Mar 31, 2014
We have audited the accompanying financial statements of Classic
Electricals Limited (the Company), which comprise the Balance Sheet as
at March 31, 2014. 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
The Company''s 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 notified under the Companies
Act, 1956 (the Act) read with the General Circular 15/2013 dated 13th
September, 2013 of the Ministry of Corporate Affairs in respect of
Section 133 of the Companies Act, 2013 and in accordance with the
accounting principles generally accepted in India. 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.
AUDITORS'' 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, but not for the
purpose of expressing an opinion on the effectiveness of the Company''s
internal control. 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.
OPINION
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid 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, 2014;
(b) In the case of the Statement of Profit and Loss, of the Profit of
the Company for the year ended on that date; and
(c) In the case of the Cash Flow Statement, of the cash flows of the
Company 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 Section
227(4A) 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, the Statement of Profit and Loss, and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account.
d) In our opinion, the Balance Sheet, the Statement of Profit and Loss,
and the Cash Flow Statement comply with Accounting Standards notified
under the Act read with the General Circular 15/2013 dated 13th
September, 2013 of the Ministry of Corporate Affairs in respect of
Section 133 of the Companies Act, 2013.
e) On the basis of the written representations received from the
directors as on March 31, 2014. taken on record by the Board of
Directors, none of the directors is disqualified as on March 31, 2014,
from being appointed as a director in terms of Section 274 (1)(g) of
the Act.
ANNEXURE TO INDEPENDENT AUDITORS'' REPORT
REFERRED TO IN PARAGRAPH 1 UNDER THE HEADING OF "REPORT ON OTHER LEGAL
AND REGULATORY REQUIREMENTS" OF OUR REPORT OF EVEN DATE.
1. In respect of its fixed assets:
a) The Company has generally maintained proper records showing full
particulars including quantitative detail and situation of fixed
assets.
b) As explained to us, the physical verification of the fixed assets
was conducted by the management during the year, which in our opinion
is reasonable, having regard to the size of the company and nature of
its assets. There was no material discrepancies noticed on such
verifications.
c) In our opinion, the Company has not disposed off a substantial part
of its fixed assets during the year and the going concern status of the
Company is not affected.
2. In respect of its inventories:
a) As the company does not engaged in the business of manufacturing,
marketing and processing of any goods and articles, the provisions of
Clause (ii) of paragraph 4 of the CARO are not applicable.
3. In respect of its loans, secured or unsecured, granted or taken by
the Company to/from companies, firms or other parties covered in the
register maintained under section 301 of the Companies Act, 1956:
4. In opinion and according to the information and explanations given
to us, the Company has not taken any secured or unsecured loans from
companies, firms or other parties covered in the register maintained
under section 301 of the Companies Act, 1956:
a) In respect of loan given:
i. According to the information and explanations given to us, the
company has given unsecured loans to 2 persons covered under the
register maintained u/s. 301 of the Companies Act, 1956. The Maximum
amount involves during the year in respect of the said loans is Rs.
242.94 lacs and the year end balance of such loan is Rs. 242.94 lacs
respectively.
ii. In our opinion and according to the information and explanation
given to us the rate of Interest and other terms and conditions on
which aforesaid loans has been given are not prima-facie prejudicial to
the interest of the company.
iii. In respect of aforesaid loans the amount principal as well as the
Interest is recoverable on demand and the parties are regular in
repaying the amount as and when demanded as there is no specific
stipulation for repayment of loans.
5. Having regard to the nature of the company''s business and based on
our scrutiny of the company''s records and the information and
explanation received by us, we report that the company''s activities do
not include purchase of inventory and sale of goods. In our opinion and
according to the information and explanation received by us, there are
adequate internal control procedure commensurate with the size of the
Company and nature of its business with regards to purchase of fixed
assets. During the course of audit, we have not observed any continuing
failure to correct major weaknesses in internal control system with
regard to purchase of fixed assets.
