Mar 31, 2013
Report on Financial Statements
We have audited the accompanying financial statements of Calcom Vision
Limited, 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 presentation 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. 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 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 misstatements.
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 risks of material misstatements of financial statements, whether due
to fraud or error. In making those risk assessments, the auditor
considers the 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 opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and subject to Emphasis
of Matter Paragraph, give a true and fair view in conformity with the
accounting principles generally accepted in India.
(a) In case of the Balance Sheet, of the state of affairs of the
Company as at March 31,2013;
(b) In case of the Statement of Profit and Loss, of the loss for the
year ended on that date;
(c) In case of the Cash Flow Statement, of the cash flows for the year
ended on that date.
Emphasis of Matter
(a) We draw attention to Note No. 34 regarding non provision of
interest due to banks. Had this provision been made, the ''Net loss
for the year 2012-13 and ''Interest Accrued and due'' would have been
higher by such amount.
(b) Further Attention is also invited to Note No. 16, regarding
management opinion that Sundry Debtors outstanding for a period of more
than six months, considered good amounting to Rs. 28.76 Lacs are fully
recoverable and hence no provision is made there against.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) order, 2003,
issued by the Central Government of India in terms of sub - section
(4A) of section 2.21 of the Companies Act, 1956, we give in Annexure a
statement on the matters specified in paragraph 4 and 5 of the said
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 accounts 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 arrangement with the books
of accounts;
(d) 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;
(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 director 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 cess is to be paid, no cess is due and
payable by the Company.
(i) (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 during the year and we are informed that no
material discrepancies were noticed on such verification.
(c) The company has not sold/ disposed off any substantial part of its
fixed Assets during the year which has an impact on the going concern
of the Entity.
(ii) (a) The Inventory has been physically verified during the year by
the management. In our opinion, the frequency of verification is
reasonable
(b) The procedure of physical verification of inventory followed by the
management is reasonable and adequate in relation to the size of the
company and the nature of its business.
(c) The company is maintaining the records of inventory. The
discrepancies noticed on physical verification of inventory as compared
to book records, which were not material, have been properly dealt with
in the books of account.
(iii) (a) The company has not granted any secured or unsecured loans to
companies, firms or other parties covered in the registers maintained
under Section 301 of the Companies Act, 1956 so clause iii(a), (b),(c)
& (d) of the Companies (Auditor Report) Order 2003 (as amended) are not
applicable. The company has not granted any secured or unsecured loans
to companies, firms or other parties covered in the registers
maintained under Section 301 of the Companies Act, 1956.
(b) The company has taken fresh unsecured loans of RS. 250000/- from a
person covered in the register maintained under section 301 of the
Companies Act, 1956.
(iv) 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 with regard to purchase of inventory, fixed assets and with
regard to the sale of goods and services. During the course of our
audit, we have not observed any continuing failure to correct major
weaknesses in internal controls.
(v) (a) According to the information and explanations given to us, we
are of the opinion that, the particulars of contract or arrangement
referred to in section 301 of the Companies Act, 1956 have been entered
in the register maintained under that section.
(b) In our opinion and according to 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 lakhs in respect of
any party during the year have been made at prices which are reasonable
having regard to prevailing market prices at the relevant time.
(vi) The company has not accepted any deposits from the public; hence,
provisions of Section 58A and 58AA of the Companies Act, 1956 and
Companies (Acceptance of Deposit) Rules, 1975 with regard to the
deposits accepted from the public are not applicable.
(vii) As per the information and explanation received by us from the
management we report that, the company has an internal audit system
commensurate with the size and nature of its business.
(viii) The company has maintained cost records as prescribed by Central
Government under clause (d) of sub-section (1) of Section 209 of the
Companies Act, 1956.
(ix) (a) According to the records of the Company, it is generally
regular in depositing with appropriate authorities undisputed statutory
dues including provident fund, investor education protection fund,
employee''s state insurance, income tax, sales tax, wealth tax, custom
duty, excise duty, cess and other material statutory dues applicable to
it.
