Home  »  Company  »  Autolite (I)  »  Quotes  »  Auditor Report
Enter the first few characters of Company and click 'Go'

Auditor Report of Autolite (India) Ltd.

Mar 31, 2015

We have audited the accompanying financial statements of AUTOLITE (INDIA) LIMITED ("the Company"), which comprise the Balance Sheet as at 31st March, 2015, the Statement of Profit and Loss, the Cash Flow Statement for the year then ended, and a summary of the significant accounting policies and other explanatory information.

Management's Responsibility for the Financial Statements

The Company's Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these standalone financial statements based on our audit. We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.

We conducted our audit in accordance with the Standards onAuditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material mis-statement.

An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company's preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company's Directors, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified audit opinion on the financial statements.

Basis for Qualified Opinion

(i) As detailed in Note No. 45 of Financial Statements, In the absence of information, no impact has been taken in books for Deferred Tax Assets/Liabilities,

(ii) As detailed in Note No. 46 of Financial Statements regarding claim for Export Incentive on estimated basis for Rs 308.68 Lacs,

(iii) As detailed in Note No. 47 of Financial Statements regarding Rs 610.99 Lacs being advance against supplies to a company which is registered as Sick Unit with Board for Industrial and Financial Reconstruction against which no provision has been made in books,

(iv) As detailed in Note No. 48 of Financial Statements regarding claim receivable on estimated basis for Rs 90.00 Lacs,

(v) As detailed in Note No. 2 (viii) and Note No. 49 of Financial Statements regarding Deferred Revenue Expenditure for Rs. 199.40 Lacs not written off during the year,

Accordingly Net Profit and Shareholder's fund would have been reduced by Rs 1209.07 Lacs. Other Non*Current Assets and Long Term Loans & Advances would have been reduced by Rs. 598.08 Lacs and 610.99 Lacs respectively.

Qualified Opinion

In our opinion and to the best of our information and according to the explanations given to us, except for the effects and possible effects of the matter described above (i) to (v) in the basis for qualified opinion paragraph, the financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the company as at March 31, 2015, and its profit and its cash flows for year ended on that date.

Emphasis of Matter

We draw attention toAnnexure to the Auditor's Report Para No. vii(a) that the company is not regular in depositing its statutory dues with appropriate authorities. Our opinion is not qualified in respect of this matter.

Report on Other Legal and Regulatory Requirements

As required by the Companies (Auditor's Report) Order, 2015 ("the Order") issued by the Central Government of India in terms of sub*section (11) of Section 143 of the Companies Act 2013, we give in the Annexure a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.

As required by Section 143(3) of the Act, we report that:

(a) we have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit;

(b) 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;

(c) the Balance Sheet, the Statement of Profit and Loss and the Cash Flow Statement dealt with by this Report are in agreement with the books of account;

(d) Except for the effects and possible effects of the matter described in the basis for qualified opinion paragraph, in our opinion, the aforesaid financial statements comply with the Accounting Standards specified under Section 133 of Act, read with Rule 7 of the Companies (Accounts) Rules, 2014 except for

AS-9 (Revenue Recognition) and AS*29 (Provisions, Contingent Liabilities and Contingent Assets) as detailed in Note No. 46, 47 and 48 of Balance Sheet, AS*22 (Accounting for Taxes on Income) as detailed in Note No. 45 of Balance Sheet, AS*26 (Intangible Assets) as detailed in Note No. 2(viii) and Note No.49 of Balance Sheet;

(e) on the basis of written representation received from Directors as on 31st March, 2015 taken on record by the Board of Directors, none of the directors is disqualified from being appointed as a director in terms of Section 164(2) of the Act ; and

(f) With respect to the other matters to be included in the Auditor's Report in accordance with Rule11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of

our information and according to the explanations given to us ;

(i) The Company has disclosed the impact of pending litigation on its financial position in its financial statements * refer Note No. 21(i) to the financial statements;

(ii) The Company did not have any long*term contracts including derivative contracts for which there were any material foreseeable losses; and

(iii) There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.

ANNEXURE TO THEAUDITORS' REPORT For the Year Ended on 31st March, 2015

Referred to in Para 'Report on Other Legal and Regulatory Requirements' in our Report of even date:

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

(b) These fixed assets have been physically verified by the management during the year at reasonable intervals. No material discrepancies were noticed on such verification.

(ii) (a) The inventory excluding stocks with third parties has been physically verified by the Management during the year. In respect of inventory lying with third parties, these have substantially been confirmed by them. In our opinion, the frequency of verification is reasonable.

(b) In our opinion, the procedures of physical verification of Inventory followed by the Management are reasonable and adequate in relation to the size of the Company and nature of its business.

(c) On the basis of our examination of the inventory records, in our opinion, the Company has maintained proper records of inventory. The discrepancies noticed between the physical stocks and the books record were not material

(iii) The Company has granted loans, secured or unsecured to companies, firms or other parties covered in the register maintained under section 189 of the Companies Act 2013 and ;

(a) The Company is not regular in recovery of principal and interest in respect of loans given;

(b) Reasonable steps have not been taken by the Company for recovery of the principal and interest.

(iv) In our opinion and according to information and explanations given to us, there is an adequate internal control system commensurate with the size of the Company and the nature of the business for the purchase of inventory and fixed assets and for the sale of goods. Further, there is no continuing failure to correct major weaknesses in internal control system.

(v) As informed to us the company has not accepted any deposits under the provisions of Section 73 to 76 or any other relevant provisions of the Act and the Rules framed thereunder.

(vi) The Central Government has prescribed maintenance of Cost records under sub*section (1) of Section 148 of the Companies Act, 2013 in respect of manufacturing activity of the Company. We have broadly reviewed the accounts and records of the Company in this connection and are of the opinion, that prima facie, the prescribed accounts and records have been made and maintained. We have not, however, carried out a detailed examination of the same with a view to determine whether they are accurate or complete.