6. In respect of transaction covered under section 301 of the Companies
Act, 1956:
a) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangement that needed to be entered in to in the register maintained
under section 301 of the Companies Act, 1956 have been so entered.
b) In our opinion and according to the information and explanations
given to us transactions made in pursuance of contract or arrangement
entered in the register maintained under section 301 of the Companies
Act, 1956 and exceeding the value of Rs. 5/- Lacs in respect of each
party during the year have been made a prices which appears reasonable
as per information available with the company.
7. Based on scrutiny of the company''s records and according to the
information and explanation provided by the management, in our opinion,
the Company has not accepted any loan or deposit which are deposits
within the meaning of Rule 2(b) of the Company''s (Acceptance of
Deposit) Rules, 1975 from the public. Therefore, the provisions of
Clause (vi) of paragraph 4 of the CARO are not applicable to the
Company.
8. In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
9. According to the information and explanation provided by the
management, the company is not engaged in production, processing,
manufacturing or mining activities. Hence, the provisions of section
209 (1)(d) of the Companies Act, 1956 do not apply to the company.
Hence, in our opinion no comment on maintenance of cost records under
section 209(1)(d) is required.
10. In respect of statutory dues:
a) According to the records provided to us, the Company is generally
regular in depositing with appropriate authority undisputed statutory
dues including amount of Provident fund, Investor education and
protection fund, Employee''s state insurance, Income Tax, Sales Tax,
Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess and other
Material statutory dues, applicable to it.
According to the Information and Explanations given to us, no
undisputed amounts payable in respect of the aforesaid dues were
outstanding as at 31st March, 2014 for a period of more than six months
from the date of becoming payable.
b) According to the records of the company and information and
explanations given to us, there are no dues of Income Tax, Sales Tax,
Wealth Tax, Service Tax, Custom Duty, Excise Duty/Cess which have not
been deposited on account of any dispute.
c) Details of disputed Income Tax liabilities as on 31st March, 2014 is
given below.
Name of the Forum where Period for Amount Amount paid
Statute Dispute is which amount involved under
pending relates (Rs. In Protest/
lakhs) Refund
adjusted
(Rs. in
lakhs)
Income Tax High Court, Mumbai Assessment
Year 1989-90 2.65 -
Income Tax The ITAT, Mumbai Assessment
Year 1990-91 54.90 54.90
Income Tax The ITAT, Mumbai Assessment
Year 1991-92 155.83 155.83
Income Tax The Commissioner Assessment
of Income Tax Year 1992-93
(Appeals) 31.57 31.57
11. The Company does not have accumulated losses at the end of the
financial year. The Company has not incurred cash losses during the
financial year covered by the audit and in the immediately preceding
financial year.
12. According to the records of the company, the company has not
borrowed from financial institutions or banks or issued debenture till
the end of the financial year. Hence, in our opinion, the question of
reporting of default in repayment of dues to financial institutions or
bank or debenture does not arise.
13. In our opinion and according to the information and explanations
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 to the best of our information and according to
the explanation provided by the management, we are of the opinion that
the company is neither a Chit Fund Nor a Nidhi/Mutual benefit society.
Hence, in our opinion, the requirements of Para 4(xiii) of the CARO do
not apply to the company.
15. According to the Information and explanation given to us the
company is not dealing or Trading in Shares, Securities and Debentures.
Investments in respect of all shares, debentures and other investments
have been held by the company in its own name and have also maintained
adequate and proper records.
16. According to the records of the company and the Information and
Explanation provided by the management, the company has not given any
guarantee tor loans taken by others from any banks or financial
institution.
17. The Company has not obtained any term loan during the year. There
was no terms loan outstanding at the beginning of the year.
18. According to the Information and Explanations given to us and over
all examination of balance sheet of the Company, we report that no fund
raised on short term basis have been used for long term investment by
the company.
