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Auditor Report of Elecon Engineering Company Ltd.

Mar 31, 2014

Report on the Financial Statements

We have audited the accompanying financial statements of ELECON ENGINEERING COMPANY 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

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") read with General Circular 15/2013 dated 13 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.

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, but not for the purpose of expressing an opinion on the effectiveness of the entity''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 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 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"), 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, 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 Sub-Section(3C) of Section 211 of the Companies Act, 1956 read with General Circular 15/2013 dated 13 September 2013 of the Ministry of Corporate Affairs in respect of Section 133 of the Companies Act, 2013;

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

(Referred to in paragraph 1 under ''Report on Other Legal and Regulatory Requirements'' section of our report of even date) (i) (a) The Company has maintained proper records showing full particulars including quantitative details and situation of its fixed assets.

(b) We have been informed that, a portion of the Fixed Assets have been physically verified by the management during the year in accordance with a programme of verification in a phased manner 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) The Company has not disposed of a substantial part of the fixed assets during the year under review. Therefore, going concern status of the Company has not been affected.

(ii) (a) As explained to us, inventories were physically verified by the management during the year.

(b) In our opinion and according to the information and explanations given to us, the procedures of physical verification of inventories followed by the management were reasonable and adequate in relation to the size of the Company and the 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 inventories and discrepancies noticed on physical verification have been properly dealt with in the books of account of the Company.

(iii) (a) According to the information & explanations given to us, the Company has not granted any secured or unsecured loan to any party listed in the register maintained under section 301 of the Companies Act, 1956.

(b) In view of clause (iii) (a) above, this clause regarding interest and other terms and conditions is not applicable.

(c) In view of clause (iii) (a) above, this clause regarding repayment of loan and interest thereon is not applicable.

(d) In view of (iii) (a) above, this clause regarding overdue amounts of such loans and interest thereon is not applicable.

(e) According to the information & explanations given to us, the Company had taken unsecured loans amounting to Rs. 275.50 Lacs from six parties listed in the register maintained under Section 301 of the Companies Act, 1956. The maximum amount involved during the year was Rs. 275.50 Lacs and the year end balance of one party was Rs. 17.00 Lacs and others five parties are Nil.

(f) The rate of interest and other terms and conditions of such loans are, in our opinion, prima facie not prejudicial to the interest of the Company.

(g) The Company has been regular in repayment of Principal amount and Interest thereon.

(iv) In our opinion and according to the information and explanations given to us, having regard to the explanations that some of the items purchased are of peculiar nature and/or suitable alternate sources are not available for obtaining comparable quotations, 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 and services. We have not observed any major weakness in the internal control system during the course of the audit.

(v) (a) According to the information and explanations given to us, contracts or arrangements with the parties listed in the register maintained under Section 301 of the Companies Act, 1956 have been entered in the register upon ratification of the same by the Board of Directors of the Company.

(b) We are informed that in case of the transaction in excess of Rs.5 Lacs with each of the parties listed in the register maintained under Section 301 of the Companies Act, 1956 no comparison of prices could be made as there was either no alternate source of supply or that the management preferred the suppliers'' products and services on quality grounds or peculiarity of the products sold or services rendered.

(vi) In our opinion and according to the information and explanations given to us, the Company has not invited deposits from the public during the year. Therefore, provisions of the clause 4

(vi) of the Order are not applicable to the Company.

(vii) The Company has appointed a firm of Chartered Accountants to carry out Internal Audit work. The said Internal Audit system operating in the Company commensurate with the size of the Company and nature of its business.

(viii) We have broadly reviewed the books of account and records maintained by the Company pursuant to the Companies (Cost Accounting Records) Rules, 2011 prescribed by the Central Government for the maintenance of cost records under Section 209(1) (d) of the Companies Act, 1956 and are of the opinion that prima facie the prescribed accounts and records have been made and maintained. We have, however, not made a detailed examination of the records with a view to determining whether they are accurate or complete.

(ix) (a) According to the information and explanations given to us, in respect of statutory dues, the Company has generally been regular in depositing undisputed statutory dues, including Provident Fund, Investor Education & Protection Fund, Employees'' State Insurance, Income Tax, Wealth Tax, Sales Tax, Custom Duty, Excise Duty, Service Tax, Cess and other material statutory dues applicable to it with appropriate authorities.

(b) According to the information and explanations given to us, in respect of statutory dues, there were no undisputed amount payable in respect of Provident Fund, Investor Education & Protection Fund, Employees'' State Insurance, Income Tax, Wealth Tax, Sales Tax, Custom Duty, Excise Duty, Service Tax, Cess and other material statutory dues in arrears as at March 31, 2014 for a period of more than six months from the date they became payable.

(c) According to information and explanations given to us, the Company has not paid the following statutory dues on account of the demand being disputed by the Company.