(vii) (a) According to the books and records as produced and examined by us in accordance with the generally accepted Auditing practices in India and also based on management representations, the Company is not regular in depositing undisputed statutory dues. However, there is no undisputed statutory dues as at 31.3.2015 outstanding for a period of more than six months from the date they become payable except bonus for Rs. 10.90 Lacs.

(b) According to information and explanations given to us and records of the Company examined by us, there have been no disputed dues which have not been deposited with the respective authorities in respect of Wealth Tax, Service Tax, Sales Tax, Custom Duty, Value Added Tax and Cess. The particulars of dues of Income Tax and duty of Excise as at 31st March, 2015 which have not been deposited on account of dispute are as follows: *

Name of Nature of Dues Amount Statute (Rs. in Lacs)

1. Central Excise Act Excise Duty 3.53

242.78

10.73

70.28

2. Income Tax Act Income Tax 138.29

Name of Nature of Dues Forum where dispute is pending Statute

1. Central Excise Act High Court, Jaipur

Commissioner, Central Excise, Jaipur

Central Excise & Service

Tax Appellate Tribunal, New Delhi Commissioner (Appeals), Central Excise, Jaipur.

2. Income Tax Act Commissioner of Income Tax (Appeals)

(c) The amount required to be transferred to Investor Education And Protection Fund in accordance with the relevant provisions of the Companies Act,1956 (1 of 1956) and Rules made there under has been transferred to such fund within time.

(viii) The accumulated losses of the Company as per Balance Sheet as at 31.3.2015 are less than fifty per cent of its net worth. The Company has neither incurred cash losses in financial year ended on 31.3.2015 nor it has incurred cash losses in immediately preceding financial year.

(ix) According to the information and explanations given to us, the Company has not defaulted in repayment of dues to financial institutions, banks or debenture holders.

(x) In our opinion and according to the information and explanation given to us, the Company has not given any guarantee for loans taken by others from banks or financial institutions during the year. Accordingly, the provisions of Clause 3(x) of the Order are not applicable to the Company.

(xi) In our opinion and according to the information and explanation given to us, the Term Loans have been applied for the purpose for which they were obtained.

(xii) During the course of our examination of the books and records of the Company, carried out in accordance with the generally accepted auditing practice in India, and according to the information and explanations given to us, we have neither come across any instance of material fraud on or by the Company, noticed or reported during the year nor have we been informed of any such case by the Management.

For H.C. GARG & COMPANY Chartered Accountants FRN -000152C

Sd/- (MADHUKAR GARG) PLACE : JAIPUR PROPRIETOR DATED : 30-05-2015 M. No. 070162


Mar 31, 2014

We have audited the accompanying financial statements of Autolite (India) Limited ("the Company"), which comprise the Balance Sheet as at March 31,2014 and the Statement of Profit and Loss and Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information.

Management''s Responsibility for the Financial Statements

Management is responsible for the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the Accounting Standards referred to in sub-section (3C) of section 211 of the Companies Act,1956 ("the Act").This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Auditor''s Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Company''s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluation the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified audit opinion.

Basis for Qualified Opinion

(i) As detailed in Note No, 44 of Balance Sheet, In the absence of information, no impact has been taken in books for Deferred Tax Assets/ Liabilities,

(ii) As detailed in Note No, 45 of Balance Sheet regarding claim for Export Incentive on estimated basis for Rs 308,68 Lacs,

(iii) As detailed in Note No, 46 of Balance Sheet regarding Rs 575,79 Lacs being advance against supplies to a company which is registered as Sick Unit with Board for Industrial and Financial Reconstruction against which no provision has been made in books,

(iv) As detailed in Note No, 47 of Balance Sheet regarding claim receivable on estimated basis for Rs 90,00 Lacs,

(v) As detailed in Note No, 2 (viii) and Note No, 48 of Balance Sheet regarding Deferred Revenue Expenditure for Rs, 199,39 Lacs not written off during the year, Accordingly Net Profit and Shareholder''s fund would have been reduced by Rs 1173,86 Lacs, Other Non-CurrentAssets, Long Term Loans & Advances & Other Current-Assets would have been reduced by Rs, 528,19 Lacs, 575,79 Lacs & 69,88 Lacs, Respectively,

Qualified Opinion

In our opinion and to the best of our information and according to the explanations given to us, except for the effects and possible effects of the matter described above (i) to (v) in the basis for qualified opinion paragraph, the financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India :-

(a) in the case of the Balance Sheet, of the state f affairs of the Company as at March 31, 2014,

(b) in the case of the Profit and Loss Account, of the profit for the year ended on that date; and

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

Emphasis of Matter

We draw attention to Annexure to the Auditor''s Report Para No. IX(a) that the company is not regular in depositing its statutory dues with appropriate authorities. Our opinion is not qualified in respect of this matter.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor''s Report) Order, 2003 ("the Order") issued by the Central Government of India in terms of sub-section (4A) of section 227 of the Act, we give in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the Order.

2. As required by section 227(3) of the Act, 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 purpose 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, Statement of Profit and Loss, and Cash Flow Statement dealt with by this Report are in agreement with the books of account;

(d) Except for the effects and possible effects of the matter described in the basis for qualified opinion paragraph, in our opinion, the Balance Sheet, Statement of Profit and Loss, and Cash Flow Statement comply with the Accounting Standards referred to in sub-section (3C) of Section 211 of the Companies Act, 1956 except for AS-9 (Revenue Recognition) and AS-29 (Provisions, Contingent Liabilities and Contingent Assets) as detailed in Note No, 45, 46 & 47 of Balance sheet, AS- 22 (Accounting for Taxes on Income) as detailed in Note No, 44 of Balance Sheet & AS-26 (Intangible Assets) as detailed in Note No, 2(viii) and Note No,48 of Balance Sheet;

(e) on the basis of written representations received from the directors as on March 31, 2014 and taken on record by the Board of Directors, none of the directors is disqualified as on March 31,2014 from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the companies Act,1956.

