BAHUMA POLYTEX LIMITED
ANNUAL REPORT 2003-2004
The Members of
Bahuma Polytex Ltd.
We have audited the attached Balance Sheet of M/S. BAHUMA POLYTEX LIMITED
as at 31st March, 2004 and the Profit & Loss Account and also the cash flow
statements for the year ended on that date annexed there to. 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 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.
The Company is a sick unit as its cumulative losses exceeds its net worth.
The Company has stopped its operations and there is no revival plan
proposed by the management in the near future. In light of this the going
concern status of the Company is no longer applicable and hence the
accounts are drawn considering the realisability of the assets and
As required by the companies (Auditors Report) Order, 2003 issued by the
Central Government of India in terms of Sub-section (4A) of section 227of
the companies Act.1.956, We enclose in the annexure a statement on the
matters specified in paragraph 4 & 5 of the said order.
Further to our comments in the annexure referred to above, we report that
(1) 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.
(2) 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.
(3) The Balance Sheet and Profit & Loss Accounts and cash flow statement
dealt with by this Report are in agreement with the Books of Accounts.
(4) In our opinion,the balance Sheet and 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
(5) On the basis of written representations received from the directors, as
on 31st March, 2004, and taken on record by the Board of Directors, we
report that none of the directors is disqualified as on 31st March 2004
from being appointed as a director in terms of clause (g) of sub-section
(1) of section 274 of the Companies Act, 1956.
(6) Subject to above and note No (4) & (5) in notes to the accounts, 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
(a) In the case of the Balance Sheet of the state of Affairs of the Company
as at 31st March 2004 and
(b) In the case of Profit & Loss Accounts of the Loss for year ended on
(c) In the case of cash flow statement of the cash flows for the year ended
on that date.
FOR DHARMENDRA & ASSOCIATES
PLACE: AHMEDABAD PROPRIETOR
DATE : 26-8-2004 Membership No. 42412
ANNEXURE TO THE AUDITOR'S REPORT 31st MARCH, 2004:
With reference to the annexure referred to in paragraph 1 of the Auditor's
Report to the members of M/s BAHUMA POLYTEX LTD. on the financial statement
for the year ended on 31st March, 2004, we report that
1. (a) The company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
(b) All the Assets have been physically verified by the management once at
the end of the year which in our opinion, is reasonable having regard to
the size of the Company and the nature of its assets. No material
discrepancies were noticed on such verification.
(c) During the year, the company has not disposed off a major part of the
plant and machinery.
2. (a) Since the company has discontinued operations the provisions
relating to clause (ii) (a) (b) (c) are not applicable.
3. (a) The company had taken interest free loan from directors / persons
covered in the register maintained under section 301 of the Companies Act,
1956. The maximum amount involved during the year was Rs. 49.97 lacs and
the year end balance of loans taken from such parties was Rs. 49.97 lacs.
There are no firms covered in the register maintained under section 301 of
the Companies Act, 1956 to which the company has granted loans.
(b) In our opinion, the rate of interest and other terms and conditions on
which loans have been taken from/ granted 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
(c) According to information and explanations made available to us , no
terms and conditions for repayment of loan taken by the company is
stipulated and hence no comment is made regarding repayment of principal.
Also, since the loans are interest free the provision regarding regularity
in repayment of interest is not applicable. Since no loans are granted by
the company the clause regarding repayment of principal and interest is not
(d) According to information and explanations made available to us, no
terms and conditions for repayment of loan taken by the company is
stipulated and hence no comment is made regarding overdue in repayment of
principal. Since no loans are granted by the company clause relating to
overdue amount of loans granted to companies, firms or other parties listed
in the register maintained under section 301 of the companies Act, 1956 is
4. As the Company has not carried out any activity during the year the said
clause regarding adequate internal control procedures are not applicable.
