KEDIA CHEMICALS INDUSTRIES LIMITED
ANNUAL REPORT 2005-2006
We have audited attached Balance Sheet of M/s. KEDIA CHEMICALS INDUSTRIES
LIMITED as on 30 June, 2006 and Profit and Loss Account for the period
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 conducted our audit in accordance with auditing principal, 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 mis-statement. 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.
1. As required by the Companies [Auditor's Report] order, 2003 issued by
the Central Government in terms of section 227[4A] of the Companies act,
1956 and on the basis of such checks as considered appropriate and
according to the information and explanations given to us during the course
of our audit, we enclose in the Annexure hereto a statement on the matters
specified in paragraph 4 & 5 of the said order.
2. Further to our comments in the Annexure referred to above, we report
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 audit.
b) In our opinion, proper books of accounts as required by law have been
kept by the company so far appears from our examination of such books.
c) The Balance Sheet and Profit and Loss Accounts and the Cash Flow
statement dealt with by the report referred to in this Report are in
agreement with the books of accounts.
d) In our opinion, the Balance Sheet and the Profit & Loss Account and the
Cash Flow statement referred to in this report comply with the Accounting
Standards referred to in sub section (3C) of Section 211 of the Companies
e) 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 30th June, 2006 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 Balance Sheet and the Profit and Loss
Account, read together with the notes thereon in schedule -O attached
hereto, subject to Note No.2 regarding amount credited to Capital Reserve,
Note No 3 Interest on Secured Loans from Bank., Regarding Note no 6 account
have been prepared on going concern basis , give the information required
and give a true and fair view in conformity with the accounting principles
generally accepted in India:
(a) In case of the Balance Sheet of the state of affairs of the company as
on 30th June 2006
(b) In case of the Profit and Loss Account of the 'Loss' of the company for
the period ended on that date, and
(c) In case of the cash flow statement, of the cash flow for the period
ended on that date.
For N.M. Dani & Co.
Naresh M. Dani
Dated: 2nd December, 2006
ANNEXURE REFERRED TO IN PARAGRAPH 3 OF OUR REPORT OF EVEN DATE:
The Companies (Auditor's Report) Order, 2003 ('the Order') was issued in
June 2003 and on the basis of such checks as considered appropriate and in
terms of the information and explanations given to us, we state as under:
1. (a) The company has not maintained proper records showing full
particulars including quantitative details and location of the Fixed
Assets. During the year the company has disposed off its plant &
machineries during the year substantial , thereby affecting going concern
(b) During the year end the company has carried out physical verification
of the remaining fixed Assets of the company. However since the company has
not maintained records, we are unable to make any comments on any
discrepancies about physical and book fixed assets.
(c) The company has disposed off remaining its plant & Machineries during
the year and as informed to us by the management ,it will be not be
affecting the going, concern assumption.
2. At the year end the company has no closing stocks and hence question of
physical verification, procedure of physical verification and method of its
valuation does not arise.
3. The company lias not granted nor taken any secured or any loan from/to
the company, firm or other parties listed in the register maintained under
section 301 of the Act.
4. There was no internal control system.
5. The company has not maintained register as required under Section 301 of
the Act, and hence we are unable to comment any contract / arrangement have
been made at the prevailing market price at the relevant time.
6. The company has not accepted any deposit during the year and have
provision of section 58A or 58AA or rules framed there under does not
7. According to information and explanation given to us, the company has no
internal audit system.
8. We are informed that the maintenance of cost records has not been
prescribed by the Central Government under section 209(1)(d) of the
Companies Act, 1956 in respect of Company's procedure.
9. According to information and explanation given to us, the company has no
employees during the year under the audit and hence question of depositing
Provident Fund & ESIC dues does not arise. However, there are no dues in
respect of Income-tax, Wealth-tax, Excise duty, Cess payable by the
10. The company has incurred 'Cash Loss' during the year. It has not
incurred 'Cash Loss' in the immediately proceeding period and the
accumulated losses in the Balance Sheet as on 30 June, 2006 exceeds more
than 50% of its net worth of the company.
11. The company has not defaulted during the year in repayment of due to
the banks in respect to principal amount and interest.
12. The company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
13. As the company is not a chit fund, nidhi, mutual benefit fund or
society the provisions of ' clause 4 (xiii) of the Companies (Auditor's
Report) Order, 2003 is not applicable to the company.
14. As the company is not dealing or trading in shares, securities,
debentures and other investments, the provision of clause 4 (xiv) of the
Companies (Auditor's Report) Order, 2003 is not applicable to the company.
15. The company has not given any guarantees during the year.
16. According to the information and explanations received, the Company has
not applied short term borrowings for the long term use and vise versa.
17. The company has not made any preferential allotment of shares during
18. The company has not issued any debentures during the year.
19. The company has not raised any money by way of public issue during the
20. As per the information and explanation given to us no material fraud on
or by the company has been noticed during the year.
For N.M. Batai & Co.
Naresh M. Dani
Date : 2nd December, 2006