19. According to the records of the company and the information and
explanation provided by the management, 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.
20. During the year the Company has not issued any debenture and also
there is no any outstanding during the year hence the question of
creating security or charge in respect of debenture does not arise.
21. During the year the Company has not raised any money by way of
public issue.
22. During the course of examination of the books and records of the
company carried out in accordance with generally accepted auditing
practices in India and according to the information and explanation
given to us, we have neither come across any instance of fraud on or by
the company, noticed or reported during the year nor have been informed
of such cases by the Management.
For A.C. MODI & ASSOCIATES
Chartered Accountants
Firm''s registration number: 116555W
ALPESH C. MODI
Proprietor
Membership number: 101342
Place: Mumbai
Date: 30 MAY, 2014
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of CLASSIC
ELECTRICALS LIMITED (''the CompanyÂ) which comprise the Balance Sheet
as at 31st March 2013, the Statement of Profit and Loss and cash flow
statement for the year ended on that date and summary of significant
accounting policies and other explanatory information.
ManagementÂs 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 flow 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 auditorÂs 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 CompanyÂs
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.
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 give a true and fair
view in conformity with the accounting principles generally accepted in
India:
i) In the case of Balance Sheet of the state of affairs of the Company
as at 31st March, 2013.
ii) In the case of the Profit & Loss Account of the Loss of the Company
for the year ended on that date.
And
iii) In the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (AuditorÂs 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, 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 and 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; and
e) on the basis of written representations received from the directors
as on 31st March 2013, and taken on record by the Board of Directors,
none of the directors is disqualified as on 31st March 2013, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
ANNEXURE TO INDEPENDENT AUDITORS'' REPORT
REFERRED TO IN PARAGRAPH 1 UNDER THE HEADING OF "REPORT ON OTHER
LEGAL
AND REGULATORY REQUIREMENTS" OF OUR REPORT OF EVEN DATE.
1. In respect of its fixed assets:
a) The Company has generally maintained proper records showing full
particulars including quantitative detail and situation of fixed
assets.
b) As explained to us, the physical verification of the fixed assets
was conducted by the management during the year, which in our opinion
is reasonable, having regard to the size of the company and nature of
its assets. There was no material discrepancies noticed on such
verifications.
c) During the year, the Company has disposed of a substantial part of
the fixed Assets. However according to the information and explanation
given to us and to the best of our belief we are of the opinion that
the sale of the assets has not affected the going concern status of the
company.
2. In respect of its inventories:
a) As explained to us, physical verification of the inventory was
carried out at reasonable intervals by the management.
b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of the inventory
by the management are reasonable and adequate in relation to the size
of the Company and nature of its business.
c) In our opinion and according to the information and explanations
given to us, the Company has maintained proper records of its
inventory, and the discrepancies noticed on physical verification of
inventory as compared to the book records were not material and have
been properly dealt with in the books of account.
3. In respect of its loans, secured or unsecured, granted or taken by
the Company to/from companies, firms or other parties covered in the
register maintained under section 301 of the Companies Act, 1956:
a) In opinion and according to the information and explanations given
to us, the Company has not taken any unsecured loans.
b) In respect of loan given:
i. According to the information and explanations given to us, the
company has given unsecured loans to 3 persons covered under the
register maintained u/s.301 of the Companies Act,1956. The Maximum
amount involves during the year in respect of the said loans is
Rs.375.08 lacs and the year end balance of such loan is Rs.215.57 lacs
respectively.
ii. In our opinion and according to the information and explanation
given to us the rate of Interest and other terms and conditions on
which aforesaid loans has been given are not prima-facie prejudicial to
the interest of the company.
iii. In respect of aforesaid loans the amount principal as well as the
Interest is recoverable on demand and the parties are regular in
repaying the amount as and when demanded as there is no specific
stipulation for repayment of loans.
