not applicable to the Company.

20. The Company has not raised any money by issue of Diebentures.

21. In our opinion and according to the information and explanations given to us, no fraud on or by the Company has been noticed or reported during the year that causes the financial statements to be materially misstated.

For Ajay B. Garg

Chartered Accountant

A Garg.

Mumbai ,

Dated : 9th August 2010