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ఆడిటర్ నివేదిక Salem Textiles Ltd.
Mar 31, 2012
1) We have audited the attached Balance Sheet of M/s. SALEM TEXTILES
LIMITED as at 31st March 2012, and the Statement of Profit and Loss and
Cash Flow Statement for the year ended on that date annexed thereto.
These statements are the responsibility of the management of the
Company. Our responsibility is to express an opinion on these financial
statements based on our audit.
2) We conduct our audit in accordance with generally accepted auditing standards in India. These standards require that we plan and perform the audit to obtain reasonable assurance whether the financial statements are prepared, in all material respects, in accordance with an identified financial reporting framework and are free of material misstatements. 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.
3) As required by the Companies (Auditor's Report) Order, 2003 as amended by the Companies (Auditors' Report) (Amendment) Order, 2004 issued by the Central Government of India in terms of Sub-section (4A) of section 227 of the Companies Act, 1956, and on the basis of such checks as we considered appropriate, and according to the information and explanations given to us, we enclose in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the said order. Further, we report that:
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 account as required by law have been kept by the Company, so far as it appears from our examination of the books.
c) The Balance Sheet, Statement of Profit and Loss and Cash Flow Statement dealt with by this report are in agreement with the books of account.
d) In our opinion the Statement of Profit and Loss the Balance Sheet and Cash Flow Statement dealt with by this report comply with the accounting standards referred to in Sub-section 3C of Section 211 of the Companies Act, 1956.
e. On the basis of written representations received from the directors as on 31st March 2012 and taken on record by the Board of Directors, we report that all directors of the Company are disqualified from being appointed/ reappointed as director in other public Companies under clause g(B) of sub-section (1) of section 274 of the Companies Act, 1956 due to non payment of Redeemable Debenture, deposits and interest on due date.
f. In our opinion and to the best of our information and according to the explanations given to us, and subject to the Note No. 21 (A) (vii) (a to g) stated in the Notes on Accounts, We report that 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:
i. in the case of the Balance Sheet, of the state of affairs of the Company as at 31st March, 2012 and
ii. in the case of the Statement of Profit and Loss, of the Loss of the Company for the year ended on that date.
iii. in the case of Cash Flow Statement, of the Cash Flows of the Company for the year ended on that date.
ANNEXURE TO AUDITOR'S REPORT
The Annexure Referred to in the Auditor's Report to the members of the SALEM TEXTILES LIMITED (the Company) for the year ended 31st March, 2012. We report that:
I. (a) In our opinion, the Company is maintaining proper records to show full particulars including quantitative details and situation of the fixed assets.
(b) As explained to us, the Fixed Assets have been physically verified by the management during the year at reasonable intervals and no material discrepancies were noticed on such verification.
(c) There were no sale of any fixed assets during this year.
ii. (a) Inventories have been physically verified by the Management. In our opinion, the frequency of verification is reasonable.
(b) In our opinion, the procedures of physical verification of inventory followed by the management are reasonable and adequate in relation to the size of the Company and the nature of its business.
(c) The Company is maintaining proper records of inventory and no material discrepancies were noticed on such verification as compared to the book records.
iii. (a) During the year the Company has not taken loans, secured or unsecured, from Companies, firms or other parties listed in the register maintained under section 301 of the Act.
(b) During the year the Company has not granted loans, secured or unsecured, to Companies, firms or other parties listed in the register maintained under section 301 of the Act.
(c) In case of the loans accepted in earlier years no interest is charged. Other terms and conditions are not prima facie prejudicial to the interest of the Company.
(d) The Company is not regular in the repayment of principal of loans.
iv. In our opinion, there is adequate internal control system commensurate with the size of the Company and the nature of its business for the purchase of inventory and fixed assets and for the sale of goods and services. During the course of audit, no major weakness has been noticed in the internal control system.
v. (a) Based on the audit procedures applied by us and according to the informations and explanations provided by the management, we are of the opinion that the transactions that need to be entered into the register maintained under section 301 of the Act have been so entered.
v. (b) In our opinion and according to the information and explanations given to us, the transactions made in pursuance of contracts or arrangements entered in the register maintained u/s. 301 of the Act during the year are reasonable having regard to the prevailing market prices at the relevant time.
vi. The Company has not accepted any deposits from the Public from 01.04.1998. However in respect of deposits accepted before 01.04.1998, the Company has not complied with the provisions of section 58A of the Companies Act, 1956 and the Companies (Acceptance of Deposits) Rules 1975 with regard to the repayment of deposits and payment of interest.
With regard to the repayment of small deposits, the Company has intimated to the Company Law Board as per the provisions of section 58AA of the Act and also complied with the requirements of the Order passed by the Company Law Board.
vii. In our opinion, the Company has an internal audit system commensurate with its size and nature of its business.
viii. On the basis of the records produced, we are of the opinion that prima facie, the cost records and related accounts prescribed by the Central Government under section 209 (1) of the Act have been made and maintained by the Company. However, we have not made a detailed examination of such records and accounts with a view to determine whether these are accurate and complete.
ix. (a) In our opinion and according to the information and explanations given to us, undisputed statutory current dues including Provident Fund , Employee's State Insurance, Income Tax, Sales Tax, Excise Duty Cess etc., have been regularly deposited with the appropriate authorities. There are arrears of outstanding statutory dues as at 31.03.2012 for a period of more than 6 months from the date they become payable. The following are the particulars of undisputed dues.
Name of the Statute Nature of Dues Rs. in Period to which Lakhs the amount relates
Provident Fund Act Provident Fund 124.93 1998-99 to 2005-06
Employees State Employees State 67.33 1998-99 to 2005-06 Insurance Act Insurance
Income Tax Act Income Tax 13.94 1995-96 to 2003-04
Sales Tax Act Sales Tax 283.06 1998-99 to 2004-05
Excise Law Excise Duty 41.03 2001-02 to 2003-04
Customs Act Import Duty 16.80 1997-98
Panchayat Act Panchayat Tax 8.85 2008-09 to 2010-11
Cess Act Cess 11.61 1996-97 to 2005-06
ix. (b) As on 31.03.2012, according to the records of the Company, the following are the disputed dues on account of Income Tax, Sales Tax, Excise Duty, Customs Duty, Cess and other material statutory dues applicable to it that have not been deposited.