4. 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 nature of its business
for the purchase of inventory and fixed assets and for the sale of
goods and for the services. During the course of audit, we have not
observed any major weakness in the internal control system.
5. In respect of transaction covered under section 301 of the
Companies Act, 1956.:
a) In our opinion and according to the information and explanations
given to us, the transaction made in pursuance of contracts or
arrangement that needed to be entered in to in the register maintained
under section 301 of the Companies Act,1956 have been so entered.
b) In our opinion and according to the information and explanations
given to us transactions made in pursuance of contract or arrangement
entered in the register maintained under section 301 of the Companies
Act, 1956 and exceeding the value of Rs. 5 Lacs in respect of each
party during the year have been made a prices which appears reasonable
as per information available with the company.
6. The Company has not accepted any deposit from the public within the
meaning of section 58A and 58AA of the Act and the companies
(Acceptance of Deposits) Rules,1975. Accordingly the provision of
clause 4(vi) of the order are not applicable.
7. In our opinion, the Company has an internal audit system
commensurate with its size and nature of its business.
8. The central Government has not prescribed maintenance of cost
records under section 209 (1) (d) of the Companies Act,1956.
Accordingly the provision of clause 4(viii) of the order is not
applicable.
9. In respect of statutory dues:
a) According to the records provided to us, the Company is generally
regular in depositing with appropriate authority undisputed statutory
dues including amount of Provident fund, Investor education and
protection fund, EmployeeÂs state insurance, Income Tax, Sales Tax,
Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess and other
Material statutory dues, applicable to it.
According to the Information and Explanations given to us, no
undisputed amounts payable in respect of the aforesaid dues were
outstanding as at 31st March,2013 for a period of more than six months
from the date of becoming payable.
b) According to the records of the company and information and
explanations given to us, there are no dues of Income Tax, Sales Tax,
Wealth Tax, Service Tax, Custom Duty, Excise Duty/Cess which have not
been deposited on account of any dispute.
c) Details of disputed Income Tax liabilities as on 31st March, 2013 is
given below.
Name of the Forum where Period for
Statute Dispute is pending which amount
relates
Income Tax High Court, Assessment
Mumbai Year 1989-90
Income Tax The ITAT,Mumbai Assessment
Year 1990-91
Income Tax The ITAT,Mumbai Assessment
Year 1991-92
Income Tax The Commissioner Assessment
of Income Tax Year 1992-93
(Appeals)
Name Amount Amount paid
involved under
(Rs. In Protest/
lakhs) Refund
adjusted
(Rs. in lakhs)
Income Tax 2.65
Income Tax 54.90 54.90
Income Tax 155.83 155.83
Income Tax 31.57 31.57
10. The Company does not have accumulated losses. The Company has not
incurred any cash loss during the financial year covered by our audit.
The company has not incurred cash loss in the immediately preceding
financial year.
11. According to the information and explanation given to us, we are
of the opinion that the Company has not taken / availed any loans from
the financial institutions, Banks or Debenture Holders and accordingly
the provision of clause 4(xi) of the order is not applicable.
12. In our opinion and according to the information and explanations
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.
13. In our opinion, the company is not a chit fund or a nidhi/ mutual
benefit fund / society. Therefore, clause 4(xiii) of the companies
(AuditorÂs Reports) order 2003 (as amended by Order, 2004) is not
applicable to the company.
14. According to the Information and explanation given to us the
company is not dealing or Trading in Shares, Securities and Debentures.
Investments in respect of all shares, debentures and other investments
have been held by the company in its own name and has also maintained
adequate and proper records.
15. According to the Information and Explanations given to us, and the
representations made by the management, company has not given any
guarantee for loans taken by others from any banks or financial
institution, during the year.
16. The Company has not obtained any term loan during the year. There
was no terms loan outstanding at the beginning of the year.
17. According to the Information and Explanations given to us and over
all examination of balance sheet of the Company, we are of the opinion
that the company has not utilized any amount from short term sources
towards repayment of long term borrowings and acquisition of fixed
assets.
