Mar 31, 2014
We have audited the accompanying financial statements of M/s. Kavveri
Telecom Products 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 notified under the Companies Act, 1956 ("the
Act") read with the General Circular 15/2013 dated 13th September 2013
of the Ministry of Corporate Affairs in respect of section 133 of the
Companies Act, 2013. This responsibility includes the design,
implementation and maintenance of internal control relevant to the
preparation and presentation of the financial statements that give a
true and fair view and are free from material misstatement, whether due
to fraud or error.
Auditor''s Responsibility:
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error.
In making those risk assessments, the auditor considers internal
control relevant to the Company''s preparation and fair presentation of
the financial statements in order to design audit procedures that are
appropriate in the circumstances but not for the purpose of expressing
an opinion on the effectiveness of the entity''s internal control. An
audit also includes evaluating the appropriateness of accounting
policies used and the reasonableness of the accounting estimates made
by management, as well as evaluating the overall presentation of the
financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion:
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
(a) In the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2014;
(b) In the case of the statement of Profit and Loss Account, of the
loss for the year ended on that date; and
(c) In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements:
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A)of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b) In our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books,
c) The Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books
of account, -
d) In our opinion, the Balance Sheet, Statement of Profit and Loss, and
Cash Flow Statement comply with the Accounting Standards notified under
the Companies Act, 1956 ("the Act") read with the General Circular
15/2013 dated 13th September 2013 of the Ministry of Corporate Affairs
in respect of section 133 of the Companies Act, 2013;
e) On the basis of written representations received from the directors
as on March 31, 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31/2014, from .
being appointed as a director in terms of clause (g) of sub-section (1)
of section 274 of the Companies Act, 1956.
ANNEXURE TO THE AUDITORS'' REPORT
I. (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of Fixed
Assets.
(b) As explained to us, the fixed assets have been physically verified
by the management at reasonable intervals and no material discrepancies
between the book records and the physical inventory have been noticed
on such verification.
(c) The Company has not disposed off substantial part of the Fixed
Assets during the year.
II. (a) The Inventory has been physically verified during the year by
the Management and in our opinion, the frequency of verification is
reasonable.
(b) In our opinion, the procedures of the physical verification of
inventory followed by the Management are reasonable and adequate in
relation to the size of the Company and the nature of its business.
(c) The Company is maintaining proper records of inventory and as
explained to us, no material discrepancies were noticed on physical verification of stocks as compared to book records.
III. (a) According to the information and explanations given to us the
company has made an advance of to the parties covered in the register maintained under section 301 of the Companies Act, 1956 and the year-
end balance of loans granted to such parties is Rs. 4.45 crores.
(b) As per the information given to us, rate of interest & other terms
and conditions on which loans have been granted to parties listed in
the register maintained under Section 301 are not prejudicial to the
interests of the Company.
(c) In respect of loans granted, repayment of principal amount is as
stipulated and payment of interest is regular.
(d) There is no overdue amount of loans granted to Companies, Firms and
other parties listed in the register U/S 301 of the Companies Act, 1956.
(e) The Company has taken unsecured loans from Parties covered in the
register maintained U/s.301 of the Companies Act, 1956 and the amount
outstanding at the yearend an amounting to Rs. 16.405 Crores.
(f) The rate of interest and other terms and conditions on which loans
have been taken from parties listed in the register maintained under
section 301 is not-prejudicial to the interest of company.
(g) The payment of principal & interest are in accordance with the
terms and conditions of such loans.
IV. In our opinion and according to the information and explanations
given to us, there are generally adequate internal control systems
commensurate with the size of the company and the nature of its
business with regard to purchase of inventory and fixed assets and for
sale of goods and services. There is no continuing failure by the
company to correct any major weaknesses in internal control.
V. (a) In our opinion and according to the information and explanation
given to us , the transactions made in pursuance of contracts or
arrangements referred to in section 301 of the Companies Act, 1956 have
been entered in the register required to be maintained U/s.301 of the
Companies Act, 1956.