Name of Nature of Dues Amount Period to which Forum where Statute of the amount dispute is Demand relates pending net Rs. in Lakhs
TNEB Electricity Tax 55.51 From 2003-04 to High Court Peak Hour 2006-07 Chennai
Penalty 61.75 From Dec 08 to Do Aug 09
Excise Law Penalty 10.00 2003-2004 CESTAT, Chennai
Duty 4.18 2004-2005 C. Excise (Appeals) Penalty 4.18 Salem
Duty (Net) 7.85 1999-2000 CESTAT, Chennai Duty 7.70 2000-01 to - Do- 2001-02 Penalty 2.00
Duty 2.59 2001-02 - Do- Penalty 1.00
Duty 12.17 2001-02 to - Do- 2002-03 Penalty 2.00
Duty 4.99 Feb 2000 to - Do-
Penalty 4.99 Oct 2000
Customs Duty 52.15 1991-92 DGFT, DELHI Law
Penalty 40.91
Duty 54.15 DGFT, DELHI
Penalty 99.15
CESS ACT Yarn Cess 2.76 1995-96 to Assessing 2005-06 Officer, Textile Committee, Coimbatore
Income Tax FBT 8.03 2005-06 to Supreme Act 2008-09 Court New Delhi.
x. In our opinion, the accumulated losses of the Company are more than 50% of its net worth. The Company has incurred cash loss during the financial year covered by our audit.
xi. According to the information and explanations given to us, the - Company has defaulted in repayment of dues to Financial Institutions, Banks and Debenture Holders. The particulars are given below:
Lender Nature of Rs. in Period of Default Loan Lakhs
Financial Institutions Loans 3,105.57 1996-97 onwards
Banks Loans 4,608.95 1997-98 onwards
Debenture Holders Debentures 463.75 1998-99 onwards
xii. The Company has not granted during the year loans and advances on the basis of security by way of pledge of shares, debentures and other securities.
xiii. The Company is not a chit, nidhi/ mutual benefit fund/ society.
xiv. The Company is not dealing or trading in shares, securities, debentures and other investments
xv. In our opinion, the Company has not given guarantees for loans taken by others from Banks or Financial Institutions.
xvi. The Company has not borrowed any term loan during the year
xvii. There were no funds raised on short-term basis which have been used for long term investment and vice versa
xviii. There has been no preferential allotment of shares by the Company during the year to any party.
xix. The Company has not issued any debentures during the year.
xx. During the year the Company has not raised any money by public issues of shares or other securities
xxi. According to the information and explanations given to us, no fraud on or by the Company has been noticed or reported during the course of our audit.
For ELANGOVAN & NATARAJAN Chartered Accountants Firm Regn. No. 000799.S
S. ELANGOVAN Partner M. No. 24654
Place : Attur Date: 11.08.2012
2) We conduct our audit in accordance with generally accepted auditing standards in India. These standards require that we plan and perform the audit to obtain reasonable assurance whether the financial statements are prepared, in all material respects, in accordance with an identified financial reporting framework and are free of material misstatements. 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.
3) As required by the Companies (Auditor's Report) Order, 2003 as amended by the Companies (Auditors' Report) (Amendment) Order, 2004 issued by the Central Government of India in terms of Sub-section (4A) of section 227 of the Companies Act, 1956, and on the basis of such checks as we considered appropriate, and according to the information and explanations given to us, we enclose in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the said order. Further, we report that:
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 account as required by law have been kept by the Company, so far as it appears from our examination of the books.
c) The Balance Sheet, Statement of Profit and Loss and Cash Flow Statement dealt with by this report are in agreement with the books of account.
d) In our opinion the Statement of Profit and Loss the Balance Sheet and Cash Flow Statement dealt with by this report comply with the accounting standards referred to in Sub-section 3C of Section 211 of the Companies Act, 1956.
e. On the basis of written representations received from the directors as on 31st March 2012 and taken on record by the Board of Directors, we report that all directors of the Company are disqualified from being appointed/ reappointed as director in other public Companies under clause g(B) of sub-section (1) of section 274 of the Companies Act, 1956 due to non payment of Redeemable Debenture, deposits and interest on due date.
f. In our opinion and to the best of our information and according to the explanations given to us, and subject to the Note No. 21 (A) (vii) (a to g) stated in the Notes on Accounts, We report that 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:
i. in the case of the Balance Sheet, of the state of affairs of the Company as at 31st March, 2012 and
ii. in the case of the Statement of Profit and Loss, of the Loss of the Company for the year ended on that date.
iii. in the case of Cash Flow Statement, of the Cash Flows of the Company for the year ended on that date.
ANNEXURE TO AUDITOR'S REPORT
The Annexure Referred to in the Auditor's Report to the members of the SALEM TEXTILES LIMITED (the Company) for the year ended 31st March, 2012. We report that:
I. (a) In our opinion, the Company is maintaining proper records to show full particulars including quantitative details and situation of the fixed assets.
(b) As explained to us, the Fixed Assets have been physically verified by the management during the year at reasonable intervals and no material discrepancies were noticed on such verification.
(c) There were no sale of any fixed assets during this year.
ii. (a) Inventories have been physically verified by the Management. In our opinion, the frequency of verification is reasonable.
(b) In our opinion, the procedures of physical verification of inventory followed by the management are reasonable and adequate in relation to the size of the Company and the nature of its business.
(c) The Company is maintaining proper records of inventory and no material discrepancies were noticed on such verification as compared to the book records.
iii. (a) During the year the Company has not taken loans, secured or unsecured, from Companies, firms or other parties listed in the register maintained under section 301 of the Act.
(b) During the year the Company has not granted loans, secured or unsecured, to Companies, firms or other parties listed in the register maintained under section 301 of the Act.
(c) In case of the loans accepted in earlier years no interest is charged. Other terms and conditions are not prima facie prejudicial to the interest of the Company.
