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Valley Abrasives Ltd.

BSE: 513715 Sector: Engineering
NSE: N.A. ISIN Code: INE904E01017
BSE 05:30 | 01 Jan Valley Abrasives Ltd
NSE 05:30 | 01 Jan Valley Abrasives Ltd

Valley Abrasives Ltd. (VALLEYABRASIVES) - Auditors Report

Company auditors report

VALLEY ABRASIVES LIMITED ANNUAL REPORT 2005-2006 AUDITORS' REPORT TO THE MEMBERS OF M/S. VALLEY ABRASIVES LIMITED We have audited the attached Balance Sheet of M/s. VALLEY ABRASIVES LIMITED as at 31st March 2006 and also 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 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 (Auditor's Report) Order 2003 ('the Order') issued by the Central Government of India in terms of sub-section (4A) of section 227 of the Companies Act, 1956 we enclose in the Annexure a statement on the matters specified in paragraph 4 and 5 of the said Order. Further to our comments in the Annexure referred to 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 Audit: (ii) 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 those books. (iii) The Balance sheet and Profit and Loss Account dealt with by 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 sub-section (3C) of section 211 of the Companies Act, 1956 except mention in the point 6 of schedule 16 of the Balance Sheet. (v) As per information and explanation given to us and we report that none of the directors is disqualified as on March 31st March 2006 from being appointed as a director in terms of clause (g) of sub-section(1) of section 274 of the Companies Act, 1956. (vi) In our opinion and to the best of our information and according to the explanations given to us, the said accounts 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: (a) In the case of the Balance Sheet, of the state of affairs of the Company as at 31st March 2006; and (b) In the case of the Profit and Loss Account, of the loss of the company for the year ended on that date. For AGRAWAL RUNGTA & CO. Chartered Accountants BINOD KUMAR RUNGTA Proprietor Membership No.: 55047 Place: Kolkata Date : 21st August, 2006. ANNEXURE TO THE AUDITOR'S REPORT (Referred to in our Report of even date) I. The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets. II. As explained to us, the assets have been physically verified by the management during the year. In our opinion the frequency of verification is reasonable and no material discrepancies have been noticed on such physical verification. III. The Company has not disposed off any part of the fixed assets during the year. IV. The inventories have been physically verified by the management during the year at reasonable intervals. V. 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 nature of its business. VI. The Company has maintained proper records of inventories and discrepancies noticed on physical verification of inventories as compared to book records were not material. VII. According to the information and explanation given to us, the company has neither granted nor taken any loan to and from companies, firm or other parties covered in register maintained under section 301 of the Companies Act 1956. VIII. In our opinion there are adequate internal control procedures commensurate with the size of the Company and the nature of its business with regard to purchase of inventories, fixed assets and for the sale of goods. IX. According to the information and explanations provided by the Management, we are of the opinion that there are no transaction that need to be entered in to the register maintained under sec 301 of the Companies Act, 1956. Accordingly clause 4(v)(b) of the aforesaid order is not applicable. X. According to the information and explanations given to us, the company has not accepted any deposit from public, hence the provisions of section 58A and 58AA of the companies Act, 1956, Companies (Acceptance of Deposits) Rules, 1975 and directives issued by the Reserve Bank of India in this respect, are not applicable. XI. The Company has an adequate internal audit system commensurate with its size and nature of its business. XII. The Central Government has not prescribed maintenance of cost records under section 209(1)(d) of the Companies Act, 1956 for the Company. XIII. According to information and explanations given to us, the company is regular in depositing with appropriate authorities undisputed statutory dues including provident fund, investor education protection fund, Employee's state Insurance, Income Tax, Sales Tax, Wealth Tax, Custom Duty, Excise Duty, Cess and other statutory dues during the year as applicable to it. XIV. The company have accumulated losses as at the end of the year Rs.7,81,39,626.97 and the company has incurred loss during the financial year covered by our audit and the immediately preceding financial year. XV. The company has no dues to financial institution or bank or debenture holders. XVI. The Company has not granted any loans or advances on the basis of security by way of pledge of shares, debentures or other securities. XVII. In our opinion the company is not a chit fund or a nidhi/mutual benefit fund/society. Therefore the provisions of clause XIII of paragraph 4 of the aforesaid Order are not applicable to the Company. XVIII. According to the information and explanations given to us, the Company has not given any guarantee for loans taken by others from banks and financial institutions. XIX. The Company has not taken any term loan during the year. XX. According to the information and explanations given to us and on an overall examination of the balance sheet of the company, we report that no funds raised on short-term basis have been used for long-term investment and vice-versa. XXI. 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. XXII. The company has not issued any debentures during the year. Therefore, the provisions of clause of paragraph 4 of the aforesaid order in our opinion is not applicable to the company. XXIII. The Company has not raised any money by way of public issues during this year. XXIV. On the basis of our examination and according to the information and explanations given to us, no fraud on or by the Company, has been noticed or reported during the year. XXV. The Company is a Sick Industrial Company within the meaning of Clause (O) of Sub section (1) of Section 3 of the Sick Industrial Companies (Special Provisions) Act 1985. A reference has been made to The Board for Industrial and Financial Reconstruction for the revival of the Company on 7th July 1997 and recorded as Case No. 155/97(IV). For AGRAWAL RUNGTA & CO. Chartered Accountants BINOD KUMAR RUNGTA Proprietor Membership No.: 55047 Place: Kolkata Date : 21st August, 2006.
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