MAJESTIC INDUSTRIES LIMITED
ANNUAL REPORT 2008-2009
The Members of
MAJESTIC INDUSTRIES LIMITED
We have audited the attached Balance Sheet of MAJESTIC INDUSTRIES LIMITED
as at 31st March, 2009, the Profit & Loss Account and also the Cash Flow
cement 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.
1. We have 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 arid 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
2. As required by the Companies (Auditors Report) Order, 2003, issued by
the Central Government of India in terms of sub-section (4A) of section 227
of the Companies Act, 1956, and on the basis of such checks of books and
records as were considered appropriate and according to the information and
explanations given to us, we give in the Annexure a statement on the
matters speed in paragraphs 4 and 5 of the said order.
3. Further to our comments in the Annexure referred to in paragraph 2
above, we report that:
a) We have obtained all the information and explanations, which to the best
of our knowledge & belief were necessary for the purposes 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 those 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 Section 211(3C) of the Companies Act, 1956;
e) On the basis of written representations received from the directors and
taken on record by the Board of Directors, we report that none of the
directors is disqualified as on 31st March, 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 financial statements, read together with
the Significant Accounting Policies and Notes on Accounts attached thereto,
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 in India:
i) in the case of Balance Sheet, of the state of affairs of the Company as
at 31st March, 2009;
ii) in the case of Profit and Loss Account of the Loss for the year ended
on that date;
iii) in the case of Cash flow Statement, of the cash flows for the year
ended on that date.
For RAJESH GORA LAL & CO.
Place : Barotiwala (RAJESH KUMAR AGGARWAL)
Date : 02nd September, 2009 PROPRIETOR
Membership No. 087934
ANNEXURE TO THE AUDITOR'S REPORT
(Referred to in paragraph 2 of our report of even date on financial
statements of MAJESTIC INDUSTRIES LIMITED for the year ended 31st March,
On the basis of such checks as we considered appropriate, we further report
1. (a) The Company has maintained reasonably proper records showing full
particulars including quantitative details and situation of fixed assets,
on the basis of available information which is consolidated in some cases.
(b) As explained to us, fixed assets have been physically verified by the
management in a phased periodical manner, which in our opinion is
reasonable, having regard to the size of the Company and nature of its
assets; and no material discrepancies were noticed on such verification.
(c) The Company has sold I disposed off an old vehicle during the year
under review. In accordance with the representation received from the
management the said sale / disposal does-not have any impact on the going
concern status of the company.
2. The Company did not carry any, inventories during the year. Thus,
provisions of paragraph 4(ii)(a), (b) & (c) of the Companies Auditor's
Report) Order, 2003 are not applicable.
3. (a) As-explained to us, the Company has not granted any loans, secured
or unsecured to companies, firms or other parties covered in the register
maintained under section 301 of the Companies Act, 1956, during the year.
Therefore, provisions of paragraph 4 (iii) (a), (b), (c) & (d) of the
Companies (Auditor's Report) Order, 2003 are not applicable
(b) The Company has not taken any loans, secured or unsecured from
companies, firms or other parties covered in the register maintained under
section 301 of the Companies Act, 1956 during the year, except interest
free unsecured loan Rs.14.00 lacs (Maximum Balance Rs.14.00 lacs) received
during the year from the Managing Director of the Company.
(c) In our opinion and as explained to us, terms of the said interest free
unsecured loan has prima-facie not been prejudicial to the interest of the
(d) Terms of repayment of the said interest free unsecured loan referred to
in the foregoing paras have not been ascertained. 'However, the said loan
has been repaid to the full after the balance sheet date.
4. In our opinion and according to the information and explanations given
to us, there is an adequate internal control system commensurate with the
size of the Company and nature of its business for the sale of fixed
assets. There has been no purchase or sale of goods or services or purchase
of fixed assets, during the year. During the course of our audit; we have
not observed any continuing failure to correct major weaknesses in internal
5. (a) As explained to us, the transactions that needed to be entered into
a register in pursuance of 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, the transactions made in pursuance of contracts or arrangements
entered into the register maintained under section 301 of the Companies
Act, 1956 and aggregating to more than Rs.500,000/- (Rupees Five lacs only)
in respect of any party, during the year, have been made at prices which
are reasonable having regard to the prevalling market prices at the
6. The Company has not accepted any deposits from the public in terms of
provisions of Section 58A, 58AA or any relevant provisions of the
Companies Act, 1956 and the rules framed there under. As explained to 4s,
the Company Law Board or National Company Law Tribunal or Reserve Bank of
India or any Court or any other Tribunal has not passed any order as
regards the Company in respect of Public Deposits.
