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Auditor Report of Iykot Hitech Toolroom Ltd.

Mar 31, 2014

We have audited the accompanying financial statements of IYKOT HITECH TOOLROOM LIMITED (the Company) which comprises of 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 notes.

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 subsection (3C) of section 211 of the Companies Act, 1956 (the Act) read with the General Circular 15/2013dated 13th September 2013 of the Ministry of Corporate affairs in respect of section 133 of the Companies Act 2013 and General Circular 08/2014 dated 4th April 2014 with respect to the financial statements and in accordance with the accounting principles generally accepted in India. This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error

Auditors'' Responsibility

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

An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statements. The procedures selected depend on the auditors'' judgement 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 the accounting policies used and the reasonableness of the accounting estimates made by Management, as well as evaluating the overall presentation of the financial statements.

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

Opinion

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India

a) in the Case of the Balance Sheet of the State of affairs as at 31st March 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 in terms of Section 227 (4A) of the Companies Act,2013, we give in the Annexure a statement on the matters specified in paragraphs 4 and 5 of 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 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, the Statement of Profit and Loss and the Cash flow statement dealt with by this report are in agreement with the books of account

d) In our opinion, the Balance Sheet, the Statement of the Profit and Loss and the Cash Flow Statement dealt with by this report comply with the Accounting Standards referred to in subsection (3C) of section 211 of the Companies Act, 1956 read with General Circular15/2013 dated 13th September 2013 of the Ministry of Corporate affairs in respect of section 133 of the Companies Act 2013 except non provision of gratuity and leave encashment to employees.

e) On the basis of written representations received from the Directors as at 31st March 2014 taken on record by the Board of Directors , none of the Directors is disqualified as at 31st March 2014 from being appointed as a Director in terms of Section 274 (1) (g) of the Act on the said Date.

Annexure to the Independent Auditor''s Report Referred to in paragraph I under other Legal and Regulatory requirements of our report of even dated

i) In respect of its fixed assets,

a) The company has maintained proper records showing full particulars including quantitative details and situation of fixed assets

b) The fixed assets were physically verified by the management once in a year, which in our opinion, provides for physical verification of all the fixed assets. According to the information and explanation given to us, no materials discrepancies were noticed on such verification.

c) The fixed assets disposed during the year, in our opinion, do not constitute a substantial part of the fixed assets of the company and such disposal has, in our opinion not affected the going concern status of the company.

ii) In respect of inventory,

a) As explained to us, the inventories of finished goods and semi finished goods and raw materials and factory and depot were physically verified during the year by the management. In our opinion, having regard to the nature and location of the stocks, the frequency of verification is reasonable.

b) In our opinion and according to the information and explanation given to us, the procedures of physical verification of inventories followed by the management were reasonable and adequate in relation to the size of the company and the nature of the business.

c) In our opinion and according to the information and explanations given to us, the company has maintained proper records of inventories and no material discrepancies were noticed on physical verification.

iii) The Company has not granted any loan, secured or unsecured, to companies / firms or other parties covered in the register maintained under section 301 of the Companies Act, 1956.

iv) In respect of loans secured or unsecured taken by the companies/ firms /parties covered in the register maintained under section 301 of the Companies Act, 1956, according to the information and explanations given to us,

a) No. of Parties 2

Amount outstanding as

at 31.03.2014 Rs 4485000/-

Maximum outstanding

involved during the year Rs 4485874/-

b) the rate of interest and other terms and conditions of loans, in our opinion, prima facie not prejudicial to the interests of the company.

c) The payments of principal and interests amount have been regular and as per stipulations.

d) There are no overdue amounts outstanding at the Balance Sheet date.

v) In our opinion and according to the information and explanations given to us, there is an adequate internal control system commensurate with the size of the company and the nature of its business for the purchase of inventory, and fixed assets and for sale of goods and services. During the course of our audit, we have not observed any major weakness in such internal control system.

vi) In respect of the contracts of arrangements referred to in Section 301 of the Companies Act, 1956:

a. In our opinion and according to the information and explanations given to us, there are transactions made in pursuance of contracts or arrangements that need to be entered in the register maintained under Section 301 of the Companies Act, 1956 have been so entered.

b. In our opinion and according to the information and explanations given to us, there are transactions made in pursuance of contracts/arrangements entered in the Register maintained under section 301 of the Companies Act, 1956 and exceeding the value of Rs.5,00,000 in respect of each party during the year is NIL.

vii) According to the information and explanations given to us, the Company has not accepted any deposit from the public. Therefore, the provisions of Clause (vi) of paragraph 4 of the Order are not applicable to the Company.

