Home  »  Company  »  I P Rings Ltd.  »  Quotes  »  Auditor Report
Enter the first few characters of Company and click 'Go'

Auditor Report of I P Rings Ltd.

Mar 31, 2014

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

Management''s Responsibility for the Financial Statements

Management is responsible for the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the Accounting Standards referred to in sub section (3C) of section 211 of the Companies Act, 1956 (“the Act"). This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Auditor''s Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.

In making those risk assessments, the auditor considers internal control relevant to the Company''s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances but not for the purpose of expressing an opinion on the effectiveness of the Company''s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

In our opinion and to the best of our information and according to the explanations given to us, the 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 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 as amended by 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 Act, we enclose in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the said Order.

(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 dealt with by this report comply with the Accounting Standards referred to in sub section (3C) of section 211 of the Companies Act, 1956.

(e) On the basis of the written representations received from the Directors, as on 31st March 2014, and taken on record by the Board of Directors, we report that none of the Director is disqualified from being appointed as a Director of the company in terms of clause (g) of sub-section (1) of section 274 of the Companies Act, 1956 on the said date.

I. (a) The Company has maintained proper records for its Fixed Assets showing full particulars including quantitative details and situation of those Assets.

(b) The Company has a policy of physically verifying its Fixed Assets once in two years which in our opinion is reasonable having regard to the size of the Company and nature of its business. During the year Fixed Assets have not been physically verified by the Management as it was done last year by the management.

(c) The fixed assets that have been sold/ disposed off during the year do not constitute a substantial part of the total fixed assets of the Company. Thus the Company''s going concern status is not affected.

II (a) Physical verification of inventory has been conducted by the management at reasonable intervals.

(b) The procedures for physical verification of inventory followed by the Management are in our opinion, 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 physical verification were not material as compared to book records and have been properly dealt with in the books of accounts.

III. The Company has not granted or taken any loan, secured or unsecured, to/from companies, firms or other parties covered in the Register maintained under Section 301 of the Companies Act, 1956.

IV. 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 with regard to purchase of inventory, fixed assets and for 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.

V. (a) We are of the opinion that particulars of contracts or arrangement referred to in Section 301 of Companies

Act, 1956 have been entered into the register maintained under the said Act.

(b) In our opinion and according to the information and explanation given to us, the transactions made in pursuance of contracts or arrangements entered in the register maintained under section 301 of the Companies Act,1956 have been made at prices which are reasonable having regard to the prevailing market prices for similar transactions. Goods sold to a Company in which a Director was interested are to the specific needs of the customer. Hence prices of such goods are not strictly comparable.

VI. The Company has not accepted any deposit from the public.

VII. In our opinion, the Company has an internal audit system commensurate with the size and nature of its business.

VIII The Central Government has prescribed maintenance of cost records under Section 209(1) (d) of the Companies Act, 1956, for manufacture of Automotive Parts and Accessories. We have broadly reviewed the books and records of the Company in this connection and are of the opinion that, prima facie, the prescribed records have been maintained. We have, however, not made a detailed examination of the records to ascertain whether they are accurate and complete.

IX. (a) The Company is regular in depositing with appropriate authorities undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Employees'' State Insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax, Customs Duty, Excise Duty, Cess and other statutory dues applicable to it. There are no arrears of undisputed amount of outstanding statutory dues as at 31st March 2014 for a period of more than six months from the date they become payable.

(b) According to the information and explanations given to us, there are no disputed amounts that remain unpaid in respect of Wealth Tax, Customs Duty, Excise Duty, Cess and Service Tax as at 31st March 2014. However, in respect of Income Tax & VAT, disputed amounts that remain unpaid are disclosed hereunder:

Disputed Amount Unpaid Forum where

Applicable Statute Assessment Year Diesputed Forum where amount Unapaid dispute is pending in laks

Income Tax Act,1961 1997-1998 2.46 ITAT

Income Tax Act,1961 1999-2000 38.00 High Court

Income Tax Act,1961 2000-2001 11.36 High Court

Income Tax Act,1961 2001-2002 4.75 High Court

Income Tax Act,1961 2002-2003 6.61 High Court

Income Tax Act,1961 2003-2004 6.05 High Court

Income Tax Act,1961 2004-2005 41.98 High Court

Income Tax Act,1961 2005-2006 3.73 High Court

Income Tax Act,1961 2006-2007 5.03 CIT(Appeals)

