SHREE JAGDAMBE PAPER MILLS LIMITED
ANNUAL REPORT 2007-2008
SHREK JAGDAMBE PAPER MILLS LTD.,
REGU ROAD, SIRSA
We have audited the attached Balance Sheet of M/s Shree Jagdambe Paper
Mills Ltd.,Sirsa as at 31st March, 2008 and the Annexed Profit. & Loss
Account of the Company for the year ended on that, date annexed thereto and
the 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 based
on our audit, and. report that:-
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 misste-ments. An audit includes examining, on a test
basis, evidence supporting the amounts and, disclosures in the financial
statements, An audit also includes assessing the accoutring 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' Report) Order, 2003 issued by
the Low Board in terms of section 227(4A) of Companies Act, 1956 and on the
basis of such checks of the books and records of the Company as we
considered appropriate, we give in the Annexure to Statement on the matters
specified in paragraph 4 and 5 of the said Order.
2. Further to our comments in. the Annexure referred to in paragraph (1)
above, we report as under:-
a) We have obtained all the information & 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
maintained by the Company, subject to Note No.(4), (5) & (6) of significant
Accounting Policies in Part (A) of Schedule 18 and Note 4 to 7 in Notes to
the Accounts of Part (B) of Schedule 18.
c) The Balance Sheet and Profit & Loss Account dealt with by this report
are in agreement with the books of accounts.
d) In our opinion the Balance Sheet and profit and loss account dealt by
this report are in compliance with the Accounting Standard referred under
section 211(3C) of the Companies Act, 1956.
e) Our observations/comments having adverse effects on the functioning of
the company have been made in thick wherever do they appear in the report.
f) On the basis, of the written representation, received from directors/ as
on 31st March, 2008 and taken on by the Board of Directors record no
director is disqualified as on 31st March, 2008 from being appointed as a
director in terms of clause (g) of Subsection (1) of section 274 of the
Companies Act, 1956.
In our opinion and to the best of information and according to the
explanations given, to us, the said accounts read together with the
accounting policies and notes apearing in Schedule 18 and subject to our
comments in Annexure-II give 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.
ii) In the case of the Profit & Loss Account of the Profit for the year
ended on 31st March, 2008.
iii) In the case of cash flow statement of the cash flows for the year
ended on that day.
FOR BHUDLADIA & COMPANY
PLACE : SIRSA
DATED : The 9th day of July, 2008.
ANNEXURE-I TO THE AUDITOR'S REPORT
(Referred to in paragraph-1 of the Report of even date on the statement of
accounts of M/s Shree Jagdambe Paper Mills Ltd., - Sirsa for the year ended
on 31st March, 2008).
1. a) The Company has maintained proper record showing full particulars
including quantitative details & situation of Fixed Assets.
b) We are informed that Fixed Assets have been physically verified by the
Management during the year and no material discrepancies was reveled on
c) In our opinion, the Company has not disposed off substantial part of
fixed assets during the year and therefore, do not affect, the going
2. a) Inventories (except stock with third party and in transit) have been
physically verified by the Management to the extent practicable at
reasonable intervals during the year or at the year end at all locations of
b) Procedures for physical verification of the inventories followed by the
Management are reasonable and adequate in relation to the size of the
company and nature of its business.
c) In our opinion the Company is maintaining proper records of inventory.
The discrepancies noticed on such verification as compared to the book
records were not material having regard to the size and nature of the
operations of the Company and have been properly adjusted in the books of
3. a) The Company has not granted any Loan, Secured or Unsecured to/from
Companies, Firms or other parties covered in the register maintained under
section 301 of the Companies Act, 1956.
b) Since there are no such loans, the Comments regarding terms and
conditions, receipt of the principal amount and interest thereon and
overdue amount are not required.
4. In our opinion and. according to the information and explanations given
to us, there are adequate internal control systems commensurate with the
size of the Company and the nature of its business for the purchase of
inventory, fixed assets and with regard to sale of goods and services.
