Mar 31, 2015
Report on the Financial Statements
I have audited the accompanying financial statements of M/s Chitradurga
Spintex Limited ("the Company") which comprise the balance sheet as at
31st March, 2015 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 matters in sec 134(5) of the
Companies Act, 2013 ("the Act") with respect to the preparation of
financial statements that give a true and fair view of the financial
position, financial performance and cash flows of the company in
accordance with accounting principles generally accepted in India,
including the Accounting Standards specified u/s 133 of the Act read
with Rule 7 of the Companies (Account) Rules, 2014. This responsibility
also includes the maintenance of adequate accounting records in
accordance with the provision of the Act for safeguarding the assets of
the Company and for preventing and detecting the frauds and other
irregularities; selection and application of appropriate accounting
policies; making judgments and estimates that are reasonable and
prudent; and design and implementation and maintenance of 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 misstatements, whether
due to fraud or error.
Auditor's Responsibility
My responsibility is to express an opinion on these financial
statements based on my audit.
I have taken into account the provisions of the Act and matters which
are required to be included in the audit report under the provisions of
the Act and Rules made there under.
I conducted my audit in accordance with the Standards on Auditing
specified u/s 143(10) of the Act, issued by the Institute of Chartered
Accountants of India. Those Standards require that I 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.
I believe that the audit evidence I have obtained is sufficient and
appropriate to provide a basis for my audit opinion.
Basis of Qualified Opinion
The accounting of gratuity on payment basis as per policy is contrary
to generally accepted Accounting standards issued by the Institute of
Chartered Accountants of India. The effect of the same on statement on
profit & Loss is unascertained.
We draw the attention to the fact that the company is having
accumulated loss of Rs 359.04 Lakhs as at the year ended 31-03-2015
which is more than 50% of its net worth, the company has to be treated
as sick as per the provision of SICA, 1985. The company not yet started
any particular business as stated in postal ballot on 30-10-2008 and as
the company has sold all its fixed assets and there are no revenue
generated during the year except from interest income, along with other
matters set out in the notes of the financial statements, the
substantial doubt arise whether the company will be able to continue as
going concern.
Qualified Opinion
In my opinion and to the best of my information and according to the
explanations given to me, except for the effect of the matter described
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:
(i) in the case of the balance sheet, of the state of affairs of the
Company as at 31st March, 2015;
(ii) in the case of the statement of profit and loss, of the profit for
the year ended on that date.
and (iii) in the case of the Cash flow statement, of the cash flow for
the year ended on that date
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 215 ("the
Order"), issued by the Central Government of India in terms of
sub-section (11) of section 143 of the Act, I give in the Annexure a
statement on the matters specified in paragraphs 3 and 4 of the Order.
2. As required by section 143(3) of the Act, I report that:
a. I have obtained all the information and explanations which to the
best of my knowledge and belief were necessary for the purpose of my
audit;
b. in my opinion proper books of account as required by law have been
kept by the Company so far as appears from my examination of those
books;
c. the Balance Sheet and Statement of Profit and Loss dealt with by
this Report are in agreement with the books of account;
d. in my opinion, the Balance Sheet and Statement of Profit and Loss
comply with the Accounting Standards referred to in section 133 of the
Act, read with Rule 7 of the Companies (Accounts) Rules 2014; and
e. On the basis of written representations received from the directors
as on 31st March, 2015, and taken on record by the Board of Directors,
none of the directors is disqualified as on 31st March, 2015, from
being appointed as a director in terms of section 164 of the Companies
Act, 2013.
Annexure to the Auditors' Report
The Annexure referred to in our report to the members of Chitradurga
Spintex Limited ('The Company') for the year ended 31 March 2015 and on
the basis of such checks as I considered appropriate and according to
the information and explanations given to us during the course of our
audit, I report that:
1 As the Company does not hold any fixed assets for the year, the
requirement of clause (i) of paragraph 3 of the Order, is not
applicable to the company.
2. As the Company does not hold any inventories for the year, the
requirement of clause (ii) of paragraph 3 of the Order, is not
applicable to the company.
3. The company has not granted any loans, secured or unsecured to/from
companies, firms or other parties covered in the register maintained
u/s 189 of the Act
4. The Company has not purchased any goods or fixed assets, and
effected any sales during the year, thus requirement of clause (iv) of
the Order are not applicable to the Company.
5. According to the information and explanation given to us, the
Company has not accepted any deposits from the public. Therefore the
provisions of Clause (v) of paragraph 3 of the Order are not applicable
to the Company.
6. As informed to us, the Central Government has not prescribed
maintenance of Cost Records under sub- section (1) of the section 48 of
the Act.