(f) Since the Central Government has not issued any notification as to the rate at which the cess is to be paid under Section 441A of the Companies Act, 1956 nor has it issued any Rules under the said section, prescribing the manner in which such cess is to be paid, no cess is due and payable by the Company.

ANNEXURE TO THE AUDITORS'' REPORT

(Referred to in our Report of even date)

(i) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets. No fixed assets register has been maintained for dies and tools up to 31.3.98.

(b) These fixed assets have been physically verified by the management at reasonable intervals. No material discrepancies were noticed on such verification.

(b) Substantial Part of fixed assets has not been disposed off during the year.

(ii) (a) Physical verification of inventory has been conducted at reasonable intervals by the management.

(b) The procedures of physical verification of inventory followed by the management are reasonable and adequate in relation to the size of the Company and the nature of its business.

(c) The Company has maintained proper records of inventory. No material discrepancies were noticed on physical verification.

(iii) (a) The Company has granted loans, secured or unsecured to companies, firms or other parties covered in the register maintained under section 301 of the Act. The number of parties are 5 (Five) and amount involved in the transaction is Rs. 454.77 Lacs.

(b) The rate of interest and other terms and conditions of loans given by the Company, secured or unsecured, are prima facie prejudicial to the interest of the Company.

(c) The Company is not regular in recovery of Principal and Interest in respect of loans given.

(d) Reasonable steps have not been taken by the Company for recovery of the principal and interest.

(e) The Company has not taken unsecured loans from the companies, firms or other parties covered in the register maintained under section 301 of the Act. Accordingly clause (iii) (f) and (g) of the Companies (Auditor''s Report) Order 2003 are not applicable.

(iv) In our opinion and according to information and explanations given to us, there are adequate internal control procedures commensurate with the size of the Company and the nature of the business; for the purchase of inventory and fixed assets and for the sale of goods. Further, there is no continuing failure to correct major weaknesses in internal control system.

(v) (a) According to the information and explanations given to us, we are of the opinion that the transactions that need to be entered into a register in pursuance of Section 301 of the Act have been entered in the register required to be maintained under that section.

(b) In our opinion and according to the information and explanations given to us, the transactions made in pursuance of contracts or arrangements entered in the register maintained under Section 301 of the Companies Act, 1956 and exceeding the value of rupees five lacs in respect of any party during the period have been made at prices which are reasonable having regard to prevailing market prices at the relevant time except in cases where no comparison was possible in the case of those materials and services where we were informed, there is no alternative source of supply.

(vi) As informed to us, during the year, the Company has not accepted deposits from the public. For Deposits accepted in earlier years the directives issued by the Reserve Bank of India and the provisions of sections 58A and 58AA or any other relevant provisions of the Act and the rules framed there under, have been complied with except for repayment of deposits on due dates. An order has been passed by the Company Law Board on 27.4.2011 for repayment of dues along with interest in phased manner till Financial Year 2012-13. The Company has made complete payment to FDR holders in compliance of the said order except Rs 71.56 Lacs against which several Cheques/ DD returned undelivered and several Cheques not deposited by FDR Holders. The company has kept said amount in a separate bank account to meet the liability. Further the company has filed an application before the Company Law Board seeking direction in this regard.

(vii) In our opinion the Company has an internal audit system commensurate with its size and nature of its business.

(viii) The Central Government has prescribed maintenance of Cost records under Section 209(1)(d) of the Companies Act, 1956 in respect of manufacturing activity of the Company. We have broadly reviewed the accounts and records of the Company in this connection and are of the opinion, that prima facie, the prescribed accounts and records have been made and maintained. We have not, however, carried out a detailed examination of the same with a view to determine whether they are accurate or complete.

(ix) (a) According to the books and records as produced and examined by us in accordance with the generally accepted Auditing practices in India and also based on management representations, the Company is not regular in depositing undisputed statutory dues. However, there is no undisputed statutory dues as at 31.3.2014 outstanding for a period of more than six months from the date they become payable except bonus for Rs. 8.20 Lacs.

(b) According to the information and explanations given to us and records of the company examined by us the dues of sales tax/income tax/custom duty/ wealth tax/ excise duty/cess which are disputed and the details for which are given as under:

Name of Statute Nature of Dues Amount Forum where (Rs, in Lacs) dispute is pending

1. Central Excise Excise Duty 3.53 High Court Act 242.78 Central Excise & Service Tax Appellate Tribunal.

70.28 Commissioner (Appeals), Central Excise, Jaipur.

(x) The accumulated losses of the Company as per Balance Sheet as at 31.3.2014 are less than fifty per cent of its net worth. The Company has neither incurred cash losses in financial year ended on 31.3.2014 nor it has incurred cash losses in immediately preceding financial year.

(xi) According to the information and explanations given to us, the Company has not defaulted in repayment of dues to financial institutions, banks or debenture holders.

(xii) According to information & explanations given to us, the Company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

(xiii) Considering the nature of activities carried on by the Company during the year, provisions of any special statute in respect of chit fund nidhi/ mutual benefit fund/societies are not applicable to it.

(xiv) In our opinion and according to information and explanations given to us, the Company has not dealt or traded in shares, securities, debentures or other investments during the year.

(xv) The Company has not given any guarantee for loans taken by others from bank or financial institutions during the year.

(xvi) The Company has taken Term Loan of Rs. 100 Lacs from Kotak Mahindra Bank during the year. The said loan was applied for the purpose for which it was obtained.