Sr. Name of Statute Nature Amount Rs. Period to Forum where the No. of dues which the Dispute is pending amount relates

1. Central Excise Act, 1944. Excise Duty & 209.43 2003-04 & C.E.S.T.A.T Penalties Lacs 2006-07 to 2012-13

2. Central Excise Act, 1944. Excise Duty & 120.40 2005-06, Central Excise Penalties Lacs 2006-07, -2007-08, Commissioner 2008-09 & 2012-13 (Appeal)

3. Income Tax Act, 1961. Income Tax 75.45 Commissioner of Lacs Income Tax (Appeal)

(x) According to the records of the Company, it has no accumulated losses. The Company has not incurred cash losses during the financial year under review or during the immediately preceding financial year.

(xi) According to our audit procedure and on the basis of information and explanations given by the management, the Company has not defaulted in repayment of dues to any Financial Institution, Bank and Debenture Holders.

(xii) According to our audit procedure and on the basis of information & explanations given to us, the Company has not granted any loan on the basis of security by way of pledge of shares, debentures and other securities. Therefore, the question of adequacy or otherwise of maintenance of documents and records in respect thereof does not arise.

(xiii) According to our audit procedure and on the basis of information & explanations given to us, the Company has not indulged in any chit fund activity during the year under review. Therefore, the question of compliance with provisions of any special statute applicable to chit fund does not arise.

(xiv) According to our audit procedure and on the basis of information & explanations given to us, the Company has not indulged in dealing or trading in shares, securities, debentures and other investments. In respect of long term investments made by the Company, according to the information and explanations given to us, all the investments have been held in the name of the Company only.

(xv) In our opinion and according to the information and explanations given to us, the terms and conditions of the guarantees given by the Company for loans taken by Subsidiary Company from Banks or Financial Institutions are not prima-facie prejudicial to the interest of the Company.

(xvi) In our opinion and according to the information & explanations given to us, the term loans obtained during the year under review have been applied for the purpose for which they were raised.

(xvii) In our opinion and according to the information & explanations given to us, and on an overall examination of the Balance Sheet of the Company, we report that no funds raised on short-term basis have been used for long-term investment.

(xviii) According to our audit procedure and on the basis of information & explanations given to us, during the year under review, the Company has not made any preferential allotment of shares to the parties or companies listed in the register maintained under Section 301 of the Companies Act,1956 except allotment of shares in accordance with a scheme of arrangement approved by the Gujarat High Court and Shareholders. Therefore, the question of impact of the prices recovered in respect of such shares on the interest of the Company does not arise.

(xix) According to our audit procedure and on the basis of information & explanations given to us, during the year under review, the Company has not issued any secured or unsecured debentures. Therefore, the question of creation of securities or charge in respect thereof does not arise.

(xx) According to our audit procedure and on the basis of information & explanations given to us, during the year under review, the Company has not raised any money by way of public issue of shares. Therefore, the question of disclosure and verification of end use of money so raised does not arise.

(xxi) Based upon the audit procedures performed for the purpose of reporting the true and fair view of the financial statement and as per information and explanations given by the management, no material frauds on or by the Company were noticed or reported during the year under review.

For THACkER BUTALA DESAI

Chartered Accountants

Firm Regn. No. 110864W

M. T. DESAI

Place : Navsari Partner

Date : 28-05-2014 Membership No. : 030911


Mar 31, 2013

Report on the Financial Statements

We have audited the accompanying financial statements of ELECON ENGINEERING COMPANY LIMITED (the "Company"), which comprise the Balance Sheet as at March 31, 2013, 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.

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:

(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 profit 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"), 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, 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 Sub-Section(3C) of Section 211 of the Companies Act, 1956;

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

ANNEXURE TO THE INDEPENDENT AUDITOR''S REPORT

(Referred to in paragraph 1 under ''Report on Other Legal and Regulatory Requirements'' section of our report of even date)

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

(b) We have been informed that, a portion of the Fixed Assets have been physically verifed by the management during the year in accordance with a programme of verifcation in a phased manner and no material discrepancies were noticed on such verifcation. In our opinion, this periodicity of physical verifcation is reasonable having regard to the size of the Company and the nature of its assets.

(c) The Company has disposed of substantial part of its fxed assets during the year under review by way of slump sale of assets pertaining to Material Handling operations of the Company based on a Scheme of Arrangement between the Company, Prayas Engineering Ltd., Emtici Engineering Ltd., Elecon EPC Projects Ltd. and their respective Shareholders & Creditors under section 391 to 394 of the Companies Act, 1956 as approved by the Honorable High Court of Gujarat. However, this has not afected the ability of the Company to be a going concern.

(ii) (a) As explained to us, inventories were physically verifed by the management during the year.

(b) In our opinion and according to the information and explanations given to us, the procedures of physical verifcation of inventories followed by the management were reasonable and adequate in relation to the size of the Company and the 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 inventories and discrepancies noticed on physical verifcation have been properly dealt with in the books of account of the Company.

(iii) (a) According to the information & explanations given to us, the Company has not granted any secured or unsecured loan to any party listed in the register maintained under Section 301 of the Companies Act, 1956.

(b) In view of clause (iii) (a) above, this clause regarding interest and other terms and conditions is not applicable.