18. During the year 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.
19. During the year the Company has not issued any debenture and also
there is no any outstanding during the year hence the question of
creating security or charge in respect of debenture does not arise.
20. During the year the Company has not raised any money by way of
public issue.
21. During the course of examination of the books and records of the
company carried out in accordance with generally accepted auditing
practices in India and according to the information and explanation
given to us, we have neither come across any instance of fraud on or by
the company, noticed or reported during the year nor have been informed
of such cases by the Management.
For A.C. Modi ft Associates
Chartered Accountants
SD/-
(Alpesh C. Modi)
Proprietor
Membership No. 101342
F.R. No. 116555W
Place: Mumbai
Dated: 30th May,2013
Mar 31, 2012
We have audited the accompanying financial statements of CLASSIC
ELECTRICALS LIMITED (the Company) which comprise the Balance
Sheet as at 31 March 2012, the Statement of Profit and Loss and cash
flow statement for the year ended on that date.
Managements 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 flow 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 auditors 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.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit 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 give a true and fair
view in conformity with the accounting principles generally accepted in
India:
i) In the case of Balance Sheet of the state of affairs of the Company
as at 31st March, 2012.
ii) In the case of the Profit & Loss Account of the profit of the
Company for the year ended on that date.
And
iii) In the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors 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, 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 and 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; and
e) on the basis of written representations received from the directors
as on 31 March 2012, and taken on record by the Board of Directors,
none of the directors is disqualified as on 31 March 2012, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
ANNEXURE TO THE AUDITORS' REPORT
REFFERED TO IN PARAGRAPH 3 OF OUR REPORT OF EVEN DATE:
1. In respect of its fixed assets:
a) The Company has generally maintained proper records showing full
particulars including quantitative detail and situation of fixed
assets.
b) As explained to us, the physical verification of the fixed assets
was conducted by the management during the year, which in our opinion
is reasonable, having regard to the size of the company and nature of
its assets. There was no material discrepancies noticed on such
verifications.
c) In our opinion, the Company has not disposed of a substantial part
of the fixed Assets during the year, and accordingly the going concern
status of the company is not affected.
2. In respect of its inventories:
a) As explained to us, physical verification of the inventory was
carried out at reasonable intervals by the management.
b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of the inventory
by the management are reasonable and adequate in relation to the size
of the Company and nature of its business.
c) In our opinion and according to the information and explanations
given to us, the Company has maintained proper records of its
inventory, and the discrepancies noticed on physical verification of
inventory as compared to the book records were not material and have
been properly dealt with in the books of account.
3. In respect of its loans, secured or unsecured, granted or taken by
the Company to/from companies, firms or other parties covered in the
register maintained under section 301 of the Companies Act, 1956:
a) In opinion and according to the information and explanations given
to us, the Company has not taken any unsecured loans.
b) In our opinion and according to the information and explanations
given to us, the Company has not granted any secured or unsecured loans
to companies, firms or other parties listed in the register maintained
u/s. 301 of the Companies Act, 1956.
4. 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 nature of its business
for the purchase of inventory and fixed assets and for the sale of
goods and for the services. During the course of audit, we have not
observed any major weakness in the internal control system.
5. In respect of transaction covered under section 301 of the
Companies Act, 1956.:
a) In our opinion and according to the information and explanations
given to us, the transaction made in pursuance of contracts or
arrangement that needed to be entered in to in the register maintained
under section 301 of the Companies Act,1956 have been so entered.
b) In our opinion and according to the information and explanations
given to us there are no transactions in pursuance of contract or
arrangement entered in the register maintained under section 301 of the
Companies Act, 1956 aggregating during the year to Rs. 5 Lacs (Rupees
Five Lacs Only) or more in respect of any party.
