GARLON POLYFAB INDUSTRIES LIMITED
ANNUAL REPORT 2007-2008
M/S GARLON POLYFAB INDUSTRIES LIMITED,
We have audited the attached Balance Sheet of M/S GARLON POLYFAB INDUSTRIES
LIMITED., as at 31st March, 2008 and also the Profit & Loss A/c 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.
We have conducted our audit in accordance with auditing standards generally
accepted in India. Those Standards require that we plan and perform the
audit 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 companies (Auditor's Report) Order, 2003 issued
by the Central Government of India in terms of Sub-section (4A) of
section 227 of the companies Act, 1956 and on basis of sub checks of
the books and records of the Company as we considered appropriate, and
according the information given to us during the course of audit, separate
annexure hereto a statement matters specified in paragraph 4 & 5 of the
said order to the extent applicable to the company.
4. Further to our comments in the Annexure referred to above, We state
(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
(b) 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 such books.
(c) The Balance Sheet and Profit and Loss account referred to in this
report are in agreement with the books of account.
(d) In our opinion the Balance Sheet and Profit and Loss account comply
with the mandatory Accounting Standards referred to sub-section (3C) of
Section 211 of the Companies Act, 1956.
e) On the basis of written representations received from the Directors,
as on 31st March 2008, and taken on record by the Board of Directors.
We report that none of the Directors is disqualified as on 31st March
2005 from being appointed as a director in terms of clause (g) of sub-
section (1) of section 274 of the Companies Act, 1956.
f) In our opinion and to the best of our information and according to the
explanations given to us, the said accounts, read together with the
Significant Accounting Policies and notes thereon given 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.
(i) In the case of Balance Sheet, of the state of affairs of the company
as at 31st March 2008; and
(ii) In the case of the Profit & Loss Account of the Profit for the year
ended on that date.
FOR, P.D. AGRAWAL & CO
ANNEXURE REFERRED TO IN PARAGRAPH (1) OF OUR REPORT OF EVEN DATE ON THE
ACCOUNT FOR THE PERIOD ENDED ON 31ST MARCH, 2008:
1. a. The company has maintained proper records to showing full particulars
including quantitative details and situation of fixed assets on the basis
of available information.
b. As explained to us, the fixed assets have not been physically verified
by the management during the period but there was regular programme of
verification till the date of acquisition of factory by UPFC as given in
Note No.10 which in our opinion was reasonable having regards to the size
of the company and the nature of its business. No material discrepancies
were noticed on such verification.
c. The Company has not been disposed off any fixed assets of the Company
during the period.
2. a. As explained to us, the inventory of the company has been physically
verified during the year by the management.
b. In our opinion and according to the information and explanations given
to us, the procedure of physical verification of inventories followed by
the management is reasonable and adequate in relation to the size of the
company and the nature of its business.
c. The company has maintained proper records of Inventories as explained to
us there were no material discrepancies were noticed on physical
verification of inventory as compared to books records.
3. a. According to the information and explanations given to us by the
company has not granted any loans, secured or unsecured to companies,
firms or other parties listed in the Registers maintained u/s defined
under section 301 and/or the Companies under the same management as defined
under sub-section (1B) of section 370 of the Companies Act, 1956.
b. According to the information and explanations given to us by the company
has not taken any loans, secured or unsecured from the companies, firms
or other parties listed in the registers in the maintained under section
301 and/or the Companies under the same management as defined under sub-
section (1B) of section 370 of the Companies Act, 1956. Except interest
free loans of Rs. 1,98,171.24 from five parties the deferrers and their
relatives of directors as unsecured loans.
4. In our opinion and according to the information and explanations given
to us, there is adequate internal control procedures commensurate with the
size of the Company and nature of its business, with regard to purchase of
inventory and fixed assets and with regard to the sale of goods. During the
course of our audit, We have not observed any major weaknesses in internal
5. In our opinion and according to the information and explanations given
to us, there were no transactions in pursuance of contracts of arrangement
entered in the register maintained under section 301 of the company Act,
1956 as aggregating during the period to Rs. 5 lacs only or more in respect
of any parties.
6. The Company has not accepted any deposits from the public as defined
under section 58-A of the companies Act, 1956 and the companies (Acceptance
of Deposit) Rules, 1975 except Rupees ten lacs from Mr. Prasant Saraf for
payment of SBI, IFB, C/C loan in the year 2004-05.
7. The Company has not an internal audit system commensurate with the size
and nature of its business.
8. To the best of our knowledge and as explained the Central Government has
not prescribed maintenance of cost records under clause (d) of sub-section
(1) of section 209 of the companies Act, 1956 for the products of the
9 a. According to the information and explanations given to us on the and
on the basis of our examination of books of accounts, the company is
regularly depositing undisputed statutory dues including providend fund,
investor education and protection fund, employees state insurance income
tax, wealth tax, sales tax custom duty, excise duty cess and other
statutory dues wherever applicable during the year with appropriate
authorities, the investor production fund, employees state insurance,
wealth tax, sales tax, customs Duty, excise duty and cess does not apply to
the company during the year.
b. According to the information and explanations given to us on the and on
the undisputed amounts payable in respect of income tax, wealth tax, sales
tax custom duty, excise duty were outstanding, as at last day of from the
the financial period concerned for a period of more than six months from
the date they become payable.
10. Company accumulated losses of the Company at the end of the financial
year are more than of fifty 50% of its net worth and the company has not
been in operation since, 1998.
11. According to the information and explanations given to us and on basis
of our examination of books of the accounts, the company has defaulted in
repayment of dues to U.P.F.C. due to non-operating of the business. The
outstanding balance at the end of the period is Rs. 588.62 lacs including
interest accrued and due. There are no debenture holders of the company.
12. According to the information and explanations given 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, hence the questions of
maintenance of documents and records does not arise.
13. According to the information and explanations given to us, the company
is not a Chit Fund /Nidhi/ Mutual benefit fund / Society.
14. The company is not dealing or trading in shares, securities, debentures
or other investments.
15. According to the information and explanations given to us. The company
has not given any guarantee for loans taken by others from banks and
16. According to the information and explanations given to us. The company
has not taken any loans during the year.
17. According to the information and explanations given to us, or and come
across any instance where funds raised during the year on short-term basis
have been used for long-term investments and vise versa.
18. During the year, the company has not made any preferential allotment
19. The company did not have outstanding debentures during the year,
accordingly, the question of creating any securities for the same does not
20. The company has not raised any money by way of public issue during the
21. According to the information and explanation given to us, no fraud, on
by the company, has been noticed or reported during the year.
FOR, P.D. AGRAWAL & CO