(d) The Company is not regular in the repayment of principal of loans.
iv. In our opinion, there is adequate internal control system commensurate with the size of the Company and the nature of its business for the purchase of inventory and fixed assets and for the sale of goods and services. During the course of audit, no major weakness has been noticed in the internal control system.
v. (a) Based on the audit procedures applied by us and according to the informations and explanations provided by the management, we are of the opinion that the transactions that need to be entered into the register maintained under section 301 of the Act have been so entered.
v. (b) In our opinion and according to the information and explanations given to us, the transactions made in pursuance of contracts or arrangements entered in the register maintained u/s. 301 of the Act during the year are reasonable having regard to the prevailing market prices at the relevant time.
vi. The Company has not accepted any deposits from the Public from 01.04.1998. However in respect of deposits accepted before 01.04.1998, the Company has not complied with the provisions of section 58A of the Companies Act, 1956 and the Companies (Acceptance of Deposits) Rules 1975 with regard to the repayment of deposits and payment of interest.
With regard to the repayment of small deposits, the Company has intimated to the Company Law Board as per the provisions of section 58AA of the Act and also complied with the requirements of the Order passed by the Company Law Board.
vii. In our opinion, the Company has an internal audit system commensurate with its size and nature of its business.
viii. On the basis of the records produced, we are of the opinion that prima facie, the cost records and related accounts prescribed by the Central Government under section 209 (1) of the Act have been made and maintained by the Company. However, we have not made a detailed examination of such records and accounts with a view to determine whether these are accurate and complete.
ix. (a) In our opinion and according to the information and explanations given to us, undisputed statutory current dues including Provident Fund , Employee's State Insurance, Income Tax, Sales Tax, Excise Duty Cess etc., have been regularly deposited with the appropriate authorities. There are arrears of outstanding statutory dues as at 31.03.2012 for a period of more than 6 months from the date they become payable. The following are the particulars of undisputed dues.
Name of the Statute Nature of Dues Rs. in Period to which Lakhs the amount relates
Provident Fund Act Provident Fund 124.93 1998-99 to 2005-06
Employees State Employees State 67.33 1998-99 to 2005-06 Insurance Act Insurance
Income Tax Act Income Tax 13.94 1995-96 to 2003-04
Sales Tax Act Sales Tax 283.06 1998-99 to 2004-05
Excise Law Excise Duty 41.03 2001-02 to 2003-04
Customs Act Import Duty 16.80 1997-98
Panchayat Act Panchayat Tax 8.85 2008-09 to 2010-11
Cess Act Cess 11.61 1996-97 to 2005-06
ix. (b) As on 31.03.2012, according to the records of the Company, the following are the disputed dues on account of Income Tax, Sales Tax, Excise Duty, Customs Duty, Cess and other material statutory dues applicable to it that have not been deposited.
Name of Nature of Dues Amount Period to which Forum where Statute of the amount dispute is Demand relates pending net Rs. in Lakhs
TNEB Electricity Tax 55.51 From 2003-04 to High Court Peak Hour 2006-07 Chennai
Penalty 61.75 From Dec 08 to Do Aug 09
Excise Law Penalty 10.00 2003-2004 CESTAT, Chennai
Duty 4.18 2004-2005 C. Excise (Appeals) Penalty 4.18 Salem
Duty (Net) 7.85 1999-2000 CESTAT, Chennai Duty 7.70 2000-01 to - Do- 2001-02 Penalty 2.00
Duty 2.59 2001-02 - Do- Penalty 1.00
Duty 12.17 2001-02 to - Do- 2002-03 Penalty 2.00
Duty 4.99 Feb 2000 to - Do-
Penalty 4.99 Oct 2000
Customs Duty 52.15 1991-92 DGFT, DELHI Law
Penalty 40.91
Duty 54.15 DGFT, DELHI
Penalty 99.15
CESS ACT Yarn Cess 2.76 1995-96 to Assessing 2005-06 Officer, Textile Committee, Coimbatore
Income Tax FBT 8.03 2005-06 to Supreme Act 2008-09 Court New Delhi.
x. In our opinion, the accumulated losses of the Company are more than 50% of its net worth. The Company has incurred cash loss during the financial year covered by our audit.
xi. According to the information and explanations given to us, the - Company has defaulted in repayment of dues to Financial Institutions, Banks and Debenture Holders. The particulars are given below:
Lender Nature of Rs. in Period of Default Loan Lakhs
Financial Institutions Loans 3,105.57 1996-97 onwards
Banks Loans 4,608.95 1997-98 onwards
Debenture Holders Debentures 463.75 1998-99 onwards
xii. The Company has not granted during the year loans and advances on the basis of security by way of pledge of shares, debentures and other securities.
xiii. The Company is not a chit, nidhi/ mutual benefit fund/ society.
xiv. The Company is not dealing or trading in shares, securities, debentures and other investments
xv. In our opinion, the Company has not given guarantees for loans taken by others from Banks or Financial Institutions.
xvi. The Company has not borrowed any term loan during the year
xvii. There were no funds raised on short-term basis which have been used for long term investment and vice versa
xviii. There has been no preferential allotment of shares by the Company during the year to any party.
xix. The Company has not issued any debentures during the year.
xx. During the year the Company has not raised any money by public issues of shares or other securities
xxi. According to the information and explanations given to us, no fraud on or by the Company has been noticed or reported during the course of our audit.
For ELANGOVAN & NATARAJAN Chartered Accountants Firm Regn. No. 000799.S
S. ELANGOVAN Partner M. No. 24654
Place : Attur Date: 11.08.2012
Mar 31, 2011
1) We have audited the attached Balance Sheet of M/s. SALEM TEXTILES
LIMITED as at 31st March 2011, and the Profit and Loss Account and Cash
Flow Statement for the year ended on that date annexed thereto . These
statements are the responsibility of the management of the Company. Our
responsibility is to express an opinion on this financial statement
based on our audit.
2) We conducted our audit in accordance with generally accepted auditing standards in India. These standards require that we plan and perform the audit to obtain reasonable assurance whether the financial statements are prepared, in all material respects, in accordance with an identified financial reporting framework and are free of material misstatements. 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.
