Mar 31, 2015
We have audited the accompanying financial statements of GEMINI
COMMUNICATIONS LIMITED which comprise the Balance Sheet as at March 31,
2015, the Statement of Profit and Loss, the 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 Board of Directors is responsible for the matters in
section 134(5) of the Companies Act, 2013 ("the Act") with respect to
the preparation of these financial statements that give a true and fair
view of the financial position, financial performance and cash flows of
the Company in accordance with the accounting principles generally
accepted in India, including the Accounting Standards specified under
Section 133 of the Act, read with Rule 7 of the Companies (Accounts)
Rules, 2014. This responsibility also includes the maintenance of
adequate accounting records in accordance with the provision of the Act
for safeguarding of the assets of the Company and for preventing and
detecting the frauds and other irregularities; selection and
application of appropriate accounting policies; making judgments and
estimates that are reasonable and prudent; and design, implementation
and maintenance of internal financial control, that were operating
effectively for ensuring the accuracy and completeness of the
accounting records, relevant to the preparation and presentation of the
financial statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We have taken into account the
provisions of the Act, the accounting and auditing standards and
matters which are required to be included in the audit report under the
provisions of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing
specified under section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material 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 financial control relevant to the Company's
preparation of the financial statements that give true and fair view 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 Company's Directors, as well as evaluating the
overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the financial
statements.
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 31,2015;
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.
Emphasis of Matters
We draw attention to the following matters in the Notes to the
financial statements:
a) Note 22 to the financial statements which, describes the uncertainty
related to the outcome of the lawsuit filed against the Company.
b) Note 21 in the financial statement which indicates that the Company
has accumulated losses and its Net worth has been fully/substantially
eroded, the Company has incurred a net cash loss during the current
year and previous year(s) and, the Company current liabilities exceeded
its current assets as at the balance sheet date. These conditions,
along with other matters set forth in Note 21, indicate the existence
of a material uncertainty that cast significant doubt about the
Company's ability to continue as a going concern. However, the
financial statements of the Company have been prepared on a going
concern basis for the reasons stated in the said Note.
Our opinion is not modified in respect of these matters.
Report on other Legal and Regulatory Requirements
As required by section 143(3) of the Act, we report that:
a) We have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purposes 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 (and proper returns adequate for the purposes of our audit have
been received from the branches not visited by us)
c) The Balance Sheet, the 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 aforesaid financial statements comply with the
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014.
e) The going concern matter described in sub-paragraph (b) under the
Emphasis of Matters paragraph above, in our opinion, may have an
adverse effect on the functioning of the Company.
f) On the basis of written representations received from the directors
as on 31 March, 2015, taken on record by the Board of Directors, none
of the directors is disqualified as on 31 March, 2015, from being
appointed as a director in terms of Section 164(2) of the Act.
g) With respect to the other matters included in the Auditor's Report
and to our best of our information and according to the explanations
given to us :
i. The Company has disclosed the impact of pending litigations on its
financial position in its financial statements - Refer Note 22 to the
financial statements
ii. The Company did not have any long-term contracts including
derivatives contracts for which there were any material foreseeable
losses
iii. There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company [or, following are the instances of delay in transferring
amounts, required to be transferred, to the Investor Education and
Protection Fund by the Company or there were no amounts which required
to be transferred.
Report on other Legal and Regulatory Requirements
As required by the Companies (Auditors Report) order, 2015 ("the
Order"), issued by the central Government of India in terms of
sub-section (11) of section 143 of Companies Act, 2015, we give in the
Annexure a statement on the matters specified in paragraphs 3 an d4 of
the order, to the extent applicable.
As required by Section 143(3) of the Act, we report that:
i. a) The Company has generally maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
b) The Company has physically verified the fixed assets during the year
which, in our opinion, is reasonable having regard to the size of the
Company and nature of its assets. No material discrepancies were
noticed on such verification.
ii. a) The procedures of physical verification of inventories followed
by the company are reasonable and adequate in relation to the size of
the company and the nature of its business.
