AUDITORS’ REPORT TO THE MEMBERSstatutory dues applicable to it. There were no arrears as at March 31, 20<strong>08</strong> for a period of morethan six months from the date they became payable.(b)According to the information and explanations given to us, particulars of outstanding dues ofsales-tax, income-tax, wealth-tax, service tax, custom duty, excise duty and cess not deposited onaccount of any dispute are given below:Name of the Statute Nature of the dues Period Amount Forum where(Rs. in dispute isCrs)pendingSales Tax Act Sales Tax / 1981-82 to 1986-87, 0.55 Tribunal(s)Purchase Tax including 1997 to 2004, 2005-2006,interest and penalty & 2006-<strong>2007</strong>1998-99, 2000-01 to 3.53 Commissioner2004-05 & 2006-07 (Appeals)1988-89, 1994-1995 to 5.28 Assessing2004-05 AuthoritiesCustoms Act Customs Duty 1975-76, 1976-77, 1.23 High Court(s)including interest 1986-87, 1991-92,and penalty 2001-022003-2004 0.09 Tribunal(s)1998-1999 0.99 AssessingAuthoritiesCentral Excise Act Excise Duty including 1977-78, 1990-1991 0.06 High Court(s)interest and penalty 1985-86,1991-92,1994-1995 to 2005-2006 11.49 Tribunal(s)1994-1995 to 2006-<strong>2007</strong> 8.33 Commissioner(Appeals)1984-1985 to 2006-<strong>2007</strong> 2.70 AssessingAuthoritiesTextile Cess Act Cess 1981-1999 0.63 Tribunal1999-2005 0.65 AssessingAuthoritiesService Tax Demand 2003-2004,2004-2005 0.54 AssessingAuthorities2002-2003, 2004-2005, 0.38 Assessing2005-2006 AuthoritiesElectricity Tax Act Tamilnadu Electricity 1999 to <strong>2007</strong> 3.22 AssessingTaxationAuthoritiesIncome Tax Tax Demand & Interest 2003-2004 0.97 Commissioner(Appeal)2005-2006 0.55 Commissioner(Appeal)Municipal Tax Tax Demand 2001-2002 to <strong>2007</strong>-20<strong>08</strong> 0.46 AssessingAuthorities(76)
AUDITORS’ REPORT TO THE MEMBERS(x)(xi)(xii)(xiii)The Company has no accumulated losses at the end of the financial year and it has not incurred cashlosses in the current and immediately preceding financial year.Based on our audit procedures and as per the information and explanations given to us, we are of theopinion that the Company has not defaulted in repayment of dues to a financial institution or bank.Based on our examination of documents and records, we are of the opinion that the Company hasmaintained adequate records where the Company has granted loans and advances on the basis ofsecurity by way of pledge of shares, debentures and other securities.In our opinion, the Company is not a chit fund or a nidhi / mutual benefit fund / society. Therefore, theprovisions of clause 4(xiii) of the Order, are not applicable to the Company.(xiv) In our opinion, the Company is not dealing in or trading in shares, securities, debentures and otherinvestments. Accordingly, the provisions of clause 4(xiv) of the Order, are not applicable to the Company.(xv)According to the information and explanations given to us, the Company has given guarantee for loanstaken by others from banks or financial institutions, the terms and conditions whereof, in our opinion,are prima-facie, not prejudicial to the interest of the Company.(xvi) Based on information and explanations given to us, the term loans were applied by the Companyduring the year for the purposes for which the loans were obtained, though unutilized funds amountingto Rs.41.97 Crores which were not required for immediate use for capital expenditure have beentemporarily deployed in bank fixed deposit/reducing bank overdraft.(xvii) According to the information and explanations given to us and on an overall examination of thebalance sheet of the Company, we report that no funds raised on short-term basis have been used forlong-term investment.(xviii) During the year, the Company has made preferential allotment of share warrants to companies coveredunder section 301 of the Act, part of which have been converted into equity shares. The price at whichthe share warrants have been issued has been determined as per the Securities And Exchange Board ofIndia (Disclosure and Investor Protection) Guidelines,2000, which in our opinion, is not prejudicial tothe interest of the Company.(xix)(xx)(xxi)The Company did not have any outstanding debentures during the year.We have verified that the end use of money raised by public issues is as disclosed in the notes to thefinancial statements.Based upon the audit procedures performed and information and explanations given to us, we reportthat no fraud on or by the Company has been noticed or reported during the course of our audit.For KHIMJI KUNVERJI & CO.Chartered Accountantsper Shivji K. VikamseyPartnerFor S. R. BATLIBOI & CO.Chartered Accountantsper Hemal ShahPartnerMembership No. 2242 Membership No. 42650Mumbai, April 30, 20<strong>08</strong> Mumbai, April 30, 20<strong>08</strong>(77)