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Auditor Report of Gemmia Oiltech (India) Ltd.

Mar 31, 2014

We have audited the accompanying financial statements of M$s. Gemmia Oiltech (India) Limited ("the Company"), which comprise the Balance Sheet as at 31st March, 2014, the Statement of Profit and Loss and the Cash Flow Statement for the year then ended, and a summary of the significant accounting policies and other explanatory information.

Management''s Responsibility for the Financial Statements

The Company''s Management is responsible for the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the Accounting Standards 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.

Auditors'' Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. Those Standards require that we comply with the 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 the 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 the internal control relevant to the Company''s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by the 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.

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 at31st March, 2014;

(b) in the case of the Statement of Profit and Loss, of the profit of the Company for the year ended on that date of 31st March, 2014;

(c) in the case of the Statement of cash flow of the Company for the year ended on that date of 31st March, 2014;

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor''s Report) Order, 2003("the Order") issued by the Central Government of India in terms of sub-section (4A) of section 227 of the Act, we give in the Annexure, a statement on the matters specified in paragraphs 4 and 5 of the Order.

2. As required by Section 227(3) of the Act, we report that:

(i) "We are unable to express our opinion on the value of investments held in overseas subsidiaries due to non availability of financial statements, audit reports thereon or the degree of control exercised by this Company as a holding company"

(ii) "Subject to impairment of trade receivables to the extent of Rs.15.34 Crores"

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

(b) In our opinion, proper books of account as required by 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 the 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 the Cash Flow Statement comply with the Accounting Standards referred to in sub-section (3C) of section 211 of the Act.

(e) On the basis of the written representations received from the directors as on 31st March, 2014 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2014 from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the Act.

Annexure A

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

1. Fixed Assets

The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets and has been periodically verified by the management during the year. None of the fixed assets were revalued during the year. The company has not disposed any part of the Fixed Assets during the year

2. Inventory

The company does not carry any inventory as on balance sheet date.

3. Loan to / from directors and interested parties

a) The Company has granted loans during the year to its two subsidiaries and the two parties listed in the Register maintained under Section 301 of the Companies Act, 1956. The maximum amount given during the year is Rs 1,36,37,258 and the year end balance is Rs 2,57,68,727

b) The Company has taken unsecured loans from two parties register maintained under Section 301 of the Companies Act, 1956. The maximum amount involved during the year was Rs 27,40,001 and the year ended balance of loans received from such parties was Rs.1,29,72,154

According to the information and explanations provided to us, the rate of interest and other terms and conditions of loans given by the Company, are prime facie not prejudicial to the interest of the Company.

The principal amounts are repayable on demand and there is no repayment schedule. Interest is not charged during the year.

During the year, there have been repayments towards principal. No Interest is provided on any loan account. In the absence of proper loan agreements and any other terms and conditions on which loan taken, we are unable to comment on the regularity of repayment of principal and payment of interest.

4. Internal Control

In our opinion and according to the information and explanations given to us, the internal control procedures are adequate with the size of the company and the nature of its business, for the purchase of inventory, fixed assets and the sale of goods and services.

5. Transaction covered by section 301

To the best of our knowledge and belief and according to the information and explanations given to us, the company has not entered into any of contracts or arrangements referred to in section 301 of the Companies Act, 1956.

In our opinion and according to the information and explanations given to us, the company has not made sales and service aggregating during the period to Rs. 500000/- or more in respect of each party, in pursuance of contracts or agreements referred to in under section 301 of the Companies Act 1956.

6. Deposits from Public

The Company has not accepted any deposit in violation of Section 58A of the Companies Act, 1956.

7. Internal Audit

In our opinion and according to the information and explanations given to us, the company did not have an internal audit system commensurate with the size and nature of the business.

8. Cost Accounting Records

The Provision of section 209(1)(d) of the Companies Act, 1956 regarding maintenance of cost records is not applicable to the company.

9. Statutory Dues

According to the information and explanations given to us, the company is not regular In depositing undisputed statutory dues with the appropriate authorities in respect of:

The undisputed dues which are outstanding for more than six months as at the Balance Sheet date from the date they became payable were as follows.

More than Six Months Nature of Due In Rs.