6. The Company has not accepted any deposit from the public within the
meaning of section section 58A and 58AA of the Act and the companies
(Acceptance of Deposits) Rules, 1975. Accordingly the provision of
clause 4(vi) of the order are not applicable.
7. In our opinion, the Company has an internal audit system
commensurate with its size and nature of its business.
8. The central Government has not prescribed maintenance of cost
records under section 209 (1) (d) of the Companies Act,1956.
Accordingly the provision of clause 4(viii) of the order is not
applicable.
9. In respect of statutory dues:
a) According to the records provided to us, the Company is generally
regular in depositing with appropriate authority undisputed statutory
dues including amount of Provident fund, Investor education and
protection fund, Employees state insurance, Income Tax, Sales Tax,
Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess and other
Material statutory dues, applicable to it.
According to the Information and Explanations given to us, no
undisputed amounts payable in respect of the aforesaid dues were
outstanding as at 31st March,2012 for a period of more than six months
from the date of becoming payable.
b) According to the records of the company and information and
explanations given to us, there are no dues of Income Tax, Sales Tax,
Wealth Tax, Service Tax, Custom Duty, Excise Duty/Cess which have not
been deposited on account of any dispute.
c) Details of disputed Income Tax liabilities as on 31st March, 2012 is
given below.
Name of the Forum where Period for Amount Amount paid
Statute Dispute is which amount involved under Pretest/
pending relates (Rs.In refund adjusted
lakhs) (Rs. in lakhs)
Income Tax High Court, Assessment 2.65 -
Mumbai Year 1989-90
Income Tax The ITAT,Mumbai Assessment 54.90 -
Year 1990-91
Income Tax The ITAT,Mumbai Assessment 155.83 155.83
Year 1991-92
Income Tax The Commissioner Assessment 31.57 31.57
of Income Tax Year 1992-93
(Appeals)
10. The Company does not have accumulated losses. The Company has not
incurred any cash loss during the financial year covered by our audit.
The company has not incurred cash loss in the immediately preceding
financial year.
11. According to the information and explanation given to us, we are
of the opinion that the Company has not taken / availed any loans from
the financial institutions, Banks or Debenture Holders and accordingly
the provision of clause 4(xi) of the order is not applicable.
12. In our opinion and according to the information and explanations
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.
13. In our opinion, the company is not a chit fund or a nidhi/ mutual
benefit fund / society. Therefore, clause 4(xiii) of the companies
(Auditors Reports) order 2003 (as amended by Order, 2004) is not
applicable to the company.
14. According to the Information and explanation given to us the
company is not dealing or Trading in Shares, Securities and Debentures.
Investments in respect of all shares, debentures and other investments
have been held by the company in its own name and has also maintained
adequate and proper records.
15. According to the Information and Explanations given to us, and the
representations made by the management, company has not given any
guarantee for loans taken by others from any banks or financial
institution, during the year.
16. The Company has not obtained any term loan during the year. There
was no terms loan outstanding at the beginning of the year.
17. According to the Information and Explanations given to us and over
all examination of balance sheet of the Company, we are of the opinion
that the company has not utilized any amount from short term sources
towards repayment of long term borrowings and acquisition of fixed
assets.
18. During the year 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.
19. During the year the Company has not issued any debenture and also
there is no any outstanding during the year hence the question of
creating security or charge in respect of debenture does not arise.
20. During the year the Company has not raised any money by way of
public issue.
21. During the course of examination of the books and records of the
company carried out in accordance with generally accepted auditing
practices in India and according to the information and explanation
given to us, we have neither come across any instance of fraud on or by
the company, noticed or reported during the year nor have been informed
of such cases by the Management.
For A.C. Modi & Associates
Chartered Accountants
(Alpesh C. Modi)
Proprietor
Membership No. 101342 F.R. No. 116555W
Place: Mumbai
Dated: 11th July, 2012.
