SHAMROCK INDUSTRIAL COMPANY LIMITED
ANNUAL REPORT 2007-2008
THE MEMBERS OF
SHAMROCK INDUSTRIAL COMPANY LIMITED
1. We have audited the attached Balance Sheet of SHAMROCK INDUSTRIAL
COMPANY LIMITED as at 31st MARCH 2008. the profit and Loss Account for the
year ended on that date annexed there to. These financial statements are
the responsibility of the Company's management. Our responsibility is to
express ail opinion oil these financial statements based on our audit.
2. We have 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 also
includes examining, on it test basis, evidence supporting the amount, 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 tile 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, we enclose in the Annexure it statement on the
matters specified in paragraph 4 and 5 of the said order.
4. Further to our comments in the Annexure referred to above the report
(a) We have obtained all the information and explanations which to the best
of our knowledge and belief were necessary for the purposes of our audit.
(b) In our opinion proper books of accounts as required by law have been
kept by the Company so far as appears from our examination of the books.
(c) The Balance Sheet, Profit & Loss Account and Cash Flow Statement dealt
with this Report are in agreement with the books of accounts of the
(d) The accounts of the company have been prepared on the basis of the
going, concern. However in view of long suspension of the Bulk Drug Project
of the Company and huge liabilities of the Financial Institutions and bank,
we are unable to express our opinion on its liability to continue as going
concern. In event of the same not being held to be going concern and
various assets and liabilities required to re-adjusted with respect to
their realizable value. The impact whereof has not been ascertained and
thereof cannot be commented upon by us.
(e) In our opinion the Balance Sheet Profit & Loss Account and cash flow
statement except as mentioned in the notes in the schedule 12. note no. 5
regarding non provision of interest payable on loan taken from the banks
comply with the mandatory accounting standards to the extent applicable
referred to in sub-section (3c) of the section 211 of the Companies Act,
(f) On the basis of written representations received from the directors,
and taken on record by the Board of Director, we report that, none of the
directors are disqualified as on 31st March, 2008 from being appointed as
directors in terms of clause (g) of subjection (I) of section 274 of the
Companies Act, 1956.
(g) Subject to our comments in para 4(d) above, in our opinion and to the
best of our information and according to the explanations given to us, the
said accounts read with 'NOTES' on accounts give the information required
by the Companies Act, 1956 in the manner so required and give true and fair
view in conformity with the accounting principle generally accepted in
i. In the case of Balance Sheet of the state of affairs of (he company as
at 31st MARCH, 2008.
ii. In the case of the Profit & Loss Account of the 'PROFIT' of the company
for the year ended on that date.
iii. In the case Cash Flow statement of the cash Flow for the year ended on
FOR DHARMESH M. KANSARA & ASSOCIATES
Dharmesh M. Kansara
Place : MUMBAI M.No. 120856
Date : 30/06/2008
ANNEXURE TO THE REPORT OF THE AUDITORS TO THE MEMBERS SHAMROCK INDUSTRIAL
COMPANY LIMITED ON THE ACCOUNTS FOR THE YEAR ENDED 31ST MARCH, 2008:
1. (a) The Company has maintained proper records to show full particulars
including quantitative details and situation of fixed assets.
(b) All the fixed assets of the company have been physically verified by
the Management at the end of the year and in our opinion the frequency of
verification is reasonable having regard to the size of the company and
nature of its assets. We are informed that no material discrepancies were
noticed by the management on such verification.
(c) The company has not disposed off any part of fixed assets during the
2. (a) The company has not granted any loans to the companies firms or
other parties covered in the register, maintained u/s 301 of the companies
(b) The rate of interest and other terms and conditions on which loans have
been taken by the company are not prima facie prejudicial to the interest
of the company.
(c) In respect of such loans taken by the company, where stipulations have
been made. They have generally repaid the principal amount as stipulated
and have been regular in payment of interest.
3. 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 business with regard to purchase of
inventory, fixed assets and with regard to the sale of goods. During the
course of our Audit, we have not observed any continuing failure to correct
major weakness in internal controls.
4. (a) In our opinion and according to the information and explanations
given to us, transactions that need to be entered into the register in
pursuance of section 301 of the Companies Act, 1956 have been so entered.
(b) According to the information and explanation given to us, there is no
transactions that have been made in pursuance of contracts or arrangements
entered in the register maintained u/s 301 of the Companies Act, 1956.
5. The company has not accepted any deposit from the public and as such the
provision of section 58A and 58 AB the Companies Act, 1956 and the rules
framed there under have no application to the company.
6. In our opinion the company has internal audit system commensurate with
the size and nature of the business.
7. The maintenance of cost records has not been prescribed in the case of
the Company for the period under section 209(1) (d) of the Companies Act,
8. (a) According to the records of the company, provident fund and
Employees' State Insurance have been deposited for the year with the
appropriate authorities as on the dale of this report. Further, MST of
Rs.8,775/- was not paid and MVAT for the year amounting to Rs.59.285/- has
not been deposited till the date of this report. As regards to Income-tax
on Income, wealth tax, custom duty and excise duty, according to the
information and explanations given to us, no undisputed amounts payable
were outstanding, at the year end for the period of more than six months
from the dale they became payable. Further the Company has not paid Fringe
Benefit Tax from the A.Y. 2006-2007.
(b) According to the records of the company and the information and
explanation given to us upon our inquiries in this regards disputed dues in
respect of Income Tax unpaid as at the last date of the financial year is
Statutes Forums before whom pending Amount
a. Block Assessment Tribunal 1,57,59,845/-
b. A.Y. 1998-99 Tribunal 8,12,215/-
c. A.Y. 2001-02 CIT(A) 31,45,337/-
d. A.Y. 2002-03 CIT(A) 8,60,588/-
e. A.Y. 1997-98 Tribunal 1,47,000/- (Approx.)
9. The Company has accumulated losses of Rs.6,76,74,739/- (Rupees Six
Crores Seventy Six Lacs Seventy Four Thousand Seven Hundred Thirty Nine
Only) at the end of the financial year and has made a cash profit in the
current financial year and there was Loss in the immediately preceding
10. On the basis of records examined by us and the information and
explanation given to us, the company has defaulted in repayment of dues to
the Dena Bank Rs.6,07,12,450/- and Rs. 2,61,44,596/- to Bombay Mercantile
Co-Op Bank since 31st March, 2001.
11. Based on our examinations of records and information and explanations
given to us, the company has not granted any loans or advances on the basis
of security by way of pledge of shares, debentures or other securities.
12. According to the information and explanations given to us, the company
has not given any guarantee for loans taken by others from banks and
13. According to the information and explanations given to us and an
overall examination of the Balance sheet of the Company, we report that no
funds raised on short terms have been used for long term investments. No
long term funds have been used to finance short term assets.
14. On the basis of our examination and according to the information and
explanations given to us, no fraud, on or by the company has been noticed
or reported during the year.
15. Looking to the nature of activities being carried on by the company
also considering the nature of matters referred to in various clauses of
the Companies (Auditors Report) Order, 2003 clauses (2), (13), (14), (16),
(18), (19) and (20) of paragraph of aforesaid order are in our opinion, not
applicable to the company.
FOR DHARMESH M. KANSARA & ASSOCIATES
[DHARMESH M. KANSARA]
Place : MUMBAI
Date : 30/06/2008