OSWALI CHEMICALS LIMITED
ANNUAL REPORT 2010-2011
TO THE MEMBERS OF
OSWALI CHEMICALS LIMITED
We have audited the attached Balance Sheet of OSWALI CHEMICALS LIMITED as
at March 31, 2011 and the Profit and Loss account for the period ended 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.
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 management, as well as evaluating the
overall financial statement presentation. We believe that our audit
provides a reasonable basis for our opinion.
1. 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.
2. In our opinion proper books of accounts as required by law have been
maintained by the Company so far as appears from our examination of those
3. The Balance Sheet and the Profit and Loss account dealt with by this
report are in agreement with the books of accounts.
4. In our opinion, the Profit and Loss account and the Balance Sheet comply
with the Accounting Standards referred to in sub section (3C) of Section
211 of the Companies Act, 1956.
5. On the basis of written declarations received from the Directors as on
March 31, 2011 and taken on record by the Board of Directors, we report
that none of the Directors is disqualified as on March 31, 2011 from being
appointed as a Director in terms of clause (g) of sub section (1) of Sec
274 of the Companies Act, 1956.
6. In our opinion and to the best of our information and according to the
explanations given to us, the accounts subject to:
Note no.2 regarding contingent liabilities being stated to the extent
information was available and read with the other notes to accounts thereon
give the information required by the Companies Act, 1956 in the manner so
required and give a true and fair view:
i) in the case of the Balance Sheet, of the state of affairs of the Company
as on March 31, 2011,
ii) in the case of the Profit and Loss account, of the Profit for the year
ended that date.
As required by the Manufacturing and Other Companies (Auditors' Report)
order, 2003 issued by the Central Govt. under section 227 (4A) of the
Companies Act, 1956 and on the basis of such checks as were considered
appropriate and the information and explanations given to us during the
course of our audit, we further report that
1. The Company has repaid the unsecured loan during the year. The balance
of Secured loan is Rs. 13.25 lakhs (one party).
2. The amount overdue in respect of the secured loan is more than Rs.1 lakh
and since the Company is sick, it has not been able to repay these overdue
3. The Company has not given any loans, secured or unsecured to Companies,
firms or other parties listed in the register maintained under Section 301
of the Companies Act, 1956. We are informed that there are no Companies
under the same management as defined under section 370 (1 B) of the
Companies Act, 1956.
4. The Company has not given any loans or advances in the nature of loans.
5. The Company had no transactions of goods / materials / services
aggregating during the year to Rs. 50,000 or more from/to firms, Companies
or other parties in which the Directors are interested, as listed in the
register maintained under section 301 of the Companies Act, 1956.
6. The Company has an Internal Audit system commensurate with the size of
the Company and nature of its business.
7. The Company has not accepted any deposit from the public to which the
provisions of section 58A of the Companies Act, 1956 apply.
8. There were no undisputed amounts payable in respect of income tax, Sales
tax, Customs duty and Excise duty outstanding for more than six months from
the date they became payable.
9. No personal expenses of Directors have been charged to revenue.
10. No fraud on or by the Company was noticed during the year.
11. The Company is a Sick Company within the meaning of sub-section (1) of
section 3 of the Sick Industrial Companies (Special Provisions) Act, 1985.
The Company had made a reference to the BIFR under section 15 of the Act,
who ordered winding up of the Company. The Company's appeal to the AAIFR
against the winding up order was also dismissed. The Company filed a writ
petition in the High Court of Karnataka against the order of the BIFR and
AAIFR. The petition has been dismissed, as the Company has since discharged
its liabilities to SIPCOT and TIIC.
12. The other provisions of the order do not seem to be applicable to the
Company for the period.
For M.A. NARAYAN & Co.
(Firm Regn. no. 002361S)
Place: Bangalore M.G. GURURAJA RAO
Date : 6th August, 2011 Mem. No. 021261