GEOLOGGING INDUSTRIES LIMITED
ANNUAL REPORT 2011-2012
THE MEMBERS OF
GEOLOGGING INDUSTRIES LTD.
1. We have audited the attached Balance Sheet of M/s. GEOLOGGING INDUSTRIES
LTD as at 31st March, 2012 and the Profit & Loss Account and 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 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 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 the Companies (Auditors' Report) Order, 2003 issued by
the Company Law Board in terms of Section 227 (4A) of the Companies Act
1956 (1 of 1956) we give in the Annexure a statement on the matters
specified in paragraph 4 & 5 of the said Order.
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 account as required by law have been
kept by the Company so far as appears from our examination of such books.
(c) The Balance Sheet and Profit & Loss Account and Cash Flow Statement
referred to in this report are in agreement with the books of account.
(d) On the basis of confirmations received from the Directors of the
Company, and the information and explanation given to us, none of the
Directors of the Company are disqualified from being appointed as Directors
of the Company under Clause (g) of Sub-Sec(1) of Section 274 of the
Companies Act, 1956.
(e) In our opinion the Profit and Loss Account and the Balance Sheet and
Cash Flow Statement comply with the accounting standards defined in sub-
section (3C) of Section 211 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 Balance Sheet and the Profit & Loss
Account read together with the notes thereon give the information required
by the Companies Act, 1956 in the manner so required and give a true and
i) In so far as it relates to the Balance Sheet of the state of affairs of
the Company as at 31st March, 2012 and
ii) In so far as it relates to the Profit & Loss Account of the Profit of
the Company for the year ended on that date.
iii) In the case of the Cash Flow Statement of the Cash Flow for the year
ended on that date.
For HEMANT MHAMBREY ASSOCIATES
CA. HEMANT MHAMBREY
Date : 30th July, 2012.
ANNEXURE TO AUDITOR'S REPORT:
Referred to in Paragraph 1 of my report of even date.
i) On the basis of such checks as we considered appropriate and in terms of
the information and explanations given to us, we state that:-
a) The records of quantitative details and situation of Fixed Assets could
not be verified as the Company has claimed that the Fixed Assets Register
has been damaged due to natural calamity.
b) As explained to us, fixed assets, according to the practice of the
Company, have been physically verified by the Management at reasonable
intervals, which in our opinion, is reasonable, having regard to the size
of the Company and the nature of its business, during the year. According
to the information and explanations given to us, no material discrepancies
were noticed on physical verification of assets.
c) The Company has not disposed off substantial part of fixed assets during
ii) a) Physical verification of inventory has been conducted at reasonable
b) The procedure and interval of physical verification of inventory
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 is maintaining proper records of inventory. No discrepancies
were noticed on verification between the physical stock and book record.
iii) a) The Company has granted unsecured loan to its associate concern
M/s. Mono Acriglass Industries Ltd amounting to Rs.219.48 lakh.
b) There is no stipulation as to the repayment of the principal or the
interest on the above loans.
c) Neither the principal amount nor the interest has been repaid by the
associate M/s. Mono Acriglass Industries Ltd
d) This associate has become a sick unit and the same is with BOARD FOR
INDUSTRIAL AND FINANCIAL RECONSTRUCTION for reconstruction. The company
claim to be taking possible reasonable steps to ensure speedy recovery of
iv) There is an adequate internal control procedure commensurate with the
size of the Company and the nature of its business with regard to purchase
of inventory and fixed assets and for sale of goods. We have not observed
any continuing failure to correct major weakness in the internal control
(v) a) The Register to be maintained u/s 301 could not be verified as the
company claims that the same was damaged due to natural calamity.
b) It is not possible to comment on the reasonableness of the prices at
which the transactions have been entered into considering the technical
nature of the business and the unavailability of the Registrar to be
(vi) According to the information and explanation given to us, the Company
has not accepted any deposits from the public.
vii) In our opinion, the internal audit function carried out during the
year by a firm of Chartered Accountants appointed by the management has
been commensurate with the size of the Company and the nature of its
viii) The Central Government has not prescribed the maintenance of cost
records under Section 209(1)(d) of the Companies Act, 1956 for the Company.
ix) According to the records of the Company, the Company is irregular in
depositing with appropriate authorities undisputed statutory dues. The
following dues are outstanding as at the last day of the financial year
concerned for a period of more than 6 months from the day they become
payable. Service Tax Rs.96,10,821/-, Profession tax Rs 1,17,945/- & CST
x) The Company's accumulated loss at the end of the financial year is not
more than fifty percent of its net worth. The company has earned cash
profit during this financial year, and in the previous financial year.
(xi) According to the records of the company, the company has not borrowed
from financial institutions or bank or issued debentures till 31st March
2012.Hence, in our opinion, the question of reporting on defaults in
repayment of dues to financial institutions or banks or debentures does not
(xii) The company has given guarantee for Term loan granted to its
associate concern M/s. Mono Acriglass Industries Ltd. The terms and
conditions of this guarantee don't seem to be prejudicial to the company.
However there is no counter guarantee taken by the Company in case the
lender invokes the guarantee given by the Company.
(xiii) On the basis of records examined by us and according to the
information and explanations given to us, the company has not taken any
term loan during the year.
(xiv) On the basis of records examined by us and according to the
information and explanations given to us, the company has not used any
short term funds for long term application.
(xv) Since the Registrar u/s.301 has not been maintained it is not possible
to comment weather the Company has made preferential allotment of shares to
parties and companies covered in the register maintained under section 301
of the Act during the year.
(xvi) According to the information and explanations given to us, and to the
best of our knowledge and belief, no fraud on or by the Company, has been
noticed or reported by the Company during the year;
(xvii) Looking to the nature of activities being carried on at present by
the Company during the year; and also considering the nature of the matters
referred to in the various clauses of the Companies (Auditors' Report)
Order, 2003, clauses (xii), (xiii), (xiv) and (xix) of paragraph 4 of the
aforesaid Order, are in our opinion, not applicable to the Company.
For HEMANT MHAMBREY ASSOCIATES
CA. HEMANT MHAMBREY
Dated: 30th July, 2012