The Company maintaining proper records of inventory. The discrepancies
noticed on verification between the physical stock and the book records
are not material.
iii. a) The company has granted interest free unsecured loans to
subsidiary companies, covered in the register maintained under section
189 of the Companies Act, 2013. The Outstanding balance is Rs.6094.60
Lakhs. The other clauses are not applicable.
iv. In my opinion and according to the information and explanations
given to me, there is adequate internal control system commensurate
with the size of the company and the nature of its business with regard
to purchase of fixed assets, Inventories and the sale of services. The
activities of the company do not involve purchase of inventory and the
sale of goods. During the course of my audit, I have not observed any
continuing failure to correct major weaknesses in the internal control
system. However, the Company is still under the process of appointing
an Internal Auditor as required under the norms of the Companies Act,
2013 and rules made thereof.
v. In my opinion and according to the information and explanations
given to us, the Company has not accepted any deposits from the public
during the year. Therefore, the provisions of sections 73 to 76 or any
other relevant provisions of the Act and the rules framed there under,
are not applicable to the Company.
vi. According to the information and explanations given to us, Rules
made by the Central Government for the maintenance of cost records
under Section 148 of the Act, are Not Applicable.
vii. a) The Company is generally regular in depositing undisputed
statutory dues relating to provident fund, income tax deducted at
source, service tax and value added tax. We are informed that the
provisions of employees' state insurance, wealth tax, duty of customs,
duty of excise, cess is not applicable to the company. As per the
records produced before us, there are no undisputed statutory dues
which were outstanding as on 31st March 2015 for a period over six
months from the date of same becoming payable, expect Provident Fund,
Service Tax, Tax Deducted at Source.
b) According to the information and explanations given to us, there are
no statutory dues pending in respect of income tax, sales tax, value
added tax, service tax, duty of customs, wealth tax, duty of excise,
cess on account of any dispute.
c) According to the information and explanations given to us, no amount
is required to be transferred to investor education and protection fund
in accordance with the relevant provisions of the Companies Act, 2013
and rules made there under.
viii. The company's accumulated losses at the end of the financial year
are more than fifty per cent of its net worth and it has incurred cash
losses in this financial year
ix. The Company has not repaid principle amount of Rs. 17037.30 lakhs
secured borrowings from banks and has also not paid interest for the
period ranging from more than 3 years Consequently Banks have declared
the Assets as NPA. (Non Performing Assets).
x. In my opinion and according to the information and explanations
given to us, the Company has not given any guarantee for loans taken by
others from banks or financial institutions.
xi. In my opinion, the term/project loans were applied for the purpose
for which they were raised.
xii. According to information and explanations given to us by the
management which has been relied by us, no fraud on or by the Company
has been noticed or reported during the year.
For V VISWANATHAN & ASSOCIATES
Chartered Accountants
Firm Registration No-013713S
Place: Chennai V VISWANATHAN
Date: May 30, 2015 Membership No. 228990
Mar 31, 2014
I have audited the accompanying financial statements of Gemini
Communication Ltd ("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"). This responsibility includes
the design, implementation and maintenance of internal control relevant
to the preparation and presentation of the financial statements that
give a true and fair view and are free from material misstatement,
whether due to fraud or error.
Auditor''s Responsibility
My responsibility is to express an opinion on these financial
statements based on my audit. I conducted my audit in accordance with
the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that I comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by management, as
well as evaluating the overall presentation of the financial
statements.
I believe that the audit evidence I have obtained is sufficient and
appropriate to provide a basis for my audit opinion.
Opinion
In my opinion and to the best of my information and according to the
explanations given to me, 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 Loss for
the year ended on that date; and
(c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, I give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, I report that:
a. I have obtained all the information and explanations which to the
best of my knowledge and belief were necessary for the purpose of my
audit;
b. in my opinion proper books of account as required by law have been
kept by the Company so far as appears from my examination of those
books;
c. the Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
d. in my 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;and
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.
Annexure to the Auditors'' Report:
The Annexure referred to in the Auditors'' Report to the Members of M/s
Gemini Communications Limited (the Company) for the period ended March
31,2014. I report that:
1)
a. The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets which
needs to be updated.
b. The company has a regular program of physical verification of its
fixed assets. No material discrepancies are noticed on such
verification.
c. Substantial parts of fixed assets have not been disposed off during
the year. In my opinion, the frequency of verification is reasonable.