(xvii) On the basis of review of utilization of funds which is based on overall examination of the Balance sheet of the Company, related information as made available to us and as represented to us by the management, the funds raised on short term basis have not been used for long term investments.

(xviii) The Company has made preferential allotment of shares to parties covered in the Register maintained under section 301 of the Act during the year and the price at which shares have been issued is not prejudicial to the interest of the Company as these shares are allotted as per SEBI Guidelines.

(xix) The Company has not issued any debentures during the year.

(xx) The Company has not raised any money through public issue during the year.

(xxi) As per the information and explanations given to us, and on the basis of our examination of books and records carried out in accordance with generally accepted auditing practices, no fraud on or by the Company was noticed or reported during the year, nor have we seen and informed of any such case by the management.

For H.C. GARG & COMPANY Chartered Accountants FRN - 000152C Sd/- (MADHUKAR GARG) PLACE : JAIPUR PROPRIETOR DATED : 29-05-2014 m. No. 070162


Mar 31, 2013

Report on the Financial Statements

We have audited the accompanying financial statements of Autolite (India) Limited ("the Company"), which comprise the Balance Sheet as at March 31, 2013, and the Statement of Profit and Loss and Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information.

Management''s Responsibility for the Financial Statements

Management is responsible for the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the Accounting Standards referred to in sub-section (3C) of Section 211 of the Companies Act,1956 ("the Act").This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Auditor''s Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Company''s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified audit opinion.

Basis for Qualified Opinion

(i) As detailed in Note No. 45 of Balance Sheet, in the absence of information, no impact has been taken in books for Deferred Tax Assets/Liabilities,

(ii) As detailed in Note No. 46 of Balance Sheet regarding claim for Export Incentive on estimated basis for Rs 377.35 Lacs,

(iii) As detailed in Note No. 47 of Balance Sheet regarding Rs 560.04 Lacs being advance against supplies to a company which is registered as Sick Unit with Board for Industrial and Financial Reconstruction against which no provision has been made in books.

(iv) As detailed in Note No. 49 of Balance Sheet regarding claim receivable on estimated basis for Rs 90.00 Lacs,

Accordingly Net Profit and Shareholder''s fund would have been reduced by Rs 1027.39 Lacs. Long Term Loans & advances and other non-current assets would have been reduced by Rs 560.04 Lacs and Rs 467.35 Lacs, respectively.

Qualified Opinion

In our opinion and to the best of our information and according to the explanations given to us, except for the effects and possible effects of the matter described above (i), (ii) , (iii) & (iv) in the basis for qualified opinion paragraph, the financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India :- (a) in the case of the Balance Sheet, of the state of affairs of the Company as at March 31, 2013,

(b) in the case of the Profit and Loss Account, of the profit for the year ended on that date; and

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

Emphasis of Matter

We draw attention to Annexure to the Auditor''s Report Para No. IX(a) that the company is not regular in depositing its statutory dues with appropriate authorities. Our opinion is not qualified in respect of this matter.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor''s Report) Order, 2003 ("the Order") issued by the Central Government of India in terms of sub-section (4A) of Section 227 of the Act, we give in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the Order.

2. As required by Section 227(3) of the Companies Act 1956, 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 purpose 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, Statement of Profit and Loss, and Cash Flow Statement dealt with by this Report are in agreement with the books of account;

(d) Except for the effects and possible effects of the matter described in the basis for qualified opinion paragraph, in our opinion, the Balance Sheet, Statement of Profit and Loss, and Cash Flow Statement comply with the Accounting Standards referred to in sub-section (3C) of Section 211 of the Companies Act, 1956 except for AS-9 (Revenue Recognition) and AS-29 (Provisions, Contingent Liabilities and Contingent Assets) as detailed in Note No. 46, 47 & 49 of Balance sheet & AS-22 (Accounting for Taxes on Income) as detailed in Note No. 45 of Balance Sheet & AS-26 (Intangible Assets) as detailed in Note No.2 (viii) of Balance Sheet;

(e) on the basis of written representations received from the directors as on March 31, 2013, and taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2013, from being appointed as a director in terms of clause (g) of sub-section (1) of Section 274 of the Companies Act,1956.

(f) Since the Central Government has not issued any notification as to the rate at which the cess is to be paid under Section 441A of the Companies Act, 1956 nor has it issued any Rules under the said section, prescribing the manner in which such cess is to be paid, no cess is due and payable by the Company.

ANNEXURE TO THE AUDITORS'' REPORT

(Referred to in paragraph 3 of our Report of even date)

(i) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets. No fixed assets register has been maintained for dies and tools up to 31.3.98.

(b) These fixed assets have been physically verified by the management at reasonable intervals. No material discrepancies were noticed on such verification.

(c) Substantial Part of fixed assets has not been disposed off during the year.

(ii) (a) Physical verification of inventory has been conducted at reasonable intervals by the management.

(b) The procedures of physical verification of inventory followed by the management are reasonable and adequate in relation to the size of the Company and the nature of its business.

(c) The Company has maintained proper records of inventory. No material discrepancies were noticed on physical verification.

(iii) (a) The Company has granted loans, secured or unsecured to companies, firms or other parties covered in the register maintained under Section 301 of the Act. The number of parties are 4 (Four) and amount involved in the transaction is Rs. 402.17 Lacs.

(b) The rate of interest and other terms and conditions of loans given by the Company, secured or unsecured, are prima facie prejudicial to the interest of the Company.

(c) The Company is not regular in recovery of Principal and Interest in respect of loans given.

(d) Reasonable steps have been taken by the Company for recovery of the principal and interest.

(e) The Company has not taken unsecured loans from the companies, firms or other parties covered in the register maintained under Section 301 of the Act. Accordingly clause (iii) (f) and (g) of the Companies (Auditor''s Report) Order 2003 are not applicable.