(c) In view of clause (iii) (a) above, this clause regarding repayment of loan and interest thereon is not applicable.

(d) In view of (iii) (a) above, this clause regarding overdue amounts of such loans and interest thereon is not applicable.

(e) According to the information & explanations given to us, the Company has taken unsecured loans amounting to Rs. 275.50 Lacs from 6 parties listed in the register maintained under Section 301 of the Companies Act, 1956. The maximum amount involved during the year was Rs.275.50 Lacs and the yearend balance was Rs.275.50 Lacs.

(f) According to the information & explanations given to us, rate of interest and other terms and conditions of such loan is not prima facie prejudicial to the interest of the Company.

(g) The Company has been regular in repayment of Principal amount and Interest thereon.

(iv) In our opinion and according to the information and explanations given to us, there is adequate Internal Control System commensurate with the size of the Company and the nature of its business for the purchase of inventory and fxed assets and for the sale of goods and services. We have not observed any major weakness in the Internal Control System during the course of the audit.

(v) (a) According to the information and explanations given to us, contracts or arrangements with the parties listed in the register maintained under Section 301 of the Companies Act, 1956 have been entered in the register upon ratifcation of the same by the Board of Directors of the Company.

(b) We are informed that in case of the transaction in excess of Rs. 5 Lacs with each of the parties listed in the register maintained under Section 301 of the Companies Act, 1956 no comparison of prices could be made as there was either no alternate source of supply or that the management preferred the suppliers'' products and services on quality grounds or peculiarity of the products sold or services rendered.

(vi) In our opinion and according to the information and explanations given to us, the Company has not invited deposits from the public during the year. Therefore, provisions of the Clause 4(vi) of the Order are not applicable to the Company.

(vii) The Company has appointed a frm of Chartered Accountants to carry out Internal Audit work. The said Internal Audit system operating in the Company commensurate with the size of the Company and nature of its business.

(viii) We have broadly reviewed the books of account and records maintained by the Company pursuant to the Companies (Cost Accounting Records) Rules, 2011 prescribed by the Central Government for the maintenance of cost records under Section 209(1)(d) of the Companies Act, 1956 and are of the opinion that prima facie the prescribed accounts and records have been made and maintained. We have, however, not made a detailed examination of the records with a view to determining whether they are accurate or complete.

(ix) (a) According to the information and explanations given to us, in respect of statutory dues, the Company has generally been regular in depositing undisputed statutory dues, including Provident Fund, Investor Education & Protection Fund, Employees'' State Insurance, Income Tax, Wealth Tax, Sales Tax, Custom Duty, Excise Duty, Service Tax, Cess and other material statutory dues applicable to it with appropriate authorities.

(b) According to the information and explanations given to us, in respect of statutory dues, there were no undisputed amount payable in respect of Provident Fund, Investor Education & Protection Fund, Employees'' State Insurance, Income Tax, Wealth Tax, Sales Tax, Custom Duty, Excise Duty, Service Tax, Cess and other material statutory dues in arrears as at March 31, 2013 for a period of more than six months from the date they became payable.

(c) According to information and explanations given to us, the Company has not paid the following statutory dues on account of the demand being disputed by the Company.

Sr. No. Nature of liability Amt. (Rs. in Lacs) Forum where the dispute is pending

1. Sales Tax / Work Contract Tax 15.93 Lacs Commissioner (Appeal)

2. Excise Duty & Penalties 95.38 Lacs C.E.S.T.A.T.

3. Excise Duty & Penalties 312.59 Lacs Central Excise Commissioner (Appeal)

4. Income Tax 33.35 Lacs Commissioner of Income Tax (Appeal)

(x) According to the records of the Company, it has no accumulated losses. The Company has not incurred cash losses during the fnancial year under review or during the immediately preceding fnancial year.

(xi) According to our audit procedure and on the basis of information and explanations given by the management, the Company has not defaulted in repayment of dues to any Financial Institution, Bank and Debenture Holde''

(xii) According to our audit procedure and on the basis of information & explanations given to us, the Company has not granted any loan on the basis of security by way of pledge of shares, debentures and other securities. Therefore, the question of adequacy or otherwise of maintenance of documents and records in respect thereof does not arise.

(xiii) According to our audit procedure and on the basis of information & explanations given to us, the Company has not indulged in any chit fund activity during the year under review. Therefore, the question of compliance with provisions of any special statute applicable to chit fund does not arise.

(xiv) According to our audit procedure and on the basis of information & explanations given to us, the Company has not indulged in dealing or trading in shares, securities, debentures and other investments. In respect of long term investments made by the Company, according to the information and explanations given to us, all the investments have been held in the name of the Company only.

(xv) In our opinion and according to the information and explanations given to us, the terms and conditions of the guarantees given by the Company for loans taken by Subsidiary Company from Banks or Financial Institutions are not prima-facie prejudicial to the interest of the Company.

(xvi) In our opinion and according to the information & explanations given to us, the term loans obtained during the year under review have been applied for the purpose for which they were raised.