2)
a. The procedures of physical verification of inventories followed by
the company are reasonable and adequate in relation to the size of the
company and the nature of its business.
b. The Company maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stock and
the book records Ire not material.
3)
a. The company has granted interest free unsecured loans to subsidiary
companies, covered in the register maintained under section 301 of the
Companies Act, 1956. The Outstanding balance is Rs. 6304.85 Lakhs. The
other clauses are not applicable.
b. The company has not taken any loans, secured or unsecured, to or
from companies, firms or other parties covered in the register
maintained under section 301 of the companies act, 1956. The other
clauses are not applicable.
4) In my opinion and according to the information and explanations
given to me, there is adequate internal control system commensurate
with the size of the company and the nature of its business with regard
to purchase of fixed assets, Inventories and the sale of services. The
activities of the company do not involve purchase of inventory and the
sale of goods. During the course of my audit, I have not observed any
continuing failure to correct major weaknesses in the internal control
system.
5)
a. According to the information and explanations given to me, In my
opinion that the particulars of contracts / arrangements referred to
the Section 301 of the Act has been entered into the register
maintained u/s 301 of the Companies Act, 1956.
b. In my opinion and according to the information and explanations
given to me, the transactions made in pursuance of such contracts or
arrangements have been made at prices which are responsible reasonable
having regards to the prevailing market prices at the relevant time.
6) In my opinion and according to the information and explanations
given to me, the company has not accepted any deposits during the year
as defined under section 58A of the Companies Act, 1956.
7) The company has an internal audit system commensurate with the size
and nature of its business.
8) As per the information and explanation given to me, the maintenance
of cost records has not been prescribed by the Central Government under
the clause (d) section 209(1) (d) of the Companies Act, 1956 for any of
the services rendered by the company.
9)
a. The company is depositing, with some delays, with appropriate
authorities undisputed statutory dues including provident fund,
Employee State Insurance, Income tax, sales tax, wealth tax, service
tax, customs duty, excise duty, cess and other material statutory dues,
wherever applicable, with the appropriate authorities.
b. According to the records of the company and the information and
explanations given to me, there are no disputed amounts payable in
respect of Income tax, sales tax, wealth tax, service tax, customs
duty, excise duty and cess Ire in arrears, as at 31st March 2014 for a
period for more than six months from the date they became payable.
c. According to the information and explanations given to me, there
are no dues of sales tax, wealth tax, service tax, customs duty, excise
duty and cess which not have been deposited on account of any dispute.
10) In my opinion, the company has no accumulated losses as at 31st
March, 2014 and has not incurred cash losses during the financial year
covered under by my audit and preceding financial year.
11) In my opinion and according to the information and explanations
given to me, the Company has made payments with some delay in repayment
of dues to financial institution, banks or issued any debentures.
12) In my opinion and according to the information and explanations
given to me, the company has not granted any loans and advances on the
basis of security by way of pledge of shares, debentures and other
securities.
13) In my opinion, the company is not a chit fund or a nidhi / mutual
benefit fund / society. Therefore, the provisions of clause 4(xiii) of
the Companies (Auditor''s Report) (Amendment) Order, 2004 are not
applicable to the company.
14) In my opinion, the company is not dealing in or trading in shares,
securities, debentures, investments and other securities wherever
applicable, Accordingly, the provisions of clamee4(xiv) of the
Companies (Auditor''s Report) (Amendment) order, 2004 are not applicable
to the company.
15) In my opinion, and according to the information and explanations
given to me, the company has given corporate guarantee for loans taken
by subsidiary companies from banks, the terms and conditions are not
prima facie prejudicial to the interest of the company.
16) In my opinion and according to the explanations given to me, the
term loans have been applied for the purpose for which they Ire raised.
17) According to the information and explanations given to me and on an
overall examination of the balance sheet of the company, I report that
no funds raised on short-term basis have been used long-term
investment.
18) According to the information and explanations given to me, the
company has made any preferential allotment of shares during the year
to parties covered in the register maintained under section 301 of the
Companies Act, 1956. The price at which the issue is made are not prima
facie prejudicial to the interest of the company.
19) According to the information and explanations given to me, the
Company has not issued any debentures during the year and security for
issue of debentures does not arise.
