DUJOHN LABORATORIES LIMITED
ANNUAL REPORT 2009-2010
M/s. DUJOHN LABORATORIES Ltd.,
We have audited the attached Balance Sheet of M/s. DUJOHN LABORATORIES
LIMITED, as at 31st March,2010 and the annexed Profit and Loss Account and
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 bases
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 the management, as well as evaluating the
overall financial statement presentation. We believe that our audit
provides a reasonable basis for our opinion.
As required by the Companies (Auditor's Report) Order 2003 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 paragraphs 4 and 5 of the said order.
Further to our comments in the Annexure referred to 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 purpose of our
(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 such books.
(c) The Balance Sheet and the Profit & Loss Account referred to in this
report are in agreement with the books of account.
(d) In our opinion and to the best of our information the said Balance
Sheet and Profit & Loss Account and cash flow statement comply with the
Accounting standard referred to in section 211(3c) of the companies act,
(e) On the basis of written representations received from the directors, as
on 31st, March,2010 and taken on record by the Board of Directors, we
report that none of the directors is disqualified as on 31st March,2010
from being appointed as a director in terms of clause (g) of sub-section
(1) of section 274 of Companies Act, 1956.
(f) The Financial statement are prepared on a going concern basis even
though the company has substancial accumulated losses and has eroded its
net worth as explained in notes of accounts in para b.
(g) 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 gives a true and
fair view in conformity with the accounting principles generally accepted
i. In so far as it relates to the Balance Sheet, of the state of affairs of
the Company as at 31st March, 2010 and
ii. In so far as it relates to the Profit & Loss Account of the Loss of the
company for the year ended on that date,
iii. In the case of the cash flow statement, of the cash flow for the year
ended on that date.
Rao & Associates,
Date : 01/09/2010
ANNEXURE TO THE AUDITORS REPORT FOR THE YEAR ENDED ON 31st MARCH.2010
i) The Company has maintained proper records to show full particulars
including quantitative details and situation of fixed assets.
ii) A major portion of the fixed assets have been physically verified by
the management at reasonable intervals during the year and no material
discrepancies were noticed on such verification as compared with the
iii) None of the Fixed Assets of the company have been disposed off or
revalued during the year.
iv) The stock of finished goods, and raw materials have been physically
verified by the management during the year. In our opinion, the frequency
of verification is reasonable.
v) The procedure followed by the management for physical verification of
stocks is reasonable and adequate in relation to the size of the company
and the nature of its business.
vi) On our basis of examination of stock records, we are of the opinion
that the record of stocks is fair and proper in accordance with the
normally accepted accounting principle and no material discrepancies were
noticed on physical verification.
vii) There is certain loans taken by the company to/from companies, firm or
other parties covered in the register maintained u/s. 301 of the Co. Act,
1956 but the company has not given any loans to parties noted in the
Register maintained under section 301 and 370(1C) of the Co. Act, 1956.
However, there is no such type of transactions during the year under
viii) Interest free Loans and Advances in the nature of loans have been
given to employees and other parties who were generally regular in repaying
the principal as stipulated. Where there is delay in repayment, the company
has taken reasonable steps to recover the same. However, there is no such
type of transactions during the year under review.
ix) In our opinion and according to 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 for financial
x) According to the information and explanations provided by the
management, we are of the opinion that the particulars of contracts or
arrangements referred to in section 301 of the Act that need to be entered
into the register maintained under section 301 have been so entered.
xi) In our opinion and according to the information and explanations given
to us, the provisions of section 58-A of the Companies Act, 1956 and
Companies (acceptance of deposits) Rules, 1957 are not applicable as the
company has not accepted and deposits from the public.
xii) The company does not have any formal system of internal audit. However
in our opinion and according to information and explanations given to us,
the internal control procedures are adequate considering the size and
nature of business of the Company.
xiii) The Provisions of section 209(l)(d) of the Companies Act, 1956
regarding the maintenance of cost records are not applicable to the
xiv) As informed to us the provision of Provident Fund Act, Employees State
Insurance Act provisions of investor education and protection fund, customs
duty, excise duty and cess are not applicable to the Company during the
year under review due to closure of factory premises.
xv) According to the records of the Company, the P.F. dues amounting to Rs.
8,34,634/- relating to F.Y. 2002-03 have not been deposited with the
P.F.Authorities. Similarly according to the information given to us, the
company has not deposited E.S.I, amounting to Rs. 2,51,458/- relating to
xvi) According to the information and explanations given to us there were
undisputed amount payable in respect of Income Tax amounting to Rs. 3,70,
942/-, Sales Tax amount of Rs. 30,43,948/- and Excise Duty amount of
Rs.1,49,074/- which have remained outstanding as on 31st March,2010, for a
period of more than 6 months from the date they become payable.
(xvii) According to the information and explanations given to us and based
on the generally accepted audit procedures carried out by us no personal
expenses of employees or directors have been charged to Revenue Account,
other than those payable under contractual obligations or in accordance
with generally accepted business practice.
xvii) The Company has accumulated losses at the end of the financial year
and it has incurred losses in the current and immediately preceding
xviii) Based on our audit procedures and as per the information and
explanations given by the management, we are of the opinion that the
Company has defaulted in repayment of dues to lending banker and also
defaulted to make statutory dues to P.P. Authorities, E.S.I. Authorities,
Sales Tax Authorities, Excise Duty Authorities.
xix) According to the information and explanations given to us and based on
the documents and records produced to us, the Company has not granted loans
and advances on the basis of security by way of pledge of shares,
debentures and other securities.
xx) The provisions of any special statute applicable to Chit Funds, Nidhi,
or Mutual Benefit Society/fund do not apply to the Company. Therefore, the
provisions of clause 4(xiii) of the Companies (Auditor's Report) Order,
2003 (as amended) are not applicable to the Company.
xxi) The Shares and other securities have been held by the Company, in its
own name as explained to us and proper records in respect thereof have been
xxii) According to the information and explanation given to us, the Company
has not given counter guarantee for loans taken by anybody.
xxiii) According to the information and explanations given to us and on an
overall examination of the balance sheet and cash flow statement of the
Company, we report that no funds raised on shortterm basis have been used
for long-term investment.
xxiv) The Company has not made any preferential allotment of shares to
parties or companies covered in the register maintained u/s 301 of the Co.
xxv) The Company did not have any outstanding secured debentures during the
xxvi) The Company has not raised any money through a public issue during
the year under review.
(xxviii) Based upon the audit procedures performed for the purpose of
reporting the true and fair view of the financial statements and as per the
information and explanations given by the management, we report that no
fraud on or by the Company has been noticed or reported during the course
of our audit.
(xxix) The Company is a sick Company as per the provisions of Sick
Industrial Companies (Special Provisions), Act, 1985.
Rao & Associates,
Date : 01/09/2010