viii) In our opinion, the Company has no internal audit system though the paid up capital and free reserves of the company has exceeded Rs 50 lakh and the average annual turnover has exceeded Rs 5 crores for a period of three consecutive financial years immediately preceding the financial year concerned under paragraph 4(vii) of the order. commensurate with the size and nature of its business.

ix) We have been informed by the company that the Central Government has not prescribed the maintenance of cost records under Section 209 (1)(d) of the Companies Act, 1956 and the rules made there under.

x) In respect of statutory dues:

a. According to the records of the Company, undisputed statutory dues including Provident Fund, Employees'' State Insurance, Income-Tax, Sales Tax, Service Tax, Customs Duty, Excise Duty, Cess, and other statutory dues have been generally regularly deposited with the appropriate authorities.

b. According to the information and explanations given to us, no undisputed amounts payable in respect o the aforesaid dues were outstanding as at March 31,2014 for a period of more than six months form the date of becoming payable is NIL.

xi) The Company does have accumulated losses at the end of the financial year of Rs. 4327748.44/-. The Company has not incurred cash loss during the financial year covered by the audit and also has not incurred cash loss in the immediate preceding financial year.

xii) Based on our audit procedures and according to the information and explanations given to us, we are of the opinion that the Company has not defaulted in repayment of dues to banks.

xiii) In our opinion and according to the explanations given to us and based on the information available, no loans and advances have been granted by the Company on the basis of security by way of pledge of shares, debentures and other securities.

xiv) In our opinion, the company is not a chit fund / nidhi / mutual benefit fund/society. Therefore, the provisions of clause (xiii) of paragraph 4 of the Order are not applicable to the Company.

xv) The Company has not dealing or trading in shares, securities, debentures and other investments and hence paragraph 4(xiii) of the other is not applicable. Therefore, the provisions of clause (xiv) of paragraph 4 of the Order are not applicable to the Company.

xvi) The Company has not given guarantees for loans taken by others from banks and financial institutions. Therefore, the provisions of clause (XV) of paragraph 4 of the Order are not applicable to the Company.

xvii) The Company has raised new terms loan of Rs 699000/- during the year. The term loans outstanding at the beginning of the year and those raised during the year have been applied for the purposes for which they are raised.

xviii) According to the information and explanations given to us and on an overall examination of the Balance Sheet of the Company, we are of the opinion that there are no funds raised on short term basis that have been used for long term investment.

xix) 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) The Company has not raised any debentures. Therefore, the provisions of clause (XiX) of paragraph 4 of the Order are not applicable to the Company.

xxi) The Company has not raised any monies by way of public issues during the year and hence paragraph 4(XX) of the order is not applicable to this company.

xxii) In our opinion and according to the information and explanations given to us, no material fraud on or by the Company has been noticed or reported during the year.

For Ramadoss & Co. Chartered Accountants Firm Regn No. 002879S

Place : Chennai K. Ramadoss Partner Date : 30.05.2014 Membership No.019176


Mar 31, 2012

1. We have audited the attached Balance Sheet of IYKOT HITECH TOOLROOM LIMITED as at March 31st 2012, the statement of Profit and Loss and the Cash Flow Statement for the year ended on that date annexed thereto which we have signed under reference to this report. 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 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 of our opinion.

3. As required by the companies (Auditor's Report) Order, 2003 issued by the Central Government of India in terms of sub-section (4A) of Section 227 of the Companies Act, 1956, we enclose in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the said Order.

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

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

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 are in compliance with the accounting standards referred to in sub-section (3C) of Section 211 of the Companies Act, 1956:

e) On the basis of written representations received from the Directors as on March 31st 2012 and taken on record by the Board of Directors is disqualified as on March 31st 2012 from being appointed as a director in terms of clause (g) of sub- section (1) of Section 274 of the Companies Act, 1956:

f) In our opinion and to the best of our information and according to the explanations given to us, the said accounts read together with the 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 Balance Sheet, of the state of affairs of the Company as at March 31 st 201 2.

ii) In the case of the statement of Profit and Loss, of the profit for the year ended on that date; and

iii) In the case of the Cash Flow statement, of the cash flows for the year ended on that date.

ANNEXURE REFERRED TO IN PARAGRAPH 4 OF THE AUDITOR'S REPORT TO THE MEMBERS OF IYKOT HITECH TOOLROOM LTD (THE COMPANY) FOR THE YEAR ENDED 31s1 MARCH 2012.

1. In respect of its fixed assets:

a) The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets on the basis of available information.

b) As explained to us, all the fixed assets have been physically verified by the management in a phased periodical manner, which in our opinion is reasonable having regard to the size of the Company and nature of its assets. No material discrepancies were noticed onsuch physical verification.

c) In our opinion, the Company has not disposed off a substantial part of its fixed assets during the year and the going concern status of the Company is not affected.