Further on the basis of our examination of the books and record of the
Company carried out in accordance with generally accepted auditing
practices in India, we have neither come across nor have we been informed
of any instance of major weaknesses in the aforesaid internal control
5. a) Based upon the audit procedures applied by us and according to
information and explanations given to us, there are no particulars of
contracts or arrangements, that needed to be entered into the register
maintained under section 301 of the, Companies Act, 1956.
b) In our opinion, and according to the information and explanations given
to us, there are no transactions made in pursuance in contracts or
arrangements entered in the register maintained under section 301 of the
6. In our opinion and according to the information and explanations given
to us, we are of the opinion that the Company has not accepted any deposits
from the public under provisions of section 58A & 58AA or any other
relevant provision of the Companies Act, 1956 and Companies (Acceptance of
Deposits) Rule, 1975.
7. In our opinion, the Company has an internal audit system commensurate
with size and nature of its business.
8. We have broadly reviewed the books of accounts maintained by the company
pursuant to the order made by the Central Government for maintenance of
cost record under Section 2Q9(l)(d) of the Companies Act, 1956 and are of
the opinion that prima facie the prescribed accounts and records have been
maintained. We have how ever not made detailed examination of the record,
with a view to determine whether they are accurate or complete,
9. a) The Company has regularly deposited during the year statutory due
including provident fund, income-tax, wealth-tax, service tax, custom duty,
excise duty, cess and other statutory dues applicable to it with
b) According to the information and explanations given to us, and as per
books of records examined by us, there are no dues of income-tax, custom
duty, wealth-tax, and cess, which have not been deposited on account of any
10. There are no accumulated, losses of the Company at the end of the
financial year and in the immediately financial year.
11. According to the information and explanations given to us, and as per
books of records examined by us, the company has not defaulted in repayment
of dues to financial institutions, banks or debenture holders,
12. According to information and explanations given to us, 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. In our opinion the Company does not fall with in the category of chit
fund, nidhi/mutual benefit fund/society and hence the related reporting
requirement is not applicable.
14. According to the information and explanations & given to us, the
Company is not dealing or trading in shares, securities, debentures arid
other investments and hence the related reporting requirements are not
15. In our opinion, and according to the information and explanations given
to us, the Company has not given any guarantee against loans taken by
others from banks or financial institutions the terns arid conditions
whereof are prejudicial to the interest of the Company.
16. In our opinion, and according to the information and explanations
given to us, the term loan raised during the year by the company have
been applied for the purpose for which the said, loans were obtained
where such end use has been stipulated by the lenders.
17. According to the information, and explanations given to us and as per
the books of records examined by us, as on the date the Balance Sheet, the
funds raised by the Company on short term basis have not been applied for
long term investments. Long term funds have been partly applied for
financing core working capital in consonance with principles of sound
18. 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, 1956.
19. The Company has not raised any money by way of issue of debentures.
20. The Company has not raised any money by way of Public Issue during the
21. During the course of our examination of the books and records of the
Company carried out in accordance with the generally accepted auditing
practices in India, we have neither come across any instance of fraud on or
by the Company, noticed and reported during the year, nor have been
informed of such case by the management.
FOR BHUDLADTA & COMPANY
DATED: The 9th day of July, 2008.
ANNEXURE-TI TO THE AUDITORS REPORT
(Referred to in paragraph (2) of our report of even date to the share
holders of M/s Shree Jagdambe Paper Mills Ltd., Sirsa on the accounts for
the year ended on 31.03.2008)
i) Liability for gratuity and encashment, of leave has been accounted for
on cash basis.
ii) Interest on post office saving bank account has been accounted for on
ill) Since, it is not possible to ascertain with, reasonable accuracy the
quantum to be provided, for in respect of liabilities of taxes and other
unforeseen claim the same are continued to be accounted for on
iv) Balance in personal accounts are unconfirmed.
v) Stores & spares consumption and Salary/Wages include partly for repair
For BHUDLADIA & COMPANY
DATED: The 9th day of July, 2008.