(iv) In our opinion and according to information and explanations given to us, there are adequate internal control procedures commensurate with the size of the Company and the nature of the business; for the purchase of inventory and fixed assets and for the sale of goods. Further, there is no continuing failure to correct major weaknesses in internal control system.

(v) (a) According to the information and explanations given to us, we are of the opinion that the transactions that need to be entered into a register in pursuance of Section 301 of the Act have been entered in the register required to be maintained under that section.

(b) In our opinion and according to the information and explanations given to us, the transactions made in pursuance of contracts or arrangements entered in the register maintained under Section 301 of the Companies Act, 1956 and exceeding the value of Rupees five lacs in respect of any party during the period have been made at prices which are reasonable having regard to prevailing market prices at the relevant time except in cases where no comparison was possible in the case of those materials and services where we were informed, there is no alternative source of supply.

(vi) As informed to us, during the year, the Company has not accepted deposits from the public. For Deposits accepted in earlier years the directives issued by the Reserve Bank of India and the provisions of sections 58A and 58AA or any other relevant provisions of the Act and the rules framed there under, have been complied with except for repayment of deposits on due dates. An order has been passed by the Company Law Board on 27.4.2011 for repayment of dues along with interest in phased manner till Financial Year 2012-13. The Company has made complete payment to FDR holders in compliance of the said order except Rs 92.67 Lacs against which several Cheques/ DD returned undelivered and several Cheques not deposited by FDR Holders. The company has kept said amount in a separate bank account to meet the liability. Further the company has filed an application before the Company Law Board seeking direction in this regard.

(vii) In our opinion the Company has an internal audit system commensurate with its size and nature of its business.

(viii) The Central Government has prescribed maintenance of Cost records under Section 209(1)(d) of the Companies Act, 1956 in respect of manufacturing activity of the Company. We have broadly reviewed the accounts and records of the Company in this connection and are of the opinion, that prima facie, the prescribed accounts and records have been made and maintained. We have not, however, carried out a detailed examination of the same with a view to determine whether they are accurate or complete.

(ix) According to the books and records as produced and examined by us in accordance with the generally accepted Auditing practices in India and also based on management representations, the Company is not regular in depositing undisputed statutory dues. However, there is no undisputed statutory dues as at 31.3.2013 outstanding for a period of more than six months from the date they become payable.

(x) The accumulated losses of the Company as per Balance Sheet as at 31.3.2013 are less than fifty per cent of its net worth. The Company has neither incurred cash losses in financial year ended on 31.3.2013 nor it has incurred cash losses in immediately preceding financial year.

(xi) According to the information and explanations given to us, the Company has not defaulted in repayment of dues to financial institutions, banks or debenture holders.

(xii) According to information & explanations given to us, the Company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

(xiii) Considering the nature of activities carried on by the Company during the year, provisions of any special statute in respect of chit fund nidhi/mutual benefit fund/ societies are not applicable to it.

(xiv) In our opinion and according to information and explanations given to us, the Company has not dealt or traded in shares, securities, debentures or other investments during the year.

(xv) The Company has not given any guarantee for loans taken by others from bank or financial institutions during the year.

(xvi) The Company has not taken any Term Loan from any Bank or Financial Institution during the year.

(xvii) On the basis of review of utilization of funds which is based on overall examination of the Balance sheet of the Company, related information as made available to us and as represented to us by the management, the funds raised on short term basis have not been used for long term investments.

(xviii) The Company has not made preferential allotment of shares to parties covered in the Register maintained under Section 301 of the Act during the year.

(xix) The Company has not issued any debentures during the year.

(xx) The Company has not raised any money through public issue during the year.

(xxi) As per the information and explanations given to us, and on the basis of our examination of books and records carried out in accordance with generally accepted auditing practices, no fraud on or by the Company was noticed or reported during the year, nor have we seen and informed of any such case by the management.

For H.C. GARG & COMPANY

Chartered Accountants FRN - 000152C

Sd/-

(MADHUKAR GARG)

PROPRIETOR M. No. 070162

PLACE : JAIPUR

DATE : 30.05.2013


Mar 31, 2012

1. We have audited the attached Balance Sheet of AUTOLITE (INDIA) LIMITED as at 31st March, 2012 and also the Profit & Loss Account of the Company for the year ended on that date, annexed thereto and the Cash Flow Statement for the year ended on that date which we have signed under reference to this report. 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.

2. 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 reasonable assurance about whether the financial statements are free of material mis-statements. 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 management, as well as evaluating the overall financial statements presentation. We believe that our audit provides a reasonable basis for our opinion.

3. As required by the Companies (Auditors' Report) Order, 2003 issued by the Central Government of India in terms of Section 227(4-A) of the Companies Act, 1956, we give in the Annexure a Statement on the matters specified in paragraphs 4 & 5 of the said order.

4. Further to our comments in the Annexure referred to in paragraph (1) above :

(a) 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

(b) In our opinion, proper books of accounts as required by law have been kept by the Company, so far as appears from our examination of the books.

(c) The Balance Sheet, Profit & Loss Account and Cash Flow Statement dealt with by this report are in agreement with the books of accounts.

(d) In our opinion, the Profit & Loss Account, Balance Sheet and Cash Flow statement comply with the Accounting Standards referred to in sub-section (3C) of Section 211 of the Companies Act, 1956 except for AS-9 (Revenue Recognition) and AS-29 (Provisions, Contingent Liabilities and Contingent Assets) as detailed in Note No.46 & 49 of Balance Sheet & AS-22 (Accounting for Taxes on Income) as detailed in Note No. 45 of Balance sheet.