(b) According to the records of the Company and the information and
explanations given to us, the following are particular of dues on
account of excise duty / sales tax that have not been deposited on
account of any dispute:
Name of the
Statute Nature of
the Dues Amount Period to
which the Forum where
(Rs. In Lakhs) amount
relates pending
Delhi Sales
Tax Act DST 3.61 1996-97 Dy.Comm.
(Appeals) - Delhi
Central Sales
Act. CST 2.34 1996-97 Dy.Comm.
(Appeals) - Delhi
Delhi Sales
Tax Act DST 53.48 1997-98 Add.Comm.
(Appeals)
Central Sales
Act. CST 2.03 1997-98 Add.Comm.
(Appeals)
Delhi Sales
Tax Act DST 17.42 1998-99 Add.Comm.
(Appeals)
Central Sales
Act. CST 1.82 1998-99 Add.Comm.
(Appeals)
Delhi Sales
Tax Act DST 3.34 1999-00 Dy.Comm.
(Appeals) - Delhi
Central Sales
Act. CST 0.16 1999-00 Dy.Comm.
(Appeals) - Delhi
Central Sales
Tax Act CST 0.20 2007-08 Dy. Comm.
(Assessment)
Gautam Budh Nagar
U.P Trade
Tax Act UPTT 0.09 2007-08 Dy. Comm.
(Assessment)
Gautam Budh Nagar
U.P. Trade
Tax Act UPTT 2.45 2002-03 Tribunal
(Appeal)-UP
U.P. Trade
Tax Act UPTT 14.63 2002-03 Tribunal
(Appeal)-UP.
U.P. Trade
Tax Act UPTT 4.11 2007-08 Dy. Comm.
(Assessment)
Gautam Budh Nagar
U.P. Trade
Tax Act UPTT 0.08 2008-09 Dy. Comm.
(Assessment)
Gautam Budh Nagar
U.P. Trade
Tax Act UPTT 0.24 2008-09 Dy. Comm.
(Assessment)
Gautam Budh Nagar
(x) The accumulated losses at the end of the financial year are more
than its net worth. The company has not incurred any cash losses during
the current financial year covered by our audit as well as in the
immediately preceding financial year.
(xi) In our opinion and according to the information and explanations
given to us, the company has defaulted in repayment of dues to banks.
The details of period and amount of default as ascertained by the
management is as follows:
Name of Bank Principal Amount Interest accrued
and due Period to which
relates
(Rs. in lakhs) (Rs. in lakhs) (reworked)
State Bank of
Patiala -
Cash Credit 421.10 391.15 Oct. 03 to Mar. 13
State Bank of
Patiala
- Working
Capital Term
Loan 168.00 156.80 Dec. 03 to Mar. 13
Bank of India
- Cash Credit 332.17 315.90 Sep. 03 to Mar. 13
Bank of India
- Term Loan 371.15 355.92 Jun. 03 to Mar. 13
Canara Bank 348.07 335.27 Sep. 03 to Mar. 13
ICICI Bank Ltd. 311.66 303.32 Mar. 02 to Mar.13
An amount of Rs.1952.14 Lacs (Principal) as above is overdue for
repayment in respect of Secured Loans/Cash credit facilities taken from
the banks and other financial institutions as above. As explained to
us, reasonable steps have been taken for payment of principal.
(xii) According to information and 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) 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.
(xiv) In our opinion, the Company is not dealing in or trading in
shares, securities, debentures and other investments. Accord- ingly,
the provisions of clause 4(xiv) of the Companies (Auditor''s Report)
Order, 2003 (as amended), are not applicable to the company.
( xv) As informed to us, the Company has not given any guarantee for
loans taken by others from bank or financial institutions.