Income Tax Act,1961 2008-2009 18.32 ITAT

Income Tax Act,1961 2009-2010 32.81 CIT (Appeals)

TN VAT Act, 2006 2007-2008 1.92 DCCT (Appeals)

Income Tax Act, 1961 2010-2011 143.68 CIT (Appeals)

Income Tax Act, 1961 2011-2012 156.34 CIT (Appeals)

Total 473.04

X. The Company has no accumulated losses. The Company has not incurred cash losses during this financial year and in the immediately preceding financial year.

XI. In our opinion and according to the information and explanations given to us, the Company has not defaulted in repayment of loans availed from banks. The company has no borrowings from financial institutions and has not issued debentures.

XII. Based on our examination of the records and according to the information and explanations given to us, the Company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

XIII. The provisions of special statute applicable to chit funds/nidhi/mutual benefit funds/society do not apply to the Company.

XIV. The Company has made investments in shares. Proper investment records have been maintained by the Company. Transactions have been regularly updated as and when taken place. All investments of the Company are held in its own name.

XV. In our opinion and according to the information and explanations given to us, the Company has not given any guarantee for loans taken by others from bank or financial institutions.

XVI. In our opinion and according to the information and explanation given to us, the term loans availed have been utilized towards the purposes for which they are obtained.

XVII. According to the information and explanations given to us and on an overall review of utilization of funds, we observed that short-term funds to the extent of Rs.2.75 crores have been used for long-term investments.

XVIII. According to the information and explanation given to us, the Company has not made any preferential allotment of shares to parties and companies covered in the Register maintained under Section 301 of the Companies Act, 1956.

XIX. According to the information and explanation given to us, the company has not issued any secured debentures during the year.

XX. According to the information and explanations given to us, the Company has not raised any money by public issue.

XXI. To the best of our knowledge and according to the information and explanations given to us, no fraud by the Company and no material fraud on the Company has been noticed or reported during the year.

For R G N Price & Co., Chartered Accountants Firm Regn. No. 002785S

Mahesh Krishnan Chennai Partner 30.05.2014 Membership No. 206520


Mar 31, 2013

Report on the Financial Statements

We have audited the accompanying financial statements of IP Rings Limited ("the Company"), which comprise the Balance Sheet as at March 31, 2013, and the Statement of Profit and Loss and Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information.

Management''s Responsibility for the Financial Statements

Management is responsible for the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the Accounting Standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956 ("the Act"). This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether cjue 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 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 as amended by 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 Act, we enclose in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the said 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 dealt with by this report comply with the Accounting Standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956. ''

(e) On the basis of the written representations received from the Directors, as on 3151 March 2013, and taken on record by the Board of Directors, we report that none of the Director is disqualified from being appointed as a Director of the company in terms of clause (g) of sub-section (1) of section 274 of the Companies Act, 1956 on the said date.

Annexure referred to in paragraph 1 of our report of even date.

I. (a) The Company has maintained proper records for its Fixed Assets showing full particulars including quantitative details and situation of those Assets.

b) The Company has a policy of physically verifying its Fixed Assets once in two years which in our opinion is reasonable having regard to the size of the Company and nature of its business. During the year Fixed Assets have been physically verified by the Management and no major discrepancies were noticed on such verification.

(c) The fixed assets that have been sold/ disposed off during the year do not constitute a substantial part of the total fixed assets of the Company. Thus the Company''s going concern status is not affected.

II. (a) Physical verification of inventory has been conducted by the management at reasonable intervals.

(b) The procedures for physical verification of inventory followed by the Management are in our opinion, reasonable and adequate in relation to the size of the Company and the nature of its business. i

(c). The Company is maintaining proper records of inventory. The discrepancies noticed on physical verification were not material as compared to book records and have been properly dealt with in the books of accounts.

III. The Company has not granted or taken any loan, secured or unsecured, to/from companies, firms or other parties covered in the Register maintained under Section 301 of the Companies Act, 1956.