7. The Company does not have any formal internal audit system. However, the
internal checks and controls exercised by the management appear to be
adequate for size and nature of operations of the Company.
8. It has been explained to us that the provisions of para 4(viii) of the
Companies (Auditor's Report) Order, 2003 regarding maintenance of cost
records pursuant to stipulations of section 209(1)(d) of the Companies Act,
1956, are not applicable to the Company.
9. (a) According to the records of the Company and as explained to us, the
Company has been regular in depositing undisputed statutory dues, including
Provident Fund, Investor Education and Protection Fund, Employees' State
Insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax, Customs Duty,
Excise Duty, Cass and any other statutory dues, wherever & to the extent
applicable, except (i) provision for Fringe. Benefit Tax (Rs.6,149/-) the
advance tax dues in respect of which have not been paid as per stipulated
schedule; and (ii) Central Sales Tax (Rs. 500/-) demand (inclusive of
interest & penalty) payable pursuant to an assessment order issued during
the year. Other than the said Advance Fringe Benefit Tax & Central Sales
Tax, there are no arrears of outstanding statutory dues as at the last day
of the financial year concerned for a period of more than six months from
the date they became payable.
(b) As explained to us, there are no pending dues of sales tax/income tax/
custom tax wealth tax/service tax/ excise duty/cess on account of any
dispute, except penalties levied by central excise authorities in a number
of cases, aggregate amount of which has not yet been determined and which
are pending with various appellate authorities including Central Excise &
Service Tax Appellate Tribunal.
10. Accumulated losses at the end of the financial year under consideration
are not less than fifty percent of its net worth Hon'ble Board for
Industrial & Financial Reconstruction (BIFR), vide order dated 09th August,
2005 in case No. 39/2002, has declared the Company as a sick industrial
company under Section (3)(1)(o) of the Sick Industrial Companies (Special
Provisions) Act, 1985. The Company has incurred cash loss during the
financial year under review as well as in the preceding financial year.
11. According to the information & explanations given to us, there have
been no dues, during the. year, towards any financial institution, bank or
12. As explained to us, the Company has not granted any loans and advances
on the basis of security by way of pledge of shares, debentures and other
13. As explained to us, special statute applicable to chit fund does not
apply to the Company. The provisions of pare 4(xiii); (a), (b), (c) & (d)
of the Companies (Auditor's Report) Order, 2003, are also not applicable.
14. As explained to us, the Company has not done any dealing or trading in
shares, securities, debentures and other investments, during the year,
therefore provisions of para 4(xiv) of the Companies (Auditor's Report)
Order, 2003, are not applicable.
15. It has been informed to us that the Company has not given any
guarantees for loans taken by others from bank or financial institutions.
16. According to the information & explanations given to us, the
Company,has not availed of any term loan, during the year, except interest
free unsecured loans / deposits taken from a director, payable on demand.
As explained to us, the said unsecured loans / deposits have been applied
for the purpose for which those were obtained, barring temporary deployment
17. According to information/explanation given to us, the funds raised on
short tern basis have; prima facie, not been used during the year, for long
term investments (fixed assets etc.), barring temporary deployment pending
18. 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;
19. The Company has not issued any debentures, therefore provisions of para
4(xix) of the Companies (Auditor's Report) Order, 2003, are not applicable;
20. The Company has not raised any money by way of public issue, therefore
provisions of pare 4(xx) of the Companies (Auditor's Report) Order, 2003,
are not applicable;
21. According to the information & explanations given to us, no fraud on or
by the company has been noticed or reported during the year.
For RAJESH GORA LAL & CO.
Place : Barotiwala
Date : 02nd September, 2009 (RAJESH KUMAR AGGARWAL)
Membership No. 087934