Mar 31, 2010
We have audited the attached Balance Sheet of CLASSIC ELECTRICALS
LIMITED as at 31st March, 2010, the Profit & Loss Account and Cash Flow
Statement of the Company 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.
1. We conduct our audit in accordance with Auditing Standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain the reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test check 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.
2. As required by the Companies (Auditors Report) Order, 2003, issued
by the Central Government of India in terms of section 227 (4A) of the
Companies Act, 1956 and on the basis of such checks as we considered
appropriate, and according to the information and explanations given to
us, we give in the Annexure, hereto a statement on the matters
specified in paragraphs 4 & 5 of the said order to the extent
applicable to the Company.
3. Further to our comments in the Annexure referred to in paragraph 3
above and subject to - the notes to the Balance sheet, we report that:
i) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purposes of our
audit.
ii) 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 such
books.
iii) The Balance Sheet, Profit & Loss Account and Cash Flow Statement
referred to in this report are in agreement with the books of account.
iv) In our Opinion, the Profit & Loss accounts, Balance Sheet and Cash
Flow Statement comply with the accounting Standards referred to in sub
section 3(c) of Section 211 of the Companies Act, 1956.
v) On the basis of written representations received from the Directors,
and taken on record by Board of Directors, We report that none of the
Directors are disqualified as on 31st March, 2010 from being appointed
as director in terms of clause (g) of sub-section (1) of section 274 of
the Companies Act, 1956.
4. In our opinion and to the best of information and according to
explanations given to us, the said accounts read with significant
accounting policies and other notes thereon, give the information
required by the Companies Act, 1956, in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India:
i) In the case of Balance Sheet of the state of affairs of the Company
as at 31st March, 2010.
ii) In the case of the Profit & Loss Account of the profit of the
Company for the year ended on that date.
and
iii) In the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
ANNEXURE TO THE AUDITORS REPORT
REFFERED TO IN PARAGRAPH 2 OF OUR REPORT OF EVEN PATE;
1. In respect of its fixed assets:
a) The Company has maintained proper records showing full particulars
including quantitative detail and situation of fixed assets.
b) As explained to us, the physical verification of the fixed assets
was conducted by the management during the year and there were no
material discrepancies noticed on such verifications.
c) The Company has not disposed of a substantial part of the fixed
Assets during the year, and accordingly, going concern is not affected.
2. In respect of its inventories:
a) As explained to us, physical verification of the inventory was
carried out at reasonable intervals by the management.
b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of the inventory
by the management are reasonable and adequate in relation to the size
of the Company and nature of its business.
c) In our opinion and according to the information and explanations
given to us, the Company has maintained proper records of its
inventory, and the discrepancies noticed on physical verification of
inventory as compared to the book records were not material and have
been properly dealt with in the books of account.
3. In respect of its loans, secured or unsecured, granted or taken by
the Company to/from companies, firms or other parties covered in the
register maintained under section 301 of the Companies Act, 1956:
a) In opinion and according to the information and explanations given
to us, the Company has not taken any unsecured loans.
b) In our opinion and according to the information and explanations
given to us, the Company has not granted any unsecured loans to parties
covered u/s. 301 of the Companies Act, 1956.
4. In our opinion and according to the information and explanations
given to us, the company has adequate internal control procedures
commensurate with the size of the Company and nature of its business
for the purchase of inventory and fixed assets and for the sale of
goods. Further, based on our examinations and according to the
information and explanations given to us, we have not noted any
accounting failure to correct major weakness in the internal controls.
5. In respect of transaction covered under section 301 of the
Companies Act,1956.:
a) In our opinion and according to the information and explanations
given to us, the transaction made in pursuance of contracts or
arrangement that needed to be entered in to in the register maintained
under section 301 of the Companies Act, 1956 have been so entered.
b) In our opinion and according to the information and explanations
given to us there are no transactions in pursuance of contract or
arrangement entered in the register maintained under section 301 of the
Companies Act, 1956 aggregating during the year to Rs. 5 Lacs (Rupees
Five Lacs Only) or more in respect of any party.