(b) According to the information and explanations 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
and exceeding the value of rupees five lakhs in respect of any party
during the year have been made at the prices which are reasonable
having regard to prevailing market prices at the relevant time except
that reasonableness could not be ascertained where comparable
quotations are not available having regard to the specialized nature of
some of the transactions of the Company.
VI. The Company has not accepted any deposits from the public and hence
the applicability of the clause of directives issued by the Reserve
Bank of India and provisions of section 58A, 58AA or any other
relevant provisions of the Act and the rules framed there under does
not arise
VII. In our opinion, the company is having internal audit system,
commensurate with its size and nature of its business.
VIII. We have broadly verified the books of account and records
maintained by the Company pursuant to the order made by the Central
Government for the maintenance of cost records under section 209(1)(d)
of the Companies act, 1956 and are of the opinion that prima facie the prescribed accounts and records have been made and maintained.
IX. (a) The Company is generally regular in depositing statutory dues
including PF, ESI, TDS, Professional Tax with the appropriate
authorities except in few cases where there was a delay in remitting
the statutory dues and at the end of financial year there were no
amounts outstanding which were due for more than 6 months from the date
they became payable.
(b) According to the information and explanations given to us, there
are no dues of Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise
Duty and Cess which have fallen due on before 31st March 2014 and not
been deposited with appropriate authorities on account of any dispute
except for the following:
Name of Nature of Dues Amount Period to
Statute Rs. In. which amount
Lakhs) relates
Central Excise A ailment of Cenvat 5424.26 February 2007
credit ( Including to 2009
penalty)
Forum where
Name of the statue dispute is pending
Central ExciseCESTAT Bangalore
However, the authorities have granted stay for the above, on
payment of Rs. 2.00 crores within specific period which has
been already paid.
Central Excise Irregular aviliment of 33.2 2010-2011
Cenvat Credit
(Including penalty)
Central Excise Irregular aviliment of 1.27 2012-2013
(Including penalty)
Central Excise Irregular aviliment of 2.58 2007-2008
Cenvat Credit
(Including - penalty)
Central Excise Irregular aviliment of 10.36 2007-2008 &
CenvatCredit 2008-2009
(Including penalty)
Sales Tax Rate of tax levied 44.37 2007-08 to
2009-10
Sales Tax Sales Tax, Penalty 497.46 2006-2007
and Interest
Sales Tax Sales tax, 13.29 2007-2008
Interest
Income Tax Net Tax Payable 10,379.12 01.04.2004 to
31.03.2011''
Central Excise Commissioner of customs and central excise
(Appeals) Bangalore
Central Excise CESTAT Bangalore
Central Excise Commissioner of customs and central excise
(Appeal Bangalore
Central Excise CESTAT Bangalore
Sales Tax Joint Commissioner of commercial taxes (Appeals)
Bangalore Joint Commissioner of Commercial Tax
(Appeal)
Sales Tax Joint Commissioner of Commercial Tax
(Appeal)
income tax Commissioner of Income Tax
Appeals -1, Bangalore
X. The Company has been registered for a period of not less than 5
years, and the company has no accumulated losses at the end of the
financial year and the company has incurred cash losses in this
financial year and in the immediately preceding financial year.
XI. According to information and explanations given to us, the company
has defaulted in repayment of cash credit and term loan to bank an
amount of Rs. 96.85 crores which includes outstanding interest.
XII. According to the information and explanations given to us, the
Company has not granted any loans or advances on the basis of security
by way of pledge of shares, debentures and other securities and hence
the applicability of the clause regarding maintenance of adequate
documents in respect of loans does not arise.
XIII. This clause is not applicable to this Company as the Company is
not covered by the provisions of special statute applicable to Chit
Fund in respect of Nidhi/Mutual Benefit Fund/Societies.
