KERALA RUBBER AND RECLAIMS LIMITED
ANNUAL REPORT 2010-2011
THE SHAREHOLDERS OF
THE KERALA RUBBER AND RECLAIMS LIMITED,
We have audited the attached Balance Sheet of KERALA RUBBER AND RECLAIMS
LIMITED, COCHIN as at 31st March 2011 and the Profit and Loss account 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 conducted our audit in accordance with the 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 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 (Auditors Report) Order 2003, issued by the
Central Government in terms of section 227 (4A) of the Companies Act, 1956
we attach in Annexure a statement on the matters specified in paragraph 4
and 5 of the said Order.
Further to our comments in Annexure referred to above, we report that:
1. 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.
2. 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.
3. The Balance Sheet and Profit and Loss Account dealt with by the report
are in agreement with the books of account.
4. In our opinion the Balance Sheet and Profit and Loss Account dealt with
by this report comply with the Accounting Standards referred to in Section
211 (3C) of the Companies Act, 1956 except AS-15 regarding not ascertaining
the leave encashment liability on actuarial basis.
5. On the basis of written representations received from the directors as
on 31.03.2011 none of the directors is disqualified from being appointed as
directors in terms of section 274(I)(g) of the Companies Act 1956.
6. In our opinion and to the best of our information and according to the
explanations given to us, the said accounts together with the schedules and
notes thereon, give the information required by the Companies Act, 1956 in
the manner so required, give a true and fair view in conformity with the
accounting principles generally accepted in India.
a) in the case of the Balance Sheet, of the state of affairs of the company
as at 31st March, 2011 and
b) in the case of Profit and Loss Account, of the PROFIT for the year ended
on that date.
For R G N PRICE and CO.
Place: Cochin Partner
Date : 02.09.2011 M.No.23933
ANNEXURE TO THE AUDITOR'S REPORT REFERRED TO IN PARAGRAPH 1 OF OUR REPORT
OF EVEN DATE
1. Fixed Assets
The company has maintained proper records showing full particulars
including quantitative details and location of fixed assets. The fixed
assets have been physically verified by the management during the year and
no material discrepancies have been noticed on such physical verification.
According to the information and explanation given to us, the company has
not disposed of substantial part of the fixed assets during the year.
The inventories have been physically verified by the management during the
year (other than scrap rubber) at reasonable intervals. The procedures of
physical verification of the inventories followed by the management are
reasonable and adequate in relation to the size of the company and the
nature of its business. The company is maintaining proper records of
inventories except for consumable stores, scrap rubber and customer
materials received for processing.
3. Loans and Advances
(a) The company had granted in the earlier years loans to two companies and
a firm in which directors are interested. The balance outstanding as on
31st March 2011 from these companies/firms was Rs.14.89 lakhs (Rs. 17.36
lakhs). The maximum amount outstanding at any time during the year was
Rs.17.36 lakshs (17.36 lakhs). There are no terms and conditions regarding
repayment of loans and charging of interest. In the absence of terms and
conditions we are unable to ascertain whether they are prima facie
prejudicial to the interest of the company and whether they are overdue.
(b) The company had taken further loan during the year from three directors
covered in the register maintained under Sec.301 of the Companies Act,
1956. The amount outstanding as on 31st March 2011 including loan taken in
earlier years amounted to Rs.30.94 lakhs (12.28 lakhs). There are no terms
and conditions regarding repayment of the same and charging of interest.
Hence we are unable to comment whether the terms and conditions are
prejudicial to the interest of the company.
4. Internal Control System
In our opinion and as per the information and explanations given to us,
there are adequate internal control systems commensurate to the size of the
company and nature of business with regard to purchase of inventories,
fixed assets and for sale of goods and services.
6. Interested transactions
a. The transactions that need to be entered in the register maintained
under Section 301 of the Companies Act, 1956 have been entered.
(b) In our opinion and according to the information and explanations given
to us, the transactions made in pursuance of contracts or arrangements
entered into with parties listed in the register maintained under Section
301 of the Companies Act and exceeding in value of Rs.5,00,000/- in respect
of each party have been made at prices which are reasonable, having regard
to prevailing market prices at the relevant time.
6. Fixed Deposits
The company has not accepted any deposits from the public to which the
provisions of section 58A, 58AA or any other relevant provisions of the
Companies Act, 1956 and the Companies (Acceptance of Deposit) Rules, 1975
7. Internal Audit
The company has an internal audit system, which in our opinion is
commensurate with size and nature of the business.
8. Cost Records
As per the information and explanation given to us, the Central Government
has not prescribed the maintenance of cost records, under section 209(1)(d)
of the Act read with the Companies (Cost Accounting Records) Rules 2011, in
respect to the company.
9. Statutory Dues
(a) The company was regular in depositing with appropriate authorities
undisputed statutory dues including Provident Fund, Employees State
Insurance, Income Tax and Customs Duty.
(b) According to the records of the Company, there are no disputed dues
payable in respect of Income Tax, Wealth Tax, Customs Duty, ED and Cess
outstanding at the close of the year.
10. Accumulated Losses
The Company has no accumulated losses at the end of financial year.The
company has not incurred any cash loss during the current financial year
and the immediately preceding financial year.
11. Repayment of Loans
In our opinion and according to the information and explanations given to
us, the company has not defaulted in repayment of interest and principal to
banks and financial institutions.
a) The Company has not granted loans and advances on the basis of security
by way of pledge of shares, debentures and other investments.
b) The company is not a Chit Fund or a Nidhi/ Mutual Benefit Fund/Society.
c) The company is not dealing in shares, securities, debentures and other
d) The company has not given guarantees for loans taken by others from
banks or financial institutions.
e) To the best of our information and according to the explanations given
to us the company has not utilized any short-term funds for long-term
f) The Company has not made any preferential allotment of shares to parties
and companies covered in the register maintained under Section 301 of the
Companies Act 1956 during the year.
g) The Company had not issued debentures during the year.
h) The Company has not made any public issues during the financial year.
i) According to the information and explanations given to us, no fraud, on
or by the Company, has been noticed or reported during the year.
For R G N PRICE and CO.
Place: Cochin Partner
Date : 02.09.2011 M.No.23933