INDO VANILLON CHEMICALS LIMITED
ANNUAL REPORT 2004-2005
The Members of
INDO VANILLON CHEMICALS LTD.
We have audited the attached Balance Sheet of M/S INDO VANILLON CHEMICALS
LTD. as at March 31, 2005 and also the Profit and Loss Account for of the
Company for the year ended on that date annexed thereto and the Cash Flow
Statement for the year ended on that date. 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.
1) We have conducted our audit in accordance with auditing standards
generally accepted in India. These standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free from material misstatements. An audit
includes examining on a test base, evidence supporting the amounts and
disclosures in the financial statements. All 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.
2) As required by the Companies (Auditor's Report) Order 2003 issued by the
Central Government of India in terms of Section 227 (4A) of the Companies
Act, 1956 we give in the annexure a statement on the matters specified in
paragraphs 4 & 5 of the said order.
3) Further to our comments in the Annexure referred to the paragraph
(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 accounts as required by the law have
been kept by the company so far as it appears from our examination of the
(c) The Balance Sheet and Profit & Loss Account and the Cash Flow Statement
dealt with by this report are in agreement with the books of accounts.
(d) In our opinion, the Balance Sheet and the Profit & Loss Account and
Cash Flow Statement dealt with by this report comply with the mandatory
accounting standards referred to in sub-section (3C) of Sec. 211 of the
Companies Act, 1956.
e) On the basis of written representations received from the directors,
(except Kamini Khanna, S.K. Jain and - V.K. Chadha ) as on 31.03.2005 and
taken on record by the Board of Directors, we report that none of directors
is disqualified as on 31.03.2005 from being appointed as directors in terms
of clause (g) of Sub-section (1) 274 of the Companies Act,. 1956;
f) The company's operation have remained suspended since January 2001. The
company has suffered continued losses and erosion of equity the accounts
are continued to be prepared on going concern basis in the absence of
adequate data for compilation on and alternative basis. Consequently. no
adjustment are made in the accounts relating to recoverability of recorded
assets amount and in respect of recorded liabilities and contingent
liabilities. In our opinion and to the our information and according to
explanations given to us, the said accounts which has been prepared on the
principal of going concern, subject to the above and note no. 2 c of
Schedule 17 regarding non-provision against work-in-progress, note no. 12
of Schedule 17 regarding non-provision of depreciation on assets amounting
to Rs.24.45 Lacs and note no. 21 8 22 regarding confirmation of debit and
credit balances along with the provision of interest on estimated basis
read together with other notes on accounts and Accounting Policies given in
Schedule II give the information required by the Companies Act, 1956, in
the manner so require and present a true and fair view in conformity with
the accounting principles generally accepted in India ;
i) In so far as it relates to Balance Sheet, of the State of Affairs of
Company as at March 31. 2005;
ii) In so far as it relates to Profit and Loss Account, of the Loss of the
Company for the year ended on that date; and
iii) In so far as it relates to the Cash Flow statement, of the cash flow
of the Company and for the year ended on that date.
For J P S & COMPANY
PLACE : NEW DELHI J C VERMA
DATED : 01.09.2005 PARTNER
ANNEXURE TO THE REPORT OF THE AUDITORS TO THE MEMBERS OF 'M/S INDO VANILLON
CHEMICALS LTD.' ON THE ACCOUNTS FOR THE YEAR ENDED 31ST MARCH, 2005.
(REFERRED TO IN PARAGRAPH I OF OUR REPORT OF EVEN DATE)
1. (a) The company is not in possession 1of complete records / register
showing full particulars including quantitative details and situation of
(b) The fixed assets have not been physically verified by the management
during the year. Discrepancies, if any, are not known.
(c) No such substantial part of fixed asset have been disposed off during
the year to affect the going concern principle.
2. (a) The inventory has not been verified by the management during the
(b) In the absence of physical verification, comments on procedure for
physical verification of inventories are not offered.
(c) The unit is closed and management did not conduct physical verification
3. According to the information and explanations given to us, the company
has not granted any loans, secured or unsecured, to companies, firms or
other parties as listed in the register maintained under Section 301 or to
the Companies under the same management as defined under sub-section (I-B)
of Section 370 of the Companies Act, 1956. Accordingly paragraph of clauses
4(iii)(b), (c) & (d) of the Order are not applicable to the company.
4. In our opinion and on the basis of the information and explanations
given to us, there are adequate and reasonable systems and procedures for
physical verifications of stocks but they have not been followed by the
management during the period. Due to, suspension of manufacturing
activities since January 2001.
5. In our opinion and according to the information and explanation given to
us, the company has not entered into any transactions for the purchase or
sale of goods, materials or services in pursuance of contracts or
arrangements entered in the register maintained u/s 301 of the Companies
Act, 1956 as there is no manufacturing activity.
6. According to the information and explanation given to us, the company
has not taken any deposits from the public during the year.
7. Since company's operations are suspended since January 2001 the
management does not feel the requirement of internal audit.
8. The Central Government has not prescribed maintenance of cost records
u/s 209 (1)(d) of the Companies Act 1956.
9. (a) The company is regular in depositing appropriate authorities -
undisputed statutory dues including Provident Fund, Investor Education and
Protection Fund, Employee's 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 explanation given to us, the dues of
Sales Tar, Income Tax, Excise Duty, Custom Duty, Wealth Tax and Cess which
have not been deposited on account of any dispute are as under :-
Nature of Dues Amount in Period to which Forum where
Rs. amount due dispute is
Excise Duty 85,31,026/- Raid on CEGAT
10. In our opinion, accumulated losses of the Company are more than 50 per
cent of its net worth. The Company has incurred cash losses during the
financial year covered by our audit and immediately proceeding financial
11. In our opinion and according to the information and explanation given
to us the Company has defaulted in the repayment of dues to financial
institution, bank's or debenture holder and has filed a reference before
the BIFR. The accumulated default including interest are as under.
IDBI 746.04 Lacs
HFC 487.90 Lacs
OBC C/C 424.36 Lacs
12. The company has not granted Loans and Advances on the basis of security
by way of pledge of shares, debentures and other security.
13. In our opinion the company is not a Chit fund or a Nidhi /Mutual
benefit fund/ Society.
14. In our opinion the company is not dealing in 'or trading in shares,
securities, debentures and other investments.
15. According to information and explanation given to us, the company has
not given any guarantee for loans taken by others from banks and financial
16. According to the information and explanation given to us, the company
had not raised any term loan during the year tinder audit.
17. According to information and explanation given to us and on an overall
examination of balance sheet of the company, we report that no funds,
raised on short term basis, have been used for long term investments. No
long term fund have been used to finance short term assets except permanent
18. According to the information and explanation given to us, the company
has not made any preferential allotment of shares to parties and companies
covered in register maintained under section 301 of the Companies Act,
19. According to the information and explanation given to us, no debenture
have been issued during the year under audit.
20. According to the information and explanation given to us, no money has
been raised by any of public issue during the year under audit. Therefore,
the provisions of paragraph 4(xix) of the said order is net applicable to
21. According to the information and explanation given to us, no fraud on
or by company has been noticed or retorted during the year under audit.
For J P S & COMPANY
PLACE : NEW DELHI J C VERMA
DATED : 01.09.2005 PARTNER