IV. 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 with regard to purchase of inventory, fixed assets and for sale of goods and services. During the course of our audit, we have not observed any major weaknesses in internal controls system.

V. (a) We are of the opinion that particulars of contracts or arrangement referred to in Section 301 of Companies Act, 1956 have been entered into the register maintained under the said Act.

(b) In our opinion and according to the information and explanation given to us, the transactions made in pursuance of contracts or arrangements entered in the register maintained under section 301 of the Companies Act,1956 have been made at prices which are reasonable having regard to the prevailing market prices for similar transactions. Goods sold to a Company in which a Director was interested are to the specific needs of the customer. Hence prices of such goods are not strictly comparable.

VI. The Company has not accepted any deposit from the public.

VII. In our opinion, the Company has an internal audit system commensurate with the size and nature of its business.

VIII. The Central Government has prescribed maintenance of cost records under Section 209(1) (d) of the Companies Act, 1956 for manufacture of Automotive Parts and Accessories. We have broadly reviewed the books and records of the Company in this connection 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 to ascertain whether they are accurate and complete.

IX. The Company is regular in depositing with appropriate authorities undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Employees'' State Insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax, Customs Duty, Excise Duty, Cess and other statutory dues applicable to it. There are no arrears of undisputed amount of outstanding statutory dues as at 31s1 March 2013 for a period of more than six months from the date they become payable.

X. According to the information and explanations given to us, there are no disputed amounts that remain unpaid in respect of Wealth Tax, Customs Duty, Excise Duty, Cess and Service Tax as at 31s1 March 2013. However, in respect of Income Tax & VAT, disputed amounts that remain unpaid are disclosed hereunder:

Applicable Statute Assessment Year Disputed Amount Pending unpaid (Rs.in Before lakhs)

Income Tax Act,1961 1997-1998 2.46 ITAT

Income Tax Act,1961 1999-2000 38.00 High Court

Income Tax Act,1961 2000-2001 11.36 High Court

Income Tax Act,1961 2001-2002 4.75 ITAT

Income Tax Act,1961 2002-2003 6.61 High Court

Income Tax Act,1961 2003-2004 6.05 High Court

Income Tax Act,1961 2004-2005 41.98 High Court

Income Tax Act,1961 2005-2006 3.73 High Court

Income Tax Act,1961 2006-2007 5.03 CIT(Appeals)

Income Tax Act, 1961 2008-2009 18.32 CIT(Appeals)

Income Tax Act,1961 2009-2010 32.81 CIT(Appeals)

TN VAT Act, 2006 2007-2008 1.92 DCCT(Appeals)

Total 173.03

XI The Company has no accumulated losses. The Company has not incurred cash losses during this financial year and in the immediately preceding financial year.

XII The Company has not defaulted in repayment of loans availed from banks. The company has no borrowings from financial institutions and has not issued debentures.

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

XIV The provisions of special statute applicable to chit funds / nidhi / mutual benefit funds / society do not apply to the Company.

XV The Company has made investments in shares. Proper investment records have been maintained by the Company. Transactions have been regularly updated as and when taken place. All investments of the Company are held in its own name.

XVI The Company has not given any guarantee for loans taken by others from bank or financial institutions.

XVII Term Loans availed from banks has been utilized towards the intended purpose.

XVIII According to the information and explanations given to us and on an overall review of utilization of funds, we observed that short-term funds to the extent of Rs.9.75 crores have been used for long-term investments. .

XIX During the year, the Company has not made any preferential allotment of shares to parties and companies covered in the Register maintained under Section 301 of the Companies Act, 1956.

XX During the year, the Company has not raised any money by public issue.

XXI According to the information and explanations given to us, no fraud on or by the Company has been noticed or reported.

For R G N Price & Co.,

Chartered Accountants ,

Firm Regn. No. 002785S

Mahesh Krishnan

Chennai Partner

29.05.2013 Membership No. 206520


Mar 31, 2012

We have audited the attached Balance Sheet of IP Rings Limited as at 31st March 2012 and also the Statement of Profit and Loss and Cash Flow statement 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.

We conducted our audit in accordance with the 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.

