ARAVALI INDUSTRIES LIMITED
ANNUAL REPORT 2007-2008
THE MEMBERS OF
ARAVALI INDUSTRIES LIMITED
We have audited the attached Balance Sheet of Aravali Industries Limited as
at 31.03.2008 and also the Profit and Loss Account and Cash Flow Statement
of the Company 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 have conducted the audit in accordance with the auditing standards
generally accepted in India. Those standards require that we plan & perform
the audit to obtain reasonable assurance whether the financial statements
prepared, in all material respects, in accordance with an identified
financial reporting framework and 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
the management as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for our
opinion and we report that:
1. We have obtained all the information and explanations which, to the best
of our knowledge and belief where necessary for the purpose of our audit.
2. 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 such books.
3. The Balance Sheet and Profit & Loss referred to in this report are in
agreement with the books of account.
4. In our opinion, the Balance Sheet, the Profit and Loss Account and Cash
Flow statement of the company comply with the requirements of section
211(3c) of the Companies Act, 1956 in respect of the mandatory Accounting
Standards prescribed by the Institute of Chartered Accountants of India.
5. Based on the basis of written representation received from the Directors
and taken on record by the Board of Directors and in accordance with the
information and explanations as made available, the Directors of the
Company do not, prima facie, have any disqualification in terms of clause
(G) of Sub section (1) of Section 274 of the Companies Act, 1956 as on
6. Attention is invited to Note No. 3 under contingent liability for
amounts that may accrue on account of case for compensation is ruled
against the Company.
7. In our opinion and to the best of our information and according to the
explanation given to us, the Balance Sheet and the Profit & Loss A/c
subject to note on regarding gratuity and bonus liability that may arise
read together with the notes appearing in schedules to the said accounts
annexed thereto, give the information required by the Companies Act, 1956
in the manner so required, and give a true and fair view.
a) In so far as it relates to the Balance Sheet, the state of affairs of
the Company as at 31st March 2008 and.
b) In so far as it relates to the Profit & Loss Account, Profit of the
Company for the year ended on that date.
c) In case of Cash Flow Statement, of the cash flows for the year ended on
As required by the manufacturing and other Companies (Auditors Report)
order, 1988 issued by the Company Law Board in terms of Section 227(4A) of
the Companies Act, 1956 and on the basis of such checks as we considered.
Appropriate and according to the information and explanations given to us,
we further report that:
1. The Company has maintained proper records showing full particulars
including, quantitative details and situation of fixed assets. Physical
verification of fixed assets carried out by the Management at regular
intervals and no discrepancies were noticed on such verification. The
verification carried out by the Management, on the basis of their
certification, in our opinion, is reasonable having regard to the size
of the Company and the nature and location of its assets.
2. In our opinion the Company has not disposed off substantial part of the
Fixed Assets during the year and the going concern status of the Company is
3. None of the fixed assets have been revalued during the year.
4. No stocks could be evaluated in respect of agriculture activities of the
5. The Company has not taken any loans, secured and unsecured, from
companies, firm or other parties listed in Register maintained under
section 301 of the Act, and / or from the companies under the same
management has defined under Section 370(1-B) of companies Act, 1956.
6. 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 regards to purchase
of stores, raw materials including components, plant and machinery
equipments and other assets and with regard to the sale of goods. We have
not observed any continuing failure to correct the major weaknesses in
internal controls during the course of the audit.
7. In our opinion and according to the information and explanation given to
us, there were no transactions of purchase of goods and material and sale
of goods, materials and service, made in pursuance of contract or
arrangement entered in the registers maintained under section 301 of the
Companies Act, 1956 and aggregating during the year to Rs. 500000 or more
in respect of each party.
8. As explained to us, the company has a regular procedure for the
determination of unserviceable or damaged stores, raw materials and
finished goods. Adequate provision has been made in the accounts for the
loss arising on the items so determined.
9. The Company has not accepted any deposit within the meaning of section
58A of the companies Act, 1956 and the Companies (Acceptance of deposits)
Rules, 1975 with regard to the deposits accepted from the public.
10. In our opinion, reasonable records have been maintained by the Company
for the sale and disposal of realizable scrap. The Company has no by
11. In our opinion, the Company has an internal audit system commensurate
with its size and nature of its business.
12. According to the information & explanation given to us, the Central
Government has not prescribed for the maintenance of cost records under
section 209 (i) (d) of the Companies Act, 1956 in respect of the product
dealt with the company.
13. According to the records, information and explanations provided to us,
the Company is generally not regular in depositing with the appropriate
authorities undisputed amount of Employees State Insurance Provident Fund,
investor education protection fund, income tax, sales tax, wealth tax,
service tax, custom duty, excise duty, cess and other material dues as
applicable to it and no undisputed amounts payable were outstanding as on
31.03.2008 for a period of more than six months from the date they became
14. The Company has no accumulated losses at the end of the financial year
and it has not incurred cash losses in the current year and immediately
preceding financial year.
15. In our opinion and according to information and explanations given to
us, the Company has not defaulted in repayments of dues to any financial
institution or bank except those reported in the notes attached with the
16. As explained to us, the Company has not granted any loans or advances
in the nature of loan to any party on the basis of security by way of
pledge of shares, debentures and other securities.
17. The Company is not a Chit Fund or Nidhi/Mutual Benefit/Society,
therefore provisions of clause 4(xiii) of the said order are not applicable
to the Company.
18. According to the information and explanations given to us the Company
is not dealing in or trading in shares, securities, debentures and other
19. According to the information and explanations given to us the Company
has not given any guarantee for loans taken by others from the banks or
20. In our opinion, the term loans have been applied for the purposes for
which they were raised.
21. According to the information and explanations given to us and overall
examination of the of the balance sheet of the Company, we report that no
fund raised on short term basis have been used for long-term investments.
22. The Company has not made any preferential allotment of shares during
the year to parties and companies maintained under section 301 of the
Companies Act, 1956.
23. The Company did not have any outstanding debentures during the year,
therefore, clause 4(xix) of Companies (Auditor's Report) Order 2003, (as
amended) is not applicable.
24. The Company is not a sick industrial company within the meaning of
clause (o) of sub section (1) of section 3 of the Sick Industrial Companies
(special provisions) Act, 1985.
25. The Company has explained to us that occasional use of the Company's
assets and travel expenses of non whole time directors have been
used/incurred for the purpose of the business of the Company. Based on the
examination of books of accounts during the course of our audit conducted
in accordance with the generally accepted audit practices in India, and on
the basis of the information and explanations provided to us, we have not
come across any personal expenses being charged to revenue account, other
than those under contractual obligation in accordance with generally
accepted business practices.
26. The Company has not raised money through public issue during the year,
clause 4(xx) of Companies (Auditor's Report) Order 2003, (as amended) is
27. In respect of Companies trading activities the management has certified
that there are no damaged goods.
28. The Company's service activities are of such a nature, which do not
call for recording of receipts, issue and consumption of materials and
stores, and allocation of materials and man-hours, and consequently the
authorization and control of issue of stores, materials and labor to the
relative job is not applicable.
29. Based on the audit procedures performed and information and
explanations given to us by the management, we report that no fraud on or
by the Company has been noticed or reported during the course of our audit.
30. In our opinion, other points in para 4 and 5 of the order do not apply
to the Company.
For Ashish Rajinder & Associates
PLACE: NEW DELHI
DATED: 23.08.2008 Sd/-
(PROPRIETOR) M.No.: 096941