Auditors' Report (2008-2009)
We have audited the attached Balance Sheet THE JUTE CORPORATION OF INDIA LIMITED as at 31st March, 2008 the Profit & Loss Account and also 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 this financial statement based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonably assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, assessing the accounting principle used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
1) We have obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the purpose of our audit.
2) In our opinion, proper books of account as required by law have been kept by the company so far as it appears from our examination of those books.
3) In our opinion, the Company’s Balance Sheet, Profit & Loss Account and Cash Flow Statement dealt with by this report comply with the Accounting Standards as referred to in sub-section (3C) of section 211 of the Companies Act, 1956.
4) The Balance Sheet, Profit & Loss Account and Cash Flow Statement referred to in this report are in agreement with the Books of Accounts.
5) As per Notification No. GSR 829(E) dated 21.10.2003 issued by the Department of company Affairs in exercise of the power conferred by Section 620(l)(a) of the Companies Act, 1956 and published in the Gazette of India, Extraordinary, part II section 3)i) Section 274(I)(g) of the Companies Act, 1956, regarding “Disqualification of Directors” for appointment as director of a Government Company is not applicable to this Company due to it being a Government Company.
6) We further report :
a) The expenses/Income & related current Assets & Liabilities of Regional Offices have been incorporated in this account on the basis of returns audited by the Internal auditor except intwo cases which have been audited by us.
b) The Challan, Delivery Instruction which bear the pre-printed consecutive serial number have not been serially used by DPCs.
c) Sundry Creditors include :
i) Raw Jute Buffer Stock Scheme for Rs.3.74 Crores pending adjustment for a long time. In the absence of any confirmation/detail the effectiveness of the liability is not ascertainable.
ii) Subsidy for Minimum Support Price received from the Government of India, Ministry of Textiles for Rs.132.11 Crores has been proposed by the Board of Directors for treating the same as revenue item under grant. Pending approval of the concerned ministry no adjustment has been made in the accounts.
7) As required by the Companies (auditor’s Report) Order, 2003 and Amendment Order 2004 issued by the Government of India in terms of Section 227(4A) of the Companies Act, 1956 we enclosed in the Annexure, a statement on the matter specified in paragraphs 4 & 5 of the said order.
8) In our opinion and to the best of our information and according to the explanation given to us, the said accounts subject to Para 6 above and read together with Notes and Accounting Policies thereon, give the information required by the Companies Act, 1956 in the manner so required and give a true and fair view :
i) In the case of Balance sheet of the state of affairs of the Company as at 31st March 2008.
ii) In the case of Profit and Loss Account of the loss for the year ended on that date and
iii) In the case of Cash Flow Statement, of the Cash Flow for the year ended on that date.