(xvi) In our opinion and according to the information and explanations
given to us, the Company has not availed any fresh term loan from banks
or financial institutions during the financial year covered by our
audit so this clause is not applicable on the company.
(xvii) 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
investments. No long-term funds have been used to finance short-term
assets.
(xviii) The Company has not made any preferential allotment of shares
to parties and companies covered in the register maintained under
section 301 of the Companies Act, 1956 during the financial year
covered by our audit.
(xix) The Company has not issued any debentures.
(xx) The Company has not raised any money by public issue during the
financial year covered by our audit.
(xxi) According to the information and explanations given to us, no
fraud on or by the company has been noticed or reported during the
course of our audit.
For SHANTI PRASHAD & COMPANY
CHARTERED ACCOUNTANTS
PLACE: DELHI (ASHISH KUMAR AGGARWAL)
DATED: 30-05-2013 PARTNER
Membership No. 522443/
FRN No.019923N
Mar 31, 2010
We have audited the attached Balance Sheet of CALCOM VISION LIMITED as
at 31st March 2010, the Profit and 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 Companys
management. Our responsibility is to express an opinion on these
financial statements 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 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.
1. As required by the Companies (Auditors 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 annex
hereto a statement on the matters specified in paragraph 4 and 5 of the
said order.
2. Further to our comments in the Annexure referred to in paragraph 1
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 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
such books;
(c) The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account;
(d) In our opinion, the Balance Sheet, Profit and Loss Account and Cash
Flow Statement dealt with by this report comply with the 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
of the company as on 31st March 2010 and taken on record by the Board
of Directors, we report that none of the Directors is disqualified as
on 31st March, 2010 from being appointed as a director of the company
in terms of clause (g) of sub-section (1) of section 274 of the
Companies Act, 1956;
(f) Attention is invited to Note No.9 in Schedule ÃO, Part ÃB,
regarding management opinion that Sundry Debtors outstanding for a
period of more than six months, considered good amounting to Rs. 185.48
lakhs are fully recoverable and hence no provision is made there
against. Further out of this amount Rs. 112.05 is recoverable from
associate companies covered in the register maintained U/s 301 of the
Companies Act.
(g) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read together with the
notes thereon in Schedule ÃO given the information required by the
Companies Act, 1956 in the manner so required and subject to Note No. 8
in Schedule ÃO Part ÃB regarding non provision of interest due to
banks. Had this provision been made, the ÃNet Loss for the year
2009-10 and ÃInterest Accrued and due would have been higher by Rs
341.54 Lacs, gives 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 31st March, 2010,
(ii) in the case of the Profit and 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.
ANNEXURE REFERRED TO IN PARAGRAPH 1 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.
(b) As explained to us, all the fixed assets have been physically
verified by the management during the year and we are informed that no
material discrepancies were noticed on such verification.
(c) The company has not sold any fixed Assets during the year.
(ii) (a) The Inventory has been physically verified during the year by
the management. In our opinion, the frequency of verification is
reasonable.
(b) The procedure of physical verification of inventory followed by the
management is reasonable and adequate in relation to the size of the
company and the nature of its business.
(c) The company is maintaining the records of inventory. The
discrepancies noticed on physical verification of inventory as compared
to book records, which were not material, have been properly dealt with
in the books of account.
(iii) (a) The company has not granted any secured or unsecured loans to
companies, firms or other parties covered in the registers maintained
under Section 301 of the Companies Act, 1956 so clause iii(a), (b),(c)
& (d) of the Companies (Auditor Report) Order 2003 (as amended) are not
applicable. The company has not granted any secured or unsecured loans
to companies, firms or other parties covered in the registers
maintained under Section 301 of the Companies Act, 1956.
(e) The company has not taken any fresh unsecured loans from persons
covered in the register maintained under section 301 of the Companies
Act, 1956.
(f) The rate of Interest and other terms and conditions of loans taken
by the Company, secured or unsecured, are prima facie not prejudicial
to the interest of the Company.