20) According to the information and explanations given to me, the
Company has not raised money by public issue during the financial year
and the disclosure of end use of money raised by public issues does not
arise.
21) According to the information and explanations given to me, no fraud
on or by the company has been noticed or reported during the course of
my audit.
For Ramanath & Co.,
Chartered Accountants
Firm No.013721s
Place: Chennai S. Ramanath
Date: May 30, 2014 Chartered Accountant
Membership No: 029416
Mar 31, 2012
1. I have audited the attached Balance Sheet of M/s Gemini
Communication Limited (the company) as at March 31, 2012, the Profit
and Loss Account and also the Cash Flow Statement for the year ended on
that date, annexed thereto, which I have signed under reference to this
report. These financial statements are the responsibility of the
company's management. My responsibility is to express an opinion on
these financial statements based on my audit.
2. I have conducted the audit in accordance with auditing standards
generally accepted in India. Those standards require that I 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. I believe that my audit provides a reasonable
basis for my opinion.
3. As required by the Companies (Auditor's Report) Order, 2004, issued
by the Central Government of India in terms of sub-section (4A) of
Section 227 of the Companies Act, 1956, as amended from time to time, I
enclose in the Annexure hereto a statement on the matters specified in
paragraphs 4 and 5 of the said order.
4. Further to my comments in the Annexure referred to in paragraph 3
above, I report that:
a. I have obtained all the information and explanations which to the
best of my knowledge and belief are necessary for the purposes of my
audit;
b. In my opinion, proper books of account as required by law have been
kept by the company so far as appears from my examination of those
books; and proper returns adequate for the purposes of my audit have
been received from the branches not visited by me. The Branch Auditor's
reports have been forwarded to me and have been properly dealt with.
c. The Balance Sheet, the Profit and Loss Account and Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
d. In my opinion, the Balance sheet and the Profit and Loss account
and Cash Flow Statement dealt with by this report are in compliance
with the Accounting Standards referred to in sub-section (3C) of
section 211 of the Companies Act, 1956 to the extent applicable;
e. On the basis of written representations received from the directors
and taken on record by the Board of Directors, none of the Directors is
disqualified as on March 31, 2012 from being appointed as a director
under clause (g) of sub- section (1) of section 274 of the Companies
Act, 1956;
f. In my opinion and to the best of my information and according to
the explanations given to me, the said accounts together with
Significant Accounting Policies and 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 31st March, 2012;
ii. in the case of the Profit and Loss account, of the loss 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:
The Annexure referred to in the Auditors' Report to the Members of M/s
Gemini Communication Limited (the Company) for the period ended March
31, 2012. I report that:
1. a. The Company has maintained proper records
showing full particulars, including quantitative details and situation
of fixed assets which needs to be updated.
b. The company has a regular program of physical verification of its
fixed assets. No material discrepancies are noticed on such
verification.
c. Substantial parts of fixed assets have not been disposed off during
the year. In my opinion, the frequency of verification is reasonable.
2. a. The procedures of physical verification of
inventories followed by the company are reasonable and adequate in
relation to the size of the company and the nature of its business.
b. The Company maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stock and
the book records were not material.
3. a. The company has granted interest free unsecured
loans to subsidiary companies, covered in the register maintained under
section 301 of the Companies Act, 1956. The Outstanding balance is Rs.
9315.44 Lakhs. The other clauses are not applicable.
b. The company has not taken any loans, secured or unsecured, to or
from companies, firms or other parties covered in the register
maintained under section 301 of the companies act, 1956. The other
clause are not applicable.
4. In my opinion and according to the information and explanations
given to me, there is adequate internal control system commensurate
with the size of the company and the nature of its business with regard
to purchase of fixed assets, Inventories and the sale of services. The
activities of the company do not involve purchase of inventory and the
sale of goods. During the course of my audit, I have not observed any
continuing failure to correct major weaknesses in the internal control
system.
5 a. According to the information and explanations given to me, In my
opinion that the particulars of contracts / arrangements referred to
the Section 301 of the Act has been entered into the register
maintained u/s 301 of the Companies Act, 1956.
b. In my opinion and according to the information and explanations
given to me, the transactions made in pursuance of such contracts or
arrangements have been made at prices which are responsible reasonable
having regards to the prevailing market prices at the relevant time.