3) As required by the Companies (Auditor's Report) Order, 2003 as amended by the Companies (Auditors' Report) (Amendment) Order, 2004 issued by the Central Government of India in terms of Sub-section (4A) of section 227 of the Companies Act, 1956, and on the basis of such checks as we considered appropriate, and according to the information and explanations given to us, we enclose in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the said order. Further, we report that:
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 account as required by law have been kept by the Company, so far as it appears from our examination of the books.
c) The Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by this report are in agreement with the books of account.
d) In our opinion the Profit and Loss Account, the Balance Sheet and Cash Flow Statement dealt with by this report comply with the accounting standards referred to in Sub-section 3C of Section 211 of the Companies Act, 1956.
e. On the basis of written representations received from the directors as on 31st March 2011 and taken on record by the Board of Directors, we report that all directors of the Company are disqualified from being appointed/ reappointed as director in other public Companies under clause g(B) of sub-section (1) of section 274 of the Companies Act,1956 due to non payment of Redeemable Debenture, Deposits and interest on due date.
f. In our opinion and to the best of our information and according to the explanations given to us, and subject to the Note No.20(vii) (a to g) stated in the Notes on Accounts, we report that 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:
i. in the case of the Balance Sheet, of the state of affairs of the Company as at 31st March, 2011 and
ii. in the case of the Profit and Loss Account, of the Profit of the Company for the year ended on that date.
iii. in the case of Cash Flow Statement, of the Cash Flows of the Company for the year ended on that date.
ANNEXURE TO AUDITOR'S REPORT
The Annexure Referred to in the Auditor's Report to the members of the SALEM TEXTILES LIMITED (the Company) for the year ended 31st March, 2011. We report that:
i. (a) In our opinion , the Company is maintaining proper records to show full particulars including quantitative details and situation of the fixed assets.
(b) As explained to us, the Fixed Assets have been physically verified by the management during the year at reasonable intervals and no material discrepancies were noticed on such verification.
(c) There were no sale of any fixed assets during this year except a small portion of land acquired by NHA1 for the road.
ii. (a) Inventories have been physically verified by the Management . In our opinion, the frequency of verification is reasonable.
(b) In our opinion, the procedures of physical verification of inventory followed by the management are reasonable and adequate in relation to the size of the Company and the nature of its business.
(c) The Company is maintaining proper records of inventory and no material discrepancies were noticed on such verification as compared to the book records.
iii. (a) During the year the Company has not taken loans, secured or unsecured, from Companies, firms or other parties listed in the register maintained under section 301 of the Act.
(b) During the year the Company has not granted loans, secured or unsecured, to Companies, firms or other parties listed in the register maintained under section 301 of the Act.
(c) In case of the loans accepted in earlier years no interest is charged. Other terms and conditions are not primafacie prejudicial to the interest of the Company.
(d) The Company is not regular in the repayment of principal of loans.
iv. In our opinion, there is adequate internal control system commensurate with the size of the Company and the nature of its business for the purchase of inventory and fixed assets and for the sale of goods. During the course of audit, no major weakness has been noticed in the internal control system.
v. (a) Based on the audit procedures applied by us and according to the information and explanations provided by the management, we are of the opinion that the transactions that need to be entered into the register maintained under section 301 of the Act have been so entered.
v. (b) In our opinion and according to the information and explanations given to us, the transactions made in pursuance of contracts or arrangements entered in the register maintained u/s.301 of the Act during the year are reasonable having regard to the prevailing market prices at the relevant time.
vi. The Company has not accepted any deposits from the Public from 01.04.1998. However in respect of deposits accepted before 01.04.1998, the Company has not complied with the provisions of section 58A of the Companies Act, 1956 and the Companies (Acceptance of Deposits) Rules 1975 with regard to the repayment of deposits and payment of interest.
With regard to the repayment of small deposits, the Company has intimated to the Company Law Board as per the provisions of section 58AA of the Act and also complied with the requirements of the Order passed by the Company Law Board.
Vii. In our opinion, the Company has an internal audit system commensurate with its size and nature of its business.
Viii. On the basis of the records produced, we are of the opinion that Prima facie, the cost records and related accounts prescribed by the Central Government under section 209 (1) of the Act have been made and maintained by the Company . However , we have not made a detailed examination of such records and accounts with a view to determine whether these are accurate and complete.
ix. (a) In our opinion and according to the information and explanations given to us,
undisputed statutory current dues including Provident Fund , Employees State Insurance, Income Tax, Sales Tax, Excise Duty Cess etc., have been regularly deposited with the appropriate authorities. There are arrears of outstanding statutory dues as at 31.03.2011 for a period of more than 6 months from the date they become payable. The following are the particulars of undisputed dues.
Name of the Statute Nature of Dues Rs.in Lakhs Period to which the amount relates
Provident Fund Act Provident Fund 151.18 1998-99 to 2005-06 Employees State Employees State 68.02 1998-99 to 2005-06 Insurance Act Insurance
Income Tax Act Income Tax 13.94 1995-96 to 2003-04
Sales Tax Act Sales Tax 283.06 1998-99 to 2004-05
Excise Law Excise Duty 41.03 2001-02 to 2003-04
Customs Act Import Duty 16.80 1997-98
Panchayat Act Panchayat Tax 5.30 2002-03 to 2004-05 & 2008-09
Cess Act Cess 11.61 1996-97 to 2005-06
ix. (b) As on 31.03.2011, according to the records of the Company, the following are the disputed dues on account of Sales Tax, Excise Duty, Customs Duty, Cess and other material statutory dues applicable to it that have not been deposited.
x. In our opinion, the accumulated losses of the Company are more than 50% of its net worth. The Company has incurred cash loss during the financial year covered by our audit.
xi. According to the information and explanations given to us, the Company has defaulted in repayment of dues to Financial Institutions , Banks and Debenture Holders. The particulars are given below :
Lender Nature of Loan Rs.in Lakhs Period of Default
Financial Institutions Loans 3,105.57 1996-97 onwards
Banks Loans 4,608.95 1997-98 onwards
Debenture Holders Debentures 463.75 1998-99 onwards
xii. The Company has not granted during the year loans and advances on the basis of security by way of pledge of shares, debentures and other securities.
xiii. The Company is not a chit,nidhi / mutual benefit fund/ society.
xiv. The Company is not dealing or trading in shares, securities, debentures and other investments
xv. In our opinion, the Company has not given guarantees for loans taken by others from Banks or Financial Institutions.
xvi. The Company has not borrowed any term loan during the year
xvii. There were no funds raised on short-term basis which have been used for long term investment and vice versa
xviii. There has been no preferential allotment of shares by the Company during the year to any party.
xix. The Company has not issued any debentures during the year.
xx. During the year the Company has not raised any money by public issue of shares or other securities
xxi. According to the information and explanations given to us, no fraud on or by the Company has been noticed or reported during the course of our audit.