(g) The company did not have any loan to be repaid taken from the
parties covered under section 301 of the Companies Act. Therefore the
question of non-regularity of payment of principal amount and interest
doesnt arise.
(iv) 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 with regard to purchase of inventory, fixed assets and with
regard to the sale of goods and services. During the course of our
audit, we have not observed any continuing failure to correct major
weaknesses in internal controls.
(v) (a) According to the information and explanations given to us, we
are of the opinion that, the particulars of contract or arrangement
referred to in section 301 of the Companies Act, 1956 have been entered
in the register maintained under that section.
(b) In our opinion and according to 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 lakhs in respect of
any party during the year have been made at prices which are reasonable
having regard to prevailing market prices at the relevant time.
(vi) The company has not accepted any deposits from the public; hence,
provisions of Section 58A and 58AA of the Companies Act, 1956 and
Companies (Acceptance of Deposit) Rules, 1975 with regard to the
deposits accepted from the public are not applicable.
(vii) In our opinion, the company has an internal audit system
commensurate with the size and nature of its business.
(viii) The Central Government has not prescribed maintenance of cost
records under clause (d) of sub-section (1) of Section 209 of the
Companies Act, 1956 for any of the products of the Company.
(ix) (a) According to the records of the Company, it is generally
regular in depositing with appropriate authorities undisputed statutory
dues including provident fund, investor education protection fund,
employees state insurance, income tax, sales tax, wealth tax, custom
duty, excise duty, cess and other material statutory dues applicable to
it.
(b) According to the records of the Company and the information and
explanations given to us, the following are particular of dues on
account of excise duty / sales tax that have not been deposited on
account of any dispute:
Name of the
Statute Nature of
the Dues Amount Period to
which the Forum where
(Rs. In
Lakhs) amount
relates pending
Central Sales
Tax Act. CST 1.63 1995-99 High Court
Delhi Sales
Tax Act DST 3.61 1996-97 Dy.Comm.
(Appeals) - Delhi
Central
Sales Act. CST 2.34 1996-97 Dy.Comm.
(Appeals) - Delhi
Delhi Sales
Tax Act DST 53.48 1997-98 Add.Comm.
(Appeals)
Central
Sales Act. CST 2.03 1997-98 Add.Comm.
(Appeals)
Delhi Sales
Tax Act DST 17.42 1998-99 Add.Comm.
(Appeals)
Central
Sales Act. CST 1.82 1998-99 Add.Comm.
(Appeals)
Delhi Sales
Tax Act DST 3.34 1999-00 Dy.Comm.
(Appeals) - Delhi
Central
Sales Act. CST 0.16 1999-00 Dy.Comm.
(Appeals) - Delhi
Central Sales
Tax Act CST 0.20 2007-08 Dy. Comm.
(Assessment)
Gautam Budh Nagar
U.P Trade
Tax Act UPTT 0.09 2007-08 Dy. Comm.
Assessment)
Gautam Budh Nagar
Central Excise
Act, 1944 Excise Duty 01.77 Nov. 1996
to Dec 2001 Appellate
Tribunal
penalty 0.40
Central Excise
Act, 1944 Excise Duty 2.30 Jan 2000 Commissioner of
Excise, Noida
(x) The accumulated losses at the end of the financial year are more
than its net worth. The company has not incurred any cash losses
during the financial year covered by our audit but had a cash loss of
Rs. 18.40 Lacs during the immediately preceding financial year.
(xi) In our opinion and according to the information and explanations
given to us, the company has defaulted in repayment of dues to banks.