VAT 82 576

ROC Fee 90 00 000

Income Tax (AY 2012-13) 20 27 800

Income Tax (Pr.Yrs) 41 97 774

10. Cash Losses

As per Clause (x) of Paragraph 4 of CARO 2003, the Company has incurred a cash loss during the financial year and the cash losses as at the end of the financial year is less than Fifty per cent of the Net worth.

11. Repayment of dues

The Company has defaulted in repayment of dues to the banks.

12. Loans and Advances on the basis of securities

The company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

13. Applicability of provisions to Chit fund, Nidhi/mutual benefit fund/societies

The company is not a chit fund or a nidhi /mutual benefit fund/society hence the clause (xiii) of the Companies (Auditor''s Report) Order 2003 is not applicable to the company.

14. Trading in shares, securities debentures and other investments

As per information''s and explanations provided the Company is not dealing or trading in shares, securities, debentures and other investments.

15. Guarantee given for others

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. Accordingly clause (xv) of the Order is not applicable.

16. End use of term loans

According to the information and explanations given to us, the company has not obtained term loan during the year.

17. Preferential allotment of shares

The company has not made any preferential allotment to a person referred in sec 301 of the Act. The price at which the allotment is made is not prejudicial to the interest of the company.

18. Debentures

The company has not issued any debenture during the period covered by our audit. Accordingly clause 4(xix) of the order is not applicable.

19. End use of public issue proceeds

The company has not raised funds by public issue during the year.

20. Reporting of Frauds

According to the information and explanations given to us, no significant fraud on or by the company, that causes a material misstatement to the financial statements, has been noticed or reported during the year.

For R. Ravindran & Associates Chartered Accountants Firm Registration No. 003222S Sd/- R. Ravindran Proprietor M. No. 023829 Chennai, 30th May, 2014


Mar 31, 2011

1. We have audited the attached Balance Sheet of M/s. Ram Kaashyap Investment Limited as at March 31. 2011 and also the Profit and Loss Account 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 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) Order. 2003 (CARO 2003) issued by the Company Law Board in terms of Section 227(4A) of the Companies Act. 1956. we enclose in the annexure A statement on the matters specified in paragraphs 4 and 5 of the said Order to the extent applicable.

4. "Subject to non-recognition of amortisation of brand equity and further to our comments in the Annexure referred to in paragraph 3 above. we state 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 our audit.

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

c. The Balance Sheet and Profit & 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 the cash flow statement comply with the Accounting Standards referred to in Subsection (3C) of section 211 of the Companies Act. 1956.

e. On the basis written representations received from the Directors. as on March 31. 2011 and taken on record by the Board of Directors. we report that none of the director of the company is disqualified from being appointed as a director under clause (g) of sub-Section (1) of Section 274 of the Companies Act. 1956.

f. In our opinion and according to the 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 principle generally accepted in India subject to:

i. in the case of the Balance Sheet, of the state of affairs of the Company as at March 31, 2011 and

ii. in the case of the Profit and Loss Account of the profit of the Company for the year ended on that date.

iii. in the case of the Cash Flow Statement, of the Cash Flows of the Company for the year ended on that date.

1. Fixed Assets:

a. The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets and has been periodically verified by the management during the year.

b. None of the fixed assets have been revalued during the year.

c. The company disposed of substantial part of the Fixed Assets during the year.

2. Inventory:

The company does not carry any inventory as on balance sheet date.

3. Loan to/ from directors and interested parties

a. The company has maintained a register u/s 301 of the Companies Act. 1956. The company has not granted any loans. secured or unsecured. to companies. firms or parties covered in the register maintained under Section 301 of the Act.

b. In our opinion. the rate of interest and other terms and conditions on which the loan has been granted to the body corporate listed in the register maintained under Section 301 of the Act. are prima facie. prejudicial to the interest of the company.

c. The principal amounts are repayable on demand and there is no repayment schedule. Interest is not charged during the year.

d. There are no overdue amounts of more than rupees one lakh in respect of the loan granted to a body corporate listed in the register maintained in the register under Section 301 of the Act.

e. The Company has not taken any loans. secured or unsecured. from companies. firms or other parties listed in the register maintained under Section 301 of the Companies Act. 1956. Therefore the provisions of sub clauses (e). (f) and (g) of clause of 4 (iii) of the Order are not applicable to the Company.