XIV. According to the information and explanations given to us, the
company is not dealing or trading in shares, securities, Debentures
and other investments and hence the provisions of clause 4(xiv) of
the Companies (Auditor''s Report) Order 2003, are not applicable to
the Company.
XV. According to the information and explanations given to us, the
Company has given guarantee for loans taken from banks by a subsidiary
Company and prima facie, the terms and conditions on which such
guarantee have been given are not prejudicial to the interests of the
company.
XVI. According to the information and explanations given to us, the
Term Loans obtained by the company were applied for the purpose for
which such loans were obtained by the Company.
XVII. On the basis of our examination of the books & accounts and
according to the information and explanations given to us, in our
opinion the funds raised on short term basis have not been used for
Long term investment.
XVIII. According to the information and explanations 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 and hence the applicability of the clause
regarding the price at which shares have been issued and whether the
same is prejudicial to the interest of the Company does not arise.
XIX. According to the information and explanations given to us, the
company does not have any debentures and hence the applicability of the
clause regarding the creation of security or charge in respect of
debentures issued does not arise.
XX. According to information and explanations given to us, the company
has not raised money by way of public issues during the year; hence the
clause regarding the disclosure by the management on the end use of
money raised by public issue is not applicable.
XXI. According to the information and explanations given to us, no
fraud on or by the Company has been noticed or reported during the
year under audit.
For P. Murali & Co.,
Chartered Accountants
Firm''s Registration Number: 007257S ¦
P. Murali Mohana Rao -
Partner
Membership Number: 023412
Place: Hyderabad -
Date: 30-05-2014
Mar 31, 2013
Report on the Financial Statements:
We have audited the accompanying financial statements of Kavveri
Telecom Products 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 theyear then ended, and a summary of
significant accounting policies and otherexplanatory information.
Management''s Responsibility for the Financial Statements:
Management is responsible for the preparation of these financial
statementsthat give a true and fair view of the financial position,
financial performance andcash flows of the Company in accordance with
the Accounting Standardsreferred to in sub-section (3C) of section 211
of the Companies Act, 1956 ("theAct"). This responsibility includes the
design, implementation and maintenanceof internal control relevant to
the preparation and presentation of the financialstatements that give a
true and fair view and are free from materialmisstatement, whether due
to fraud or error.
Auditor''s Responsibility:
i Our responsibility is to express an opinion on these financial
statements basedon our audit. We conducted our audit in accordance with
the Standards onAuditing issued by the Institute of Chartered
Accountants of India. ThoseStandards require that we comply with
ethical requirements and plan andperform the audit to obtain reasonable
assurance about whether the financialstatements are free from material
misstatement.
An audit involves performing procedures to obtain audit evidence about
theamounts and disclosures in the financial statements. The procedures
selecteddepend 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 relevantto the Company''s preparation and fair presentation of
the. financial statements inorder to design audit procedures that are
appropriate in the circumstances. Anaudit also includes evaluating the
appropriateness of accounting policies usedand the reasonableness of
the accounting estimates made by management, aswell 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
theexplanations given to us, the financial statements give the
information requiredby 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 asat March 31,2013;
(b) In the case of the Profit and Loss Account, 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
("theOrder") 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 mattersspecif ied in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
a) We have obtained all the information and explanations which to the
best ofour 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
keptby the Company so far as appears from our examination of those
books,
c) The Balance Sheet, Statement of Profit and Loss, and Cash
FlowStatement 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
CashFlow Statement comply with the Accounting Standards referred to in
subsection(3C) of section 211 of the Companies Act, 1956;
e) On the basis of written representations received from the directors
as onMarch 31,2013, and taken on record by the Board of Directors, none
ofthe directors is disqualified as on March 31,2013, from being
appointedas a director in terms of clause (g) of sub-section (1) of
section 274 of theCompanies Act, 1956.
ANNEXURE TO THE AUDITORS''REPORT
I. (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of Fixed
Assets.