2. In respect of its inventories:

a) The inventories have been physically verified during the year by the management. In our opinion, the frequency of verification reasonable.

b) In our opinion and according to the information and explanations given to us, the procedures of physical verification of inventories followed by the management are reasonable and adequate in relation to the size of the Company and the nature of its business.

c) The Company has maintained proper records of inventories. As explained to us, there were no material discrepancies noticed on physical verification of inventories as compared to the book records.

3. In respect of the loans, secured or unsecured, granted or taken by the Company to / from companies, firms or other parties covered in the register maintained under Section 301 of the Companies Act, 1956.

a) The Company has not granted any loans to companies, firms or other parties covered in the register maintained under section 301 of the Companies Act, 1956.

b) The Company has taken loan during the year from Companies, firms or other parties covered in the register maintained under section 301 of the Companies Act, 1956.

i) No. of Parties 4 Total amount! outstanding / Rs.572291 1.51 Maximum amountl outstanding / Rs.5752356.51 Amount involved Rs.5752356.51

ii) In our opinion, the interest and other terms and conditions of loan are prima facie not prejudicial to the interest of the Company.

iii) There are no amounts which have been over due as at the year end.

4. In our opinion and according to the information and explanations given to us, there is an adequate internal control system commensurate with the size of the Company and the nature of its business for the purchases of inventory and 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. In respect of the contracts of arrangements referred to in Section 301 of the Companies Act, 1956:

a) In our opinion and according to the information and explanations given to us, there are transactions made in pursuance of contracts or arrangements that need to be entered in the register maintained under Section 301 of the Companies Act, 1956 have been so entered.

b) In our opinion and according to the information and explanations given to us, there are transactions made in pursuance of contracts / arrangements entered in the Register maintained under section 301 of the Companies Act, 1956 and exceeding the value of Rs.500000/- in respect of each parly during the year is NIL

6. According to the information and explanations given to us, the Company has not accepted any deposit from the Public. Therefore, the provisions of Clause (vi) of paragraph 4 of the Order are not applicable to the Company.

7. In our opinion, the Company has no internal audit system commensurate with the size and nature of its business.

8. We have been informed by the Company that the Central Government has not prescribed the maintenance of cost records under Section 209 (1) (d) of the Companies Act, 1956 and the rules made there under.

9. In respect of statutory dues:

a) According to the records of the Company, undisputed statutory dues including Provident Fund, Employees's State Insurance, Income Tax, Sales Tax, Service Tax, Customs Duty, Cess, and other statutory dues have been generally regularly deposited with the appropriate authorities. According to the information and explanations given to us, no undisputed amounts payable in respect of the aforesaid dues were outstanding as at March 31, 2012 for a period of more than six months from the date of becoming payable is NIL.

10. The Company does have accumulated losses at the end of the financial year of Rs.2477268/-. The Company has not incurred cash losses during the financial year covered by the audit and also in the immediate proceeding financial year.

11. Based on our audit procedures and according to the information and explanations given to us, we are of the opinion that the Company has not defaulted in repayment of dues to banks.

12. In our opinion and according to the explanations given to us and based on the information available, no loans and advances have been granted by the Company on the basis of security by way of pledge of shared, debentures and other securities.

13. In our opinion, the Company is not a chit fund / nithi / mutual benefit fund / society. Therefore, the provisions of Clause (xiii) of paragraph 4 of the Order are not applicable to the Company.

14. The Company has not dealing or trading in shares, securities, debentures and other investments and hence paragraph 4 (xiii) of the other is not applicable. Therefore, the provisions of Clause (xiv) of paragraph 4 of the Order are not applicable to the Company.

15. The Company has not given guarantees for loans taken by others from banks and financial institutions. Therefore the provisions of Clause (XV) of paragraph 4 of the Order are not applicable to the Company.

16. The Company has not raised new term loan during the year. The term loan outstanding at the beginning of the year have been applied for the purposes for which they are raised.

17. According to the information and explanations given to us and on an overall examination of the Balance Sheet of the ompany, we are of the opinion that there are no funds raised on short term basis that have been used for long term investment.

18. The Company has not made any preferential allotment of shares to parties and companies covered in the register maintained under section 301 of the Companies Act, 1956.

19. The Company has not raised any debentures. Therefore, the provisions of Clause (xix) of paragraph 4 of the Order are not applicable to the Company.

20. The Company has not raised any monies by way of Public issues during the year and hence paragraph 4 (xx) of the Order is not applicable to this Company.

21. In our opinion and according to the information and explanations given to us, no material fraud on or by the Company ahs been noticed or reported during the year.

For Ramadoss & Co, Chartered' Accountants Firm Regn No.002879S

(K. Ramadoss)

Place : Chennai Partner

Dated: 31.05.2012 Membership No. 019176

 
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