PADMANABH ALLOYS AND POLYMERS LIMITED
ANNUAL REPORT 2010-2011
1. We have audited the attached balance sheet of Padmanabh Alloys &
Polymers Ltd. as at March 31, 2011 and also the Profit and Loss Account 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.
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 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 Company (Auditors' Report) Order, 2003 issued by the
Central Government in terms sub section (4A) of Section 227 of the
Companies Act, 1956, we 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 purpose of the audit;
ii. 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 these books;
iii. The Balance Sheet and Profit and Loss Account and Cash flow Statement
referred to in this report are in agreement with the books of accounts;
iv. In our opinion, the Balance Sheet and Profit and Loss Account dealt
with by this report comply with accounts standards referred to in sub-
section (3C) of Section 211 of the Companies Act, 1956;
v. On the basis of the 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 March 31,2010 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 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
a. In so far as it relates to the Balance Sheet, of the state of affairs of
the Company as at March 31,2011;
b. In so far as it relates to the Profit & Loss Account, of the profit for
the year ended on March 31,2011;and
c. In so far as it relates to the Cash Flow Statement, of the cash flows
for the year ended on that date.
For Nilkanth Desai & Associates
Place: Surat [N.P. Desai]
Date : 05/09/2010 Proprietor
ANNEXURE TO THE AUDITOR'S REPORT:
(Referred to in Paragraph (3) of our report of even date).
1. a) The Company has maintained proper records showing full particulars
including quantitative details and situations of fixed assets
b) All the fixed assets have not been physically verified by the management
during the year but there is regular program for verification, which in our
opinion is reasonable having regards to the size of the Company and nature
of its assets. The Company has substantially completed the reconciliation
of its physical inventory of Fixed Assets with the book records. No
material discrepancies were noticed on physical verification
c) During the year, Company has not disposed off any substantial/major part
of fixed assets.
2. a) As explained to us, inventory has been physically verified during the
year by the management. In our opinion frequency of verification is
b) In our opinion and according to information and explanation given to us
and on the basis of our examination the procedure of physical verification
of inventory followed by the management is reasonable and adequate in
relation to size of the Company and the nature of its business.
c) In our opinion and according to information and explanation given to us
and on the basis of our examination of records inventory, the Company is
maintaining proper records of inventory. The discrepancies noticed on
physical verification of inventory as compared to the book records were not
material and have been properly dealt with in the books of accounts.
3. a) The company has taken unsecured loans of Rs.29.16 Lacs from 6
directors listed in the Register maintained under 301 of the Companies act,
1956; however company has not granted any loan to parties listed in
register maintained under section 301;
b) In our opinion, the rate of interest and terms and conditions on which
loans have been taken are not prejudicial to the interest to company.
c) According to information and explanation given to us, in our opinion,
parties from whom the loans and advances in the nature of loans have been
taken, where stipulations are made, the company is regular in repayment of
the principal amount and interest as stipulated.
d) According to information and explanation given to us, in our opinion,
there is no overdue amount of loans taken from the parties listed in the
Register maintained under section 301 of the Companies Act, 1956.
4. In our opinion and according the information and explanation given to us
there is an adequate internal control procedure commensurate with the size
of the Company and nature of its business with regard to the purchase of
inventory and fixed assets, and with regards to the sale of goods. During
the course of our audit, no major weakness has been noticed in the internal
5. a) In our opinion, and according to information and explanation given to
us, all the transaction that need to the entered into the register
maintained in pursuance of section 301 of the act have been so entered;
b) As per the examination of records and according to information and
explanations given to us the transaction made in pursuance of contract or
arrangement entered in the register maintained under section 301 exceeding
the value of five lakhs rupees during the year have been made at prices
which are reasonable having regard to prevailing market prices at the
6. According to information and explanation given to us, in our opinion,
the company has complied with the provisions of section 58A and 58AA of the
Companies Act, 1956 and the Companies (Acceptance of deposits) Rules, 1975
with regard to the deposits accepted from the public. No order was passed
by the National Company Law Tribunal.
7. According to information and explanation given to us, in our opinion,
Company has internal audit system commensurate with the size of Company and
nature of its business.
8. We have been informed by the management that no cost record have been
prescribed by the Central Government under section 209(1)(d) of the
companies act, 1956 in respect of products manufactured by the Company.
9. a) As per the records of the Company, the company is generally regular
in depositing with appropriate authority undisputed statutory dues
including income tax, excise duty, cess and other statutory dues applicable
to it except public provident fund and VAT where there was delay in
depositing with appropriate authorities. [GST Payable for 2005-06 Rs.7733 &
CST Payable for 2005-06 Rs.207990,]
b) According to information and explanation given, there was no disputed
amounts payable in respect of income tax, wealth tax, sales tax, customs
duty and excise duty there was no outstanding, as at 31/03/2011 for the
period of more than six months.
10. The Company has accumulated losses of Rs.367.94 Lacs in excess of 50%
of its net worth and company has incurred profit during the current year or
Rs.64.88Lacs(Previous year Profit of Rs. 15.49 Lacs) and cash Profit of
Rs.81.69 Lacs(Previous year of Rs.32.40 Lacs)
11. Based on our audit procedure and on the basis of information and
explanations given by the management, we are of the opinion that the
company has not defaulted in repayments of dues to financial institutions
12. As per the records of the company, the company has not granted any
loans and advances on the basis of security by way of pledge of shares,
debentures or other securities.
13. According to information and explanation given to us, we are of the
opinion that the company is neither a chit fund nor a nidhi/mutual benefit
society. Hence in our opinion, the requirements of para 4(xiii) of the
order do not apply to the Company.
14. As per the records of the company and the information and explanation
given to us by the management the company is not dealing in shares,
securities, debentures and other investment.
15. According to information and explanation given to us, as per the
records of the company, the company has not given any guarantee for loans
by others from bank or financial institutions.
16. To the best of our knowledge and belief and according to information
and explanation given to us, No term loan was obtained by the Company
during the period under review.
17. According to information and explanation given to us; on 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 by the
company. No long term funds have been used to finance short term assets
except permanent working capital.
18. The company has not made any preferential allotments to the parties and
companies covered under register maintained under section 301 of the
companies act, 1956.
19. As per the records of the company the company has not issued any
20. The company has not raised money by any public issues during the year.
21. Based upon the audit procedure performed and information and
explanations given by the management, we report that no frauds on or by the
company has been noticed or reported during the course of our audit.
For Nilkanth Desai & Associates
Place: Surat [N.P. Desai]
Date : 05/09/2010 Proprietor