RADIANT ROTOGRAVURE LIMITED
ANNUAL REPORT 2003-2004
1. We have audited the attached Balance Sheet of M/s. Radiant Rotogravure
Ltd. as at 31st March, 2004, the related Profit and Loss Account and Cash
Flow Statement for the year ended on that date, annexed thereto, which we
have signed under reference to this report. 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 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 the
management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis of our
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 the
'Companies Act, 1956' (the 'Act') 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 vide paragraph 3
above, we report that :-
(i) We have obtained all the information and explanations, which to the
best of our knowledge and belief, were necessary for the purposes of our
(ii) In our opinion, proper books of account as required by law have been
kept by the Company, so far as it appears from our examination of such
(iii) The Balance Sheet, Profit and Loss Account and Cash Flow Statement
referred to in this report are in agreement with the books of account;
(iv) 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 Act;
(v) On the basis of written representations received from the directors, as
on 31st March, 2004, and taken on record by the Board of Directors, we
report that none of the directors is disqualified as on 31st March, 2004
from being appointed as a director in terms of Section 274(1)(g) of the
(vi) In our opinion and to the best of our information and according to the
explanations given to us, the said accounts together with significant
accounting policies and other notes thereon/attached thereto give in the
prescribed manner the information required by the Act and also 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, 2004;
(b) in the case of the Profit and Loss Account, its Loss for the year ended
on that date; and
(c) in the case of the Cash Flow Statement, of the cash flows for the year
ended on that date.
For R.C. JHAWER & CO.
Kolkata (R.C. JHAWER)
The 27th August, 2004 Proprietor
ANNEXURE TO AUDITORS' REPORT
Annexure referred to in Paragraph 3 of the Auditor's Report of Even Date to
the Members of M/s. Radiant Rotogravure Ltd.
i) a) The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
b) Fixed Assets of the company have been physically verified by the
management which in our opinion is reasonable having regard to the size of
the Company and the nature of its fixed assets.
c) In our opinion, and according to the information and explanations given
to us, a substantial part of fixed assets has not been disposed off by the
Company during the year.
ii) a) The inventories have been physically verified during the year by the
management. In our opinion, the frequency of verification is reasonable.
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) In our opinion and according to the information and explanations given
to us, 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 account.
iii) As informed to us, the Company has neither granted nor taken any
loans, secured or unsecured to / from companies, firms or other parties
covered in the register maintained under section 301 of the Act and as such
sub-clauses (b), (c) and (d) are not applicable.
iv) In our opinion there are adequate internal control procedures
commensurate with the size of the Company and the nature of its business,
for the purchase of fixed assets. Further, on the basis of our examination
of the books and records of the company, and according to the information
and explanations given to us, we have neither come across nor have we been
informed of any continuing failure to correct major weakness in the
aforesaid internal control procedures.
v) According to the information and explanations provided by the
management, we are of opinion that they are transactions of purchases that
need to be entered into the register maintained under Section 301 of the
Act and exceeding the value of Rupees five lacs have been made at price
which are reasonable having regard to the prevailing market prices where
such market price are available with the company.
vi) In our opinion and according to the information and explanations given
to us, the Company has not accepted any deposits during the year from the
public under section 58A and 58AA of the Act and therefore, clause vi of
paragraph 4 of the aforesaid order is not applicable to the company.
vii) In our opinion, the Company's present internal audit system is
commensurate with its size and nature of business.
viii) 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 Act for the Company.
ix) a) According to the records of the Company, the Company is generally
regular in depositing undisputed statutory dues in respect of provident
fund, investor education and protection fund, employees' state insurance,
income tax, sales tax, wealth tax, custom duty, excise duty, cess and other
material statutory dues as applicable to it with the appropriate
authorities though there has been some delay in case of provident fund and
no payment has been made in case of employees' state insurance. According
to the information and explanations given to us, there are no undisputed
amounts payable in respect of income tax, wealth tax, sales tax, customs
duty and excise duty which were outstanding, at the year end for a period
of more than six months from the date they became payable, other than
certain disputed income tax dues in respect of which no dispute is pending,
have been indicated in Note 14 on schedule 14 to Accounts.
b) According to the information and explanations given to us and the
records of the Company examined by us, there are no dues outstanding of
sales tax, income tax, wealth tax, custom duty, excise duty and cess on
account of any dispute, other than the following :
Name of the Statute Nature of Amount Forum where
The dues Rs. Dispute is pending
Central Excise Act, 1944 Excise Duty, 1,62,54,806/- The Asst. Registrar
Penalty and CESTAT,
Fine thereon Eastern Zonal Bench
x) The Company have accumulated losses as at the end of the financial year
and has incurred cash losses in the current financial year and in the
immediately preceding financial year.
xi) As per books and records maintained by the Company and according to the
information and explanations given to us, the Company has defaulted in
repayment of dues to Banks and financial Institutions.
xii) 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.
xiii) In our opinion and according to the information and explanations
given to us, the nature of activities of the Company does not attract any
special statute applicable to chit fund and nidhi/mutual benefit fund/
xiv) Based on our examination of the records, we are of opinion that the
Company is not dealing in or trading in shares, securities, debentures and
other investments. Accordingly, the provisions of clause 4(xiv) of the
Order are not applicable to the Company.
xv) According to the information and explanations given to us and the
records examined by us, the Company has given corporate guarantees for
loans taken by its associate concerns from bank or financial institutions.
xvi) The Company has not taken any fresh Term Loans during the year. But
Bank and Financial Institutions have converted the overdrawn amount and
accrued interest due on cash credit limit and term loans upto 30th June
2003 into working capital term loan and funded interest term loan as per
rehabilitation package granted to the company.
xvii) On the basis of an overall examination of the Balance Sheet of the
company and according to the information and explanations given to us, in
our opinion funds raised on a short term basis have not been used for long
term investment and visa versa.
xviii) The Company has not made any preferential allotment of shares to
parties or companies covered in the register maintained under Section 301
of the Act.
xix) The Company did not have any outstanding debentures during the year.
xx) The Company has not raised any money through a public issue during the
year, however company have received advance against re-issue of forfeited
xxi) Based upon the audit procedures performed and 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 year.
For R.C. JHAWER & CO.
Kolkata (R.C. JHAWER)
The 27th August, 2004 Proprietor