For ELANGOVAN & NATARAJAN CHARTERED ACCOUNTANTS Firm Regn.No.000799.S
Place: Attur S.ELANGOVAN
Date : 12.08.2011 Partner
M.NO.24654
2) We conducted our audit in accordance with generally accepted auditing standards in India. These standards require that we plan and perform the audit to obtain reasonable assurance whether the financial statements are prepared, in all material respects, in accordance with an identified financial reporting framework and are free of material misstatements. 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.
3) As required by the Companies (Auditor's Report) Order, 2003 as amended by the Companies (Auditors' Report) (Amendment) Order, 2004 issued by the Central Government of India in terms of Sub-section (4A) of section 227 of the Companies Act, 1956, and on the basis of such checks as we considered appropriate, and according to the information and explanations given to us, we enclose in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the said order. Further, we report that:
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 account as required by law have been kept by the Company, so far as it appears from our examination of the books.
c) The Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by this report are in agreement with the books of account.
d) In our opinion the Profit and Loss Account, the Balance Sheet and Cash Flow Statement dealt with by this report comply with the accounting standards referred to in Sub-section 3C of Section 211 of the Companies Act, 1956.
e. On the basis of written representations received from the directors as on 31st March 2011 and taken on record by the Board of Directors, we report that all directors of the Company are disqualified from being appointed/ reappointed as director in other public Companies under clause g(B) of sub-section (1) of section 274 of the Companies Act,1956 due to non payment of Redeemable Debenture, Deposits and interest on due date.
f. In our opinion and to the best of our information and according to the explanations given to us, and subject to the Note No.20(vii) (a to g) stated in the Notes on Accounts, we report that 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:
i. in the case of the Balance Sheet, of the state of affairs of the Company as at 31st March, 2011 and
ii. in the case of the Profit and Loss Account, of the Profit of the Company for the year ended on that date.
iii. in the case of Cash Flow Statement, of the Cash Flows of the Company for the year ended on that date.
ANNEXURE TO AUDITOR'S REPORT
The Annexure Referred to in the Auditor's Report to the members of the SALEM TEXTILES LIMITED (the Company) for the year ended 31st March, 2011. We report that:
i. (a) In our opinion , the Company is maintaining proper records to show full particulars including quantitative details and situation of the fixed assets.
(b) As explained to us, the Fixed Assets have been physically verified by the management during the year at reasonable intervals and no material discrepancies were noticed on such verification.
(c) There were no sale of any fixed assets during this year except a small portion of land acquired by NHA1 for the road.
ii. (a) Inventories have been physically verified by the Management . In our opinion, the frequency of verification is reasonable.
(b) In our opinion, the procedures of physical verification of inventory followed by the management are reasonable and adequate in relation to the size of the Company and the nature of its business.
(c) The Company is maintaining proper records of inventory and no material discrepancies were noticed on such verification as compared to the book records.
iii. (a) During the year the Company has not taken loans, secured or unsecured, from Companies, firms or other parties listed in the register maintained under section 301 of the Act.
(b) During the year the Company has not granted loans, secured or unsecured, to Companies, firms or other parties listed in the register maintained under section 301 of the Act.
(c) In case of the loans accepted in earlier years no interest is charged. Other terms and conditions are not primafacie prejudicial to the interest of the Company.
(d) The Company is not regular in the repayment of principal of loans.
iv. In our opinion, there is adequate internal control system commensurate with the size of the Company and the nature of its business for the purchase of inventory and fixed assets and for the sale of goods. During the course of audit, no major weakness has been noticed in the internal control system.
v. (a) Based on the audit procedures applied by us and according to the information and explanations provided by the management, we are of the opinion that the transactions that need to be entered into the register maintained under section 301 of the Act have been so entered.
v. (b) In our opinion and according to the information and explanations given to us, the transactions made in pursuance of contracts or arrangements entered in the register maintained u/s.301 of the Act during the year are reasonable having regard to the prevailing market prices at the relevant time.
vi. The Company has not accepted any deposits from the Public from 01.04.1998. However in respect of deposits accepted before 01.04.1998, the Company has not complied with the provisions of section 58A of the Companies Act, 1956 and the Companies (Acceptance of Deposits) Rules 1975 with regard to the repayment of deposits and payment of interest.
With regard to the repayment of small deposits, the Company has intimated to the Company Law Board as per the provisions of section 58AA of the Act and also complied with the requirements of the Order passed by the Company Law Board.
Vii. In our opinion, the Company has an internal audit system commensurate with its size and nature of its business.
Viii. On the basis of the records produced, we are of the opinion that Prima facie, the cost records and related accounts prescribed by the Central Government under section 209 (1) of the Act have been made and maintained by the Company . However , we have not made a detailed examination of such records and accounts with a view to determine whether these are accurate and complete.
ix. (a) In our opinion and according to the information and explanations given to us,
undisputed statutory current dues including Provident Fund , Employees State Insurance, Income Tax, Sales Tax, Excise Duty Cess etc., have been regularly deposited with the appropriate authorities. There are arrears of outstanding statutory dues as at 31.03.2011 for a period of more than 6 months from the date they become payable. The following are the particulars of undisputed dues.
Name of the Statute Nature of Dues Rs.in Lakhs Period to which the amount relates
Provident Fund Act Provident Fund 151.18 1998-99 to 2005-06 Employees State Employees State 68.02 1998-99 to 2005-06 Insurance Act Insurance
Income Tax Act Income Tax 13.94 1995-96 to 2003-04
Sales Tax Act Sales Tax 283.06 1998-99 to 2004-05
Excise Law Excise Duty 41.03 2001-02 to 2003-04
Customs Act Import Duty 16.80 1997-98
Panchayat Act Panchayat Tax 5.30 2002-03 to 2004-05 & 2008-09
Cess Act Cess 11.61 1996-97 to 2005-06
ix. (b) As on 31.03.2011, according to the records of the Company, the following are the disputed dues on account of Sales Tax, Excise Duty, Customs Duty, Cess and other material statutory dues applicable to it that have not been deposited.
x. In our opinion, the accumulated losses of the Company are more than 50% of its net worth. The Company has incurred cash loss during the financial year covered by our audit.