4. Internal Control

In our opinion and according to the information and explanations given to us. the internal control procedures

are inadequate with the size of the company and the nature of its business. for the purchase of inventory.

fixed assets and the sale of goods and services.

5. Transaction covered by section 301

a. To the best of our knowledge and belief and according to the information and explanations given to us. the company has not entered into any of contracts or arrangements referred to in section 301 of the Companies Act. 1956.

b. In our opinion and according to the information and explanations given to us. the company has not made sales and service aggregating during the period to Rs.500000/- or more in respect of each party. in pursuance of contracts or agreements referred to in under section 301 of the Companies Act 1956.

6. Deposit from Public

The Company has not accepted any deposit in violation of Section 58A of the Companies Act, 1956.

7. Internal Audit

In our opinion and according to the information and explanations given to us, the company does not have an internal audit system commensurate with the size and nature of the business.

8. Cost Accounting Records

The Provision of section 209(1)(d) of the Companies Act, 1956 regarding maintenance of cost records is not applicable to the company.

9. Statutory Dues

According to the information and explanations given to us, the company is not regular in depositing undisputed statutory dues with the appropriate authorities in respect of:

Statutory dues outstanding for more than 6 months:

Nature of Dues Amount Payable (Rs.)

Tax Deducted at Source 2,30,981

VAT payable 82,576

10. Cash Losses

The Company has accumulated losses. The company has not incurred cash losses during the financial year covered by our audit and the immediately preceding previous year

11. Repayment of dues

The Company has defaulted in repayment of dues to the banks.

12. Loans and Advances on the basis of securities

The company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

13. Applicability of provisions to Chit fund, Nidhi / mutual benefit fund / societies:

The company is not a chit fund or a nidhi / mutual benefit fund / society hence the clause (xiii) of the Companies (Auditor's Report) Order 2003 is not applicable to the company.

14. Trading in shares, securities debentures and other investments

As per information's and explanations provided the Company is not dealing or trading in shares, securities, debentures and other investments.

15. Guarantee given for others

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. Accordingly clause (xv) of the Order is not applicable.

16. End use of term loans

According to the information and explanations given to us, the company has not obtained term loan during the year.

17. Preferential allotment of shares

The company has not made any preferential allotment to a person referred in sec 301 of the Act. The price at which the allotment is made is not prejudicial to the interest of the company.

18. Debentures

The company has not issued any debenture during the period covered by our audit. Accordingly clause 4(xix) of the order is not applicable.

19. End use of public issue proceeds

The company has not raised funds by public issue during the year.

20. Reporting of Frauds:

According to the information and explanations given to us, no significant fraud on or by the company, that causes a material misstatement to the financial statements, has been noticed or reported during the year.

For R. Ravindran & Associates,

Chartered Accountants Firm Registration No. 003222S

Sd/-

R. Ravindran

Proprietor

Place: Chennai, Membership No. 023829

Date: May 30, 2011.


Mar 31, 2010

1. We have audited the attached Balance Sheet of M/s. Ram Kaashyap Investment Limited as at March 31, 2010 and also the Profit and Loss Account 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 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) Order, 2003 (CARO 2003) issued by the Company Law Board in terms of Section 227(4A) of the Companies Act, 1956, we enclose in the Annexure A statement on the matters specified in paragraphs 4 and 5 of the said Order to the extent applicable.

4. "Subject to non-recognition of amortisation of brand equity" and further to our comments in the Annexure referred to in paragraph 3 above, we state 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 our audit.

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

c. The Balance Sheet and Profit & 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 the cash flow statement comply with the Accounting Standards referred to in Subsection (3C) of section 211 of the Companies Act, 1956.

e. On the basis written representations received from the Directors, as on March 31, 2010 and taken on record by the Board of Directors, we report that none of the director of the company is disqualified from being appointed as a director under clause (g) of sub-Section (1) of Section 274 of the Companies Act, 1956.

f. In our opinion and according to the 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 principle generally accepted in India subject to:

(i) in the case of the Balance Sheet, of the state of affairs of the Company as at 31st March, 2010 and (ii) in the case of the Profit and Loss Account of the profit of the Company for the year ended on that date. (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

With reference to the Annexure referred to in paragraph 3 of the report of the Auditors to the members of Ram Kaashyap Investment Limited on the accounts for the year ended 31st March, 2010, we report that:

1) Fixed Assets:

The Company has not maintained proper records showing full particulars including quantitative details and tptpsituation of fixed assets and has not been periodically verified by the management during the year.

