2010-11 - Grasim

GRASIM BHIWANI
TEXTILES LIMITED
(Referred to in paragraph 3 of our report of even date)
1. Having regard to the nature of the Company’s business/activities/
results clauses (x) regarding cash loss incurred by the company,
(xiii) regarding chit fund, nidhi / mutual benefit fund / societies and
(xiv)dealing or trading in shares, securities, debentures and other
investments of CARO are not applicable.
2. In respect of its fixed assets:
a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
b) Fixed Assets have been physically verified by the management
according to the regular programme of periodical verification
in phased manner which in our opinion is reasonable having
regard to the size of the Company and the nature of its fixed
assets. The discrepancies noticed on such physical verification
were not material.
c) No substantial part of fixed assets has been disposed off
during the year, which has bearing on the going concern status
of the Company.
3. In respect of its inventories:
a) The inventory of the Company at all its locations (except stocks
with third parties and in-transit, confirmation/subsequent
receipt have been obtained in respect of such inventory) has
been physically verified by the management at reasonable
intervals.
b) The procedures of physical verification of inventory followed
by the management are reasonable and adequate in relation
to the size of the Company and nature of its business.
c) The Company is maintaining proper records of inventory. The
discrepancies noticed on such physical verification of inventory
as compared to book records were not material.
4. The Company has neither granted nor taken any loans, secured or
unsecured to and from companies, firms or other parties covered in
the register maintained under section 301 of the Companies Act,
1956. Accordingly, the clauses 4 (iii) (b) to (g) of the Order are not
applicable.
5. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business with regard to purchase of inventory, fixed assets and for
the sale of goods. During the course of our audit, we have not
observed any continuing failure to correct major weaknesses in
internal control.
6. In our opinion and according to the information and explanations
given to us, there are no transactions that need to be entered into a
register maintained under Section 301 of the Companies Act, 1956.
Accordingly, the clause 4 (v) (b) of the Order is not applicable.
7. In our opinion and according to the information and explanations
given to us, the Company has complied with the directives issued
by the Reserve Bank of India and the provision of Section 58A and
Section 58AA of the Companies Act, 1956 and the rules framed
there under with regard to deposits accepted from the public. No
order has been passed by Company Law Board or Reserve bank of
India or National Company Law Tribunal or any Court or any Tribunal
in this regard.
8. In our opinion, the Company has an internal audit system
commensurate with the size of the Company and nature of its
business.
9. We have broadly reviewed the books of account maintained by the
Company pursuant to the rules made by the Central Government for
the maintenance of cost records under Section 209(1) (d) of the
Companies Act, 1956 in respect of the Company’s products to which
the said rules are made applicable and are of the opinion that
prima facie the prescribed records have been made and maintained.
We have, however, not made a detailed examination of the
said records with a view to determine whether they are accurate or
complete.
10. According to the information and explanations given to us in respect
of statutory dues:
a) The Company has generally been regular in depositing undisputed
statutory dues, including Provident Fund, Employees’ State Insurance,
Income Tax, Sales Tax, Value Added Tax, Wealth Tax, Custom Duty,
Excise Duty, Service Tax, Cess and other material statutory dues
applicable to it with the appropriate authorities.
b) There were no undisputed amount payable in respect of Income
Tax, Sales Tax, Value Added Tax, Wealth Tax, Custom Duty, Excise
Duty, Service Tax, Cess and other material statutory dues in arrears
as at 31 st March 2011 for a period of more than six months from the
date they became payable.
c) Details of dues of Income Tax, Sales Tax, Value Added Tax, Custom
duty, Excise Duty, Service Tax, Cess that have not been deposited
with the appropriate authorities on account of dispute and the forum
where the dispute pending are given below:
Sr.No.
Name of the stat
atute
(Nature of Dues)
For
orum where
dispute is pending
Amount
(Rs. In.Lacs.)
Period
1 Customs Act, 1962 (Duty) Appellate Authorities 31.35 1991
2 Central Excise Act, 1944 High Court 274.36 1998-01
(Duty / Penalty)
Tribunal 1040.20 1994-02
Assessing Authorities 27.00 2000-01
3 Service Tax under the Tribunal 64.61 2007-08
Finance Act, 1994 (Tax)
11. The Company has not defaulted in repayment of any dues to financial
institutions or banks or debenture holders.
12. According to the 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, according to the information and explanations given
to us, the term loans were applied for the purpose for which the
loans were obtained.
14. In our opinion, on the basis of information and explanations given to
us, the term loans were applied for the purpose for which the loans
were obtained.
15. According to information and explanations given to us, and on an
overall examination of Balance Sheet of the Company, fund raised
on short term basis have, prima facie, not been used during the
year for long term investment.
16. The Company has not made any preferential allotment of shares to
any parties or companies covered in the register maintained under
Section 301 of the Companies Act, 1956 during the year.
17. On the basis of records made available to us, the company has not
issued/outstanding debentures during the year. Therefore, clause
(xix) of the order is not applicable to the company.
18. The Company has not raised any money through a public issue
during the year
19. Based upon the audit procedures performed and on the basis of
information and explanations provided by the management, we report
that no fraud on or by the Company has been noticed or reported
during the course of the audit.
Date : 20 th April 2011
Place: Mumbai
For G.P. Kapadia & Co.
(Chartered Accountants)
Firm Reg. No. 104768W
Atul B. Desai
Partner
(Membership No. 30850)
152