The details of period and amount of default as ascertained by
management is as follows:
Name of Bank Principal
Amount Interest accrued
and due Period to which
relates
(Rs. in
lakhs) (Rs. in lakhs)
State Bank of
Patiala -
Cash Credit 421.10 404.82 Oct. 03 to Mar. 10
State Bank of
Patiala
- Working
Capital Term Loan 168.00 163.81 Dec. 03 to Mar. 10
Bank of India -
Cash Credit 332.17 310.24 Sep. 03 to Mar. 10
Bank of India -
Term Loan 371.15 445.62 Jun. 03 to Mar. 10
Canara Bank 348.07 315.08 Sep. 03 to Mar. 10
ICICI Bank Ltd. 311.66 444.30 Mar. 02 to Mar. 10
An amount of Rs. 1952.06 lacs is overdue for repayment in respect of
Secured loans / Cash credit facilities taken from banks and other
financial institutions as above. As explained to us, reasonable steps
have been taken for payment of principal.
The company has not availed of any fresh loan from financial
institution and has not issued any debentures.
(xii) According to information and 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) 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.
(xiv) In our opinion, the Company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the Companies (Auditors Report) Order,
2003 (as amended), are not applicable to the company.
(xv) As informed to us, the Company has not given any guarantee for
loans taken by others from bank or financial institutions.
(xvi) In our opinion and according to the information and explanations
given to us, the term loans were applied for the purpose for which the
loans were obtained. The Company has not availed any fresh term loan
from banks or financial institutions during the financial year covered
by our audit.
(xvii) 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
investments. No long-term funds have been used to finance short-term
assets.
(xviii) The Company has not made any preferential allotment of shares
to parties and companies covered in the register maintained under
section 301 of the Companies Act, 1956 during the financial year
covered by our audit.
(xix) The Company has not issued any debentures.
(xx) The Company has not raised any money by public issue during the
financial year covered by our audit.
(xxi) According to the information and explanations given to us, no
fraud on or by the company has been noticed or reported during the
course of our audit.
For SHANTI PRASHAD & COMPANY
CHARTERED ACCOUNTANTS
PLACE: DELHI (SATISH AGGARWAL)
DATED: 30-05-2010 PARTNER
Membership No. 505969
Mar 31, 2009
We have audited the attached Balance Sheet of CALCOM VISION LIMITED as
at 31st March 2009, the Profit and 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 Companys
management. Our responsibility is to express an opinion on these
financial statements 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 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.
1. As required by the Companies (Auditors 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 annex
hereto a statement on the matters specified in paragraph 4 and 5 of the
said order.
2. Further to our comments in the Annexure referred to in paragraph 1
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 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
such books;
(c) The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account;
(d) In our opinion, the Balance Sheet, Profit and Loss Account and Cash
Flow Statement dealt with by this report comply with the 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
of the company as on 31st March 2009 and taken on record by the Board
of Directors, we report that none of the Directors is disqualified as
on 31st March, 2009 from being appointed as a director of the company
in terms of clause (g) of sub-section (1) of section 274 of the
Companies Act, 1956;
(f) Attention is invited to Note No.9 in Schedule O, Part B,
regarding management opinion that Sundry Debtors outstanding for a
period of more than six months, considered good amounting to Rs. 238.49
lakhs are fully recoverable and hence no provision is made there
against. Further out of this amount Rs. 109.85 is recoverable from
associate companies covered in the register maintained U/s 301 of the
Companies Act. We are however unable to express our opinion in this
matter;
(g) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read together with the
notes thereon in Schedule O give the information required by the
Companies Act, 1956 in the manner so required and subject to Note No.8
in Schedule O Part B regarding non provision of interest due to
banks. Had this provision been made, the Net Loss for the year
2008-09 and Interest Accrued and due would have been higher by Rs
335.87 Lacs, gives 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 31st March, 2009,
(ii) in the case of the Profit and 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.
(i) (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 during the year and we are informed that no
material discrepancies were noticed on such verification.
(c) The company has sold a car costing Rs 3,50,000/- during the F Y
2008-09.
(ii) (a) The Inventory has been physically verified during the year by
the management. In our opinion, the frequency of verification is
reasonable
(b) The procedure of physical verification of inventory followed by the
management is reasonable and adequate in relation to the size of the
company and the nature of its business.