(b) As explained to us, the fixed assets have been physically verified
by the management at reasonable intervals and no material discrepancies
between the book records and the physical inventory have been noticed
on such verification.
(c) The Company has not disposed off substantial part of the Fixed
Assets during the year.
II. (a)The Inventory has been physically verified during the year by
the Management and in our opinion, the frequency of verification is
reasonable.
(b) In our opinion, the procedures of the physical verification of
inventory followed by the Management are reasonable and adequate in
relation to the size of the Company and the nature of its business.
(c)The Company is maintaining proper records of inventory and as
explained to us, no material discrepancies were noticed on physical
verification of stocks as compared to book records.
III. (a) According to the information and explanations given to us the
company has made ah advance of Rs.8,53,50,050/-to the parties covered
in the register maintained under section 301 of the Companies Act,
1956and the year-end balance of loans granted to such parties is Rs.
53,50,050/ -
(b) As per the information given to us, rate of interest & other terms
and conditions on which loans have been granted to parties listed in
the register maintained under Section 301 are not prejudicial to the
interests of theCompany.
(c) In respect of loans granted, repayment of principal amount is as
stipulated and payment of interest is regular.
(d) There is no overdue amount of loans granted to Companies, Firms and
other parties listed in the register U/S 301 of the Companies Act,
1956.
(e) The Company has taken unsecured loans from Parties covered in the
register maintained U/s.301 of the Companies Act, 1956 amounting to Rs.
17.63 Crores.
(f) The rate of interest and other terms and conditions on which loans
have been taken from parties listed in the register maintained under
section 301 is not prejudicial to the interest of company.
(g) The payment of principal & interest are in accordance with the
terms and conditions of such loans.
IV. In our opinion and according to the information and explanations
given to us, there are generally adequate internal control systems
commensurate with the size of the company and the nature of its
business with regard to purchase of inventory and fixed assets and for
sale of goods and services. There is no continuing failure by the
company to correct any major weaknesses in internal control.
V. (a)In our opinion and according to the information and explanation
given to us , the transactions made in pursuance of contracts or
arrangements referred to in section 301 of the Companies Act, 1956 have
been entered in the register required to be maintained U/ s.301 of the
Companies Act, 1956. (b) According to the information and explanations
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 and exceeding the value of rupees five lakhs in
respect of any party during the year have been made at the prices which
are reasonable having regard to prevailing market prices at the
relevant time except that reasonableness could not be ascertained where
comparable quotations are not available having regard to the
specialized nature of some of the transactions of the Company.
VI. The Company has not accepted any deposits from the public and
hence the applicability of the clause of directives issued by the
Reserve Bank of India and provisions of section 58A, 58AA or any other
relevant provisions of the Act and the rules framed there under does
not arise
VII. In our opinion, the company is having internal audit system,
commensurate with its size and nature of its business.
VIII. We have broadly verified the books of account and records
maintained by the Company pursuant to the order made by the Central
Government for the maintenance of cost records under section 209(1) (d)
of the Companies act,1956 and are of the opinion that prima facie the
prescribed accounts and records have been made and maintained
IX. (a)The Company is generally regular in depositing statutory dues
including PF, ESI, Income Tax, Cess, and any other statutory dues with
the appropriate authorities except in few cases where there was a delay
in remitting the statutory dues and at the end of last financial year
there were no amounts outstanding which were due for more than 6 months
from the date they became payable. (b) According to the information
and explanations given to us, there are no dues of Sales Tax, Wealth
Tax, Service Tax, Custom Duty, Excise Duty and Cess which have fallen
due on before 31st March 2013 and not been deposited with appropriate
authorities on account of any dispute except for the following:
Name of Nature of Dues Amount
Statute Rs. In
Lakhs)
Central Excise A ailment of cenvat 5424.26
credit ( Including
penalty)
However, the authorities have granted stay of the al within
specific period.