1. As required by the Companies (Auditor's Report) Order, 2003 as amended by 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.

2. Further to our comments in the Annexure referred to above, we report that:

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

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

III. 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;

IV. In our opinion, the Balance Sheet, Statement of Profit and Loss and Cash Flow Statement dealt with by this report comply with the Accounting Standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956.

V. On the basis of the written representations received from the Directors, as on 31st March 2012 and taken on record by the Board of Directors, we report that none of the Director is disqualified from being appointed as a Director of the company in terms of clause (g) of sub-section (1) of section 274 of the Companies Act, 1956 on the said date.

VI. In our opinion and to the best of our information 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 give a true and fair view in conformity with the accounting principles generally accepted in India:

(a) in the case of Balance Sheet, of the state of affairs of the Company as at 31st March 2012;

(b) in the case of 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.

Annexure referred to in paragraph 1 of our report of even date.

I. (a) The Company has maintained proper records for its Fixed Assets showing full particulars including quantitative details and situation of those Assets.

(b) The Company has a policy of physically verifying its Fixed Assets once in two years which in our opinion is reasonable having regard to the size of the Company and nature of its business. During the year Fixed Assets have not been physically verified as it was done last year by the management.

(c) No Fixed Assets have been sold / disposed off during the year.

II (a) Physical verification of inventory has been conducted by the management at reasonable intervals.

(b) The procedures for physical verification of inventory followed by the Management are in our opinion, 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 physical verification were not material as compared to book records and have been properly dealt with in the books of accounts.

III The Company has not granted or taken any loan, secured or unsecured, to/from companies, firms or other parties covered in the Register maintained under Section 301 of the Companies Act, 1956.

IV 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 with regard to purchase of inventory, fixed assets and for sale of goods and services. During the course of our audit, we have not observed any major weaknesses in internal controls system.

V (a) We are of the opinion that particulars of contracts or arrangement referred to in Section 301 of Companies Act, 1956 have been entered into the register maintained under the said Act.

(b) In our opinion and according to the information and explanation given to us, the transactions made in pursuance of contracts or arrangements entered in the register maintained under section 301 of the Companies Act,1956 have been made at prices which are reasonable having regard to the prevailing market prices for similar transactions. Goods sold to a Company in which a Director was interested are to the specific needs of the customer. Hence prices of such goods are not strictly comparable.

VI The Company has not accepted any deposit from the public.

VII In our opinion, the Company has an internal audit system commensurate with the size and nature of its business.

VIII The Central Government has prescribed maintenance of cost records under Section 209(1) (d) of the Companies Act, 1956 for manufacture of Automotive Parts and Accessories. On the basis of the records produced, we are of the opinion that, prima facie, the cost records and accounts prescribed by the Central Government of India under Section 209(1) (d) of the Companies Act, 1956 have been made and maintained.

IX (a) The Company is regular in depositing with appropriate authorities undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Employees' State Insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax, Customs Duty, Excise Duty, Cess and other statutory dues applicable to it. There are no arrears of undisputed amount of outstanding statutory dues as at 31st March 2012 for a period of more than six months from the date they become payable.

(b) According to the information and explanations given to us, there are no disputed amounts that remain unpaid in respect of Wealth Tax, Customs Duty, Excise Duty, Cess and Service Tax as at 31st March 2012. However, in respect of Income Tax & VAT, disputed amounts that remain unpaid are disclosed hereunder:

Disputed Amount Unpaid Financial Year Assessment Year (Rs.in Lakhs) Appeal Pending with

Income Tax Act, 1961 1997-1998 2.46 ITAT

Income Tax Act, 1961 1999-2000 38.00 High Court

Income Tax Act, 1961 2000-2001 11.36 ITAT

Income Tax Act, 1961 2001-2002 4.75 ITAT

Income Tax Act, 1961 2002-2003 6.61 CIT(Appeals)

Income Tax Act, 1961 2003-2004 6.05 High Court

Income Tax Act, 1961 2004-2005 41.98 High Court

Income Tax Act, 1961 2005-2006 3.73 High Court

Income Tax Act, 1961 2006-2007 5.03 CIT(Appeals)

Income Tax Act, 1961 2008-2009 18.32 CIT(Appeals)

Income Tax Act, 1961 2009-2010 32.81 CIT (Appeals)

TN VAT Act, 2006 2007-2008 1.92 DCCT (Appeals)

Total 173.03

X The Company has no accumulated losses. The Company has also not incurred cash losses during this financial year and in the immediately preceding financial year.