xi. According to the information and explanations given to us, the Company has defaulted in repayment of dues to Financial Institutions , Banks and Debenture Holders. The particulars are given below :
Lender Nature of Loan Rs.in Lakhs Period of Default
Financial Institutions Loans 3,105.57 1996-97 onwards
Banks Loans 4,608.95 1997-98 onwards
Debenture Holders Debentures 463.75 1998-99 onwards
xii. The Company has not granted during the year loans and advances on the basis of security by way of pledge of shares, debentures and other securities.
xiii. The Company is not a chit,nidhi / mutual benefit fund/ society.
xiv. The Company is not dealing or trading in shares, securities, debentures and other investments
xv. In our opinion, the Company has not given guarantees for loans taken by others from Banks or Financial Institutions.
xvi. The Company has not borrowed any term loan during the year
xvii. There were no funds raised on short-term basis which have been used for long term investment and vice versa
xviii. There has been no preferential allotment of shares by the Company during the year to any party.
xix. The Company has not issued any debentures during the year.
xx. During the year the Company has not raised any money by public issue of shares or other securities
xxi. According to the information and explanations given to us, no fraud on or by the Company has been noticed or reported during the course of our audit.
For ELANGOVAN & NATARAJAN CHARTERED ACCOUNTANTS Firm Regn.No.000799.S
Place: Attur S.ELANGOVAN
Date : 12.08.2011 Partner
M.NO.24654
Mar 31, 2010
1) We have audited the attached Balance Sheet of M/s. SALEM TEXTILES
LIMITED as at 31st March 2010, and the Profit and Loss Account and Cash
Flow Statement for the year ended on that date annexed thereto . These
statements are the responsibility of the management of the Company. Our
responsibility is to express an opinion on this financial statement
based on our audit.
2) We conducted our audit in accordance with generally accepted auditing standards in India. These standards require that we plan and perform the audit to obtain reasonable assurance whether the financial statements are prepared, in all material respects, in accordance with an identified financial reporting framework and are free of material misstatements. 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.
3) As required by the Companies (Auditors Report) Order, 2003 as amended by the Companies (Auditors Report) (Amendment) Order, 2004 issued by the Central Government of India in terms of Sub-section (4A) of section 227 of the Companies Act, 1956, and on the basis of such checks as we considered appropriate, and according to the information and explanations given to us, we enclose in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the said order. Further, we report that:
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 account as required by law have been kept by the Company, so far as it appears from our examination of the books.
c) The Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by this report are in agreement with the books of account.
d) In our opinion the Profit and Loss Account, the Balance Sheet and Cash Flow Statement dealt with by this report comply with the accounting standards referred to in Sub-section 3C of Section 211 of the Companies Act, 1956.
e. On the basis of written representations received from the directors as on 31st March 2010 and taken on record by the Board of Directors, we report that all directors of the Company are disqualified from being appointed/ reappointed as director in other public Companies under clause g(B) of sub-section (1) of section 274 of the Companies Act,1956 due to non payment of Redeemable Debenture, Deposits and interest on due date.
f. In our opinion and to the best of our information and according to the explanations given to us, and subject to the Note No.20(vii) (a to g) stated in the Notes on Accounts, we report that 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:
i. in the case of the Balance Sheet, of the state of affairs of the Company as at 31st March, 2010 and
ii. in the case of the Profit and Loss Account, of the Profit of the Company for the year ended on that date.
iii. in the case of Cash Flow Statement, of the Cash Flows of the Company for the year ended on that date.
ANNEXURE TO AUDITORS REPORT
The Annexure Referred to in the Auditors Report to the members of the SALEM TEXTILES LIMITED (the Company) for the year ended 31st March, 2010. We report that:
i. (a) In our opinion , the Company is maintaining proper records to show full particulars including quantitative details and situation of the fixed assets.
(b) As explained to us, the Fixed Assets have been physically verified by the management during the year at reasonable intervals and no material discrepancies were noticed on such verification.
(c) There were no sale of any fixed assets during this year except a small portion of land and Building accuired by NHA1 for the road.
ii. (a) Inventories have been physically verified by the Management . In our opinion, the frequency of verification is reasonable.
(b) In our opinion, the procedures of physical verification of inventory followed by the management are reasonable and adequate in relation to the size of the Company and the nature of its business.
(c) The Company is maintaining proper records of inventory and no material discrepancies were noticed on such verification as compared to the book records.
iii. (a) During the year the Company has not taken loans, secured or unsecured, from Companies, firms or other parties listed in the register maintained under section 301 of the Act.
(b) During the year the Company has not granted loans, secured or unsecured, to Companies, firms or other parties listed in the register maintained under section 301 of the Act.
(c) In case of the loans accepted in earlier years no interest is charged. Other terms and conditions are not primafacie prejudicial to the interest of the Company.
(d) The Company is not regular in the repayment of principal.
iv. In our opinion, there is adequate internal control system commensurate with the size of the Company and the nature of its business for the purchase of inventory and fixed assets and for the sale of goods. During the course of audit, no major weakness has been noticed in the internal control system.
v. (a) Based on the audit procedures applied by us and according to the informations and explanations provided by the management, we are of the opinion that the transactions that need to be entered into the register maintained under section 301 of the Act have been so entered.
v. (b) In our opinion and according to the information and explanations given to us, the transactions made in pursuance of contracts or arrangements entered in the register maintained u/s.301 of the Act during the year are reasonable having regard to the prevailing market prices at the relevant time.
vi. The Company has not accepted any deposits from the Public from 01.04.1998.
However in respect of deposits accepted before 01.04.1998, the Company has not complied with the provisions of section 58A of the Companies Act, 1956 and the Companies (Acceptance of Deposits) Rules 1975 with regard to the repayment of deposits and payment of interest.
With regard to the repayment of small deposits, the Company has intimated to the Company Law Board as per the provisions of section 58AA of the Act and also complied with the requirements of the Order passed by the Company Law Board.
Vii. In our opinion, the Company has an internal audit system commensurate with its size and nature of its business.
Viii. On the basis of the records produced, we are of the opinion that Prima facie, the cost records and related accounts prescribed by the Central Government under section 209 (1) of the Act have been made and maintained by the Company . However , we have not made a detailed examination of such records and accounts with a view to determine whether these are accurate and complete.
ix. (a) In our opinion and according to the information and explanations given to us,
undisputed statutory current dues including Provident Fund , Employees State Insurance,Income Tax, Sales Tax, Excise Duty Cess etc., have been regularly deposited with the appropriate authorities. There are arrears of outstanding statutory dues as at 31.03.2010 for a period of more than 6 months from the date they become payable. The following are the particulars of undisputed dues.
