BAJAJ HIND Auditors Report

We have audited the attached Balance Sheet of BAJAJ HINDUSTHAN LIMITED
('the Company') as at September 30, 2012, the Statement of Profit and
Loss and the Cash Flow Statement 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.


1. We have conducted our audit in accordance with the 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 the management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.


2. As required by the Companies (Auditor's Report) Order 2003 (as
amended) 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 paragraphs 4
and 5 of the said Order.


3. Further to our comments in the Annexure referred to above, 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 purposes of our
audit;


b) 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;


c) The Balance Sheet, the 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 Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement dealt with by this report comply with the mandatory
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 September 30, 2012 and taken on record by the Board of Directors,
we report that none of the Directors is disqualified as on September
30, 2012 from being appointed as a director in terms of clause (g) of
sub-section (1) of section 274 of the Companies Act, 1956;


f) 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
present 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 September 30, 2012;


(ii) in the case of the Statement of Profit and Loss, of the loss for
the year ended on that date; and


(iii) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.


ANNEXURE REFERRED TO IN PARAGRAPH 2 OF OUR REPORT OF EVEN DATE RE:
BAJAJ HINDUSTHAN LIMITED (THE COMPANY')


1. a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets;


b) As explained to us, all the fixed assets have been physically
verified by the management in a phased periodical manner as per regular
programme of verification, which in our opinion is reasonable, having
regard to the size of the Company and nature of its assets. No material
discrepancies were noticed on such physical verification;


c) In our opinion, the Company has not disposed of substantial part of
its fixed assets during the year and the going concern status of the
Company is not affected.


2. In respect of its inventories:


a) As explained to us, the inventory has been physically verified by
the management at reasonable intervals, during the year;


b) As explained to us, the procedures of physical verification of
inventories followed by the management are reasonable and adequate in
relation to the size of the Company and the nature of its business;


c) According to the inventory records produced to us for our
verification, we are of the opinion that the Company is maintaining
proper records of inventory, if any, referred to above, as compared to
book records, though not material, have been properly dealt with in the
books of account.


3. In respect of loans, secured or unsecured, granted or taken by the
Company to/from companies, firms or other parties covered in the
register maintained under Section 301 of the Companies Act, 1956:


a) The Company has given unsecured loans to three subsidiary companies
of which one of the subsidiary company was merged with the Company. In
respect of the said loans, the maximum amount outstanding at any time
during the year is Rs. 1,018.73 crore and the year end balance is Rs.740.70
crore;


b) In our opinion and according to the information and explanations
given to us, the rate of interest, where applicable and the other terms
and conditions of the loans given by the Company, are not, prima facie
prejudicial to the interest of the Company;


c) The principal amounts are repayable on demand and there is no
repayment schedule. The interest is payable on demand;


d) In respect of said loans, the same is repayable on demand and
therefore the question of overdue amount doesn't arise;


e) The Company has not taken any loan during the year from companies,
firms or other parties covered in the register maintained under section
301 of the Companies Act, 1956. Consequently, the requirements of
Clauses (iii) (f) and (iii) (g) of paragraph 4 of the Order are not
applicable.


4. In our opinion and according to the information and explanations
given to us, 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 our audit, we have not observed any continuing
failure to correct major weaknesses in internal control system.


5. In respect of contracts or arrangements referred to in section 301
of the Companies Act, 1956:


a) On the basis of the audit procedures applied by us, and according to
the information and explanations given to us on our enquiries on this
behalf and the records produced to us for our verification, the
contracts or arrangements that need to be maintained under Section 301
of the Companies Act, 1956 have been so entered;


b) The transaction so entered, aggregating in excess of Rs. 5,00,000/- in
respect of each party during the year, have been, in our opinion, as
per the information and explanations given to us, made at prices, which
are reasonable having regard to the prevailing market prices available
at which transactions for similar goods have been made with other
parties at the relevant time.


6. In our opinion and according to the information and explanations
given to us, the Company has complied with the directives issued under
section 58A, 58AA or any other relevant provisions of the Companies
Act, 1956 and Companies (Acceptance of Deposits) Rules, 1975 with
regard to the deposit accepted from the public. According to the
information and explanations given to us, no order has been passed by
the Company Law Board or National Company Law Tribunal or Reserve Bank
of India or any Court or any other Tribunal.


7. In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.


8. We have broadly reviewed the books of account maintained by the
Company pursuant to the rules made by the Central Government for
maintenance of cost records under section 209(1)(d) of the Companies
Act, 1956 in respect of Company's product to which the said rules are
made applicable and are of the opinion that prima facie the prescribed
accounts and records have been made and maintained. We have, however,
not made a detailed examination of the records with a view to determine
whether they are accurate.