(c) The company is maintaining the records of inventory The
discrepancies noticed on physical verification of inventory as compared
to book records, which were not material, have been properly dealt with
in the books of account
(iii) (a) The company has not granted any secured or unsecured to
companies, firms or other parties covered in the registers maintained
under section 301 of the Companies Act, 1956
(b) As the company has not granted any Secured / Unsecured loan,
therefore clause (iii)(b) of the Companies (Auditor Report) Order 2003
(as amended) is not applicable.
(c) As the company has not granted any Secured / Unsecured loan,
therefore clause (iii)(c) of the Companies (Auditor Report) Order 2003
(as amended) is not applicable.
(d) As the company has not granted any Secured / Unsecured loan,
therefore clause (iii)(d) of the Companies (Auditor Report) Order 2003
(as amended) is not applicable.
(e) The company has not taken any fresh unsecured loans from persons
covered in the register maintained under section 301 of the Companies
Act, 1956 .
(f) The rate of Interest and other terms and conditions of loans taken
by the Company, secured or unsecured, are prima facie not prejudicial
to the interest of the Company.
(g) The repayment of principal amount and interest was not regular but
The company has repaid back all the loans taken from parties covered
under Section 301 of the Companies Act.
(iv) 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 with regard to purchase of inventory, fixed assets and with
regard to the sale of goods and services. During the course of our
audit, we have not observed any continuing failure to correct major
weaknesses in internal controls.
(v) (a) According to the information and explanations given to us, we
are of the opinion that, the particulars of
contract or arrangement referred to in section 301 of the Companies
Act, 1956 have been entered in the register maintained under that
section.
(b) In our opinion and according to 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 lakhs in respect of
any party during the year have been made at prices which are reasonable
having regard to prevailing market prices at the relevant time.
(vi) In our opinion and according to the information and explanations
given to us, the company has complied with the provisions of Section
58A and 58AA or any other provisions of the Companies Act, 1956 and
Companies (Acceptance of Deposit) Rules, 1975 with regard to the
deposits accepted from the public.
(vii) In our opinion, the company has an internal audit system
commensurate with the size and nature of its business.
(viii) We have broadly reviewed the records maintained by the Company
pursuant to the order made by the Central Government for the
maintenance of cost records under Section 209(i)(d) of the Companies
Act, 1956. We are of the opinion that prima facie the prescribed
records have been maintained. We have not, however, made a detailed
examination of the records with a view to determine whether they are
accurate or complete.
(ix) (a) According to the records of the Company, it is generally
regular in depositing with appropriate authorities undisputed statutory
dues including provident fund, investor education protection fund,
employees state insurance, income tax. sales tax, wealth tax, custom
duty, excise duty, cess and other material statutory dues applicable to
it. However there are delays in deposit of Sales Tax.
(b) According to the records of the Company and the information and
explanations given to us, the following are particular of dues on
account of excise duty / sales tax that have not been deposited on
account of any dispute:
Name of the Statute Nature of the Dues Amount
(Rs. In Lakhs)
Central Excise Act, 1944 Excise Duty 1.77
Penalty 0.40
Central Excise Act. Excise Duty 2.30
Central Sales Tax Act. CST 0.65
U.P.Trade Tax Act Entry Tax 1.60
Central Sales Tax Act. CST 13.33
Central Sales Tax Act. CST 1.63
U. P.Trade Tax Act UPTT 1.19
U.P.TradeTaxAct UPTT 0.26
Delhi Sales Tax Act DST 03.61
Central Sales Tax Act. CST 02.34
Delhi Sales Tax Act DST 53.48
Central Sales Tax Act. CST 02.03
Delhi Sales Tax Act DST 17.42
Central Sales Tax Act. CST 01.82
Delhi Sales Tax Act DST 03.34
Central Sales Tax Act CST 0.16
Name of the Statute Period to which the Forum where
amount relates pending
Central Excise Act,1944 Nov.96 to Dec.2001 Appellate Tribunal
Central Excise Act. 3rd Jan. 2000 Commissioner of
Excise, Noida.