7. a According to the records of the Company, undisputed statutory
dues including Provident fund, employees' state insurance, income tax,
sales tax, wealth tax, customs duty, excise duty, cess and other
material statutory dues have been generally regularly deposited with
the appropriate authorities. According to the information and
explanations given to us, no undisputed amounts payable in respect of
the aforesaid dues were outstanding as at March 31, 2015 for a period
of more than six months from the date of becoming payable.
b According to the information and explanation given to us, there are
no disputed amounts payable in respect of income tax, Sales tax, Wealth
tax, Customs duty, Excise duty and Cess outstanding as at the year end,
except Entry Tax of Rs 3.91 Lakhs for the year 1992-93.
c There has not been an occasion in the case of the company during the
year under the report to transfer any sums to the Investor Education
and Protection fund in accordance with the relevant provisions of the
Companies Act 1956(1 of 1956) and rules made there under.
8. The Company has accumulated loss of Rs.359.03 lakhs as at the end
of the financial year which is more than fifty per cent of its net
worth and it has make profit of Rs. 2.66 lakhs in the current year and
had incurred a profit of Rs.56.17 lakhs immediately preceding financial
year.
9. According to information and explanation given to us and the
records examined by us, the Company has not defaulted in repayment of
dues to a financial institution or bank or debenture holder.
10. In our opinion and according to information and explanation given
to us, company has not given any guarantee for loans taken by others
from bank, financial institution.
11. In our opinion and based on information and explanations given to
us by the management, term loans were applied by the Company for the
purpose for which they were obtained.
12. According to the information and explanations given to us, no
material fraud on or by the Company has been noticed or reported during
the course of our audit.
CHETAN N. DEDHIA
Chartered Accountant
Membership No : 044402
Place : Mumbai
Date : 29-May-2015
Mar 31, 2014
I have audited the accompanying financial statements of M/s Chitradurga
Spintex Limited ("the Company'') which comprise the balance sheet as at
31st March, 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
My responsibility is to express an opinion on these financial
statements based on my audit. I conducted my audit in accordance with
the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that I 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 Companys 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. I believe that the
audit evidence I have obtained is sufficient and appropriate to provide
a basis for my audit opinion.
Basis of Qualified Opinion
The accounting of gratuity on payment basis as per policy is contrary
to generally accepted Accounting standards issued by the Institute of
Chartered Accountants of India. The effect of the same on statement of
profit & Loss is unascertained.
We draw the attention to the fact that the Company is having
accumulated loss of Rs 361.70 Lakhs as at the year ended 31 -03-2014
which is more than 50% of its net worth, the Company has to be treated
as sick as per the provision of SICA, 1985. The Company not yet started
any particular business as stated in postal ballot on 30-10-2008 and as
the Company has sold all its fixed assets and there are no revenue
generated during the year except from small interest income, along with
other matters set out in the notes of the financial statements, the
substantial doubt arise whether the Company will be able to continue as
going concern.
The Company has drafted scheme of reduction of capital and filed with
Bombay stock exchange, for approval.
Qualified Opinion
In my opinion and to the best of my information and according to the
explanations given to me, except for the effect of the matter described
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:
(i) in the case of the balance sheet, of the state of affairs of the
Company as at 31st March, 2014;
(ii) in the case of the statement of profit and loss, of the Profit for
the year ended on that date. and
(iii) in the case of the Cash flow statement, of the cash flow for the
year ended on that date
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order"), as amended, issued by the Central Government of India in terms
of sub-section (4A) of section 227 of the Act, I 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, I report that:
a. I have obtained all the information and explanations which to the
best of my knowledge and belief were necessary for the purpose of my
audit;
b. in my opinion proper books of account as required by law have been
kept by the Company so far as appears from my examination of those
books;
c. the Balance Sheet and Statement of Profit and Loss dealt with by
this Report are in agreement with the books of account [and with the
returns received from branches not visited by us];
d. in my opinion, the Balance Sheet and Statement of Profit and Loss
comply with the Accounting Standards referred to in subsection (3C) of
section 211 of the Companies Act, 1956; and
e. On the basis of written representations received from the Directors
as on 31st March, 2014, and taken on record by the Board of Directors,
none of the Directors is disqualified as on 31st March, 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 441 A 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
The Annexure referred to in our report to the members of Chitradurga
Spintex Limited (''The Company) for the year ended 31 March 2014. I
report that:
1 a The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets.
b The Companys only Fixed Assets being land and building was sold last
year and hence there was no need of regular program of physical
verification of Fixed Assets.
c There is disposal of Land & Building during the year to have an
impact on the operations of the Company and affects its going concern
concept.
2. As the Company does not hold any inventories for the year, the
paragraph 4(1) and 4 (ii) of the companies
(Auditor''s Report) order, (as amended) is not applicable to the
Company.
3. a The Company has not granted any loans, secured or unsecured to
companies, firm or other parties covered in the registered maintained
under section 301 of the Act.
b The Company has not taken unsecured loans during the year from other
parties covered in the register maintained under section 301 of the
companies act, 1956. The year ended balance of loan taken from such
parties is NIL.
4. In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business for the
purchase of inventory and fixed assets and for the sale of goods.
During the course of our audit we have not observed any major weakness
in the internal control system during the course of the audit.
5. a In our opinion and according to the information and explanations
given to us, the particulars of contracts or arrangements referred to
in 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, there were no transactions made in pursuance of contracts
and arrangements referred to in (v)(a) above exceeding the value of Rs
five lakhs with any party during the year
6. In our opinion and according to the information and explanations
given to us, the Company has not accepted
any deposits from the public within the meaning of section 58A and 58AA
of the companies Act, 1956 and the rules framed there under.