6. In my opinion and according to the information and explanations
given to me, the company has not accepted any deposits during the year
as defined under section 58A of the Companies Act, 1956.
7. The company has an internal audit system commensurate with the size
and nature of its business.
4. As per the information and explanation given to me, the maintenance
of cost records has not been prescribed by the Central Government under
the clause (d) section 209(1) (d) of the Companies Act, 1956 for any of
the services rendered by the company.
9. a. The company is depositing, with some delays, with appropriate
authorities undisputed statutory dues including provident fund,
Employee State Insurance, Income tax, sales tax, wealth tax, service
tax, customs duty, excise duty, cess and other material statutory dues,
wherever applicable, with the appropriate authorities.
b. According to the records of the company and the information and
explanations given to me, there are no disputed amounts payable in
respect of Income tax, sales tax, wealth tax, service tax, customs
duty, excise duty and cess Ire in arrears, as at 31st March
2012 for a period for more than six months from the date they became
payable.
c. According to the information and explanations given to me, there
are no dues of sales tax, wealth tax, service tax, customs duty, excise
duty and cess which not have been deposited on
account of any dispute except as under:-
ASSMT YEAR Amount
2006 - 2007 Rs.55119834
2007 - 2008 Rs.65000000
2008 - 2009 Rs.37500000
10. In my opinion, the company has no accumulated losses as at 31st
March, 2012 and has not incurred cash losses during the financial year
covered under by my audit and preceding financial year.
11. In my opinion and according to the information and explanations
given to me, the Company has not defaulted in repayment of dues to
financial institution, banks or issued any debentures.
12. In my opinion and according to the information and explanations
given to me, the company has not granted any loans and advances on the
basis of security by way of pledge of shares, debentures and other
securities.
13. In my opinion, the company is not a chit fund or a nidhi / mutual
benefit fund / society. Therefore, the provisions of clause 4(xiii) of
the Companies (Auditor's Report) (Amendment) Order, 2004 are not
applicable to the company.
14. In my opinion, the company is not dealing in or trading in shares,
securities, debentures, investments and other securities wherever
applicable, Accordingly, the provisions of clause 4(xiv) of the
Companies (Auditor's Report) (Amendment) order, 2004 are not applicable
to the company.
15. In my opinion, and according to the information and explanations
given to me, the company has given corporate guarantee for loans taken
by subsidiary companies from banks, the terms and conditions
are not prima facie prejudicial to the interest of the company.
16. In my opinion and according to the explanations given to me, the
term loans have been applied for the purpose for which they are raised.
1 7 According to the information and explanations given to me and on an
overall examination of the balance sheet of the company, I report that
no funds raised on short-term basis have been used long-term
investment.
18. According to the information and explanations given to me, the
company has made any preferential allotment of shares during the year
to parties covered in the register maintained under section 301 of the
Companies Act, 1956. The price at which the issue is made are not prima
facie prejudicial to the interest of the company.
19. According to the information and explanations given to me, the
Company has not issued any debentures during the year and security for
issue of debentures does not arise.
20. According to the information and explanations given to me, the
Company has not raised money by public issue during the financial year
and the disclosure of end use of money raised by public issues does not
arise.
21. According to the information and explanations given to me, no
fraud on or by the company has been noticed or reported during the
course of my audit.
For Prop.M/s.Ramanath & Co.,
Chartered Accountants
S.RAMANATH
Chartered Accountant
Place: Chennai Membership No: 029416
Date: 10th August 2012 Firm No: 013721s
Mar 31, 2011
1. We have audited the attached Balance Sheet of Gemini Communication
Ltd as at 31st March, 2011, 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 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 Companies (Auditor's Report) Amendment Order,
2004 issued by the Central Government of India in terms of sub-section
(4A) of section 227 of the companies Act, 1956, we enclose in the
Annexure a statement on the matters specified in paragraphs 4 and 5 of
the said order.
