SOLAR INDUSTRIES INDIA LIMITED
ANNUAL REPORT 2011-2012
The Members of
Solar Industries India Limited
1. We have audited the attached Balance Sheet of SOLAR INDUSTRIES INDIA
LTD. as at 31st March 2012, the Profit and Loss Account and Cash Flow
Statement of the Company for the year ended on that date annexed thereto,
which we have signed under reference to this report. 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 have 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 section 227 (4A) 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. Further to our comments
in the Annexure referred to 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
kept by the Company so far as appears from our examination of those books;
(c) The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account;
(d) 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
(e) According to the information and explanations given to us and on the
basis of written representations from Directors taken on record by the
Board of Directors, we report that none of the Directors are disqualified
as on 31st March 2012 from being appointed as director under Section
274(1)(g) of the Companies Act, 1956.
(f) In our opinion and to the best of our information and according to the
explanations given to us, and subject to our notes/observations brought out
elsewhere in the report, the said accounts give the information required by
the Companies Act, 1956, in the manner so required and give a true a fair
view in conformity with the accounting principles generally accepted in
(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 Profit and Loss Account of the Profit for the year
ended on that date.
(c) In the case of Cash Flow Statement, of the Cash flows for the year
ended on that date.
For Gandhi Rathi & Co.,
Place: Nagpur M. No. 39895
Dated: May 25, 2012 Firm Reg. No. 103031W
ANNEXURE REFERRED TO IN PARAGRAPH 3 OF THE AUDITORS REPORT TO THE MEMBERS
OF SOLAR INDUSTRIES INDIA LTD. ON THE ACCOUNTS FOR THE YEAR ENDED 31st
i) a) The Company has maintained proper records showing full particulars
including quantitative details and location of its fixed assets.
b) The Management has physically verified the fixed assets at reasonable
intervals and no material discrepancies are reported to have been observed
on such verification as compared to book records.
c) As per the information and explanation given to us on our enquiries the
disposal of assets during the year was not substantial so as to have an
impact on the operations of the Company, or affect its going concern.
ii) a) The stocks of finished goods, work in process, stores, spare parts
and raw materials have been physically verified by the Management during
the year. In our opinion, the frequency of the verification is reasonable.
b) In our opinion and according to the information and explanations given
to us, the procedure of physical verification of the stocks followed by the
Management were found reasonable and adequate in relation 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 and the
discrepancies noticed on verification between the physical stocks and the
book stocks were not material in relation to the operations of the Company.
iii) a) The Company has granted loan to companies covered in the register
maintained under section 301 of the Companies Act, 1956, and the year end
balance of loan including interest towards such Companies was Rs. 10583.27
b) In our opinion, the rate of interest and other terms and conditions of
such loan are, prima facie not prejudicial to the interest of the Company.
c) The Company has repaid the principal amounts as stipulated and have been
regular in the payment of interest.
d) There is no overdue amount of such loan granted to aforesaid company.
e) The Company has taken loan from companies covered in the register
maintained under section 301 of the Act, and the year end balance of loans
taken from such Companies was Rs. 5077.34 Lacs.
f) In our opinion, the rate of interest and other terms and conditions of
loans taken by the Company are, prima facie not prejudicial to the interest
of the Company.
g) The Company is regular in repaying the principal amounts as stipulated
and has been regular in the payment of interest.
iv) In our opinion and according to the information and explanations given
to us, there is an adequate internal control system commensurate with the
size of the Company and the nature of its business with regard to purchases
of inventory, fixed assets and for the sale of goods & services. During the
course of our audit, we have not observed any continuing failure to correct
major weaknesses in internal control system.
v) a) According to the information and explanations given to us, we are of
the opinion that the particulars of contracts or arrangements referred to
in Sec. 301 of the Act have been entered in the register maintained under
b) In our opinion and according to the information and explanation given to
us, the transactions made in pursuance of such contracts or arrangements
entered in the register maintained under section 301 of the Companies Act,
1956 have been made at prices which are reasonable having regard to the
prevailing market prices at the relevant time.
vi) The Company has not accepted fixed deposits from the public and
consequently, the directives issued by the Reserve Bank of India, the
provisions of Sections 58A, 58AA or any other relevant provisions of Act
and the rules framed there under are not applicable.
vii) In our opinion, the Company has an internal audit system commensurate
with the size of the Company and nature of its business.
viii) We have broadly reviewed the cost records maintained by the Company
persuant to the Companies (Cost Accounting Records) Rules, 2011 prescribed
by the Central Government under section 209(1)(d) of the Companies Act,
1956 and are of the opinion that prima facie the prescribed cost records
have been maintained. We have, however, not made a detailed examination of
the cost records with a view to determine whether they are accurate or
ix) a) According to the information and explanations given to us and
according to the records of the Company, the Company is regular in
depositing undisputed statutory dues including Provident Fund, Income-tax,
Sales - tax, Service Tax, Excise Duty, Cess and any other statutory dues
with the appropriate authorities. However, there are no arrears of such
dues as at the close of the year concerned for a period of more than six
months from the date they become payable.
b) According to the information and explanation given to us, the dues of
sales tax, income tax, customs, wealth tax, excise duty, cess which have
not been deposited on account of disputes and the forum where the dispute
is pending are as follows:
Name of the Nature of dues/demands Amt Forum where dispute
statute (Rs. In is pending
Central Excise Excise duty on to and 107.55 CESTAT
Act, 1944 fro freight collected
on account of sales made
to CIL subsidiaries
treating it as additional
Excise duty on the 263.86 Commissioner
benefits earned by the (Appeals)
company due to premature
payment of sales tax
Excise Duty on assessable 21.34 Supreme Court
value of goods used in
Cenvat Credit of Service 6.14 CESTAT
tax paid on tour
Cenvat Credit of Service 12.18 CESTAT
tax paid on workmen
Cenvat Credit of Service 6.35 Commissioner
tax paid on outward (Appeals)
Cenvat Credit Reversal 38.51 Adjudicating
on input goods sold as Officer
Penalty for late payment 10.87 Adjudicating
of Service Tax on Officer
payment made to overseas
Sales Tax Act Sales Tax on A.N. sale, 101.11 M.P. Commercial
Input Credit, CST Tax Appellate
liability on non Board
submission of `C` form &
Entry Tax liability
Custom Act Custom matter with Dri 2.39 Adjudicating
Mumbai for Sap software Officer
x) The Company neither has accumulated losses at the end of the financial
year, nor incurred cash losses during the financial year covered by our
audit and 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 and bank.
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) The Company has maintained proper records of the transactions and
contracts in respect of dealing of trading in shares, securities and other
investments and timely entries have been made therein. All shares,
securities and other investments have been held by the company in its own
xv) In our opinion, the terms and conditions on which the Company has given
guarantees for loans taken by others from banks or financial institutions
are not prejudicial to the interest of the Company.
xvi To the best of our knowledge and belief and according to the
information and explanations given to us, term loan availed by the Company
were, prima facie, applied by the Company 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
xviii) The Company has not made preferential allotment of shares during the
xix) No debentures have been issued by the Company to create securities or
xx) 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
For Gandhi Rathi & Co.,
Place: Nagpur M. No. 39895
Dated: May 25, 2012 Firm Reg. No. 103031W