(xvii) In our opinion and according to the information & explanations given to us, and on an overall examination of the Balance Sheet of the Company, we report that no funds raised on short-term basis have been used for long-term investment.

(xviii) According to our audit procedure and on the basis of information & explanations given to us, during the under review, the Company has not made any preferential allotment of shares to the parties or companies listed in the register maintained under Section 301 of the Companies Act,1956. Therefore, the question of impact of the prices recovered in respect of such shares on the interest of the Company does not arise.

(xix) The Company has issued debentures having subservient charge on the Fixed Assets of the Company. However, the charge is yet to be created.

(xx) According to our audit procedure and on the basis of information & explanations given to us, during the year under review, the Company has not raised any money by way of public issue of shares. Therefore, the question of disclosure and verifcation of end use of money so raised does not arise.

(xxi) Based upon the audit procedures performed for the purpose of reporting the true and fair view of the fnancial statement and as per information and explanations given by the management, no material frauds on or by the Company were noticed or reported during the year under review.

For THACkER BUTALA DESAI

Chartered Accountants

Firm Regn. No. 110864W

M. T. DESAI

Place : Navsari Partner

Date : 27-05-2013 Membership No. : 030911


Mar 31, 2012

1. We have audited the attached Balance Sheet of ELECON ENGINEERING COMPANY LIMITED as at March 31, 2012 and also the Statement of Profit and Loss and Cash Flow Statement 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.

2. We conducted our audit in accordance with auditing standards generally accepted in India. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by the management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

3. As required by the amended 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 annex hereto a statement on the matters specified in paragraphs 4 and 5 of the said Order.

4. Further to our comments in the Annexure referred to in paragraph (3) above, we report that :

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

(b) In our opinion, proper books of account, as required by the law have been kept by the Company so far as it 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 dealt with by this report comply with the applicable Accounting Standards referred to in Sub- Section (3C) of Section 211 of the Companies Act, 1956 ;

(e) Based on representations made by all the Directors of the Company as on 31st March, 2012 and taken on record by the Board of Directors of the Company and according to the information and explanations made available to us by the Company, none of the Directors of the Company has any disqualification as referred to in Clause (g) of Sub-Section (1) to Section 274 of the Companies Act, 1956; and

(f) In our opinion and to the best of our information and according to the explanations given to us, the said accounts read together with the notes thereon, 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 the Balance Sheet, of the state of affairs of the Company as at March 31, 2012;

(ii) In the case of the Statement of Profit and Loss, 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 for the year ended on that date.

ANNEXURE TO THE AUDITORS' REPORT

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

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

(b) Certain items of Plant and Machineries were physically verified by the management during the year in accordance with a programme of verification, which in our opinion provides for physical verification of all the fixed assets at reasonable intervals. According to the information and explanations given to us no material discrepancies were noticed on such verification.

(c) The Company has not disposed off a substantial part of the fixed assets during the year under review. Therefore, going concern status of the Company has not been affected.

(ii) (a) As explained to us, inventories were physically verified by the management during the year.

(b) In our opinion and according to the information and explanations given to us, the procedures of physical verification of inventories followed by the management were reasonable and adequate in relation to the size of the Company and the 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 inventories and discrepancies noticed on physical verification have been properly dealt with in the books of account of the Company.

(iii) (a) According to the information & explanations given to us, the Company has not granted any secured or unsecured

loan to any party listed in the register maintained under Section 301 of the Companies Act, 1956.

(b) In view of clause (iii) (a) above, this clause regarding interest and other terms and conditions is not applicable.

(c) In view of clause (iii) (a) above, this clause regarding repayment of loan and interest thereon is not applicable.

(d) In view of (iii) (a) above, this clause regarding overdue amounts of such loans and interest thereon is not applicable.

(e) According to the information & explanations given to us, the Company has not taken any loan from any party listed in the register maintained under Section 301 of the Companies Act, 1956.

(f) In view of clause (iii) (e) above, this clause regarding interest and other terms and conditions is not applicable.

(g) In view of clause (iii) (e) above, this clause regarding repayment of loan and interest thereon is not applicable.

(iv) In our opinion and according to the information and explanations given to us, there is 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 and services.

(v) (a) According to the information and explanations given to us, contracts or arrangements with the parties listed in the register maintained under Section 301 of the Companies Act, 1956 have been entered in the register upon ratification of the same by the Board of Directors of the Company.

(b) We are informed that in case of the transactions with the parties listed in the register maintained under Section 301 of the Companies Act, 1956 no comparison of prices could be made as there was either no alternate source of supply or that the management preferred the suppliers products and services on quality grounds or peculiarity of the products sold or services rendered.

(vi) According to the information and explanations given to us, applicable provisions of the directives issued by the Reserve Bank of India and the provisions of Section 58A, 58AA or other relevant provisions of the Companies Act, 1956 and the rules framed thereunder have been complied with in respect of the deposits accepted by the Company during the year under review.

