DUJODWALA PAPER CHEMICALS LIMITED
ANNUAL REPORT 2011-2012
The Members of
Dujodwala Paper Chemicals Limited.
1. We have audited the attached Balance Sheet of DUJODWALA PAPER CHEMICALS
LIMITED as at 31st March 2012, the Statement of Profit and Loss and the
Cash Flow Statement 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.
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 the 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 Companies (Auditor's Report) Order, 2003 as amended
by the companies (Auditor's Report) (Amendment) order, 2004 (the Order)
issued by the Central Government of India in terms of section 227(4A) of
the Companies Act, 1956. We enclose in the annexure a statement on the
matters specified in paragraph 4 and 5 of the said order.
4. Further to our comments in the annexure referred to in paragraph (3)
above, we report that
(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 except otherwise stated.
(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 those Books.
(c) The Balance Sheet, the Statement of Profit and Loss and cash flow
statement dealt with by the report are in agreement with the Books of
Account of the Company.
(d) In our opinion, the Balance Sheet, Statement of Profit and Loss and
Cash flow statement dealt by this report comply with the Accounting
Standards referred to in Sub-section 211 (3C) of the Companies Act, 1956.
except AS-15 'Employee Benefits'
(e) In our opinion, and to the best of our information and according to the
explanation given to us, the said accounts subject to note no. 27of
financial statement regarding sales tax incentives of earlier years and
note no 28 of financial statement regarding employee benefit expenses, read
together with the accounting policies and other notes thereon, 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.
(a) In the case of Balance Sheet, of the state of affairs of the Company as
at 31st March, 2012 and
(b) In the case of the Statement of Profit and Loss, of the profits for the
year ended on that date and
(c) In the case of cash flow statement of the cash flows for the year ended
on that date.
For and on behalf of
A. P. SANZGIRI & CO.
Satish Kumar Gupta
Date : 30th August, 2012
ANNEXURE TO THE AUDITORS' REPORT
REFERRED TO IN OUR REPORT OF EVEN DATE TO THE MEMBERS OF DUJODWALA PAPER
CHEMICALS LIMITED AS AT 31st MARCH, 2012
1] (a) The Register of fixed Assets showing full particulars, including
details and situation of Fixed Assets has neither been updated nor
reconciled with the books of accounts.
(b) As the information and explanations given to us, all the assets have
not been physically verified by the management during the year, and any
discrepancies between Fixed Assets as compared to the books records cannot
be ascertained in the absence of updated fixed assets register.
(c) The company has not disposed off any substantial part of fixed assets
during the year, so as to affect the going concern status of the Company
2] (a) The inventory has been physically verified during the year by the
management. In our opinion, the frequency of verification is reasonable.
The inventories lying with outside parties have been confirmed by the
(b) The procedures of physical verification of inventories followed by the
management are reasonable and adequate in relation to the size of the
company and the nature of its business.
(c) The Company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stocks and the
book records were not material, and have been properly dealt with in the
books of accounts.
3] (a) The Company has not granted any secured or unsecured Loans to
Companies or other parties listed in the register maintained under section
301 of the Companies Act, 1956 and hence we do not offer any comment on
Para 4 (iii) (a), (b), (c) and (d) of Companies (Auditors Report) Order
(b) (i) The Company has taken interest free Unsecured Loans from a party
covered in the register maintained under Section 301 of the Act. The
maximum amount involved during the year is Rs. 21,27,00,714/- and year end
balance is Rs. 21,06,40,714/-.
(ii) In our opinion, other terms and conditions on which loans have been
taken from the party listed in the register maintained under Section 301 of
the Companies Act, 1956 are not prejudicial to the interest of the Company.
(iii) The Company is regular in repaying the principal amounts as
(iv) There is no overdue amount of loans taken from the party listed in the
register maintained under Section 301 of the Companies Act, 1956.
4] 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 its business with regard to purchases
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 weaknesses in internal controls.
5] According to the information and explanations given to us, there are no
contracts or arrangements the particulars of which are required to be
entered into the register in pursuance of Section 301 of the Act.
