REI AGRO LIMITED
ANNUAL REPORT 2011-2012
AUDITORS` REPORT
To
THE MEMBERS OF
REI AGRO LIMITED
1. We have audited the attached Balance Sheet and Statement of Proit and
Loss of REI AGRO LIMITED as at 31st March, 2012 also 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.
2. We conducted our audit in accordance with the Auditing Standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the inancial
statements are free of material misstatement. An audit includes examining
on test basis evidence supporting the amounts and disclosures in the
inancial statements. An audit also includes assessing the accounting
principles used and signiicant estimates made by management, as well as
evaluating the overall inancial statement presentation. We believe that our
audit provides a reasonable basis for our opinion.
3. As required by Companies (Auditor`s Report) Order, 2003, (as amended)
issued by the Central Government of India in terms of Section 227(4A) of
the Companies Act, 1956, and we enclose in the Annexure a statement on the
matters speciied in paragraphs 4 and 5 of the said Order, to the extent
applicable to the Company.
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 accounts as required by law have been
kept by the Company so far as appears from our examination of those books;
c) The Balance Sheet, Statement of Proit and Loss and Cash Flow Statement
dealt with by this report are in agreement with the books of account;
d) In our opinion, the Balance Sheet, Statement of Proit and Loss and Cash
Flow Statement dealt with by this report comply with the Accounting
Standards referred to in Section 211(3C) of the Companies Act, 1956;
e) 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 disqualiied 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;
f) In our opinion and to the best of our information and according to the
explanations given to us, the said accounts read together with the
Signiicant Accounting Policies as per Notes 1 & 2 and others, 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;
1) in the case of the Balance Sheet, of the state of affairs of the Company
as at 31st March, 2012;
2) in the case of Statement of Proit and Loss, of the Proit of the Company
for the year ended on that date, and
3) in the case of the Cash Flow Statement, of the cash flows for the year
ended on that date.
For P.K. LILHA & CO.
Chartered Accountants
Firm Reg. No.: 307008E
(CA. P.K. LILHA)
Partner
M. No. 011092
Place: Kolkata
Date : 30.05.2012
ANNEXURE TO THE AUDITORS` REPORT
(Referred to in paragraph 3 of our report of even date)
i. In respect of its Fixed Assets:
(a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets.
(b) In our opinion, the company has a regular programme of physical
verification of fixed assets which, in our opinion, is reasonable having
regards to the size of the company and nature of its assets. In accordance
with this programme, fixed assets were physically verified by the
management during the year and that no material discrepancies were noticed
on verification.
(c) There was no substantial disposal of its fixed assets during the year,
which may have any impact on the going concern nature of the Company.
ii. In respect of its Inventories:
(a) As explained to us the Inventories have been physically verified by the
management at reasonable intervals. In our opinion the frequency of
verification is reasonable.
(b) The procedures of physical verification of inventories 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 has maintained proper records of its inventories and no
material discrepancies were noticed on physical verification of Inventories
as compared to the book records.
iii.
(a) The company has given loan to one subsidiary. In respect of said loan
the maximum amount outstanding at any time during the year and the year end
balance was Rs. 1476.86 Lacs including interest thereon.
(b) In our opinion and according to the information and explanation given
to us, the rate of interest and other terms & condition of the loans given
by the company, are not prima facie prejudicial to the interest of the
company.
(c) The principal amount are repayable on demand including interest.
(d) In respect of the said loans and interest thereon, there are no overdue
amount.
(e) The Company has not taken any loans secured or unsecured from companies
covered in the register maintained under Section 301 of the Companies Act,
1956.
iv. 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 the nature of its business with regards to the
purchase of inventories, fixed assets and for the sale of goods. There is
no sale of services. During the course of our audit no major weakness has
been noticed in the internal control system in respect of these areas.
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 section 301 of the Companies Act, 1956 that need to be entered into the
register 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 Lacs in respect of any party
were made at prices which were reasonable having regard to the prevailing
market prices at the relevant times.
vi. The company has not accepted any deposits from the public during the
year. Hence the provisions of clause 4 (vi) of the order 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 Books of Accounts maintained by the
Company in respect of generation of electricity from wind power where
pursuant to the rules made by the Central Government of India, the
maintenance of Cost Records have been prescribed U/s 209(1)(d) 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.
ix. (a) On the basis of examination of records of the Company, undisputed
statutory dues including Provident fund, Employee`s State Insurance,
Investor Education and Protection Fund, Income Tax, Wealth Tax, Service
Tax, Sales tax, Custom Duty, Excise, Cess and any other material statutory
dues have been generally regularly deposited with the appropriate
authorities during the year.
(b) No undisputed amounts payable were outstanding at the year end, for a
period of more than six months from the date they became payable.
(c) According to information and explanation given to us and the records of
the company examined by us, there are no undisputed amount of statutory
dues which have not been deposited.
x. The Company has no accumulated losses as at the end of the year and it
has not incurred cash losses during the current and in the immediately
preceding inancial year.
xi. Based on our audit procedures and on the basis of information and
explanations given to us, we are of the opinion that the company has not
defaulted in the repayment of dues to any inancial institution, or Bank, or
debenture holders.
xii. According to the information and explanations given to us, the company
has not granted any loans or advances on the basis of security by way of
pledge of shares, debentures and other securities, accordingly paragraph 4
(xii) of the Order is not applicable.
xiii. The company is not a Chit Fund/Nidhi/Mutual Beneit Fund/Society.
Therefore the provisions of Paragraph 4 (xiii) of the Order are not
applicable to the company.
xiv. The Company has in our opinion maintained proper records and contract
notes with respect to its investments and timely entries have been made
therein. All investments at the close of the year are held in the name of
the Company.
xv. The Company has given guarantees for loans taken by two subsidiary
companies from banks and inancial institutions. According to the
information and explanations given to us, we are of the opinion that the
terms and condition thereof are not prima facie prejudicial to the interest
of the Company.
xvi. In our opinion and according to the information and explanation given
to us, the term loans were applied for the purpose for which these were
raised.
xvii. According to the Cash Flow Statement and other records examined by us
and the information and explanations given to us, on an overall basis,
funds raised on short term basis have, prima facie, not been used during
the year for long term investment.
xviii. The Company has not made any preferential allotment of shares during
the year to parties or companies covered in the Register maintained under
Section 301 of the Companies Act, 1956.
xix. The Company has issued during the year secured non convertibles
debentures amounting to Rs. 343.5 crores and has created securities/charges
in respect of secured debentures issued.
xx. The Company has not raised any money by way public issued during the
year.
xxi. In our opinion and according to our information and explanation given
by the management, we report that no material fraud on or by the Company
has been noticed or reported during the course of our audit.
For P.K. LILHA & CO.
Chartered Accountants
Firm Reg. No.: 307008E
(CA. P.K. LILHA)
Partner
M. No. 011092
Place: Kolkata
Date : 30.05.2012 |