XI The Company has not defaulted in repayment of loans availed from banks. The company has no borrowings from financial institutions and has not issued debentures.

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

XIII The provisions of special statute applicable to chit funds / nidhi / mutual benefit funds / society do not apply to the Company.

XIV The Company has made certain investments in shares and mutual funds. Proper investment records have been maintained by the Company. Transactions have been regularly updated as and when taken place. All investments of the Company are held in its own name.

XV The Company has not given any guarantee for loans taken by others from bank or financial institutions.

XVI Term Loans availed from banks have been utilized towards the intended purpose.

XVII According to the information and explanations given to us and on an overall review of utilization of funds, we observed that no short-term funds have been used for long-term investments.

XVIII During the year, the Company has not made any preferential allotment of shares to parties and companies covered in the Register maintained under Section 301 of the Companies Act, 1956.

XIX During the year, the Company has not raised any money by public issue.

XX According to the information and explanations given to us, no fraud on or by the Company has been noticed or reported.

For R G N Price & Co.,

Chartered Accountants

Firm Regn. No. 002785S

Chennai

18.05.2012 Mahesh Krishnan

Partner

Membership No. 206520


Mar 31, 2011

We have audited the attached Balance Sheet of IP Rings Limited as at 31s1 March 2011 and also the Profit and Loss Account and Cash Flow statement 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.

We conducted our audit in accordance with the 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.

1. As required by the Companies (Auditors Report) Order, 2003 as amended by 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.

2. Further to our comments in the Annexure referred to above, we report that:

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

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

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

IV. 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) of section 211 of the Companies Act, 1956.

V. On the basis of the written representations received from the Directors, as on 31st March 2011 and taken on record by the Board of Directors, we report that none of the Director is disqualified from being appointed as a Director of the company in terms of clause (g) of sub-section (1) of section 274 of the Companies Act, 1956 on the said date.

VI. In our opinion and to the best of our information 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 give a true and fair view in conformity with the accounting principles generally accepted in India:

(a) in the case of Balance Sheet, of the state of affairs of the Company as at 31 st March 2011;

(b) in the case of Profit and Loss Account, 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.

Annexure referred to in paragraph 1 of our report of even date.

I. (a) The Company has maintained proper records for its Fixed Assets showing full particulars including quantitative details and situation of those Assets.

(b) The Company has a policy of physically verifying its Fixed Assets once in two years which in our opinion is reasonable having regard to the size of the Company and nature of its business. During the year Fixed Assets have been physically verified by the management and no major discrepancies were noticed on such verification.

(c) The Fixed Assets that have been sold / disposed off during the year do not constitute a substantial part of the total Fixed Assets of the Company.

II. (a) Physical verification of inventory has been conducted by the management at reasonable intervals.

(b) The procedures for physical verification of inventory followed by the Management are in our opinion, 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 physical verification were not material as compared to book records and have been properly dealt with in the books of accounts.

III. The Company has not granted or taken any loan, secured or unsecured, to / from companies, firms or other parties covered in the Register maintained under Section 301 of the Companies Act, 1956.

IV. 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 with regard to purchase of inventory, fixed assets and for sale of goods and services. During the course of our audit, we have not observed any major weaknesses in internal controls system.

V. (a) We are of the opinion that particulars of contracts or arrangement referred to in Section 301 of Companies

Act, 1956 have been entered into the register maintained under the said Act.

(b) In our opinion, and according to the information and explanation given to us, transactions made in pursuance of such contracts or arrangements have been made at prices which are reasonable having regard to the prevailing market price at the relevant time.

VI The Company has not accepted any deposit from the public.

VII In our opinion, the Company has an internal audit system commensurate with the size and nature of its business.

