Scheduleforming part of the Balance Sheet - Domain-b

Annual Report 2007-2008
(d) In respect of overdue amounts of over Rs.1 lakh remaining outstanding as at the year-end, as explained to us, the
Management has taken reasonable steps for recovery of the overdue interest.
(v) In respect of the loans, secured or unsecured, taken by the Company from companies, firms or other parties covered
in the Register maintained under Section 301 of the Companies Act, 1956, according to the information and
explanations given to us:
(a) The Company has taken loans aggregating Rs. 85.50 crores from three parties. At the year-end, the outstanding
balances of such loans taken aggregated Rs. 31.48 crores (number of parties – four) and the maximum amount in
volved during the year was Rs. 38.40 crores (number of parties – five).
(b) The rate of interest and other terms and conditions of such loans are, in our opinion, prima facie not prejudicial to the
interests of the Company.
(c) The payment of principal amounts and interest in respect of such loans are regular/as per stipulations.
(vi) In our opinion and according to the information and explanations given to us, there is an 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 our audit, we have not observed any major weakness in such
internal control system.
(vii) In respect of contracts or arrangements entered in the Register maintained in pursuance of Section 301 of the Companies
Act 1956, to the best of our knowledge and belief and according to the information and explanations given to us:
(a) The particulars of contracts or arrangements referred to in Section 301 that needed to be entered in the Register
maintained under the said Section have been so entered.
(b) Where each of such transactions (excluding loans reported under paragraphs (iv) and (v) above) is in excess of Rs. 5
lakhs in respect of any party, the transactions have been made at prices which are prima facie reasonable, having
regard to the prevailing market prices at the relevant time.
(viii) In our opinion and according to the information and explanations given to us, the Company has complied with the provisions
of Sections 58A and 58AA, or any other relevant provisions of the Companies Act, 1956 and the Companies (Acceptance
of Deposits) Rules, 1975, with regard to deposits accepted from the public. According to information and explanations
given to us, no order has been passed by the Company Law Board or the National Company Law Tribunal or the Reserve
Bank of India or any Court or any other Tribunal.
(ix) In our opinion, the internal audit functions carried out during the year by the firms of Chartered Accountants appointed by
the Management have been commensurate with the size of the Company and the nature of its business.
(x) According to the information and explanations given to us, in respect of statutory dues:
(a) The Company has generally been regular in depositing undisputed dues, including Provident Fund, Investor
Education and Protection Fund, Employees’ State Insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax,
Customs Duty, Excise Duty, Cess and any other material statutory dues with the appropriate authorities during the
year.
(b) There were no undisputed amounts outstanding as at 31 st March, 2008 for a period of more than six months from
the date they became payable.
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