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Brushman (India) Ltd.

BSE: 590061 Sector: Others
NSE: N.A. ISIN Code: INE357C01012
BSE LIVE 11:43 | 09 Dec 1.40 0
(0.00%)
OPEN

1.40

HIGH

1.40

LOW

1.40

NSE LIVE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 1.40
PREVIOUS CLOSE 1.40
VOLUME 250
52-Week high 1.40
52-Week low 0.40
P/E
Mkt Cap.(Rs cr) 2.07
Buy Price 1.40
Buy Qty 44750.00
Sell Price 0.00
Sell Qty 0.00
OPEN 1.40
CLOSE 1.40
VOLUME 250
52-Week high 1.40
52-Week low 0.40
P/E
Mkt Cap.(Rs cr) 2.07
Buy Price 1.40
Buy Qty 44750.00
Sell Price 0.00
Sell Qty 0.00

Brushman (India) Ltd. (BRUSHMANINDIA) - Auditors Report

Company auditors report

BRUSHMAN (INDIA) LIMITED ANNUAL REPORT 2008-2009 AUDITORS' REPORT TO THE MEMBERS OF BRUSHMAN (INDIA) LIMITED 1. We have audited the attached Balance Sheet of Brushman (India) Limited as at March 31, 2009 and also the Profit and Loss Account and 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 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 disclosure in the financial statement. 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. 3. As required by Companies (Auditor's Report) Order, 2003 issued by the Central Government in terms of Sub Section (4A) of section 227 of the Companies Act, 1956, we annex hereto a statement on the matters specified in paragraphs 4 and 5 of the said order. 4. We report and invite attention towards: (a) Capital work in progress includes an advance of Rs.50.33 crores given to Mr. Rajinder Singh for the purchase of moulds, plant & machinery etc. out of the proceeds of Foreign Currency Convertible Bonds (FCCB) and Global Depository Receipts (GDR). As per the information, records and explanations given to us, the company has not received the aforesaid capital items and the company has sought for the refund of such advance from Mr. Rajinder Sing (Refer Note No. 25 of Schedule 22). (h) That the company has incurred Rs. 17.28 crores on account of issue of Foreign Currency Convertible Bonds (FCCB) and Global Depository Receipts (GDR) which are in excess of the limits prescribed by the statutory authorities. (c) That the balances of Sundry Debtors, Sundry Creditors, Loans and advances. Unsecured Loan from others, Security Deposits are subject to confirmation with the respective parties. The consequential impact thereof due to adjustments, provisions etc. on the financial statements is not ascertainable. (d) That the company has not filled the returns with the statutory authorities far External Commercial Borrowings (ECBs) and also statutory returns for sales tax, VAT, Service tax for part of the year. The consequential impact thereof due to penalty etc. on the financial statements is not ascertainable. (e) That the company is not regular in deposit of statutory dues of Income Tax, TDS, Provident Fund, ESI etc. with statutory authorities. The interest and penalties (if any) on account of delay in payments have not been provided in the accounts and is not ascertainable. To the extent the loss for the year is understated. 5. Further to our comments in the annexure referred to in paragraph (3) and (4) 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 purposes of our audit; (b) In our opinion, proper books of account as required by taw have been kept by the Company, so far as appears from our examination of the 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 Act 1956 except as stated in paragraph 4 above. (e) On the basis of the written representations received from the Directors, as on March 31, 2009, and taken on record by the Board of Directors, we report that none of the Directors of the Company are disqualified as on March 31,2009 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 with the notes on accounts give the information required by the Companies Act, 1956, in the manner so required and subject to our observation in paragraph 4 and 5 above, the cumulative impact of the same on the accounts are not ascertainable gives a true and fair view in conformity with the accounting principles generally accepted in India; (i) in case of the Balance Sheet, of the state of affairs of the Company as at March 31, 2009; (ii) in case of the Profit and Loss Account, of the loss of the Company for the year ended on that date, and (iii) in case of the Cash Flow Statement, of the cash flows of the company for the year ended on that date. For SAXENA & SAXENA Chartered Accountants D. K. Saxena Partner M. No. 82118 Place: New Delhi Date : 1st September 2009 Annexure to Auditors' Report Referred to in paragraph 3 of our Report of even date on the financial statements for the year ended 31st March 2009 of Brushman (India) Limited (i) (a) The company has generally maintained proper records showing relevant particulars including quantitative details and situation of fixed assets. (b) We have been informed that the fixed assets of the company have been physically verified by the management during the year in a phased periodical manner which in our opinion is reasonable. As informed no material discrepancies were noticed on such verification. (c) Assets disposed off during the year are not substantial and therefore does not affect the going concern assumption. (ii) (a) We have been informed that the inventories have been physically verified by the management at the end of the year. 