VIII The Central Government has prescribed maintenance of cost records under Section 209(1) (d) of the Companies Act, 1956 for manufacture of Automotive Parts and Accessories. On the basis of the records produced, we are of the opinion that, prima facie, the cost records and accounts prescribed by the Central Government of India under Section 209(1) (d) of the Companies Act, 1956 have been made and maintained.

IX (a) The Company is regular in depositing with appropriate authorities undisputed statutory dues including

Provident Fund, Investor Education and Protection Fund, Employees State Insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax, Customs Duty, Excise Duty, Cess and other statutory dues applicable to it. There are no arrears of undisputed outstanding statutory dues as at 31s1 March 2011 for a period of more than six months from the date they become payable.

(b) According to the information and explanations given to us, there are no disputed amounts that remain unpaid in respect of Wealth Tax, Sales Tax, Customs Duty, Excise Duty, Cess and Service Tax as at 31st March 2011. However, in respect of Income Tax, there are disputed amounts that remain unpaid are disclosed hereunder:

Financial Year Assessment Year Disputed Amount Appeal Pending with Unpaid(Rs.Lakhs)

1996-1997 1997-1998 2.46 CIT (Appeals)

1998-1999 1999-2000 38.00 ITAT (Appeal)

1999 - 2000 2000 - 2001 11.36 CIT (Appeals)

2000 - 2001 2001 - 2002 4.75 CIT (Appeals)

2001 - 2002 2002 - 2003 6.61 CIT (Appeals)

2002-2003 2003-2004 6.05 ITAT (Appeal)

2003-2004 2004-2005 41.98 ITAT (Appeal)

2004-2005 2005-2006 3.73 ITAT (Appeal)

2005 - 2006 2006 - 2007 5.03 CIT (Appeals)

2007-2008 2008-2009 18.32 CIT (Appeals)

Total 138.29

X The Company has no accumulated losses. The Company has also not incurred cash losses during this financial year and in the immediately preceding financial year.

XI The Company has not defaulted in repayment of loans availed from banks. The company has no borrowings from financial institutions and has not issued debentures.

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

XIII The provisions of special statute applicable to chit funds / nidhi / mutual benefit funds / society do not apply to the Company.

XIV The Company has made certain investments in shares and mutual funds. Proper investment records have been maintained by the Company. Transactions have been regularly updated as and when taken place. All investments of the Company are held in its own name.

XV The Company has not given any guarantee for loans taken by others from bank or financial institutions.

XVI Term Loans availed from banks have been utilized towards the intended purpose.

XVII According to the information and explanations given to us and on an overall review of utilization of funds, we observed that no short-term funds have been used for long-term investments.

XVIII During the year, the Company has not made any preferential allotment of shares to parties and companies covered in the Register maintained under Section 301 of the Companies Act, 1956.

XIX During the year, the Company has not raised any money by public issue.

XX According to the information and explanations given to us, no fraud on or by the Company has been noticed or reported.

For R G N Price & Co., Chartered Accountants Firm Regn. No. 002785S

Chennai 30.05.2011 Mahesh Krishnan Partner Membership No. 206520


Mar 31, 2010

We have audited the attached Balance Sheet of IP Rings Limited as at 31st March 2010 and also the Profit and Loss Account and Cash Flow Statement 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.

We conducted our audit in accordance with the 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.

1. As required by the Companies (Auditors Report) Order, 2003 as amended by 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.

2. Further to our comments in the Annexure referred to above, we report that:

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

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

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

IV. 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) of section 211 of the Companies Act, 1956.

V. On the basis of the written representations received from the Directors, as on 31st March 2010 and taken on record by the Board of Directors, we report that none of the Director is disqualified from being appointed as a Director of the company in terms of clause (g) of sub-section (1) of section 274 of the Companies Act, 1956 on the said date.

VI. In our opinion and to the best of our information 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 principles generally accepted in India:

(a) in the case of Balance Sheet, of the state of affairs of the Company as at 31 st March 2010 ;

(b) in the case of Profit and Loss Account, 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.

Annexure referred to in paragraph 1 of our report of even date.