(vii) The Company has appointed a firm of Chartered Accountants to carry out Internal Audit work. The said Internal Audit system operating in the Company commensurate with the size of the Company and nature of its business.

(viii) We have broadly reviewed the cost records maintained by the Company pursuant to the Companies (Cost Accounting Records) Rules, 2011 prescribed by the Central Government under Section 209(1)(d) of the Companies Act, 1956 and are of the opinion that prima facie the prescribed cost records have been maintained. We have, however, not made a detailed examination of the cost records with a view to determine whether they are accurate or complete.

(ix) (a) According to the records of the Company, undisputed statutory dues including Provident Fund, Investor Education & Protection Fund, Employees' State Insurance, Income Tax, Wealth Tax, Sales Tax, Custom Duty, Excise Duty, Service Tax, Cess and other statutory dues have been regularly deposited during the period with appropriate authorities. There was no outstanding statutory dues as at the end of the year outstanding for a period of more than six months from the date they became payable.

(b) According to information and explanations given to us, the Company has not paid the following statutory dues on account of the demand being disputed by the Company.

Sr. No. Nature of liability Amt. (Rs.in Lacs) Pending Before

1. Excise Duty, Penalties & Interest thereon 102.01 C.E.S.T.A.T.

2. Excise Duty, Penalties & Interest thereon 131.19 Central Excise

Commissioner (Appeal)

3. Sales Tax, Purchase Tax, Works Contract Tax and 347.55 Orissa State Sales Interest & Penalty thereon Tax Appellate Tribunal

4. Income Tax 13.02 Commissioner of

Income Tax (Appeal)

(x) According to the records of the Company, it has no accumulated losses. The Company has not incurred cash losses during the financial year under review or during the immediately preceding financial year.

(xi) According to our audit procedure and on the basis of information and explanations given by the management, the Company has not defaulted in repayment of dues to any Financial Institution or Bank. The Company has not issued any Debentures.

(xii) According to our audit procedure and on the basis of information & explanations given to us, the Company has not granted any loan on the basis of security by way of pledge of shares, debentures and other securities. Therefore, the question of adequacy or otherwise of maintenance of documents and records in respect thereof does not arise.

(xiii) According to our audit procedure and on the basis of information & explanations given to us, the Company has not indulged in any chit fund activity during the year under review. Therefore, the question of compliance with provisions of any special statute applicable to chit fund does not arise.

(xiv) According to our audit procedure and on the basis of information & explanations given to us, the Company has not indulged in dealing or trading in shares, securities, debentures and other investments. In respect of long term investments made by the Company, according to the information and explanations given to us, all the investments have been held in the name of the Company only.

(xv) In our opinion and according to the information and explanations given to us, the terms and conditions on which the Company has given guarantee for loans taken by others from Banks or Financial Institutions are prima-facie not prejudicial to the interest of the Company.

(xvi) In our opinion and according to the information & explanations given to us, the term loans obtained during the year under review have been applied for the purpose for which they were raised.

(xvii) In our opinion and according to the information & explanations given to us, and on an overall examination of the Balance Sheet of the Company, we report that no funds raised on short-term basis have been used for long-term investment.

(xviii) According to our audit procedure and on the basis of information & explanations given to us, during the year under review, the Company has not made any preferential allotment of shares to the parties or companies listed in the register maintained under Section 301 of the Companies Act,1956. Therefore, the question of impact of the prices recovered in respect of such shares on the interest of the Company does not arise.

(xix) According to our audit procedure and on the basis of information & explanations given to us, during the year under review, the Company has not issued any secured or unsecured debentures. Therefore, the question of creation of securities or charge in respect thereof does not arise.

(xx) According to our audit procedure and on the basis of information & explanations given to us, during the year under review, the Company has not raised any money by way of public issue of shares. Therefore, the question of disclosure and verification of end use of money so raised does not arise.

(xxi) Based upon the audit procedures performed for the purpose of reporting the true and fair view of the financial statement and as per information and explanations given by the management, no material frauds on or by the Company were noticed or reported during the year under review.

For THACKER BUTALA DESAI

Chartered Accountants

M. T. DESAI

Partner

Place : Navsari Membership No. : 030911

Date : 30-05-2012 Firm Regn. No. 110864W


Mar 31, 2011

1. We have audited the attached Balance Sheet of ELECON ENGINEERING COMPANY LIMITED as at March 31st, 2011 and also the Profit and 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 Company's management. Our responsibility is to express an opinion on these financial statements based on our audit.

2. We conducted our audit in accordance with auditing standards generally accepted in India. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by the management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

3. As required by the amended 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 annex hereto a statement on the matters specified in paragraphs 4 and 5 of the said Order.

4. Further to our comments in the Annexure referred to in paragraph (3) above, we report that:

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

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

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

(d) In our opinion, the Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by this report comply with the applicable Accounting Standards referred to in Sub-Section (3C) of Section 211 of the Companies Act, 1956;

(e) Based on representations made by all the Directors of the Company as on 31st March, 2011 and taken on record by the Board of Directors of the Company and according to the information and explanations made available to us by the Company, none of the Directors of the Company has any disqualification as referred to in Clause (g) of Sub-Section (1) to Section 274 of the Companies Act, 1956; and

(f) In our opinion and to the best of our information and according to the explanations given to us, the said accounts read together with the notes thereon, 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 the Balance Sheet, of the state of affairs of the Company as at March 31, 2011;

(ii) In the case of the Profit and 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 for the year ended on that date.