(e) On the basis of written representations received from the Directors as on 31st March 2012 and taken on record by the Board of Directors, we report that none of the Director is disqualified from being appointed as a Director in terms of Clause (g) of Sub-section (1) of Section 274 of the Companies Act, 1956.

(f) (i) As reported in Annexure to the Auditors' Report para No. IX(a) the

Company is not regular in depositing its statutory dues with appropriate authorities.

(ii) As detailed in Note No. 45 of Balance Sheet, no impact has been taken in books for Deferred Tax Assets/ Liabilities.

(iii) As detailed in Note No. 46 of Balance Sheet regarding claim for Export Incentives on estimated basis for Rs. 365.18 Lacs,

(iv) As detailed in Note No. 49 of Balance Sheet regarding claim receivable on estimated basis for Rs. 90.00 Lacs,

By which current year Profit, Reserves

& Surplus and Other Non Current Assets are overstated;

We further report that had the observation made by us in item 4(d), 4f(iii) & 4f(iv) above been considered the Loss for the year would have been Rs. 8.96 Lacs (as against reported figure of profit before tax of Rs. 70.34

Lacs), the Reserves & Surplus would have been Rs.1700.82 Lacs (as against reported figure of Rs. 2156.00 Lacs), other non Current Assets would have been Rs. 311.35 Lacs (as against reported figure of Rs. 766.53 Lacs).

(g) Subject to foregoing, in our opinion and to the best of our information and according to the explanations given to us, the said accounts read with all the 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 the case of Balance Sheet, of the state of affairs of the Company as at 31st March,2012,

(ii) In the case of Profit & Loss account, of the Profit of the Company for the year ended on that date; and

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

ANNEXURE TO THE AUDITORS' REPORT

(Referred to in paragraph 3 of our Report of even

date)

(i) (a) The Company has maintained proper

records showing full particulars, including quantitative details and situation of fixed assets. No fixed assets register has been maintained for dies and tools up to 31.3.98.

(b) These fixed assets have been physically verified by the management at reasonable intervals. No material discrepancies were noticed on such verification.

(c) During the year the Company has disposed off Part of factory land situated at Sitapura, Jaipur on the basis of unregistered sale agreement. However such sale of land has not affected going concern concept of the company.

(ii) (a) Physical verification of inventory has

been conducted at reasonable intervals by the management.

(b) The procedures of physical verification of inventory followed by the management are reasonable and adequate in relation to the size of the Company and the nature of its business.

(c) The Company has maintained proper records of inventory. No material discrepancies were noticed on physical verification.

(iii) (a) The Company has granted loans, secured or unsecured to companies, firms or other parties covered in the register maintained under section 301 of the Act. The number of parties are 6 (Six) and amount involved in the transaction is Rs.480.15 Lacs.

(b) The rate of interest and other terms and conditions of loans given by the Company, secured or unsecured, are prima facie prejudicial to the interest of the Company.

(c) The Company is not regular in recovery of Principal and Interest in respect of loans given.

(d) Reasonable steps have not been taken by the Company for recovery of the principal and interest.

(e) The Company has not taken unsecured loans from the companies, firms or other parties covered in the register maintained under section 301 of the Act. Accordingly clause (iii) (f) and (g) of the Companies (Auditor's Report) order 2003 are not applicable.

(iv) In our opinion and according to information and explanations given to us, there are adequate internal control procedures commensurate with the size of the Company and the nature of the business; for the purchase of inventory and fixed assets and for the sale of goods. Further, there is no continuing failure to correct major weaknesses in internal control system.

(v) (a) According to the information and explanations given to us, we are of the opinion that the transactions that need to be entered into a register in pursuance of Section 301 of the Act have been entered in the register required to be maintained under that section.

(b) In our opinion and according to the information and explanations given to us, the transactions made in pursuance of

contracts or arrangements entered in the register maintained under Section 301 of the Companies Act, 1956 and exceeding the value of rupees five lacs in respect of any party during the period have been made at prices which are reasonable having regard to prevailing market prices at the relevant time except in cases where no comparison was possible in the case of those materials and services where we were informed, there is no alternative source of supply.

(vi) As informed to us, during the year, the Company has not accepted deposits from the public. For Deposits accepted in earlier years the directives issued by the Reserve Bank of India and the provisions of sections 58A and 58 A A or any other relevant provisions of the Act and the rules framed there under, have been complied with except for repayment of deposits on due dates. An order has been passed by the Company Law Board on 27.4.2011 for repayment of dues along with interest in phased manner till Financial Year 2012-13.

(vii) In our opinion the Company has an internal audit system commensurate with its size and nature of its business.

(viii) The Central Government has prescribed maintenance of Cost records under Section 209(l)(d) of the Companies Act, 1956 in respect of manufacturing activity of the Company. We have broadly reviewed the accounts and records of the Company in this connection and are of the opinion, that prima facie, the prescribed accounts and records have been made and maintained. We have not, however, carried out a detailed examination of the same with a view to determine whether they are accurate or complete.

(ix) (a) According to the books and records as produced and examined by us in accordance with the generally accepted Auditing practices in India and also based on management representations, the Company is not regular in depositing undisputed statutory dues. However, there is no undisputed statutory dues as at

31.3.2012 outstanding for a period of more than six months from the date they become payable.

(b) According to the information and explanations given to us and records of the company examined by us the dues of sales tax/income tax/custom duty/ wealth tax/ excise duty/cess which are disputed and the details for which are given as under:

Name of Statute Nature of Dues Amount Forum where dispute is pending (Rs. in Lacs)

1. Sales Tax Laws Sales Tax 1.11 Appellate Authorities

2. Central Excise Act Excise Duty 3.53 High Court

242.78 Central Excise & Service Tax Appellate Tribunal.

46.61 Commissioner (Appeal), Central Excise, Jaipur.

(x) The accumulated losses of the Company as per Balance Sheet as at 31.3.2012 are less than fifty per cent of its net worth. The Company has neither incurred cash losses in financial year ended on 31.3.2012 nor it has incurred cash losses in immediately preceding financial year.

