Shree Mahaganga Sugar Mills Ltd Auditor Reports

SHREE MAHAGANGA SUGAR MILLS LIMITED (FORMERLY KNOWN AS ELTROL LIMITED) ANNUAL REPORT 2010-2011 AUDITORS REPORT TO SHAREHOLDERS TO, The Members of SHREE MAHAGANGA SUGAR MILLS LIMITED. We have audited the attached Balance Sheet of SHREE MAHAGANGA SUGAR MILLS LIMITED as at 31st March 2011, issued by the Company law board in terms of section 227(4A) of The Companies Act, 1956 and explanation given to and the basis of such checks as we consider appropriate. We enclose in the Annexure statements on the matter specified in the paragraph 4 and 5 of the said order Further to our comments in the annexure referred to in paragraph in 1 above, state that, (a) We have obtained all the information and explanation which to the best of our knowledge and belief were necessary for the purpose of the audit. (b) In our opinion, the company has kept proper books of accounts as required by law so far, as appears from examination of such books. (c) The Balance Sheet, the Profit & Loss Account and the Cash Flow Statement dealt with by this report are in agreement with the books of accounts. (d) In our opinion the Profit & Loss Account, The Balance Sheet and the Cash Flow Statement dealt with by this report comply with the mandatory Accounting standards referred to in sub section 211(3C) of The Companies Act, 1956. (e) On the basis of written representations received from the Directors as on March 31, 2011 and taken on record by the Board Of Directors, we report that none of the Directors are disqualified as on 31st March 2011 from being appointed as Directors in terms of clause (g) of sub section 274 of the Companies Act 1956. (f) In our opinion and to the best of our information and according to explanation given to us, the sais accounts read together with the Significant Accounting Policies and other notes thereon 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 case of the Balance Sheet, of the state of affairs of the company as at 31st March 2011 and (II) In case of the Profit & Loss Account, of the loss of the company 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. For Uday Pasad and Associates Chartered Accountants sd/- Place: Mumbai (Uday Pasad) Date : 2nd September, 2011 Proprietor M. No. 46581 ANNEXURE TO AUDITORS REPORT Re SHREE MAHAGANGA SUGAR MILLS LIMITED. (Referred to in paragraph 1 of our report on even date) 1. The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets. The fixed assets have been physically verified by the management during the year and no material discrepancies were noticed on such verification. 2. In our opinion, the Company has not disposed off substantial part of its fixed assets during the year and the going concern status of the Company is not affected. 3. The Company has maintained proper records of inventory. As explained to us, there were no material discrepancies noticed on physical verification of inventory as compared to the book records. 4. In our opinion the rate of interest and other terms and conditions on which loans have been taken from companies, firms or other parties listed in the register maintained under section 301 and from companies under the same management as defined under sub section (1-B) of section 370 of Companies Act,1956 are prima facie not prejudicial to the interest of the company. 5. The company has not granted any loans to companies, firms or other listed in register maintained under section 301 of Companies Act, 1956 or to the companies under same management under sub section (1-B) of section 370 of Companies Act, 1956. 6. There are no interest free advances in the nature of loans given to employees during the year. 7. 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 for the purchase of raw materials, components, stores, plant and machinery, equipment, and other assets and for the sale of goods. 8. In our opinion and according to the information and explanations given to us, there are no transactions of purchase of goods and materials and sale of goods, materials and services made. 9. As explained to us there is no unserviceable or damaged stores, raw materials and finished goods. 10. The Company has not accepted deposits from the public within the meaning of section 58-A of the Companies Act, 1956 and the rules framed thereunder. 11. As explained to us, the Company does not have any significant realisable by-product or scrap. 12. In our opinion, the Company has an internal audit commensurate with the size of the Company and the nature of the business. 13. To the best of our knowledge and according to the information and explanation provide to us the Central Government has not prescribed the maintenance of cost records under section 209(1)(d) of the Companies Act, 1956. 14. 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 (Auditors Report) Order 2003, (as amended) are not applicable to the company. 15. As explained to us and from our examination of the books of accounts the Provident Fund and Employees State Insurance Act is not applicable to the Company. 16. According to the information and explanations given to us, no undisputed amounts payable in respect of Income-Tax, Wealth Tax, Customs Duty and Excise Duty, Cess and any other statutory dues, have been generally regularly deposited with the appropriate authorities except for the few cases. According to the information and explanations given to us, no undisputed amounts payable in respect of the aforesaid dues were outstanding as at 31st March 2011 for a period of more than six months. 17. As appears from our examination the records and according to the information and explanations given to us, no personal expenses have been charged to revenue account other than those payable under contractual obligation or in accordance with generally accepted business practice. 18. The company is not a sick industrial company within the meaning of clause (0) of sub section 3 of the Sick Industrial Companies (Special Provisions) Act, 1985. 19. 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 report that no fraud on or by the company has been noticed or reported during the year. For Uday Pasad and Associates Chartered Accountants sd/- Place: Mumbai (Uday Pasad) Date : 2nd September, 2011 Proprietor M. No. 46581