6. The Company has not accepted any deposit from the public within the
meaning of section section 58A and 58AA of the Act and the companies
(Acceptance of Deposits) Rules, 1975. Accordingly the provision of
clause 4(vi) of the order are not applicable.
7. In our opinion, the Company has an internal audit system
commensurate with its size and nature of its business.
8. The central Government has not prescribed maintenance of cost
records under section 209 (1)-(d) of the Companies Act, 1956.
Accordingly the provision of clause 4(viii) of the order is not
applicable.
9. In respect of statutory dues:
a) According to the records of the Company, undisputed statutory dues
including Provident fund, Investor education and protection fund,
Employees state insurance, Income Tax, Sales Tax, Wealth Tax, Service
Tax, Custom Duty, Excise Duty, Cess and other statutory dues applicable
to it have been generally regularly deposited with the appropriate
authorities.
b) According to the Information and Explanations given to us, no
undisputed amounts payable in respect of the aforesaid dues were
outstanding as at 31st March, 2010 for a period of more than six months
from the date of becoming payable.
c) Details of disputed Income Tax liabilities as on 31st March, 2010 is
given below.
Name of the Forum where Period for Amount Amount paid
Statute Dispute is
pending which amount involved under
Protest/
relates (Rs. In Refund
lakhs) adjusted
(Rs.
in lakhs)
Income Tax High Court,
Mumbai Assessment 2.65 -
Year 1989-90
Income Tax The
Commissioner Assessment 54.90 -
of Income Tax Year 1990-91
(Appeals)
Income Tax The
Commissioner Assessment 155.83 155.83
of Income Tax Year 1991 -92
(Appeals)
Income Tax The
Commissioner Assessment 31.57 31.57
of Income Tax Year 1992-93
(Appeals)
10. There are no accumulated losses of the Company as on 31st March,
2010. The Company has not incurred any cash loss during the financial
year covered by our audit. The company has not incurred cash loss in
the immediately preceding financial year.
11. According to the information and explanation given to us, we are of
the opinion that the Company has not taken / availed any loans from the
financial institutions, Banks or Debenture Holders and accordingly the
provision of clause 4(xi) of the order is not applicable.
12. In our opinion and according to the information and explanations
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.
13. In our opinion, the company is not a chit fund or a nidhi/ mutual
benefit fund / society. Accordingly, clause 4 (xiii) of the order is
not applicable.
14. According to the Information and explanation given to us the
company is not dealing or Trading in Shares, Securities and Debentures.
Investments in respect of all shares, debentures and other investments
have been held by the company in its own name and has also maintained
adequate and proper records.
15. According to the Information and Explanations given to us, and the
representations made by the management, company has not given any
guarantee for loans taken by others from any banks or financial
institution, during the year.
16. The Company has not obtained any term loan during the year. There
was no terms loan outstanding at the beginning of the year accordingly
clause 4 (xvi) of the order is not applicable.
17. The company has not raised any fund on short term basis and
accordingly clause 4 (xvii) of the order is not applicable.
18. During the year, 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.
19. During the year the Company has not issued any debenture and also
there is no any outstanding during the year accordingly Clause 4(xix)
of the order is not applicable.
20. During the year the Company has not raised any money by way of
issue of shares to the public accordingly Clause 4(xx) of the order is
not applicable.
21. During the course of examination of the books and records of the
company carried out in accordance with generally accepted auditing
practices in India and according to the information and explanation
given to us, we have neither come across any instance of fraud on or by
the company, noticed or reported during the year nor have been informed
of such cases by the Management.
For A.C. Modi & Associates
Chartered Accountants
(Alpesh C. Modi)
Proprietor
Membership No. 101342
F.R.No. 116555W
Mumbai, Dated: 2nd September, 2010.