7. The Company has no internal audit system.
8. a According to the information and explanation given to us, the
Company is generally regular in depositing with appropriate authorities
undisputed dues including Provident fund, investor education and
protection fund, employees'' state insurance, income tax, sales tax,
wealth tax, customs duty, excise duty, cess and other material
statutory dues applicable to it.
b According to the information and explanation given to us, there are
no undisputed amounts payable in respect of income tax, Sales tax,
Wealth tax, Customs duty, Excise duty and Cess outstanding as at the
year end, for a period of more than six months from the date they
become payable.
c According to the information and explanation given to us, there are
no dues of Sales tax, Income tax, Custom duty, Wealth tax, Excise duty
or Cess outstanding on account of any dispute except Entry Tax of
Rs.3.91 Lakhs for the year 1992 - 93.
9. The central Government has prescribed maintenance of cost records
under section 209-(1) (d) of the companies act, 1956 in respect of manufacturing activities of the Company. The said clause is not
applicable to the Company as the Company does not have manufacturing
activities for the year.
10. According to the information and explanations given to us and on
the basis of our examination of the records of the Company, amounts
deducted/ accrued in the books of account in respect of undisputed
statutory dues including Provident Fund, Investor Education and
Protection Fund, Income-tax, Sales-tax, Wealth tax, Service tax and
other material statutory dues have been regularly deposited during the
year by the Company with the appropriate authorities. As explained to
us, the Company did not have any dues on account of Employees'' State
Insurance, Customs duty and Excise duty.
11. The Company has accumulated loss of Rs.361.69 lakhs as at the end
of the financial year which is more than fifty per cent of its net
worth and it has make profit of Rs.56.17 Lakhs in the current year and
had incurred a loss of Rs.2.09 Lakhs immediately preceding financial
year.
12. According to information and explanation given to us and the
records examined by us, the Company has not defaulted in repayment of
dues to a financial institution or bank or debenture holders.
13. In our opinion and according to information and explanation given
to us, no loans and advances have been granted by the Company on the
basis of security by way of pledge of shares, debentures and other
securities.
14. In our opinion and according to the information and explanation
given to us, the nature of the activities of the Company does not
attract any special statute applicable to chit fund and nidhi /mutual
benefit fund/societies.
15. According to the information and explanations given to us, the
Company is not dealing or trading in shares, securities, debentures and
other investments.
16. According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks or financial institutions.
17. In our opinion and based on information and explanations given to
us by the management, term loans were applied by the Company for the
purpose for which they were obtained.
18. On the basis of an overall examination of the Balance Sheet and
Cash Flows of the Company and the information and explanation given to
us, we report that the Company has not utilized any funds raised on
short term basis for long term investments and vice-versa.
19. The Company has not made any preferential allotment of shares to
parties and companies covered in the register maintained under section
301 of the Act.
20. The Company has not issued any debentures during the year.
21. The Company has not raised any money by public issues during the
year.
22. According to the information and explanations given to us, no
material fraud on or by the Company has been noticed or reported
during the course of our audit.
Sd/-
CHETAN N. DEDHIA
Chartered Accountant
Membership No: 044402
Place: Mumbai
Date:21-May-2014
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying Financial Statements of M/s.
Chitradurga Spintex 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 audit opinion.
Basis for Qualified Opinion
The accounting of gratuity on payment basis as per policy is contrary
to generally accepted Accounting Standards issued by The Institute of
Chartered Accountants of India. The effect of the same on Statement of
Profit & Loss is unascertained.
We draw the attention to the fact that the Company is having a
Accumulated loss of Rs.417.87 Lakhs as at the year ended 31.03.2013
which is more than 50% of its net worth, the company has to be treated
as sick as per the provisions of the SICA, 1985. The company not yet
started any particular business as stated in postal ballot on
30.10.2008 and as the company has sold substantial portion of the plant
and machinery and there are no revenue generation during the year
except for small rental income., along with other matters set out in
the notes of the financial statement, the substantial doubt will arise
whether company will be able to continue AS GOING CONCERN.
Qualified Opinion
In our opinion and to the best of our information and according to the
explanations given to us, except for the effects of the matter
described 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 Statement of Profit and Loss, of the loss for
the year ended on that date; and
(c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date. 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. in our opinion, the Balance Sheet, Statement of Profit and Loss,
and Cash Flow Statement comply with the
Accounting Standards referred to in subsection (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 directors are 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
The Annexure referred to in our report to the members of Chitradurga
Spintex Limited (''the Company'') for the year ended 31 March 2013. We
report that:
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) The Company has a regular programme of physical verification of its
fixed assets by which fixed assets are verified in a phased manner over
a period of three years. In accordance with this programme, certain
fixed assets were verified during the year and no material
discrepancies were noticed on such verification. In our opinion, this
periodicity of physical verification is reasonable having regard to the
size of the Company and the nature of its assets.
