REMI PROCESS PLANT AND MACHINERY LIMITED
ANNUAL REPORT 2011-2012
AUDITORS` REPORT
To,
The Members of,
Remi Process Plant and Machinery Limited.
1. We have audited the attached Balance Sheet of REMI PROCESS PLANT AND
MACHINERY LIMITED as at 31st March, 2012, Statement of Profit and Loss
Account and 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.
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 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 paragraphs 4 and 5 of the said Order.
4. 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 purpose of our
audit;
(ii) In our opinion, 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, the statement of Profit and Loss 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 (3C) of section 211 of the Companies
Act, 1956;
(v) On the basis of written representations received from the Directors, as
on 31st March, 2012, and taken on record by the Board of Directors, we
report that none of the directors is disqualified as on 31st March, 2012
from being appointed as a director in terms of clause (g) of subsection (1)
of section 274 of the Companies Act, 1956;
(vi) In our opinion and to the best of our information and according to the
explanations given to us, the 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:
(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, 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.
For SHANKARLAL JAIN & ASSOCIATES
CHARTERED ACCOUNTANTS
Registration No.109901W
Sd/-
(S.L. AGRAWAL)
PARTNER
Membership Number.: 72184
PLACE: MUMBAI
DATED: 30TH MAY, 2012.
ANNEXURE TO THE AUDITORS` REPORT
(REFERRED TO IN OUR REPORT OF EVEN DATE TO THE MEMBERS OF REMI PROCESS
PLANT AND MACHINERY LTD; AS AT 31st MARCH, 2012):
(i)(a) The Company has maintained proper records showing full particulars
including quantitative details and situation of its fixed assets.
(b) According to the information and explanations given to us, all the
assets have not been physically verified by the management during the year
but 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. To the best of our knowledge, no material discrepancies were
noticed on such verification.
(c) The company has not disposed off substantial part of fixed assets
during the year.
(ii)(a) The inventory has been physically verified during the year by the
management.
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 inventories followed by
the management were 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, the Company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stocks and the
book records were not material having regard to the size of the operations
of the Company.
(iii)(a) In our opinion and according to the information and explanations
given to us, the Company granted loans to two Companies covered in the
register maintained under section 301 of the Companies Act, 1956. The
maximum balance outstanding during the year was Rs.823.40 Lakhs and the
balance outstanding at the end of the year was Rs.351.16 Lakhs.
(b) In our opinion, the rate of interest and other terms and conditions of
loans given by the Company to Companies, firms or other parties listed in
the register maintained under section 301 of the Companies Act, 1956, are
not prima facie prejudicial to the interest of the Company.
(c) In our opinion and according to the information and explanations given
to us, the parties have repaid the principal amounts as stipulated and have
been regular in the payment of interest.
(d) In our opinion and according to the information and explanations given
to us, there is no overdue amount of loans granted to Companies, firms or
other parties listed in the register maintained under section 301 of the
Companies Act, 1956.
(e) According to the information and explanations given to us, the Company
has not taken unsecured loan from parties covered in the register
maintained under section 301 of the Companies Act, 1956. Hence relevant
para is not applicable to 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 of the company and the nature of its business with regard to purchases
of inventory and 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 weaknesses in internal control systems.
(v)(a) According to the information and explanations given to us, we are of
the opinion that the transactions that need to be entered into the register
maintained under section 301 of the Companies Act, 1956 have been so
entered.
(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 the value of rupees five lakhs 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 and according to the information and explanations given
to us, the Company has not accepted any deposits from the public and hence
the directives issued by the Reserve Bank of India and provisions of
sections 58A and 58AA or any other relevant provisions of the Companies
Act, 1956 and the Companies (Acceptance of Deposits) Rules, 1975 are not
applicable.
(vii) In our opinion, the Company has an internal audit system commensurate
with the size and nature of its business.
(viii) In our opinion and according to information and explanations given
to us, the maintenance of cost records has not been prescribed, for the
products of the Company, by the Central Govt, under clause (a) of sub-
section (1) of section 209 of the Companies Act, 1956.
(ix) (a) According to the information and explanations provided to us, the
Company is regular in depositing with appropriate authorities undisputed
statutory dues including Provident Fund, Investor Education Protection
Fund, Employees` State Insurance, Income Tax, Sales Tax, Wealth Tax,
Service Tax, Custom Duty, Excise Duty, Cess and other material statutory
dues applicable to it. And there are no arrears of outstanding statutory
dues as at the last day of the financial year for a period of more then six
months from the date they become payable.
(b) According to the information and explanations given to us, the
particulars of dues of Income tax, Wealth tax, Service tax, Sales Tax,
Customs Duty, Excise Duty and Cess as at 31st March, 2012, which have not
been deposited on account of a dispute, are as follows:-
Amount Form where dispute is
Name of the Statute Relevant (Rs.) pending
period
1. Central Sales 1998-1999 63,148.00 Sales Tax Tribunal
Tax Act
2. Gram Panchayat Tax 2009 to 3,90,747.00 Gram Panchayat
2012
(x) The Company does not have accumulated losses and has not incurred cash
losses during the financial year covered by our audit and in the
immediately preceding financial year.
(xi) In our opinion and according to the information and explanations given
to us, the Company has not defaulted in repayment of dues to a financial
institution, bank or debenture holders.
(xii) According to the information and explanations given to us, the
Company has not granted loans and advances on the basis of security by way
of pledge of shares, debentures and other securities.
(xiii) 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 are not applicable to the company.
(xiv) In our opinion, the Company is not dealing in or trading in shares,
securities, debentures and other investments. According the provisions of
clause 4(xiv) of the Companies (Auditor`s Report) Order, 2003 are not
applicable to the Company.
(xv) According to information and explanations given to us, the Company has
not given any guarantee for loans taken by others from banks or financial
institutions.
(xvi) According to information and explanations given to us, the Company
has applied the term loans for the purposes for which the loans were
obtained.
(xvii) According to the information and explanations given to us and on an
overall examination of the balance sheet of the Company, we report that the
no funds raised on short-term basis have been used for long-term
investment.
(xviii) According to the information and explanations given to us, 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) According to the information and explanations given to us, the
Company has neither issued any debentures during the year nor issued
earlier are outstanding. Accordingly, the provisions of clause (xix) of the
Order are not applicable to the Company.
(xx) According to the information and explanations given to us, the Company
has not raised any money by public issue during the year.
(xxi) According to the information and explanations given to us, no fraud
on or by the Company has been noticed or reported during the course of our
audit.
For SHANKARLAL JAIN & ASSOCIATES
CHARTERED ACCOUNTANTS
Registration No.109901W
Sd/-
(S.L. AGRAWAL)
PARTNER
Membership Number.: 72184
PLACE: MUMBAI
DATED: 30TH MAY, 2012. |