(xi) According to the information and explanations given to us, the Company has not defaulted in repayment of dues to financial institutions, banks or debenture holders.

(xii) According to information & explanations given to us, the Company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

(xiii) Considering the nature of activities carried on by the Company during the year, provisions of any special statute in respect of chit fund nidhi/mutual benefit fund/ societies are not applicable to it.

(xiv) In our opinion and according to information and explanations given to us, the Company has not dealt or traded in shares, securities, debentures or other investments during the year.

(xv) The Company has not given any guarantee for loans taken by others from bank or

financial institutions during the year.

(xvi) The Company has taken Term Loan for Rs.200 Lacs from Kotak Mahindra Bank during the year. The said loan was applied for the purpose for which it was obtained.

(xvii) On the basis of review of utilization of funds which is based on overall examination of the Balance sheet of the Company, related information as made available to us and as represented to us by the management, the funds raised on short term basis have not been used for long term investments.

(xviii) The Company has not made preferential allotment of shares to parties covered in the Register maintained under section 301 of the Act during the year.

(xix) The Company has not issued any debentures during the year.

(xx) The Company has not raised any money through public issue during the year.

(xxi) As per the information and explanations given to us, and on the basis of our examination of books and records carried out in accordance with generally accepted auditing practices, no fraud on or by the Company was noticed or reported during the year, nor have we seen and informed of any such case by the management.

For H.C. GARG & COMPANY Chartered Accountants FRN - 000152C

Sd/-

PLACE :Jaipur (MADHUKAR GARG) PROPRIETOR

DATE : 30.06.2012 M. No. 070162


Mar 31, 2010

1. We have audited the attached Balance Sheet of AUTOLITE (INDIA) LIMITED as at 31 st March, 2010 and also the Profit & Loss Account of the Company for the year ended on that date, annexed thereto and the Cash Flow Statement for the year ended on mat date which we have signed under reference to this report. These financial statements are the responsibility of the Companys management. Our responsibility is to express an opinion on these financial statements based on our Audit.

2. 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 reasonable assurance about whether the financial statements are free of material mis-statements. 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 management, as well as evaluating the overall financial statements presentation. We believe that our audit provides a reasonable basis for our opinion.

3. As required by the Companies (Auditors Report) Order, 2003 issued by the Central Government of India in terms of Section 227(4-A) of the Companies Act, 1956, we give in the Annexure a Statement on the matters specified in paragraphs 4 & 5 of the said order.

4. Further to our comments in the Annexure referred to in paragraph (1) above:

(a) 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

(b) In our opinion, proper books of accounts as required by law have been kept by the Company, so far as appears from our examination of the books.

(c) The Balance Sheet , Profit & Loss Account and Cash Flow Statement dealt with by this report are in agreement with the books of accounts.

(d) In our opinion, the Profit & Loss Account, Balance Sheet and Cash Flow statement comply with the Accounting Standards j referred to in sub-section (3C) of Section 211 of the Companies Act, 1956 except for AS-9 (Revenue Recognition) as detailed in para 31 of schedule W of Balance Sheet & AS-22 (Accounting for Taxes on Income) as detailed in para 30 of Schedule W of Balance Sheet

(e) As the Company has failed to repay its deposits and interest thereon on due date and such failure is continuing for more than one year, all the Directors of the Company are disqualified from being appointed as Director in terms of clause (g) of such-section (1) of Section 274 of the Companies Act.

(f) (i) As detailed in para (e) above all the directors of the Company are disqualified from being appointed as director in terms of clause (g) of sub-section (1) of Section 274 of the Companies Act

(ii) As detailed in para 33 of Schedule W of Balance Sheet regarding confirmation of balances of Sundry Debtors, Suppliers and Loans & Advances.

(iii)As reported in Annexure to the Auditors Report para NovlX(a) the Company is not regular in depositing its statutory dues with appropriate authorities.

(iv) As detailed in para 30 of Schedule W of Balance Sheet no impact has been taken in books for Deferred Tax Assets/Liabilities.

(v) Inadequate provision for Irrecoverable/Doubtful Loans and Advances has been made in profit & loss account amounting to

(a) Rs. 1176.94 Lacs being loans and advance to a Company which is registered as sick unit with Board for Industrial & Financial Reconstruction.

(b) Rs. 657.49 Lacs being advance against supplies to a Company which is registered as Sick Unit with Board for Industrial and Financial Reconstruction against which only Rs.93.62 Lacs provided in books by which Accumulated loss is understated and loan and advances are overstated,

(vi) As detailed in para 31 of Schedule W of Balance Sheet regarding Export Incentives on estimated basis for Rs.414.93 Lacs claim for which has not been accepted by the concerned department by which Accumulated Loss is understated and other Current Assets are overstated.

We further report that had the observation made by us in items (v) & (vi) above been considered the loss for the year would have been Rs.2101.02 Lacs (as against reported figure of profit before tax of Rs.54.72 lacs), the accumulated losses would have been Rs.5094.85 Lacs (as against reported figure of Rs.2939.11 Lacs), the Loans and Advances would have been Rs.454.54 Lacs (as against reported figure of Rs.2195.35 Lacs) other Current Assets would have been Rs.273.12 Lacs (as against reported figure of Rs.688.05 Lacs).

(g) Subject to foregoing, in our opinion and to the best of our information and according to the explanations given to us, the said accounts read with all the 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 the case of Balance Sheet, of the state of affairs of the Company as at 31st March 2010,

(ii) In the case of Profit & Loss account, of the Profit of the Company for the year ended on that date; and

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

ANNEXURE TO THE AUDITORS REPORT (Referred to in paragraph 3 of our Report of even date)

(i) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets. No fixed assets register has been maintained for dies and tools up to 31.3.98.