(c) There is substantial disposal of fixed assets during the year to
have an impact on the operations of the company and affects its going
concern concept.
(ii) As the Company does not hold any inventories for the year, the
paragraph 4(1) and 4 (ii) of the companies (Auditor''s Report) order,
(as amended) is not applicable to the company.
(iii) (a) The company has not granted any loans, secured or unsecured
to companies, firm or other parties covered in the registered
maintained under section 301 of the Act.
(b) The company has not taken unsecured loans during the year from
other parties covered in the register maintained under section 301 of
the companies act, 1956. The year ended balance of loan taken from such
parties is NIL.
(iv) In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business for the
purchase of inventory and fixed assets and for the sale of goods.
During the course of our audit we have not observed any major weakness
in the internal control system during the course of the audit.
(v) (a) In our opinion and according to the information and
explanations given to us, the particulars of contracts or arrangements
referred to in 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, there were no transactions made in pursuance of contracts
and arrangements referred to in (v)(a) above exceeding the value of Rs
five lakhs with any party during the year
(vi) In our opinion and according to the information and explanations
given to us, the company has not accepted any deposits from the public
within the meaning of section 58A and 58AA of the companies Act, 1956
and the rules framed thereunder.
(vii) The Company has no internal audit system.
(viii) (a)According to the information and explanation given to us, the
company is generally regular in depositing with appropriate authorities
undisputed dues including Provident fund, investor education and
protection fund, employees'' state insurance, income tax, sales tax,
wealth tax, customs duty, excise duty, cess and other material
statutory dues applicable to it.
(b) According to the information and explanation given to us, there are
no undisputed amounts payable in respect of income tax, Sales tax,
Wealth tax, Customs duty, Excise duty and Cess outstanding as at the
year end, for a period of more than six months from the date they
become payable.
(c) According to the information and explanation given to us, there are
no dues of Sales tax, Income tax, Custom duty, Wealth tax, Excise duty
or Cess outstanding on account of any dispute except Entry Tax of
Rs.3.91 Lakhs for the year 1992 -93.
(ix) The central Government has prescribed maintenance of cost records
under section 209-(1) (d) of the companies act, 1956 in respect of
manufacturing activities of the company. The said clause is not
applicable to the company as the Company does not have manufacturing
activities for the year,
(x) According to the information and explanations given to us and on
the basis of our examination of the records of the Company, amounts
deducted/ accrued in the books of account in respect of undisputed
statutory dues including Provident Fund, Investor Education and
Protection Fund, Income-tax, Sales-tax, Wealth tax, Service tax and
other material statutory dues have been regularly deposited during the
year by the Company with the appropriate authorities. As explained to
us, the Company did not have any dues on account of Employees'' State
Insurance, Customs duty and Excise duty.
(xi) The Company has accumulated loss of Rs.417.87 lakhs as at the end
of the financial year which is more than fifty per cent of its net
worth and it has incurred cash loss of Rs.2.10 Lakhs in the current
year and Rs.7.45 Lakhs immediately preceeding the financial year.
(xii) According to information and explanation given to us and the
records examined by us, the Company has not defaulted in repayment of
dues to a financial institution or bank or debenture holders.
(xiii) In our opinion and according to information and explanation
given to us, no loans and advances have been granted by the company on
the basis of security by way of pledge of shares, debentures and other
securities.
(xiv) In our opinion and according to the information and explanation
given to us, the nature of the activities of the Company does not
attract any special statute applicable to chit fund and nidhi /mutual
benefit fund/societies.
(xv) According to the information and explanations given to us, the
Company is not dealing or trading in shares, securities, debentures and
other investments.
(xvi) According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks or financial institutions.
(xvii) In our opinion and based on information and explanations given
to us by the management, term loans were applied by the Company for the
purpose for which they were obtained.
(xviii) On the basis of an overall examination of the Balance Sheet and
Cash Flows of the Company and the information and explanation given to
us, we report that the Company has not utilised any funds raised on
short term basis for long term investments and vice-versa.
(xix) The Company has not made any preferential allotment of shares to
parties and companies covered in the register maintained under section
301 of the Act.
(xx) The Company has not issued any debentures during the year.
(xxi) The Company has not raised any money by public issues during the
year.
(xxii) According to the information and explanations given to us, no
material fraud on or by the Company has been noticed or reported during
the course of our audit.
for H.M.V.Murthy &Co.,
Chartered Accountants
H.M.Vrushabhendra Murthy
Proprietor.
MM No.026432
Place: Bangalore
Date: June 24, 2013
Mar 31, 2012
I. We have audited the attached Balance Sheet as at 31st March 2012,
the Statement of Profit and Loss and Cash Flow Statement for the year
ended on that date of the Company for the year ended on that date
annexed thereto. These financial statements are the responsibility of
the company's management. Our responsibility is to express an opinion
on these financial statements based on our audit.
II. 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 management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
III. 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 227 of the Companies Act, 1956 we enclose in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the said
Order to the extent applicable.
VI. Further to our comments in the annexure referred to in paragraph 3
above, we report that:
1. We have obtained all the information and explanation which to the
best of our knowledge and belief were necessary for the purpose of our
Audit.