4. Further to our comments in the Annexure referred to 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 purposes of the 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 and proper returns adequate for the purposes of our audit have
been received from the branches not visited by us. The Branch Auditors'
Reports have been forwarded to us and have been properly dealt with.
c. The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt in this report are in agreement with the books of account.
d. In our opinion, the Balance Sheet, Profit and Loss account and Cash
flow statement dealt with by this report comply with the accounting
standards referred to in sub section (3C) section 211 of the Companies
Act, 1956 to the extent applicable;
e. As explained to us and based on the written representation received
from the directors, and taken on record by the Board of Directors we
report that none of the directors are disqualified, as on 31st March
2011 from being appointed as a director in terms of clause (g) of
subsection (1) of Section 274 of the Companies Act, 1956.
f. In our opinion and to the best of our information and according to
explanations given to us, the said accounts 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,
a. in the case of the Balance Sheet, of the State of Affairs of the
Company as at 31st March, 2011;
b. in the case of the Profit & Loss account, of the PROFIT for the
year ended on that date; and
c. in the case of Cash Flow Statement, of the Cash Flows for the year
ended on the date.
Annexure To The Auditor's Report
Referred to in paragraph 3 of our report of even date
1.
a) The Company is maintaining proper records showing full particulars
including quantitative details and situation of fixed assets which
needs to be updated.
b) All the assets have been physically verified by the Management
during the year. No material discrepancies were noticed during such
verification.
c) Substantial part of fixed assets have not been disposed off during
the year.
2.
a) The inventories have been physically verified during the year by the
management. In our opinion, the frequency of verification is
reasonable.
b) The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the company and the nature of its business.
c) The Company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stocks and
the book records were not material.
3.
a) The company has granted interest free unsecured loans to Subsidiary
Companies, covered in the register maintained under section 301 of the
Companies Act,1956. The outstanding balance is Rs.5214.68 lakhs. The
other clauses are not applicable.
b) The company has not taken any loan, secured or unsecured, from the
Companies, firms and other parties covered in the register maintained
under section 301 of the Act. The other clauses are not applicable.
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 the nature of its
business for the purchase of inventory, fixed assets and for the sale
of goods and services. During the course of our audit, we have not
observed any continuing failure to correct major weaknesses in Internal
Control system.
5.
a) According to the information and explanations given to us, we are of
the opinion that the particulars of contracts or arrangements referred
to in section 301 of the Act has been entered in the register
maintained under that section.
b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements have been made at prices which are reasonable having
regard to the prevailing market prices at the relevant time.
6. In our opinion and according to the information and explanations
given to us, the company has not accepted any deposits during the year
as defined under section 58A of the Companies Act, 1956.
7. The company has an internal audit system commensurate with the size
and nature of its business.
8. As per the information and explanations given to us the maintenance
of cost records has not been prescribed by the Central Government under
clause (d) of sub-section (1) of Section 209 of the Companies Act,
1956.
9.
a) The company is depositing, with some delays, with appropriate
authorities undisputed statutory dues including provident fund,
employees' state insurance, income tax, sales tax, wealth tax, service
tax, customs duty, excise duty, cess and other material statutory dues,
wherever applicable to it.
b) According to the information and explanations given to us, no
undisputed amounts payable in respect of income tax, wealth tax,
service tax, sales tax, customs duty, excise duty and cess were in
arrears, as at 31st March 2011 for a period of more than six months
from the date they became payable except Rs 147.14 lakhs payable
towards self assessment tax u/s 140A of the Income Tax Act for AY-
2010-11 & a revision of Income Tax demand Rs. 5.33 Lakhs relating to
A.Y. 2001 Ã 02.
c) According to the information and explanation given to us, there are
no dues of Sales tax, customs duty, wealth tax, service tax, excise
duty and cess which have not been deposited on account of any dispute
except as under:-
DEMAND ASSESMENT Rs. DISPUTED
YEAR (In Lakhs) BEFORE
central 2000-01 56.80 CCE(A)
excise
Incometax 2002-03 10.45 HC, Chennai
Incometax 2006-07 419.69 HC, Chennai
Incometax 2007-08 62.07 AO, Chennai
Incometax 2008-09 344.31 HC/AO, Chennai
10.In our opinion, the company has no accumulated losses as at the year
end. The company has not incurred cash losses during the financial year
covered under by our audit and immediately proceeding financial year.
11. In our opinion and according to the information and explanations
given to us, the company has not defaulted in repayment of dues to
financial institution, banks or debenture holders.