I. a. The Company has maintained proper records for its Fixed Assets showing full particulars including

quantitative details and situation of those Assets.

b. The Company has a policy of physically verifying its Fixed Assets once in two years which in

our opinion is reasonable having regard to the size of the company and nature of its business. The fixed assets were physically verified during the previous year.

c. The Fixed Assets that have been sold / disposed off during the year do not constitute a substantial part of the total Fixed Assets of the Company.

II. a. Physical verification of inventory has been conducted by the management at reasonable intervals.

b. The procedures for physical verification of inventory followed by the Management are in our opinion, 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 physical verification were not material as compared to book records and have been properly dealt within the books of accounts.

III The Company has not granted or taken any loan, secured or unsecured, to/from companies, firms or other parties covered in the Register maintained under Section 301 of the Companies Act, 1956.

IV 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 with regard to purchase of inventory, fixed assets and for sale of goods and services. During the course of our audit, we have not observed any major weaknesses in the internal control system.

V a) We are of the opinion that particulars of contracts or arrangements referred to in Section 301 of

Companies Act, 1956 have been entered into the register maintained under the said Act.

b) In our opinion, and according to the information and explanation given to us, transactions made in pursuance of such contracts or arrangements have been made at prices which are reasonable having regard to the prevailing market price at the relevant time.

VI The Company has not accepted any deposit from the public.

VII In our opinion, the Company has an internal audit system commensurate with the size and nature of its business.

VIM The Central Government has prescribed maintenance of cost records under Section 209(1) (d) of the Companies Act, 1956 for manufacture of Automotive Parts and Accessories. On the basis of the records produced, we are of the opinion that, prima facie, the cost records and accounts prescribed by the Central Government of India under Section 209(1) (d) of the Companies Act, 1956 have been made and maintained.

IX a. The Company is regular in depositing with appropriate authorities undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Employees State Insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax, Customs Duty, Excise Duty, Cess and other statutory dues applicable to it. There are no arrears of undisputed outstanding statutory dues as at 31* March 2010 for a period of more than six months from the date they become payable.

b. According to the information and explanations given to us, there are no disputed amounts that remain unpaid in respect of Wealth tax, Sales Tax, Customs Duty, Excise Duty, Cess and Service tax as at 31st March 2010. However, in respect of Income Tax, the disputed amounts that remain unpaid are disclosed hereunder:

FinancialYear AssessmentYear Disputied amount unpaid Rs in Lakhs) Appeal Pending with

1996-1997 1997-1998 2.46 CIT (Appeals) 1998-1999 1999-2000 38.00 CIT (Appeals) 1999-2000 2000-2001 11.36 CIT (Appeals) 2000-2001 2001-2002 4.75 CIT (Appeals) 2002-2003 2003-2004 6.05 CIT (Appeals) 2003-2004 2004-2005 41.98 CIT (Appeals) 2004-2005 2005-2006 3.73 CIT (Appeals) 2005-2006 2006-2007 5.03 CIT (Appeals)

TOTAL 113.36

X The Company has no accumulated losses. The Company has also not incurred cash losses during this financial year and in the immediately preceding financial year.

XI The Company has not defaulted in repayment of loans availed from banks. The Company has no borrowings from financial institutions and has not issued debentures.

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

XIII The provisions of special statute applicable to chit funds / nidhi / mutual benefit funds / society do not apply to the Company.

XIV The Company has made certain investments in shares and mutual funds. Proper investment records have been maintained by the Company. Transactions have been regularly updated as and when taken place. All investments of the Company are held in its own name.

XV The Company has not given any guarantee for loans taken by others from bank or financial institutions.

XVI Loan availed from a bank has been utilized towards the intended purpose.

XVII According to the information and explanations given to us and on an overall review of utilization of funds, we observed that no short-term funds have been used for long-term investments.

XVIII During the year, the Company has not made any preferential allotment of shares to parties and companies covered in the Register maintained under Section 301 of the Companies Act, 1956.

XIX During the year, the Company has not raised any money by public issue.

XX According to the information and explanations given to us, no fraud on or by the Company has been noticed or reported.

For R G N Price & Co., Chartered Accountants Firm Regn. No. 002785S

Mahesh Krishnan Chennai Partner 27.05.2010 Membership No. 206520

 
Subscribe now to get personal finance updates in your inbox!