5. (a) According to the information and explanations given to us, we are
of the opinion that the transactions that need to be entered in to the
register maintained under section 301 of the Companies Act, 1956 have been
(b) In our opinion and according to the information and explanations given
to us, there are no 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 Rs. 5.00 lacs in respect of
any party during the year.
6. The Company has not accepted any deposits from the public and
consequently the directives issued by the Reserve Bank of India and the
provisions of section 58A and 58AA of the Companies Act, 1956 and the rules
framed there under are not applicable.
7. The Company no longer has an internal audit system.
8. We are informed that the Central Government has prescribed the
maintenance of cost record under Section 209 (1) (d) of the Companies Act,
1956 for the manufacturing activities carried on by it. However during the
year company has not undertaken any manufacturing activity and hence no
records are maintained by the company.
9. (a) According to the information and explanations given to us and on
the basis of our examination of the books of account, the company has been
generally regular in depositing with appropriate authorities undisputed
statutory dues including provident fund, employee' state insurance, income
tax, sales tax wealth tax, custom duty, excise duty, cess and other
material statutory dues applicable to it. As explained to us, the company
did not have any dues on account of Investor Education and Protection Fund.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of income tax, wealth tax, sales tax,
customs duty, excise duty and cess were in arrears, as at 31st March,2004
for a period of more than six months from the date they became payable
other than those stated in Appendix-I of this report.
(c) According to information and explanations given to us, there are no
dues of sales tax, income tax, customs duty,wealth tax, excise duty,cess
which have not been deposited on account of any dispute, other than those
stated in Appendix-II to this report.
10. In our opinion, the accumulated losses of the company are more than its
net worth. The company has incurred cash losses during the financial year
covered by our audit and the immediately preceding financial year.
11. In our opinion and according to the information and explanations given
to us, the company is in default regarding the repayment of dues to a
financial institution, bank or debenture holders. The outstanding due to
these lenders as on 31-03-04 is as under.
(Rs. in lacs)
Interest accrued and due 694.78
Principal payment due 995.37
12. The Company has not granted loans and advances on the basis of security
by way of pledge of shares, debentures and other securities.
13. 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.
14. According to the information and explanations given to us, the company
is not dealing in or trading in shares, securities, debentures and other
investments. Accordingly, the provisions of clause 4 (xiv) of the Companies
(Auditor's Report) Order, 2003 are not applicable to the company.
15. In our opinion, the terms and conditions on which the company has not
given guarantees for loans taken by others from banks or financial
16. This clause is not applicable as no term loans are raised by the
17. 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. No long-term funds have been used to finance short-term assets
except permanent working capital.
18. According to the information and explanations given to us, the company
has not made preferential allotment of shares to parties and companies
covered in the register maintained under section 301 of the Act.
19. According to the information and explanations given to us, the Company
has not issued any debentures during the period covered by our audit
20. The Company has not raised any money by public issue during the year.
According to the information and explanations given to us, no fraud on or
by the company has been noticed or reported during the year.
PLACE: AHMEDABAD FOR DHARMENDRA & ASSOCIATES
DATE : 26-8-2004 (Chartered Accountants)
Membership No. 42412
ANNEXURE TO THE AUDITOR'S REPORT 31st MARCH, 2004
Details of Statutory dues not paid which are undisputed.
Name of the Statute Nature of the Dues Amount in Rs. Period to which the
Employees Provident Basic Dues 6431.00 Oct-94 to Oct-2000
Damages Payable 354056.00 Oct-92 to April-2001
U/s 7Q 1405.00 As above
Details of Statutory dues which have not been deposited on account of
Name of the Nature of the Amount in Rs. Period to which Forum where
Statute Dues the amount relates dispute is
Central Difference in 1) 14,21,792/- July'98 to Sept'98 Commissioner
Excise Act duty payable 2) 1,91,093/- Oct'98 to Dec'98 Commissioner
on account of 3) 1 ,17,778/- Jan'99 to March'99 Commissioner
DTA sales from Appeals