2. 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.
3. The Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement are in agreement with the Books of Account.
4. In our Opinion, the balance sheet, Statement of Profit and Loss and
Cash Flow Statement dealt by this report complied with accounting
standards mentioned under sub section (3C) of section 211 of the
Companies Act 1956, subject to the observation referred to in Para
below.
In our opinion, the accounting of gratuity on payment basis as per
policy is contrary to generally accepted Accounting Standards issued by
The Institute of Chartered Accountants of India. The effect of the same
on Statement of Profit & Loss is unascertained.
5. Based on written representation made by the Directors of the
company and according to the information and explanation given to us,
in our opinion the directors of the company are not prima facie
disqualified from being appointed as Directors U/s 274(1 )(g) of "the
Act".
6. We draw the attention to the fact that the Company is having a
Accumulated loss of Rs. 415.48 as at the year ended 31.03.2012 which is
more than 50% of its networth, the company has to be treated as sick as
per the provisions of the SICA, 1985. The company not yet started any
particular business as stated in postal ballot on 30.10.2008 and as the
company has sold substantial portion of the plant and machinery and
there are no revenue generation for a period of 10 months during the
year., along with other matters set out in the notes of the financial
statement, the substantial doubt will arise whether company will be
able to continue AS GOING CONCERN. Subject to the above and regarding
contingent liability, and read with other notes thereon, in our opinion
and to the best of our knowledge and according to the explanations
given to us, the said accounts and read together with the Significant
Accounting Policies and notes thereon, give the information required by
the Companies Act. 1956, in the manner so required and also give true
and fair view.
1) In the case of Balance Sheet of the State of Affairs of the Company
as at 31 st March 2012, and
2) In the case of Statement of Profit and Loss of the loss of the
Company for the year ended on that date.
3) In the case of Cash Flow Statement, of the Cash Flows for the year
ended on that date.
ANNEXURE TO AUDITOR'S REPORT
Referred to in Paragraph 3 of our Report of even date.
(1) (a) The Company is maintaining proper records showing full
particulars including quantitative details and situation of
fixed assets.
(b) The fixed assets have been physically verified by the management as
per phased programme of verification. In our opinion, the frequency of
verification is reasonable having regard to the size of Company and the
nature of its assets. The Discrepancies reported on such verification
were not material and have been properly dealt with in the books of
accounts.
(c) There is substantial disposal of fixed assets during the year to
have an impact on the operations of the company and affects its going
concern concept.
(2) As the Company does not hold any inventories for the year, the
paragraph 4(1) and 4 (ii) of the companies (Auditor's Report) order,
(as amended) is not applicable to the company
i
(3) (a) The company has not granted any loans, secured or unsecured to
companies, firm or other parties covered in the registered maintained
under section 301 of the Act.
(b) The company has not accepted/repaid any loans during the year from
parties listed in the register maintained under section 301 of the
companies act, 1956. The year end balance of loan taken from such
parties is NIL.
(4) In our opinion and according to the information and explanation
given to us, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business for the purchase of inventory and fixed assets and for the
sale of goods. During the course of our audit no major weakness has
been observed in the internal controls.
(5) (a) Based on the audit procedure applied by us and according to the
information and explanation provided by the management, we are of the
opinion that all transaction that need to be entered into the resister
in pursuance of section 301 of the Act have been entered.
(b) During the year company has not made any transactions in pursuance
of contracts or arrangements entered in the register maintained under
section 301 of the companies act, 1956 and exceeding the value of Rs.
Five lakhs.
(6) In our opinion and according to the information and explanations
given to us, the company has not accepted any deposits from the public
within the meaning of section 58A and 58AA of the companies Act, 1956
and the rules framed there under.
(7) The Company has no internal audit system.
(8) (a) According to the information and explanation given to us, the
company is generally regular in depositing with appropriate authorities
undisputed dues including Provident fund, investor education and
protection fund, employees' state insurance, income tax, sales tax,
wealth tax, customs duty, excise duty, cess and other materia!
statutory dues applicable to it.
(b) According to the information and explanation given to us, there are
no undisputed amounts payable in respect of income tax, Sales tax,
Wealth tax, Customs duty, Excise duty and Cess outstanding as at the
year end, for a period of more than six months from the date they
become payable.
(c) According to the information and explanation given to us, there are
no dues of Sales tax, Income tax, Custom duty, Wealth tax, Excise duty
of Cess outstanding on account on any dispute except Entry Tax of
Rs.3.91 Lakhs for the year 1992 -93.
(9) The Company has accumulated loss of Rs.415.48 lakhs as at the end
of the financial year which is more than fifty per cent of its net
worth and it has incurred cash loss of Rs. 7.45 Lakhs in the current
year and not incurred a cash loss immediately preceding the financial
year.
(10) According to information and explanation given to us and the
records examined by us, there are no term loans availed by the company,
hence comments on this clause does not arise.
(11) In our opinion and according to information and explanation given
to us, no loans and advances have been granted by the company on the
basis of security by way of pledge of shares, debentures and other
securities.