(b) These fixed assets have been physically verified by the management at reasonable intervals. No material discrepancies were noticed on such verification.

(c) During the year the Company has disposed off its Assets relating to Glass Project as project has become redundant for the Company due to rapid technological changes. This sale has not affected going concern concept of the Company.

(ii) (a) Physical verification of inventory has been conducted at reasonable intervals by the management.

(b) The procedures of physical verification of inventory followed by the management are reasonable and adequate in relation to the size of the Company and the nature of its business.

(c) The Company has maintained proper records of inventory. No material discrepancies were noticed on physical verification.

(iii)(a) The Company has granted loans, secured or unsecured to companies, firms or other parties covered in the register maintained under section 301 of the Act. The number of parties are 6 (Six) and amount involved in the transaction is Rs.26.57 Crores.

(b) The rate of interest and other terms and conditions of loans given by the Company, secured or unsecured, are prima facie prejudicial to the interest of the Company.

(c) The Company is not regular in recovery of Principal and Interest in respect of loans given.

(d) Reasonable steps have not been taken by the Company for recovery of the principal and interest.

(e) The Company has taken unsecured loans from the companies, firms or other parties covered in the register maintained under section 301 of the Act. The Number of parties are 12 (Twelve) and amount involved in the transaction are Rs.80.56 Lacs.

(f) The rate of interest and other terms and conditions of the loans taken by the Company, secured or unsecured, are prima facie not prejudicial to the interest of the Company.

(g) The Company is regular in payment of Principal and Interest in respect of loans taken.

(iv) In our opinion and according to information and explanations given to us, there are adequate internal control procedures commensurate with the size of j the Company and the nature of the business; for the purchase of inventory and fixed assets and for the sale of goods. Further, there is no continuing failure to correct major weaknesses in internal control system.

(v) (a) According to the information and explanations given to us, we are of the opinion that the transactions that need to be entered into a register in pursuance of Section 301 of the Act have been entered in the register required to be maintained under that section.

(b) In our opinion and according to the information and explanations given to us, the transactions made in pursuance of contracts or arrangements entered in the register maintained under Section 301 of the Companies Act, 1956 and exceeding the value of rupees five lacs in respect of any party during the period have been made at prices which are reasonable having regard to prevailing market prices at the relevant time, except in cases where no comparison was possible in the case of those materials, services where we were informed, mere is no alternative source of supply.

(vi) As informed to us, during the year, the Company has accepted deposits from the public. The directives issued by the Reserve Bank of India and the provisions of sections 58A and 58AA or any other relevant provisions of the Act and the rules framed there under, have been complied with except for repayment of deposits on due dates. An order has been passed by Company Law Board and the same has not been complied with.

(vii)In our opinion the Company has an internal audit system commensurate with its size and nature of its business.

(viii) As informed to us maintenance of cost records has not been prescribed by the Central Government under clause (d) of sub-section (l)ofsection209ofthe Companies Act 1956, for the products of the Company.

(ix) (a) According to the books and records as produced and examined by us in accordance with the generally accepted Auditing practices in India and also based on management representations, the Company is not regular in depositing undisputed statutory dues. However, there is no undisputed statutory dues as at 31.3.2010 outstanding for a period of more than six months from the date they become payable.

(b) As at 31.3.2010, there has been dues of sales tax/income tax/custom duty/ wealth tax/excise duty/cess which are disputed and the details for which are given as under:

Name of Statute Nature of Dues Amount Forum where dispute is pending

(Rs. in Lacs)

1. Sales Tax Laws Sales Tax 1.11 Appellate Authorities

2. Central Excise Act Excise Duty 3.53 High Court

244.09 Central Excise & Service Tax Appellate Tribunal.

109.30 Commissioner (Appeal),

Central Excise, Jaipur.

(x) The accumulated losses of the Company as per Balance Sheet as at 31.3.2010 are not more than fifty per cent of its net worth. The Company has neither incurred cash losses in financial year ended on 31.3.2010 nor it has incurred cash losses in Accounting year immediately preceding such financial year.

(xi) According to the information and explanations given to us, the Company has not defaulted in repayment of dues to financial institutions, banks or debenture holders.

(xii) According to information & explanations given to us, the Company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

(xiii) Considering the nature of activities carried on by the Company during the year, provisions of any special statute in respect of chit fund nidhi/mutual benefit fund/societies are not applicable to it.

(xiv) In our opinion and according to information and explanations given to us, the Company has not dealt or traded in shares, securities, debentures or other investments during the year.

(xv) The Company has not given any guarantee for loans taken by others from bank or financial institutions during the year.

(xvi) The Company has not taken Term Loan during the year.

(xvii) On the basis of review of utilization of funds which is based on overall examination of the Balance sheet of the Company, related informations as made available to us and as represented to us by the management, the funds raised on short term basis have not been used for long term investments.

(xviii) The Company has not made preferential allotment of shares to parties covered in the Register maintained under section 301 of the Act during the year.

(xix)The Company has not issued any debentures during the year. Hence clause (xix) is not applicable to the Company.

(xx) The Company has not raised any money through public issue during the year. Hence we offer no comments on same.

(xxi) As per the information and explanations given to us, and on the basis of examination of records, no fraud on or by the Company was noticed or reported during the year.



For H.C. GARG & CO.

CHARTERED ACCOUNTANTS

FRN-000152C

Sd/-

MADHUKAR GARG

PLACE : JAIPUR PROPRIETOR

DATE : 29.05.2010 M. No. 70162

 
Subscribe now to get personal finance updates in your inbox!