Name of the Statute Nature of Dues Rs.in Lakhs Period to which the amount relates
Provident Fund Act Provident Fund 190.72 1998-99 to 2005-06
Employees State Employees State 68.02 1998-99 to 2005-06
Insurance Act Insurance
Income Tax Act Income Tax 13.94 1995-96 to 2003-04
Sales Tax Act Sales Tax 259.80 1998-99 to 2004-05
Excise Law Excise Duty 41.03 2001-02 to 2003-04
Customs Act Import Duty 16.80 1997-98
Panchayat Act Panchayat Tax 4.64 2002-03 to 2004-05 & 2008-09
Cess Act Cess 11.61 1996-97 to 2005-06
ix. (b) As on 31.03.2010, according to the records of the Company, the following are the disputed dues on account of Sales Tax, Excise Duty, Customs Duty, Cess and other material statutory dues applicable to it that have not been deposited.
Name of the Nature of Dues Amount of Period to which the Statute Demand amount relates net deposits Rs. In Lakhs
TNEB Electricity Tax 55.51 From 2003-04 to 2006-07 Peak Hour Penalty 63.34 From Dec 08 to Aug09
Excise Law Penalty 10.00 2003-2004
Duty 4.18 2004-2005
Penalty 4.18
Duty (Net) 7.85 1999-2000
Duty 7.70 2000-01 to 2001-02
Penalty 2.00
Duty 2.59 2001-02 Penalty 1.00
Duty 12.17 2001-02 to 2002-03
Penalty 2.00
Duty 4.99 Feb 2000 to
Penalty 4.99 Oct 2000
Customs Law Duty 52.15 1991-92 Penalty 40.91
Duty 54.15
Penalty 99.15
CESS ACT Yarn Cess 2.76 1995-96 to 2005-06
Income Tax Act FBT 8.03 2005-06 to 2008-09
Name of the Statue Forum where dispute is pending
TNEB High Court Chennai - Do -
Excise Law CESTAT,Chennai C.Excise (Appeals)Salem
CESTAT,Chennai
- Do -
- Do -
- Do -
- Do -
Customs Law DGFT, DELHI
CESS ACT Assessing Officer, Textile Committee, Coimbatore
Income Tax Act Supreme Court,
x. In our opinion, the accumulated losses of the Company are more than 50% of its net worth. The Company has incurred cash loss during the financial year covered by our audit.
xi. According to the information and explanations given to us, the Company has defaulted in repayment of dues to Financial Institutions , Banks and Debenture Holders. The particulars are given below :
Lender Nature of Loan Rs.in Lakhs Period of Default
Financial Institutions Loans 3,105.57 1996-97 onwards
Banks Loans 4,608.95 1997-98 onwards
Debenture Holders Debentures 463.75 1998-99 onwards
xii. The Company has not granted during the year loans and advances on the basis of security by way of pledge of shares, debentures and other securities.
xiii. The Company is not a chit,nidhi / mutual benefit fund/ society.
xiv. The Company is not dealing or trading in shares, securities, debentures and other investments
xv. In our opinion, the Company has not given guarantees for loans taken by others from Banks or Financial Institutions.
xvi. The Company has not borrowed any term loan during the year
xvii. There were no funds raised on short-term basis which have been used for long term investment and vice versa
xviii. There has been no preferential allotment of shares by the Company during the year to any pary.
xix. The Company has not issued any debentures during the year.
xx. During the year the Company has not raised any money by public issues of shares or other securities
xxi. According to the information and explanations given to us, no fraud on or by the Company has been noticed or reported during the course of our audit.
For ELANGOVAN & NATARAJAN
CHARTERED ACCOUNTANTS
Place: Attur S.ELANGOVAN
Date : 07.08.2010 Partner
M.NO.24654 Firm Regn.No.000799.S
2) We conducted our audit in accordance with generally accepted auditing standards in India. These standards require that we plan and perform the audit to obtain reasonable assurance whether the financial statements are prepared, in all material respects, in accordance with an identified financial reporting framework and are free of material misstatements. 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.
3) As required by the Companies (Auditors Report) Order, 2003 as amended by the Companies (Auditors Report) (Amendment) Order, 2004 issued by the Central Government of India in terms of Sub-section (4A) of section 227 of the Companies Act, 1956, and on the basis of such checks as we considered appropriate, and according to the information and explanations given to us, we enclose in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the said order. Further, we report that:
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 account as required by law have been kept by the Company, so far as it appears from our examination of the books.
c) The Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by this report are in agreement with the books of account.
d) In our opinion the Profit and Loss Account, the Balance Sheet and Cash Flow Statement dealt with by this report comply with the accounting standards referred to in Sub-section 3C of Section 211 of the Companies Act, 1956.
e. On the basis of written representations received from the directors as on 31st March 2010 and taken on record by the Board of Directors, we report that all directors of the Company are disqualified from being appointed/ reappointed as director in other public Companies under clause g(B) of sub-section (1) of section 274 of the Companies Act,1956 due to non payment of Redeemable Debenture, Deposits and interest on due date.
f. In our opinion and to the best of our information and according to the explanations given to us, and subject to the Note No.20(vii) (a to g) stated in the Notes on Accounts, we report that 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:
i. in the case of the Balance Sheet, of the state of affairs of the Company as at 31st March, 2010 and
ii. in the case of the Profit and Loss Account, of the Profit of the Company for the year ended on that date.
iii. in the case of Cash Flow Statement, of the Cash Flows of the Company for the year ended on that date.
ANNEXURE TO AUDITORS REPORT
The Annexure Referred to in the Auditors Report to the members of the SALEM TEXTILES LIMITED (the Company) for the year ended 31st March, 2010. We report that:
i. (a) In our opinion , the Company is maintaining proper records to show full particulars including quantitative details and situation of the fixed assets.
(b) As explained to us, the Fixed Assets have been physically verified by the management during the year at reasonable intervals and no material discrepancies were noticed on such verification.
(c) There were no sale of any fixed assets during this year except a small portion of land and Building accuired by NHA1 for the road.
ii. (a) Inventories have been physically verified by the Management . In our opinion, the frequency of verification is reasonable.