(12) In our opinion and according to the information and explanation
given to us, the nature of the activities of the Company does not
attract any special statute applicable to Chit Fund and Nidhi /Mutual
benefit fund/societies.
(13) The Company does not deal or trade in shares, securities,
debentures and other investments.
(14) According to the information and explanations given to us and the
records examined by us, the Company has not given any guarantees for
loans taken by others from banks or financial institutions, the terms
and conditions whereof are prima facie prejudicial to the interest of
the Company.
(15) As informed to us the company has not availed any term loans,
hence comments on this clause does not arise. The term loans were
applied by the Company for the purpose for which they were obtained.
(16) On the basis of an overall examination of the balance sheet and
cash flows of the Company and the information and explanation given to
us, we report that the Company has not utilized funds raised on short
term basis for long term investments and vice versa.
(17) The Company has not made any preferential allotment of shares to
parties or companies covered under section 301 of the Act.
(18) The company has not issued any debentures.
(19) The Company has not raised any money through a public issue during
the year.
(20) In our opinion and according to the information and explanation
given to us, no fraud on or by the Company has been noticed or reported
during the year, that causes the financial statements to be materially
misstated.
For H.M.V. MURTHY & CO.,
Chartered Accountants
(H.M.Vrushabhendra Murthy)
Place:Bangalore Proprietor.
Date: 27th August, 2012 M.No.26432
Mar 31, 2011
I. We have audited the attached Balance Sheet as at 31st March 2011
and also the Profit and Loss Account of the Company for the year ended
on that date annexed there to and the cash flow statement for the year
ended on that date. 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.
II. 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 management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
III. 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 227 of the Companies Act, 1956 we enclose in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the said
Order to the extent applicable.
Vi Further to our comments in the annexure referred to in paragraph 3
above, we report that:
1. We have obtained all the information and explanation which to the
best of our knowledge and belief were necessary for the purpose of our
Audit.
2. 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.
3. The Balance Sheet and the Profit and Loss Account and Cash Flow
shows statement are in agreement with the Books of Account.
4. In our Opinion, the balance sheet, Profit and Loss Account and Cash
Flow shows statement dealt by this report complied with accounting
standards mentioned under sub section (3C) of section 211 of the
Companies Act 1956, subject to the observation referred to in Para
below.
In our opinion, the accounting of gratuity on payment basis as per
policy No. 6. of schedule 14, is contrary to generally accepted
Accounting Standards issued by The Institute of Chartered Accountants
of India. The effect on Profit & Loss Account is unascertained.
5. Based on written representation made by the Directors of the
company and according to the information and explanation given to us,
in our opinion the directors of the company are not prima facie
disqualified from being appointed as Directors U/s274(1)(g)oftheAct".
6. We draw the attention to fact that company is having a Accumulated
loss incurred up to the year ended 31.03.2011 amounting to Rs.407.88
Lakhs and not yet started any particular business as stated in postal
ballot on 30.10.2008 and as the company has sold substantial portion of
the plant and machinery, along with other matters set out in the notes
of the financial statement, the substantial doubt will arise whether
company will be able to continue AS GOING CONCERN. Subject to the
above and note No.3 of schedule No. 14 regarding contingent liability,
and read with other notes thereon, in our opinion and to the best of
our knowledge and according to the explanations given to us, the said
accounts and read with other notes and schedules appearing there on,
give the information required by the Companies Act. 1956, in the manner
so required and also give true and fair view.
1) In the case of Balance Sheet of the State of Affairs of the Company
as at 31 st March 2011, and
2) In the case of Profit and Loss Account, of the profit of the Company
for the year ended on that date.
3) In the case of Cash Flow Statement, of the Cash Flows for the year
ended on that date.
ANNEXURE TO AUDITOR'S REPORT
Referred to in Paragraph 3 of our Report of even date.
(1) (a) The Company is maintaining proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) The fixed assets have been physically verified by the management as
per phased programme of verification. In our opinion, the frequency of
verification is reasonable having regard to the size of Company and the
nature of its assets. The Discrepancies reported on such verification
were not material and have been properly dealt with in the books of
accounts.
(c) There is substantial disposal of fixed assets during the year to
have an impact on the operations of the company or affects its going
concern.
(2) As the Company does not hold any inventories for the year, the
paragraph 4(i) and 4(ii) of the Companies (Auditor's Report) Order, (as
amended) is not applicable to the Company.
(3) (a) The company has not granted any loans, secured or unsecured to
companies, firm or other parties covered in the registered maintained
under section 301 of the Act.
(b) The company has not accepted/repaid any loans during the year from
parties listed in the register maintained under section 301 of the
companies act, 1956. The year end balance of loan taken from such
parties is NIL.
(4) In our opinion and according to the information and explanation
given to us, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business for the purchase of inventory and fixed assets and for the
sale of goods. During the course of our audit no major weakness has
been observed in the internal controls.
(5) (a) Based on the audit procedure applied by us and according to the
information and explanation provided by the management, we are of the
opinion that all transaction that need to be entered into the resister
in pursuance of section 301 of the Act have been entered.