9. In respect of statutory dues:


a) According to the records of the Company, the Company has been
generally regular in depositing with statutory authorities, undisputed
statutory dues, including Provident Fund, Income tax, Sales tax, Wealth
tax, Service tax, Customs duty, cess and other material statutory dues
applicable to it. According to the information and explanations given
to us, no undisputed amounts payable in respect of aforesaid dues were
outstanding, as at September 30, 2012 for a period of more than six
months from the date they became payable;


b) On the basis of our examination of documents on records of the
Company and information and explanations given to us upon our inquiries
in this regard, the disputed amounts payable in respect of Income tax,
Sales tax, Wealth tax, Service tax, Customs duty and Excise Duty/Cess
not deposited with the appropriate authorities are as under:


Name Nature Amount Period Forum where
of the of (Rs. in for dispute is
Statute Dues crores) which pending
amount
relates


Central Sales 25.34 Various Deputy/Joint
Sales Tax, years from Commissioner/
Tax Act, VAT 1997-98 Commissioner
1956 and to 2011- (Appeals)
and Entry 12
State Tax
Sales Tax
Act/VAT
Act of
various
states


1.23 Various Sales Tax
years from Appellate
1982-83 Tribunal
to 2011-12


0.43 Various High Court
years from
1989-90 to
2006-07


Central Excise 3.02 Various Commissioner
Excise and years from of Central
Act, Service 1981-82 to Excise
1944 Tax 2011-12 (Appeals)


26.38 Various Central Excise
years from and Service
1981-82 to Tax Appellate
2010-11 Tribunal


Total 56.40


10. The Company does not have any accumulated losses at the end of the
financial year and has not incurred cash losses in the financial year
and in the immediately preceding financial year


11. Based on the information and explanations given by the management,
we are of the opinion that the Company has not defaulted in repayment
of dues to financial institutions, banks and debenture holders.


12. 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, the Company is not a chit fund or a nidhi/mutual
benefit fund/society. Therefore, the provisions of clause 4(xiii) of
the Companies (Auditor's Report) Order 2003, (as amended) are not
applicable to the Company


14. The Company has maintained proper records of the transactions and
contracts in respect of dealing or trading in shares, securities,
debentures and other investments and timely entries have been made
therein. All shares, securities, debentures and other investments have
been held by the Company in its own name.


15. The Company has given guarantee for loans taken by its one
subsidiary company from banks; the terms and conditions whereof in our
opinion are not prima facie prejudicial to the interest of the Company


16. Based on the information and explanations given to us by the
management, the term loans were applied for the purpose for which the
loans were obtained.


17. 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.


18. The Company has not made during the year any preferential
allotment of shares to companies, firms, parties covered under register
maintained under section 301 of the Companies Act, 1956.


19. In our opinion and according to the information and explanations
given to us, the Company has not issued any secured debentures during
the period covered by our report. Accordingly, provisions of clause
(xix) of the Companies (Auditor's Report) Order, 2003 are not
applicable.


20. The Company has raised monies by way of right issue of equity
shares during the year. We have verified the end use of monies raised
by rights issues of equity shares and the same has been disclosed in
Note 41.


21. Based upon the audit procedures performed for the purpose of
reporting the true and fair view of the financial statements and as per
the information and explanations given by the management, we have not
come across any instance of material fraud on or by the Company,
noticed or reported during the year, nor have been informed of such
case by the management.


For and on behalf of


CHATURVEDI & SHAH


Firm Registration Number : 101720W


Chartered Accountants


Amit Chaturvedi


Partner


Membership No. 103141


Place: Mumbai


Date: November 26, 2012

CIN: U67190WB2003PTC096617. Trading in Commodities is done through our Group Company Dynamic Commodities Pvt. Ltd. The company is also engaged in Proprietory Trading apart from Client Business.
“2019 © COPYRIGHT DYNAMIC EQUITIES PVT. LTD.”

Disclaimer: There is no guarantee of profits or no exceptions from losses. The investment advice provided are solely the personal views of the research team. You are advised to rely on your own judgment while making investment / Trading decisions. Past performance is not an indicator of future returns. Investment is subject to market risks. You should read and understand the Risk Disclosure Documents before trading/Investing.

Disclosure: We, Dynamic Equities Private Limited are also engaged in Proprietory Trading apart from Client Business. In case of any complaints/grievances, clients may write to us at compliance@dynamiclevels.com

  • Download our Mobile App
  • Available on Google Play
  • Available on App Store
  • RSS