2) Inventory:

The company does not carry any inventory as on balance sheet date.

3) Loan to/ from directors and interested parties

(a) The Company has not granted any secured or unsecured loans during the year to Companies listed in the Register maintained under Section 301 of the Companies Act, 1956.

(b) The Company has not taken any loans, secured or unsecured, from companies, firms or other parties listed in the register maintained under Section 301 of the Companies Act, 1956. Therefore the provisions of sub clauses (e), (f) and (g) of clause of 4 (iii) of the Order are not applicable to the Company.

4) Internal Control

In our opinion and according to the information and explanations given to us, the internal control procedures are adequate with the size of the company and the nature of its business, for the purchase of inventory, fixed assets and the sale of goods.

5) Transaction covered by section 301

a) To the best of our knowledge and belief and according to the information and explanations given to us, we are of the opinion that the company has not entered into any of contracts or arrangements referred to in section 301 of the Companies Act, 1956.

b) In our opinion and according to the information and explanations given to us, the company has not made sales and service aggregating during the period to Rs. 500000/- or more in respect of each party, in pursuance of contracts or agreements referred to in under section 301 of the Companies Act 1956.

6) Deposit from Public

The Company is not a Non Banking Financial Company hence the acceptance of deposits from the public under section 58A and 58AA of the Companies Act does not apply.

7) Internal Audit

In our opinion and according to the information and explanations given to us, the company has an internal audit system commensurate with the size and nature of the business.

8) Cost Accounting Records

The Provision of section 209(1)(d) of the Companies Act, 1956 regarding maintenance of cost records is not applicable to the company.

9) Statutory Dues

According to the information and explanations given to us, the company is not regular in depositing undisputed statutory dues with the appropriate authorities in respect of:

Statutory dues outstanding for more than 6 months

Nature of Dues Amount Payable(Rs.)

TDS 2,05,358

VAT payable 82,576

10) Cash Losses

The Company has no accumulated losses. The company has not incurred cash losses during the financial year covered by our audit and the immediately preceding previous year

11) Repayment of dues

The Company has defaulted in repayment of dues to the banks.

12) Loans and Advances on the basis of securities

The company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

13) Applicability of provisions to Chit fund, Nidhi/mutual benefit fund/societies:

The company is not a chit fund or a nidhi/mutual benefit fund/society hence the clause (xiii) of the Companies (Auditors Report) Order 2003 is not applicable to the company.

14) Trading in shares, securities debentures and other investments

As per informations and explanations provided the Company has dealt in trading in shares and other investments during the year under review

15) Guarantee given for others

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. Accordingly clause (xv) of the Order is not applicable.

16) End use of term loans

According to the information and explanations given to us, the company has not obtained term loan during the year.

17) Preferential allotment of shares

The company has made preferential allotment to a person referred in sec 301 of the Act. The price at which the allotment is made is not prejudicial to the interest of the company.

18) Debentures

The company has not issued any debenture during the period covered by our audit. Accordingly clause 4(xix) of the order is not applicable.

19) End use of public issue proceeds

The company has not raised funds by public issues.

20) Reporting of Frauds:

According to the information and explanations given to us, no significant fraud on or by the company, that causes a material misstatement to the financial statements, has been noticed or reported during the year.

For R. Ravindran & Associates

Chartered Accountants

Firm Registration No. 003222S

Sd/-

R. Ravindran

Proprietor Membership No. 023829

Chennai, May 31, 2010.


Mar 31, 2009

1. We have audited the attached Balance Sheet of Ram Kaashyap Investment Limited as at 31st March 2009 and also the Profit and Loss Account 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) Order, 2003 (CARO 2003) issued by the Company Law Board in terms of Section 227(4A) of the Companies Act, 1956, we enclose in the annexure, a statement on the matters specified in paragraphs 4 and 5 of the said Order to the extent applicable.

4. Further to our comments in the Annexure referred to in paragraph 3 above, we state 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 our audit.