12.In our opinion and according to the information and explanations
given to us, the company has not granted loans and advances 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, the provisions of clause 4(xiii) of
the Companies (Auditor's Report) (Amendment) Order, 2004 are not
applicable to the company.
14.In our opinion, the company is not dealing in or trading in shares,
securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the Companies (Auditor's Report)
(Amendment) Order, 2004 are not applicable to the company.
15.In our opinion and according to the information and explanations
given to us, the company has given corporate guarantee for loans taken
by subsidiary companies from banks, the terms and conditions are not
prima facie prejudicial to the interest of the company.
16.In our opinion and according to the explanations given to us, the
term loans have been applied for the purpose for which they were
raised.
17.According to the information and explanations given to us and on an
overall examination of the balance sheet of the company, we report that
no funds raised on short-term basis have been used for long-term
investment.
18.According to the information and explanations given to us, the
company has made preferential allotment of shares during the year to
parties covered in the register maintained under section 301 of the
Companies Act,1956. The price at which the issue is made are not prima
facie prejudicial to the interest of the company.
19.According to the information and explanations given to us, the
company has not issued any debentures during the year and creation of
security for issue of debentures does not arise.
20.According to the information and explanations given to us, the
company has not raised money by public issues during the financial year
and the disclosure of end use of money raised by public issues does not
arise
21.According to the information and explanations given to us, no fraud
on or by the company has been noticed or reported during the course of
our audit.
For M/S P.Chandrasekar
Chartered Accountants
P.Chandrasekaran
PARTNER
MEMBERSHIP NO: 26037
Firm NO: 000580S
Place: Chennai
Date : 18th July, 2011
Mar 31, 2010
1. We have audited the attached Balance Sheet of Gemini Communication
Ltd., as at 31st March, 2010, 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 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 Companies (Auditors Report) Amendment Order,
2004 issued by the Central Government of India in terms of sub-section
(4A) of section 227 of the companies Act, 1956, We enclose in the
Annexure a statement on the matters specified in paragraphs 4 and 5 of
the said order.
4. Further to my comments in the Annexure referred to 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 purposes of the
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 and proper returns adequate for the purposes of our audit
have been received from the branches not visited by us. The Branch
Auditors Reports have been forwarded to us and have been properly
dealt with.
c. The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt in 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 on this report comply with the accounting
standards referred to in sub section (3C) section 211 of the Companies
Act, 1956 to the extent applicable;
e. As explained to us and based on the written representation received
from the directors, and taken on record by the Board of Directors We
report that none of the directors are disqualified, as on 31st March
2010 from being appointed as a director in terms of clause (g) of
subsection (1) of Section 274 of the Companies Act, 1956.
Attention is invited to note 16 in notes on accounts with regards
pending confirmation of balances from Sundry Creditors, Sundry Debtors,
Loans & Advances, Other Current Assets and Deposits wherein the effect,
if any, on the financials are not quantifiable and note no 15 with
regard to non provision of disputed demands towards Excise duty and
Income tax.
g. Subject to above, in our opinion and to the best of our information
and according to explanations given to us, the said accounts 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,
a. in the case of the balance sheet, of the State of Affairs of the
Company as at 31st March, 2010;
b. in the case of the Profit & Loss account, of the PROFIT for the
year ended on that date; and
c. in the case of Cash Flow Statement, of the Cash Flows for the year
ended on the date.
ANNEXURE TO THE AUDITORSREPORT
Referred to in paragraph 3 of our report of even date
1.a) The Company is maintaining proper records showing full particulars
including quantitative details and situation of fixed assets which
needs to be updated.
b) All the assets have been physically verified by the Management
during the year. No material discrepancies were noticed during such
verification.
c) Substantial part of fixed assets have not been disposed off during
the year.
2.a) The inventories have been physically verified during the year by the
management. In our opinion, the frequency of verification is
reasonable.
b) The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the company and the nature of its business.
c) The Company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stocks and
the book records were not material.
3.
a) The company has granted interest free unsecured loans to Subsidiary
Companies, covered in the register maintained under section 301 of the
Companies Act,1956. The number of parties are four. The Amout involved
is Rs. 2185.54 Lakhs and the Outstanding balance is Rs. 1822.05 lakhs.