Central Sales Tax Act. 2000-01 Appellate Tribunal-
Ghaziabad
U.P.TradeTaxAct 2001-02 Appellate Tribunal-
Ghaziabad
Central Sales Tax Act. 2002-03 Dy. Comm. (Apeals)
Central Sales Tax Act. 1995-99 High Court
U.P.TradeTaxAct 2001-02 Appellate Tribunal -
Ghaziabad
U.P.TradeTaxAct 2002-03 Appellate Tribunal -
Ghaziabad
Delhi Sales Tax Act 1996-97 Dy.Comm.(Appeals) -
Delhi
Central Sales Tax Act. 1996-97 Dy.Comm.(Appeals) -
Delhi
Delhi Sales Tax Act 1997-98 Add.Comm.(Appeals)
Central Sales Tax Act. 1997-98 Add.Comm.(Appeals)
Delhi Sales Tax Act 1998-99 Add.Comm.(Appeals)
Central Sales Tax Act. 1998-99 Add.Comm. (Appeals)
Delhi Sales Tax Act 1999-00 Dy.Comm.(Appeals) -
Delhi
Central Sales Tax Act. 1999-00 Dy.Comm.(Appeals) -
Delhi
(x) The accumulated losses at the end of the financial year are more
than its net worth. The company has incurred cash losses of Rs. 18.40
Lakhs during the financial year covered by our audit and also 49.82
lacs during the immediately preceding financial year.
(xi) In our opinion and according to the information and explanations
given to us the company has defaulted in repayment of dues to banks.
The details of period and amount of default as ascertained by
management is as
Name of Bank Principal Amount Interest accrued
and due Period to which
relates
(Rs. in lakhs) (Rs. in lakhs)
Slate Bank of
Patiala -
Cash Credit 421.10 327.15 Oct.03 to Mar.09
State Bank of
Patiala- Working
Capital Term Loan 168.00 132.60 Dec.03 to Mar.09
Bank of India -
Cash Credit 332.17 249.82 Sep.03 to Mar.09
Bank of India -
Term Loan 37115 368.76 Jun.03 to Mar.09
Canara Bank 348.07 290.76 Sep.03 to Mar.09
ICICI Bank Ltd. 311.66 373.20 Mar.02 to Mar.09
An amount of Rs. 1952.06 lacs is overdue for repayment in respect of
Secured loans / Cash credit facilities taken from banks and other
financial institutions as above. As explained to us, reasonable steps
have been taken for payment of principal.
The company has not availed of any fresh loan from financial
institution and has not issued any debentures.
(xii) According to information and 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) 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.
(xiv) In our opinion, the Company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the Companies (Auditors Report) Order,
2003 (as amended), are not applicable to the company.
(xv) As informed to us, the Company has not given any guarantee for
loans taken by others from bank or financial institutions.
(xvi) In our opinion and according to the information and explanations
given to us, the term loans were applied for the purpose for which the
loans were obtained. The Company has not availed any fresh term loan
from banks or financial institutions during the financial year covered
by our audit.
(xvii) 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
investments. No long-term funds have been used to finance short-term
assets.
(xviii) The Company has not made any preferential allotment of shares
to parties and companies covered in the register maintained under
section 301 of the Companies Act, 1956 during the financial year
covered by our audit.
(xix) The Company has not issued any debentures.
(xx) The Company has not raised any money by public issue during the
financial year covered by our audit.
(xxi) According to the information and explanations given to us, no
fraud on or by the company has been noticed or reported during the
course of our audit.
For SHANTI PRASHAD & COMPANY
CHARTERED ACCOUNTANTS
PLACE: DELHI (SATISH AGGARWAL)
DATED: 29.06.2009 PARTNER