(b) During the year company has not made any transactions in pursuance
of contracts or arrangements entered in the register maintained under
section 301 of the companies act, 1956 and exceeding the value of Rs.
Five lakhs.
(6) In our opinion and according to the information and explanations
given to us, the company has not accepted any deposits from the public
within the meaning of section 58A and 58AA of the companies Act, 1956
and the rules framed there under.
(7) The Company has no internal audit system.
(8) (a) According to the information and explanation given to us, the
company is generally regular in depositing with appropriate authorities
undisputed dues including Provident fund, investor education and
protection fund, employees' state insurance, income tax, sales tax,
wealth tax, customs duty, excise duty, cess and other material
statutory dues applicable to it.
(b) According to the information and explanation given to us, there are
no undisputed amounts payable in respect of income tax, Sales tax,
Wealth tax, Customs duty, Excise duty and Cess outstanding as at the
year end, for a period of more than six months from the date they
become payable.
(c) According to the information and explanation given to us, there are
no dues of Sales tax, Income tax, Custom duty, Wealth tax, Excise duty
of Cess outstanding on account on any dispute except Entry Tax of
Rs.3.91 Lakhs for the year 1992-93.
(9) The Company has accumulated losses of Rs.407.88 Lakhs at the end of
the financial year and it has not incurred cash loss in the current
year and incurred a cash loss of Rs.89.74 lakhs immediately preceeding
the financial year.
(10) According to information and explanation given to us and the
records examined by us, the Company has not defaulted in repayment of
dues to financial institutions.
(11) In our opinion and according to information and explanation given
to us, no loans and advances have been granted by the company on the
basis of security by way of pledge of shares, debentures and other
securities.
(12) In our opinion and according to the information and explanation
given to us, the nature of the activities of the Company does not
attract any special statute applicable to Chit Fund and Nidhi /Mutual
benefit fund/societies.
(13) The Company does not deal or trade in shares, securities,
debentures and other investments.
(14) According to the information and explanations given to us and the
records examined by us, the Company has not given any guarantees for
loans taken by others from banks or financial institutions, the terms
and conditions whereof are prima facie prejudicial to the interest of
the Company.
(15) As informed to us, the term loans were applied by the Company for
the purpose for which they were obtained.
(16) On the basis of an overall examination of the balance sheet and
cash flows of the Company and the information and explanation given to
us, we report that the Company has not utilized funds raised on short
term basis for long term investments and vice versa.
(17) The Company has not made any preferential allotment of shares to
parties or companies covered under section 301 of the Act.
(18) The company has not issued any debentures.
(19) The Company has not raised any money through a public issue during
the year.
(20) In our opinion and according to the information and explanation
given to us, no fraud on or by the Company has been noticed or reported
during the year, that causes the financial statements to be materially
misstated.
For H.M.V. MURTHY & CO.,
CHARTERED ACCOUNTANTS
(H.M.Vrushabhendra Murthy)
Proprietor.
M.No.26432
Place:Bangalore
Date : 27thAugust, 2011
Mar 31, 2010
I. We have audited the attached Balance Sheet as at 31st March 2010
and also the Profit and Loss Account of the Company for the year ended
on that date annexed there to and the cash flow statement for the year
ended on that date. 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.
II. 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 management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
III. As required by the Companies (Auditors Report) Order, 2003
issued by the Central Government of India in terms of sub-section (4A)
of Section 227 of the Companies Act, 1956 we enclose in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the said
Order to the extent applicable.
Vi Further to our comments in the annexure referred to in paragraph 3
above, we report that:
1. We have obtained all the information and explanation which to the
best of our knowledge and belief were necessary for the purpose of our
Audit.
2. 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.
3. The Balance Sheet and the Profit and Loss Account and cash flow
show statement are in Agreement with the Books of Account.
4. In our Opinion, the balance sheet, Profit and Loss Account and cash
flow shows statement dealt by this report complied with accounting
standards mentioned under sub section (3C) of section 211 of the
Companies Act 1956, subject to the observation referred to in Para
below.
In our opinion, the accounting of gratuity on payment basis as per
policy No. 7. of schedule 17, is contrary to generally accepted
Accounting Standards issued by The Institute of Chartered Accountants
of India. The effect on Profit & Loss Account is unascertained.
5. Based on written representation made by the Directors of the
company and according to the information and explanation given to us,
in our opinion the directors of the company are not prima facie
disqualified from being appointed as Directors U/s 274(1 )(g) of "the
Act".
6. We draw the attention to the note No.3 of schedule 17 regarding
huge loss incurred during the year amounting to Rs.89.74 Lakhs, not yet
started any particular business as stated in postal ballot on
30.10.2008 and as the company has sold substantial portion of the plant
and machinery, along with other matters set out in the notes of the
financial statement, the substantial doubt will arise whether company
will be able to continue AS GOING CONCERN. Subject to the above and
note No.4 of schedule No. 17 regarding contingent liability, and read
with other notes thereon, in our opinion and to the best of our
knowledge and according to the explanations given to us, the said
accounts and read with other notes and schedules appearing there on,
give the information required by the Companies Act. 1956, in the manner
so required and also give true and fair view.