The other clauses are not applicable.
b) The company has not taken any loan , secured or unsecured ,from the
Companies , firms and other parties covered in the register maintained
under section 301 of the Act. The other clauses are not applicable.
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 the nature of its business for the
purchase of inventory, fixed assets and for the sale of goods and
services. During the course of our audit, We have not observed any
continuing failure to correct major weaknesses in Internal Control
System.
5.
a) According the information and explanations given to us, We are of
the opinion that the particulars of contracts or arrangements referred
to in section 301 of the Act has been entered in the register required
to be maintained under that section.
b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements have been made at prices which are reasonable having
regard to the prevailing market prices at the relevant time.
6. In our opinion and according to the information and explanations
given to us, the company has not accepted any deposits during the year
as defined under section 58A of the Companies Act, 1956.
7. In our opinion, the internal audit system of the company needs to
be strengthened to commensurate with the size and nature of its
business.
8. As per the information and explanations given to us the maintenance
of cost records has not been prescribed by the Central Government under
clause (d) of sub-section (1) of Section 209 of the Companies Act,
1956.
9.
(a) The company is depositing, with some delays, with appropriate
authorities undisputed statutory dues including provident fund,
employees state insurance, income tax, sales tax, wealth tax, service
tax, custom duty, excise duty, cess and other material statutory dues
wherever applicable to it.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of income tax, wealth tax,
service tax, sales tax, customs duty, excise duty and cess were in
arrears, as at 31st March, 2010 for a period of more than six months
from the date they became payable except a revision of Income Tax demand
Rs.5.33 Lakhs relating to A.Y. 2001 -02.
(c) According to the information and explanation given to us, there are
no dues of Sales tax, customs duty, wealth tax, service tax, excise
duty and cess which have not been deposited on account of any dispute
except as under :-
DEMAND ASSESMENT Rs. DISPUTED
YEAR (In Lakhs)
BEFORE
central 2000-01 56.40 CCE(A)
excise
Incometax 2002-03 10.45 HC, Chennai
Incometax 2006-07 419.69 HC, Chennai
Incometax 2007-08 62.07 AO, Chennai
Incometax 2008-09 344.31 HC/AO, Chennai
10. In our opinion, the company has no accumulated losses as at the
year end. The company has not incurred cash losses during the financial
year covered under by our audit and immediately preceeding financial
year.
11. In our opinion and according to the information and explanations
given to us, the company has not defaulted in repayment of dues to
financial institution, bank or debenture holders.
12. In our opinion and according to the information and explanations
given to us, the company has not granted loans and advances 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, the provisions of clause 4(xiii) of
the Companies (Auditors Report) (Amendment) Order, 2004 are not
applicable to the company.
14.ln our opinion, the company is not dealing in or trading in shares,
securities, debentures and
other investments. Accordingly, the provisions of clause 4(xiv) of the
Companies (Auditors Report) (Amendment) Order, 2004 are not applicable
to the company.
15. In our opinion and according to the information and explanations
given to us, the company has given corporate guarantee for loans taken
by subsidiary companies from banks,the terms and conditions are not
prima facie prejudicial to the interest of the company.
16. In our opinion and according to the explanations given to us, the
term loans have been applied for the purpose for which they were
raised.
17. According to the information and explanations given to us and on
an overall examination of the balance sheet of the company, we report
that the no funds raised on short-term basis have been used for long-
term investment.
18. According to the information and explanations given to us, the
company has made preferential allotment of shares during the year to
parties covered in the register maintained under section 301 of the
Companies Act,1956. The price at which the issue is made are not prima
facie prejudicial to the interest of the company.
19. According to the information and explanations given to us, the
company has not issued any debentures during the year and creation of
security for issue of debentures does not arise.
20. According to the information and explanations given to us, the
company has not raised money by public issues during the financial year
and the disclosure of end use of money raised by public issues does not
arise
21. According to the information and explanations given to us, no
fraud on or by the company has been noticed or reported during the
course of our audit.
For CNGSN & ASSOCIATES
CHARTERED ACCOUNTANTS
R.THIRUMALMARUGAN
PARTNER
MEMBERSHIP NO: 200102
FIRM NO :004915S
Place: Chennai
Date: 06/09/2010
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