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

c. The Balance Sheet and Profit & 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 the 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 written representations received from the Directors, as on March 31, 2009 and taken on record by the Board of Directors, we report mat none of the director of the Company is disqualified from being appointed as a director under clause (g) of sub-section (1) of Section 274 of the Companies Act, 1956.

f. In our opinion and according to the 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 principle generally accepted in India subject to:

1. in the case of the Balance Sheet, of the state of affairs of the Company as at 31st March, 2009;

2. in the case of the Profit and Loss Account of the profit of the Company for the year ended on that date; and

3. 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

With reference to the Annexure referred to in paragraph 3 of the Auditors Report to the Members of Ram Kaashyap Investment Limited on the accounts for the year ended 31st March 2009, we report that

1. Fixed Assets:

The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets. But, periodical verification of the assets has not been conducted by the management during the year.

2. Inventory:

The Company is providing services to its clients. It does not deal in any purchase or sale of goods. The Company does not carry any inventory.

3. Loan to/from directors and interested parties:

(a) The Company has not granted any secured or unsecured loans during the year to Companies listed in the Register maintained under Section 301 of the Companies Act, 1956.

(b) The Company has not taken any loans, secured or unsecured, from companies, firms or other parties listed in the register maintained under Section 301 of the Companies Act, 1956. Therefore the provisions of sub clauses (e), (f) and (g) of clause of 4 (iii) of the Order are not applicable to the Company.

4. Internal Control:

In our opinion and according to the information and explanations given to us, the internal control procedures are adequate with the size of the Company and the nature of its business, for the purchase of inventory, fixed assets and the sale of goods.

5. Transaction covered by Section 301:

(a) To the best of our knowledge and belief and according to the information and explanations given to us, we are of the opinion that the Company has not entered into any of contracts or arrangements referred to in Section 301 of the Companies Act, 1956.

(b) In our opinion and according to the information and explanations given to us, the Company has not made sales and service aggregating during the period to Rs. 5,00,000/- or more in respect of each party, in pursuance of contracts or agreements referred to in under Section 301 of the Companies Act, 1956.

6. Deposits from Public:

The Company is not a Non Banking Financial Company hence the acceptance of deposits from the public under Section 58A and 58AA of the Companies Act, 1956 does not apply.

7. Internal Audit:

In our opinion and according to the information and explanations given to us, the Company has an internal audit system commensurate with the size and nature of the business.

8. Cost Accounting Records:

The Provision of Section 209(1) (d) of the Companies Act, 1956 regarding maintenance of cost records is not applicable to the Company.

9. Statutory Dues:

According to the information and explanations given to us, the Company is not regular in depositing undisputed statutory dues with the appropriate authorities in respect of:

Statutory dues outstanding for more than 6 months:

Nature of Dues Amount (In Rs.)

Service Tax 1,89,726

Income Tax 44,40,735

Fringe Benefit Tax 1,25,373

TDS 1,95,610

10. Cash Losses:

The Company has not incurred cash losses during the financial year covered by our audit and the immediately preceding previous year.

11. Repayment of dues:

The Company has defaulted in repayment of dues to the banks.

12. Loans and Advances on the basis of securities:

The Company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

13. Applicability of provisions to Chit fund, Nidhi / Mutual Benefit Fund / Societies:

The Company is not a chit fund or a nidhi / mutual benefit fund / society. Hence the clause (xiii) of the Companies (Auditors Report) Order 2003 is not applicable to the Company.

14. Trading in shares, securities debentures and other investments:

As per informations and explanations provided the Company has not dealt in trading in shares and other investments during the year under review.

15. Guarantee given for others:

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. Accordingly clause (xv) of the Order is not applicable.

16. End use of term loans:

According to the information and explanations given to us, the Company has not obtained term loan during the year.

17. Preferential allotment of shares:

The Company has made preferential allotment to persons as defined in Section 301 of the Companies Act, 1956. The price at which the allotment is made is not prejudicial to the interest of the Company.

18. Debentures:

The Company has not issued any debenture during the period covered by our audit. Accordingly clause 4(xix) of the order is not applicable.

19. End use of public issue proceeds:

The Company has not raised funds by public issues.

20. Reporting of Frauds:

According to the information and explanations given to us, no significant fraud on or by the Company, that causes a material misstatement to the financial statements, has been noticed or reported during the year.

Sd/-

G. PARTHASARATHY

Place: Chennai Chartered Accountant

Date: June 30, 2009 Membership No.20106





 
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