HIMGIRI FOODS LIMITED
ANNUAL REPORT 2006-2007
The Members of Himgiri Foods Limited
1. We have audited the attached balance sheet of Himgiri Foods Limited as
at 31st March 2007, the profit and 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 the 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 reasonable basis for our opinion.
3. As required by the Companies (Auditor's Report) order 2003 issued by the
Central Government of Indian in terms of sub-section (4A) of section 227 of
the Companies Act, 1956, vie enclose in the Annexure a statement on the
matters specified in paragraphs 4 and 5 of the said order.
4. Further to our comments in the Annexure referred to above, we report
(i) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
(ii) In our opinion, proper books of account as required bylaw have been
kept by the company so far as appears from our examination of those books.
(ii) The balance sheet, profit and loss account and cash flow statement
dealt with by this report are in agreement with the books of account.
(iv) 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
(v) On the oasis of written representations received from the directors, as
on 31st March 2007 and taken on record by the Board of Directors. we report
that none of the directors is disqualified as on 31st March 2007 from being
appointed as a director in terms of clause (g) of sub section (1) of
section 274 of the companies Act, 1956.
(vi) In our opinion and to the best of our information and according to the
explanations given to us, the said accounts read together with note no. 6
regarding non provision for depreciation, note no.7 regarding insurance
claim and note no. 8 regarding litigation with Dena Bank and other notes
thereon gives the information required under 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 :
(a) in the case of the balance sheet, of the state of affairs of the
company as at 31st March 2007.
(b) in the case of the profit and loss account, of the loss for the year
ended on that date; and
(c) in the case of the cash flow statement, of the cash flows for the year
ended on that date.
for SUDHIR J. SHAH
(SUDHIR J. SHAH)
Place : Ahmedabad
Date : 04/06/2007
ANNEXURE TO THE AUDITORS REPORT
Referred to in paragraph 3 of our report of even date
(i) The Company is maintaining proper records showing full particulars
including quantitative details arid situation of fixed assets. Physical
verification of fixed assets has been carried out by the management at
reasonable intervals and no material discrepancy was noticed on such
verification. No fixed assets was disposed off during the year.
(ii) The company has maintained proper recorded of inventory. There was no
salable stock of finished good or any raw material as the business
operations of the company are at stand still. The physical verification of
inventory of old stores and spare parts and packing material has been
conducted at reasonable intervals and the procedure of physical
verification followed by the management was reasonable and adequate in
relation to the size of the company and the nature of its business.
(iii) The Company has not granted or taken any loan from other companies
covered in the register maintained under section 301 of the Companies Act
1956 during the year.
(iv) 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. During the course of
our audit, we have not observed any continuing failure to correct major
weaknesses in internal controls.
(v) (a) According to the information and explanations given to us, we are
of the opinion that the transactions that need to be entered into the
register maintained under section 301 of the Companies Act, 1956 have been
(b) There were no transactions during the year in pursuance of contracts or
arrangements with the parties covered u/s 301 of the companies Act 1956
exceeding the value of Rs. 5 lacs in respect of any party.
(vi) In our opinion and according to the information and explanations riven
to us, the company has not accepted any deposits to which the provisions of
sections 58A and 58AA of the Companies Act, 1956 and the Companies
(Acceptance of Deposits) Rules 1975 are applicable.
(vii) The company has an in-house internal audit system and also an audit
committee commensurate with the size and nature of its business.
(viii) The central government has not prescribed the maintenance of cost
records under clause (d) of sub section (1) of section 209 of the Act.
(ix) (a) There care no undisputed statutory dues outstanding including
provident fund, investor education protection fund, employees state
insurance, income tax, sales tax, wealth tax, custom duty, excise duty,
cess and other material statutory dues applicable to it.
(b) According to the information and explanations given to us, there is no
disputed dues of sales Tax income tax custom duty, wealth tax, excise duty
and (er) which have not been deposited on account of any dispute and there
are no dues outstanding on the date of balance sheet.
(x) In our opinion, the accumulated losses of the company are more than 50%
of its networth. The company has incurred cash losses of Rs.2,59,458/-
during the financial year covered under our audit and Rs. 2,04,024/- in the
immediately proceedings financial year.
(xi) The Company had taken term loan and working capital (fund based and
non fund based) from bank in the past for which the bank had filed suit for
recovery and has started recovery proceedings.
(xii) The Company has not granted any loans or advances during the year on
the basis of security by way of pledge of shares, debentures and other
(xiii) In our opinion, 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
(xiv) The company has not done any trading or dealing in shares during the
(xv) The Company has not given any guarantee for loans taken by others from
banks or from financial Institutions.
(xvi) The loan from bank were applied for the purpose for which these were
(xvii) According to the information and explanations given by us and on an
overall examination of the balance sheet of the Company, we report that no
funds raised on short term basis have been used for long term investment.
No long terms funds have been used to finance short terms assets except
permanent working capital.
(xviii) The company has not made any preferential allotment of shares to
parties and companies covered in the registered maintained u/s. 301 of the
(xix) The Company has not issued any debentures. Therefore. the question of
creating security does not arise.
(xx) During the year, the company has not raised any many by way of public
issue and hence para 4(xx) of the order is not applicable. However, The
money raised by public issue in the past was deployed for the enduse for
the purpose for which it was raised.
(xxi) According to the information and explanation given to us, no fraud on
or by the Company has been noticed or reported during the course of our
For SUDHIR J. SHAH
(SUDHIR J. SHAH)
Place : Ahmedabad
Date : 04/06/2007