ANNEXURE TO THE AUDITORS' REPORT

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

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

(b) Certain items of Plant and Machineries were physically verified by the management during the year in accordance with a programme of verification, which in our opinion provides for physical verification of all the fixed assets at reasonable intervals. According to the information and explanations given to us no material discrepancies were noticed on such verification.

(c) The Company has not disposed off a substantial part of the fixed assets during the year under review. Therefore, going concern status of the Company has not been affected.

(ii) (a) As explained to us, inventories were physically verified by the management during the year.

(b) In our opinion and according to the information and explanations given to us, the procedures of physical verification of inventories followed by the management were reasonable and adequate in relation to the size of the Company and the 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 inventories and discrepancies noticed on physical verification have been properly dealt with in the books of account of the Company.

(iii) (a) According to the information & explanations given to us, the Company has not granted any secured or unsecured loan to any party listed in the register maintained under Section 301 of the Companies Act, 1956.

(b) In view of clause (iii) (a) above, this clause regarding interest and other terms and conditions is not applicable.

(c) In view of clause (iii) (a) above, this clause regarding repayment of loan and interest thereon is not applicable.

(d) In view of (iii) (a) above, this clause regarding overdue amounts of such loans and interest thereon is not applicable.

(e) According to the information & explanations given to us, the Company has not taken any loan from any party listed in the register maintained under Section 301 of the Companies Act, 1956.

(f) In view of clause (iii) (e) above, this clause regarding interest and other terms and conditions is not applicable.

(g) In view of clause (iii) (e) above, this clause regarding repayment of loan and interest thereon is not applicable.

(iv) In our opinion and according to the information and explanations given to us, there is 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 and services.

(v) (a) According to the information and explanations given to us, contracts or arrangements with the parties listed in the register maintained under Section 301 of the Companies Act, 1956 have been entered in the register upon ratification of the same by the Board of Directors of the Company.

(b) We are informed that in case of the transactions with the parties listed in the register maintained under Section 301 of the Companies Act, 1956 no comparison of prices could be made as there was either no alternate source of supply or that the management preferred the suppliers' products and services on quality grounds or peculiarity of the products sold or services rendered.

(vi) According to the information and explanations given to us, applicable provisions of the directives issued by the Reserve Bank of India and the provisions of Section 58A, 58AA or other relevant provisions of the Companies Act, 1956 and the rules framed thereunder have been complied with in respect of the deposits accepted by the Company during the year under review.

(vii) The Company has appointed a firm of Chartered Accountants to carry out Internal Audit work. The said Internal Audit system operating in the Company commensurate with the size of the Company and nature of its business.

(viii) According to the information and explanations given to us, the Central Government has not prescribed maintenance of cost records under Section 209(1 )(d) of the Companies Act, 1956 in respect of any of the products of the Company.

(ix) (a) According to the records of the Company, undisputed statutory dues including Provident Fund, Investor Education & Protection Fund, Employees' State Insurance, Income Tax, Wealth Tax, Sales Tax, Custom Duty, Excise Duty, Service Tax, Cess and other statutory dues have been regularly deposited during the period with appropriate authorities. There was no outstanding statutory dues as at the end of the year outstanding for a period of more than six months from the date they became payable.

(b) According to information and explanations given to us, the Company has not paid the following statutory dues on account of the demand being disputed by the Company.

Sr. No. Nature of liability Amt. (Rs. in Lacs) Pending Before

1. Excise Duty, Penalties & Interest thereon 146.49 C.E.S.T.A.T.

2. Excise Duty, Penalties & Interest thereon 122.89 Central Excise

Commissioner (Appeal)

3. Sales Tax, Purchase Tax, Works Contract Tax and 347.55 Orissa State Sales Interest & Penalty thereon Tax Appellate Tribunal

(x) According to the records of the Company, it has no accumulated losses. The Company has not incurred cash losses during the financial year under review or during the immediately preceding financial year.

(xi) According to our audit procedure and on the basis of information and explanations given by the management, the Company has not defaulted in repayment of dues to any Financial Institution or Bank. The Company has not issued any Debentures.

(xii) According to our audit procedure and on the basis of information & explanations given to us, the Company has not granted any loan on the basis of security by way of pledge of shares, debentures and other securities. Therefore, the question of adequacy or otherwise of maintenance of documents and records in respect thereof does not arise.

(xiii) According to our audit procedure and on the basis of information & explanations given to us, the Company has not indulged in any chit fund activity during the year under review. Therefore, the question of compliance with provisions of any special statute applicable to chit fund does not arise.