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 are reasonable and adequate in relation to the size of the Company and the nature of its business. (c) In our opinion the Company is maintaining proper records of inventories, it has been informed to us that there were no material discrepancies noticed on physical verification of inventory as compared to the book records. (iii) (a) In our opinion and according to the information and explanations given to us, the Company has not granted any loan, secured or unsecured to parties covered in the register maintained under section 301 of the Companies Act, 1956. (b) In our opinion and according to the information and explanations given to us, the Company has taken unsecured loan from the parties covered in the register maintained under section 301 of the Companies Act, 1956 amounting to Rs.49.50 Lacs and the year end balance thereof is Rs.32.21 Lacs. As per information and explanation given to us the loan is repayable on demand and has not been demanded back by the lenders and therefore there is no overdue of loan. It was further explained that the loan is interest free and is not prejudicial to the interest of the company. (iv) In our opinion and according to the information and explanations given to us, the existing internal control procedures for the purchase of inventory, fixed assets and for the sale of goods and services needs to be strengthened to commensurate with the size of the Company and the nature of its business. (v) In respect of particulars of contracts or arrangements referred to in section 301 of the Companies Act, 1956; (a) In our opinion and according to the information and explanations given to us, particulars of such contracts or arrangements which were required 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, these contracts or arrangements have been generally made at 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. (vii) The internal audit of the company is being conducted by engaging an outside agency i.e. a Chartered Accountants firm. However considering the size and nature of the business, the scope of internal audit needs to be extended. (viii) We have been informed that the Central Government has not prescribed the maintenance of Cost Records under Section 209 (1)(d) of the Companies Act, 1956 in respect of the Company. (ix) (a) According to the records, information and explanations provided to us, the company is not regular in depositing with appropriate authorities undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Employees' State Insurance, Income Tax, Sales-Tax, Wealth Tax, Service Tax, Customs Duly, Excise Duty, Cess and other statutory dues applicable to it. According to the information and explanations given to us, followings are the undisputed amounts payable in respect of these statutory dues in arrears as at march 31, 2009 for a period of more than six months from the date they became payable: Particulars Amount Rs. in Lacs 1. Employees State Insurance 0.52 2. Professional Tax 0.24 3. Provident Fund 5.39 4. Tax Deduction at Source 52.17 5. Income Tax 161.87 6. Fringe Benefit Tax 26.33 Total 246.52 (b) As per the information and explanations given to us there are no disputed statutory dues. (x) The Company has accumulated losses and has incurred cash losses during the financial year covered by our audit. However it has not incurred any cash losses in the immediately preceding financial year. (xi) Based on our audit procedures and according to the information and explanations given to us, we are of the opinion that the Company has defaulted in repayment of dues to financial institutions and banks towards term loan and working loans. There are no debentures and therefore there is no question of default thereon. However in absence of relevant information we are unable to comment on the amount and period of default. (xii) In our opinion and according to the information and explanations given to us, no loans and advances have been granted by the Company on the basis of security by way of pledge of shares, debentures and other securities. (xiii) In our opinion and according to the information and explanations given to us, the Company is not a chit fund or a nidhi/ mutual benefit fund/ society. Therefore, clause 4 (xiii) of the Companies (Auditor's Report) Order 2003 is not applicable to the Company. (xiv) In our opinion and according to the information and explanations given to us, the Company is not dealing or trading in shares, securities, debentures & other investments. (xv) The Company has given guarantee amounting Rs. 550 Lacs (previous year Rs. 175 Lacs) for loan taken by its subsidiary companies from banks. In our opinion and according to the information and explanations given to us, the terms and conditions of the same are not prima facie prejudicial to the interest of the company. (xvi) In our opinion and according to the information and explanations given to us, the term loans were applied for the purposes for which they were raised. (xvii) According to the information and explanations given to us and on the basis of an overall examination of the Balance Sheet of the Company, we are of the opinion that the funds raised on short term basis have, prima facie, not been used for long term investment. (xviii) According to the information and explanations given to us, during the year, the Company has not made any preferential allotment of shares to parties and companies covered in the register maintained under Section 301 of the Companies Act, 1956. (xix) The Company has not issued any debentures; hence question of creation of security or charge in respect of debentures issued does not arise. (xx) During the year the Company has raised money by public issues through Global Depository Receipts (GDRs) and Foreign Currency Convertible Bonds (FCCBs) for which the management has disclosed the end use in the notes to accounts and the same has been verified. (xxi) In our opinion and according to the information and explanations given to us, no fraud on or by the Company has been noticed or reported during the year. For SAXENA & SAXENA Chartered Accountants D.K. Saxena Partner M. No. 82118 Place: New Delhi Date : 1st September 2009.

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