(b) In our opinion, the procedures of physical verification of inventory followed by the management are reasonable and adequate in relation to the size of the Company and the nature of its business.
(c) The Company is maintaining proper records of inventory and no material discrepancies were noticed on such verification as compared to the book records.
iii. (a) During the year the Company has not taken loans, secured or unsecured, from Companies, firms or other parties listed in the register maintained under section 301 of the Act.
(b) During the year the Company has not granted loans, secured or unsecured, to Companies, firms or other parties listed in the register maintained under section 301 of the Act.
(c) In case of the loans accepted in earlier years no interest is charged. Other terms and conditions are not primafacie prejudicial to the interest of the Company.
(d) The Company is not regular in the repayment of principal.
iv. In our opinion, there is adequate internal control system commensurate with the size of the Company and the nature of its business for the purchase of inventory and fixed assets and for the sale of goods. During the course of audit, no major weakness has been noticed in the internal control system.
v. (a) Based on the audit procedures applied by us and according to the informations and explanations provided by the management, we are of the opinion that the transactions that need to be entered into the register maintained under section 301 of the Act have been so entered.
v. (b) In our opinion and according to the information and explanations given to us, the transactions made in pursuance of contracts or arrangements entered in the register maintained u/s.301 of the Act during the year are reasonable having regard to the prevailing market prices at the relevant time.
vi. The Company has not accepted any deposits from the Public from 01.04.1998.
However in respect of deposits accepted before 01.04.1998, the Company has not complied with the provisions of section 58A of the Companies Act, 1956 and the Companies (Acceptance of Deposits) Rules 1975 with regard to the repayment of deposits and payment of interest.
With regard to the repayment of small deposits, the Company has intimated to the Company Law Board as per the provisions of section 58AA of the Act and also complied with the requirements of the Order passed by the Company Law Board.
Vii. In our opinion, the Company has an internal audit system commensurate with its size and nature of its business.
Viii. On the basis of the records produced, we are of the opinion that Prima facie, the cost records and related accounts prescribed by the Central Government under section 209 (1) of the Act have been made and maintained by the Company . However , we have not made a detailed examination of such records and accounts with a view to determine whether these are accurate and complete.
ix. (a) In our opinion and according to the information and explanations given to us,
undisputed statutory current dues including Provident Fund , Employees State Insurance,Income Tax, Sales Tax, Excise Duty Cess etc., have been regularly deposited with the appropriate authorities. There are arrears of outstanding statutory dues as at 31.03.2010 for a period of more than 6 months from the date they become payable. The following are the particulars of undisputed dues.
Name of the Statute Nature of Dues Rs.in Lakhs Period to which the amount relates
Provident Fund Act Provident Fund 190.72 1998-99 to 2005-06
Employees State Employees State 68.02 1998-99 to 2005-06
Insurance Act Insurance
Income Tax Act Income Tax 13.94 1995-96 to 2003-04
Sales Tax Act Sales Tax 259.80 1998-99 to 2004-05
Excise Law Excise Duty 41.03 2001-02 to 2003-04
Customs Act Import Duty 16.80 1997-98
Panchayat Act Panchayat Tax 4.64 2002-03 to 2004-05 & 2008-09
Cess Act Cess 11.61 1996-97 to 2005-06
ix. (b) As on 31.03.2010, according to the records of the Company, the following are the disputed dues on account of Sales Tax, Excise Duty, Customs Duty, Cess and other material statutory dues applicable to it that have not been deposited.
Name of the Nature of Dues Amount of Period to which the Statute Demand amount relates net deposits Rs. In Lakhs
TNEB Electricity Tax 55.51 From 2003-04 to 2006-07 Peak Hour Penalty 63.34 From Dec 08 to Aug09
Excise Law Penalty 10.00 2003-2004
Duty 4.18 2004-2005
Penalty 4.18
Duty (Net) 7.85 1999-2000
Duty 7.70 2000-01 to 2001-02
Penalty 2.00
Duty 2.59 2001-02 Penalty 1.00
Duty 12.17 2001-02 to 2002-03
Penalty 2.00
Duty 4.99 Feb 2000 to
Penalty 4.99 Oct 2000
Customs Law Duty 52.15 1991-92 Penalty 40.91
Duty 54.15
Penalty 99.15
CESS ACT Yarn Cess 2.76 1995-96 to 2005-06
Income Tax Act FBT 8.03 2005-06 to 2008-09
Name of the Statue Forum where dispute is pending
TNEB High Court Chennai - Do -
Excise Law CESTAT,Chennai C.Excise (Appeals)Salem
CESTAT,Chennai
- Do -
- Do -
- Do -
- Do -
Customs Law DGFT, DELHI
CESS ACT Assessing Officer, Textile Committee, Coimbatore
Income Tax Act Supreme Court,
x. In our opinion, the accumulated losses of the Company are more than 50% of its net worth. The Company has incurred cash loss during the financial year covered by our audit.
xi. According to the information and explanations given to us, the Company has defaulted in repayment of dues to Financial Institutions , Banks and Debenture Holders. The particulars are given below :
Lender Nature of Loan Rs.in Lakhs Period of Default
Financial Institutions Loans 3,105.57 1996-97 onwards
Banks Loans 4,608.95 1997-98 onwards
Debenture Holders Debentures 463.75 1998-99 onwards
xii. The Company has not granted during the year loans and advances on the basis of security by way of pledge of shares, debentures and other securities.
xiii. The Company is not a chit,nidhi / mutual benefit fund/ society.
xiv. The Company is not dealing or trading in shares, securities, debentures and other investments
xv. In our opinion, the Company has not given guarantees for loans taken by others from Banks or Financial Institutions.
xvi. The Company has not borrowed any term loan during the year
xvii. There were no funds raised on short-term basis which have been used for long term investment and vice versa
xviii. There has been no preferential allotment of shares by the Company during the year to any pary.
xix. The Company has not issued any debentures during the year.
xx. During the year the Company has not raised any money by public issues of shares or other securities
xxi. According to the information and explanations given to us, no fraud on or by the Company has been noticed or reported during the course of our audit.
For ELANGOVAN & NATARAJAN
CHARTERED ACCOUNTANTS
Place: Attur S.ELANGOVAN
Date : 07.08.2010 Partner
M.NO.24654 Firm Regn.No.000799.S
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