1) In the case of Balance Sheet of the State of Affairs of the Company
as at 31st March 2010, and
2) In the case of Profit and Loss Account, of the loss of the Company
for the year ended on that date.
3) In the case of Cash Flow Statement, of the Cash Flows for the year
ended on that date.
ANNEXURE TO AUDITORS REPORT Referred to in Paragraph 3 of our Report
of even date.
(1) (a) The Company is maintaining proper records showing full
particulars including quantitative details and situation of
fixed assets.
(b) The fixed assets have been physically verified by the management as
per phased programme of verification. In our opinion, the frequency of
verification is reasonable having regard to the size of Company and the
nature of its assets. The Discrepancies reported on such verification
were not material and have been properly dealt with in the books of
accounts.
(c) There is substantial disposal of fixed assets during the year to
have an impact on the operations of the company or affects its going
concern.
(2) (a) The Management has conducted physical verification of inventory
at reasonable intervals.
(b) In our opinion, the procedures followed by the management for such
physical verification are, reasonable and adequate, in relation to the
size of the company and the nature of its business.
(c) The Company is maintaining proper records of inventory. The
discrepancies noticed on verification between physical inventories and
the book records were not material in relation to the operation of the
company and the same have been properly dealt with in the books of
accounts.
(3) (a) During the year the company has recovered unsecured loan of
Rs.40 lakhs from a company listed in the register maintained under
section 301 of the companies act, 1956, the opening balance in this
account was Rs.40 lakhs and yearend balance in this account is Nil.
(b) The company has not accepted/repaid any loans during the year from
parties listed in the register maintained under section 301 of the
companies act, 1956. The yearend balance of loan taken from such
parties is NIL.
(4) In our opinion and according to the information and explanation
given to us, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business for the purchase of inventory and fixed assets and for the
sale of goods. During the course of our audit no major weakness has
been observed in the internal controls.
(5) (a) Based on the audit procedure applied by us and according to the
information and explanation provided by the management, we are of the
opinion that all transaction that need to be entered into the resister
in pursuance of section 301 of the Act have been entered.
(b) In our opinion and according to the information and explanation
given to us, 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 Rs. 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 where such market prices are available.
(6) In our opinion and according to the information and explanations
given to us, the company has not accepted any deposits from the public
within the meaning of section 58A and 58AA of the companies Act, 1956
and the rules framed there under.
(7) The Company has no internal audit system.
(8) (a) According to the information and explanation given to us, the
company is generally regular in depositing with appropriate authorities
undisputed dues including Provident fund, investor education and
protection fund, employees state insurance, income tax, sales tax,
wealth tax, customs duty, excise duty, cess and other material
statutory dues applicable to it.
(b) According to the information and explanation given to us, there are
no undisputed amounts payable in respect of income tax, Sales tax,
Wealth tax, Customs duty, Excise duty and Cess outstanding as at the
year end, for a period of more than six months from the date they
become payable.
(c) According to the information and explanation given to us, there are
no dues of Sales tax, Income tax, Custom duty, Wealth tax, Excise duty
of Cess outstanding on account on any dispute except Entry Tax of
Rs.3.91 Lakhs for the year 1992-93.
(9) The Company has accumulated losses of Rs.408.69 Lakhs at the end of
the financial year and it has incurred a cash loss of Rs.89.74 Lakhs in
the current year and Rs.122.39 lakhs immediately preceeding the
financial year.
(10) According to information and explanation given to us and the
records examined by us, the Company has not defaulted in repayment of
dues to financial institutions.
(11) In our opinion and according to information and explanation given
to us, no loans and advances have been granted by the company on the
basis of security by way of pledge of shares, debentures and other
securities.
(12) In our opinion and according to the information and explanation
given to us, the nature of the activities of the Company does not
attract any special statute applicable to chit fund and Nidhi /Mutual
benefit fund/societies.
(13) The Company does not deal or trade in shares, securities,
debentures and other investments.
(14) According to the information and explanations given to us and the
records examined by us, the Company has not given any guarantees for
loans taken by others from banks or financial institutions, the terms
and conditions whereof are prima facie prejudicial to the interest of
the Company.
(15) As informed to us, the term loans were applied by the Company for
the purpose for which they were obtained.
(16) On the basis of an overall examination of the balance sheet and
cash flows of the Company and the information and explanation given to
us, we report that the Company has not utilized funds raised on short
term basis for long term investments and vice versa.
(17) The Company has not made any preferential allotment of shares to
parties or companies covered under section 301 of the Act.
(18) The company has not issued any debentures.
(19) The Company has not raised any money through a public issue during
the year.
(20) In our opinion and according to the information and explanation
given to us, no fraud on or by the Company has been noticed or reported
during the year, that causes the financial statements to be materially
misstated.
For H.M.V.MURTHY & CO.,
Chartered Accountants,
[H.M.Vrushabhendramurthy]
Proprietor.
Bangalore, 27th August 2010 M.No.26432
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