6] In our opinion and according to the information and explanations given
to us, the company has not accepted any deposits from the public and hence
the directives issued by the Reserve Bank of India and provisions of
sections 58A and 58AA of the Companies Act, 1956 and the Companies
(Acceptance of Deposits) Rules, 1975 are not applicable.
7] The Company has internal Audit System during the year but it needs to be
8] We have broadly reviewed the books of account maintained by the Company
Pursuant to the rules made by the Central Government under Section 209(1)
(d) of the Companies Act, 1956 in respect of the Company's products to
which the said rules are made applicable and are of the opinion that, prima
facie the prescribed accounts and records have been made and maintained.
9] (a) According to the records of the Company, the undisputed statutory
dues including provident fund, investor education protection fund,
employees' state insurance, income-tax, sales tax, wealth tax, custom duty,
excise duty, Cess and other material statutory dues to the extent
applicable to it have generally been deposited with the appropriate
authorities. Further as on 31st March, 2012 there were no undisputed dues
payable for a period of more than six months from the date they become
payable except income tax including FBT of Rs 38,31,844 for the AY. 2009-10
and income tax Rs.5,88,855/- for the A.Y. 2010-1 land Rs.91,86,523 for A.Y.
(b) According to the information and explanation given to us, the disputed
Income Tax and Central Excise liabilities, which have not been deposited,
are as given below. Apart from this there are no dues of sales tax, custom
duty, wealth tax, service tax, excise duty and Cess, which have not been
deposited on account of any dispute.
Name of the Year Amount Status
Income Tax 2001-2002 (A. Y.) 4,95,161 Not available.
Income Tax 2002-2003 (A. Y.) 2,90,1124 C.I.T. Appeal
Income Tax 2003-2004 (A. Y.) 1,21,169 Income tax Appellate Tribunal
Income Tax 2004-2005 (A. Y) 53,906 Income tax Appellate Tribunal
Income Tax 2005-2006 (A. Y.) 5,60,775 Income tax Appellate Tribunal
Income Tax 2006-2007 (A. Y.) 71,93,922 Income tax Appellate Tribunal
Central Excise 2004-05 to 2010-11 5,645,455 CESTAT
Central Excise 2010-11 to 2011-12 4,08,886 Deputy Commissioner
10] The Company has no accumulated losses and the Company has not incurred
cash losses during the financial year covered by our audit and the
immediately preceding financial year.
11] In our opinion and according to the information and explanations given
to us, the company has not defaulted in repayment of dues to a financial
institution, bank or debenture holders.
12] The Company has been granted loans and advances on the basis of
security by way of pledge of shares.
13] In our opinion, the company is not a chit fund or a nidhi /mutual
benefit fund/ society. Therefore, the provisions of clause 4(xiii) of the
Companies (Auditor's Report) Order, 2003 is not applicable to the company.
14] In our opinion, the company is not dealing in or trading in shares,
securities, debentures and other investments. Accordingly, the provisions
of clause 4(xiv) of the Companies (Auditor's Report) Order, 2003 are not
applicable to the company.
15] In our opinion and according to Information and explanation given to
us, company has not given any guarantee for loan taken by others from banks
or financial institutions.
16] In our opinion, the term loans have been applied for the purpose for
which they are raised.
17] According to the information and explanations given to us and on an
overall examination of the balance sheet of the Company and related
information made available to us, we report that no funds raised on short-
term basis have been used for long-term investment
18] The Company has not made preferential allotment of shares to a party
covered in the register maintained under Section 301 of the Companies Act,
1956 during the year.
19] The Company has not issued any Secured Debentures during the year.
20] According to the information and explanations given to us, the Company
has not raised any money by public issue during the year covered by our
21] Based upon the audit procedures performed and according to the
information and explanations given to us, no fraud on or by the Company has
been noticed or reported during the course of our audit.
For and on behalf of
A. P. SANZGIRI & CO.
Satish Kumar Gupta
Date : 30th August, 2012