(xiv) According to our audit procedure and on the basis of information & explanations given to us, the Company has not indulged in dealing or trading in shares, securities, debentures and other investments. In respect of long term investments made by the Company, according to the information and explanations given to us, all the investments have been held in the name of the Company only.

(xv) In our opinion and according to the information and explanations given to us, the terms and conditions on which the Company has given guarantee for loans taken by others from Banks or Financial Institutions are prima-facie not prejudicial to the interest of the Company.

(xvi) In our opinion and according to the information & explanations given to us, the term loans obtained during the year under review have been applied for the purpose for which they were raised.

(xvii) In our opinion and according to the information & explanations given to us, and on an overall examination of the Balance Sheet of the Company, we report that no funds raised on short-term basis have been used for long-term investment.

(xviii) According to our audit procedure and on the basis of information & explanations given to us, during the year under review, the Company has not made any preferential allotment of shares to the parties or Companies listed in the register maintained under Section 301 of the Companies Act, 1956. Therefore, the question of impact of the prices recovered in respect of such shares on the interest of the Company does not arise.

(xix) According to our audit procedure and on the basis of information & explanations given to us, during the year under review, the Company has not issued any secured or unsecured debentures. Therefore, the question of creation of securities or charge in respect thereof does not arise.

(xx) According to our audit procedure and on the basis of information & explanations given to us, during the year under review, the Company has not raised any money byway of public issue of shares. Therefore, the question of disclosure and verification of end use of money so raised does not arise.

(xxi) Based upon the audit procedures performed for the purpose of reporting the true and fair view of the financial statement and as per information and explanations given by the management, no material frauds on or by the Company were noticed or reported during the year under review.

For THACKER BUTALA DESAI Chartered Accountants

M. T. DESAI Partner Place : Navsari Membership No. : 030911

Date : 28-05-2011 Firm Regn. No. 110864W






Mar 31, 2010

1. We have audited the attached Balance Sheet of ELECON ENGINEERING COMPANY LIMITED as at March 31, 2010 and also the Profit and 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.

2. We conducted our audit in accordance with Auditing Standards generally accepted in India.Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by the management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

3. As required by the amended 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 annex hereto a statement on the matters specified in paragraphs 4 and 5 of the said Order.

4. Further to our comments in the Annexure referred to in paragraph (3) above, we report that:

(a) We have obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the purpose of our audit- lb) In our opinion, proper books of account, as required by the law have been kept by the Company so far as it appears from our examination of those books;

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

(d) In our opinion, the Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by this report comply with the applicable Accounting Standards referred to in Sub- Section (3C) of Section 211 of the Companies Act, 1956;

(e) Based on representations made by all the Directors of the Company as on 31st March, 2010 and taken on record by the Board of Directors of the Company and according to the information and explanations made available to us by the Company, none of the Directors of the Company has any disqualification as referred to in Clause (g) of Sub-Section (1) to Section 274 of the Companies Act, 1956; and

(f) In our opinion and to the best of our information and according to the explanations given to us, the said accounts read together with the notes thereon, 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 the Balance Sheet, of the state of affairs of the Company as at March 31, 2010;

(ii) In the case of the Profit and 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 for the year ended on that date.

ANNEXURE TO THE AUDITORS REPORT

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

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

(b) Certain items of Plant and Machineries were physically verified by the management during the year in accordance with a programme of verification, which in our opinion provides for physical verification of all the fixed assets at reasonable intervals. According to the information and explanations given to us no material discrepancies were noticed on such verification.

(c) The Company has not disposed off a substantial part of the fixed assets during the year under review. Therefore, going concern status of the Company has not been affected.

(ii) (a) As explained to us, inventories were physically verified by the management at the end of the year.

(b) In our opinion and according to the information and explanations given to us, the procedures of physical verification of inventories followed by the management were reasonable and adequate in relation to the size of the Company and the 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 inventories and discrepancies noticed on physical verification have been properly dealt with in the books of account of the Company.

(iii) (a) According to the information & explanations given to us, the Company has not granted any secured or unsecured loan to any party listed in the register maintained under Section 301 of the Companies Act, 1956.

(b) In view of clause (iii) (a) above, this clause regarding interest and other terms and conditions is not applicable.

(c) In view of clause (iii) (a) above, this clause regarding repayment of loan and interest thereon is not applicable.

(d) In view of clause (iii) (a) above, this clause regarding overdue amounts of such loan and interest thereon is not applicable.

(e) According to the information & explanations given to us, the Company has not taken any loan from any party listed in the register maintained under Section 301 of the Companies Act, 1956.

(f) In view of clause (iii) (e) above, this clause regarding interest and other terms and conditions is not applicable.

(g) In view of clause (iii) (e) above, this clause regarding repayment of loan and interest thereon is not applicable.

(iv) In our opinion and according to the information and explanations given to us, there is 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 and services.

(v) (a) According to the information and explanations given to us, contracts or arrangements with the parties listed in the register maintained under Section 301 of the Companies Act, 1956 have been entered in the register upon ratification of the same by the Board of Directors of the Company.

(b) We are informed that in case of the transactions with the parties listed in the register maintained under Section 301 of the Companies Act, 1956 no comparison of prices could be made as there was either no alternate source of supply or that the management preferred the suppliers products and services on quality grounds or peculiarity of the products sold or services rendered.

(vi) According to the information and explanations given to us, applicable provisions of the directives issued by the Reserve Bank of India and the provisions of Section 58A, 58AA or other relevant provisions of the Companies Act, 1956 and the rules framed thereunder have been complied with in respect of deposit accepted by the Company during the year under review.

(vii) The Company has appointed a firm of Chartered Accountants to carry out Internal Audit work. The said Internal Audit system operating in the Company commensurate with the size of the Company and nature of its business.

(viii) According to the information and explanations given to us, the Central Government has not prescribed maintenance of cost records under Section 209(1 )(d) of the Companies Act, 1956 in respect of any of the products of the Company.

(ix) (a) According to the records of the Company undisputed statutory dues including Provident Fund, Investor Education & Protection Fund, EmployeesState Insurance, Income Tax, Wealth Tax, Sales Tax, Custom Duty, Excise Duty, Service Tax, Cess and other statutory dues have been regularly deposited during the period with appropriate authorities. There was no outstanding statutory dues as at the end of the year outstanding for a period of more than six months from the date they became payable.

(b) According to information and explanations given to us, the Company has not paid the following statutory dues on account of the demand being disputed by the Company.

Sr. No. Nature of liability Amt. (Rs. in Lacs) Pending Before 1. Excise Duty, Penalties & Interest thereon 109.38 C.E.S.T.A.T. 2. Excise Duty, Penalties & Interest thereon 49.98 Central Excise Commissioner (Appeal) 3. Income Tax, Wealth Tax and Interest & Penalty thereon 35.71 I.T.A.T. 4. Income Tax, Wealth Tax and Interest & Penalty thereon 390.59 C.I.T (Appeal) 5. Sales Tax, Purchase Tax, Works Contract 347.55 Orissa State Sales Tax Tax and Interest & Penalty thereon Appellate Tribunal

(x) According to the records of the Company, it has no accumulated losses. The Company has not incurred cash losses during the financial year under review or during the immediately preceding financial year.

(xi) According to our audit procedure and on the basis of information and explanations given by the management, the Company has not defaulted in repayment of dues to any Financial Institution or Bank. The Company has not issued any Debenture.

(xii) According to our audit procedure and on the basis of information & explanations given to us, the Company has not granted any loan on the basis of security by way of pledge of shares, debentures and other securities. Therefore, the question of adequacy or otherwise of maintenance of documents and records in respect thereof does not arise.

(xiii) According to our audit procedure and on the basis of information & explanations given to us, the Company has not indulged in any chit fund activity during the year under review. Therefore, the question of compliance with provisions of any special statute applicable to chit fund does not arise.

(xiv) According to our audit procedure and on the basis of information & explanations given to us, the Company has not indulged in dealing or trading in shares, securities, debentures and other investments. In respect of long term investment made by the Company, according to the information and explanations given to us, all the investments have been held in the name of the Company only.

(xv) In our opinion and according to the information & explanations given to us, the terms and conditions on which the Company has given guarantee for loans taken by others from Banks or Financial Institutions are prima-facie not prejudicial to the interest of the Company.

(xvi) In our opinion and according to the information & explanations given to us, the term loans obtained during the year under review have been applied for the purpose for which they were raised.

(xvii) In our opinion and according to the information & explanations given to us, and on an overall examination of the Balance Sheet of the company, we report that no funds raised on short-term basis have been used for long-term investment.

(xviii) According to our audit procedure and on the basis of information & explanations given to us, during the year under review, the Company has not make any preferential allotment of shares to the parties or companies listed in the register maintained under Section 301 of the Companies Act,1956. Therefore, the question of impact of the prices recovered in respect of such shares on the interest of the Company does not arise.

(xix) According to our audit procedure and on the basis of information & explanations given to us, during the year under review, the Company has not issued any secured or unsecured debentures.

Therefore, the question of creation of securities or charge in respect thereof does notarise.

(xx) According to our audit procedure and on the basis of information & explanations given to us, during the year under review, the Company has not raise money byway of public issue of shares.

Therefore, the question of disclosure and verification of end use of money so raised does not arise.

(xxi) Based upon the audit procedures performed for the purpose of reporting the true and fair view of the financial statement and as per information and explanations given by the management, no material frauds on or by the Company were noticed or reported during the year under review except an instance of fraud on the Company by its one of the employees as given below:

One case of misappropriation by the said employee of the Company aggregating to Rs.33,40,431/- was reported during the year. The service of said employee involved has been terminated and the Company is in the process of taking legal actions.

However, the said amount has been recovered from the said employee with interest and hence there is no impact on the financial results of the Company for the year under review.

For THACKER BUTALA DESAI Chartered Accountants M.T. DESAI Partner Place : Navsari Membership No.: 30911 Date : 14-05-2010 Firm Regn. No. 110864W

 
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