Central Excise Irregular aviliment 33.2
of Cenvat Credit(
Including penalty)
Sales Tax Rate of tax levied 44.37
Income Tax Net Tax Payable 4078.955
Name of Statute Period to which Forum where
amount relates dispute is
pending
Central Excise February 2007 CESTAT
to 2009 Bangalore
we, on payment of Rs. 2.15 crores
Central Excise 2010-2011 Commissioner
of customs and
central excise
(Appeals) Bangalore
Sales Tax 2007-08 to 2009- Joint
10 Commissioner
of commercial
taxes ( Appeals)
Bangalore
Income Tax 01.04.2004 to Commissioner
31.03.2010 of Income Tax
Appeals - 1,
Bangalore
X. The Company has been registered for a period of not less than 5
years, and the company has no accumulated losses at the end of the
financial year and the company has incurred cash losses in this
financial year and there were no cash losses in the immediately
preceding financial year.
XI. According to information and explanations given to us, the company
has defaulted in repayment of cash credit and term loan to bank an
amount of Rs. 96.85 crores which includes outstanding interest.
XII. According to the information and explanations given to us, the
Company has not grar ed any loans or advances on the basis of security
by way of pledge of shares, debentures and other securities and hence
the applicability of the clause regarding maintenance of adequate
documents in respect of loans does not arise.
XIII. This clause is not applicable to this Company as the Company is
not covered by the provisions of special statute applicable to Chit
Fund in respect of Nidhi/Mutual Benefit Fund/Societies.
XIV. According to the information and explanations given to us, the
company is not dealing or trading in shares, securities, Debentures and
other investments and hence the provisions of clause 4(xiv) of the
Companies (Auditor''s Report) Order 2003, are not applicable to the
Company.
XV. According to the information and explanations given to us, the
Company has given guarantee for loans taken from banks by a subsidiary
Company and prima facie, the terms and conditions on which such
guarantee have been given are not prejudicial to the interests of the
company.
XVI. According to the information and explanations given to us, the
Term Loans obtained by the company were applied for the purpose for
which such loans were obtained by the Company.
XVII. On the basis of our examination of the books & accounts and
according to the information and explanations given to us, in our
opinion the funds raised on short term basis have not been used for
Long term investment.
XVIII. According to the information and explanations 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 and hence the applicability of the clause
regarding the price at which shares have been issued and whether the
same is prejudicial to the interest of the Company does not arise.
XIX. According to the information and explanations given to us, the
company does not have any debentures and hence the applicability of the
clause regarding the creation of security or charge in respect of
debentures issued does not arise.
XX. According to information and explanations given to us, the company
has not raised money by way of public issues during the year; hence the
clause regarding the disclosure by the management on the end use of
money raised by public issue is not applicable.
XXI. According to the information and explanations given to us, no
fraud on or by the Company has been noticed or reported during the year
under audit.
For P.MURALI & CO.,
CHARTERED ACCOUNTANTS
FRN:007257S
PLACE : HYDERABAD P. Murali Mohana Rao
DATE : 30-05-2013 Partner
M.No. 023412
Mar 31, 2012
1. We have audited the attached Balance Sheet of M/s Kavveri Telecom
Products Limited as at 31st March, 2012, the Profit and Loss Account
and also the 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.
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 (as
amended) issued by 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 comments in the Annexure referred to above, we report
that:
a. We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
b. In our opinion, proper books of accounts 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 and returns;
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 to the extent applicable.
e. On the basis of written representations received from the
Directors, as on March 31, 2012 and taken on record by the Board of
Directors, we report that none of the Directors is disqualified as on
31st March, 2012 from being appointed as a director in terms of clause
(g) of sub-section (1) of Section 274 of the Companies Act,1956; and
f. In our opinion and to the best of our information and according to
the explanations given to us, the said accounts, give the information
required by the Companies Act,1956, in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India;
I) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March,2012;
ii) in the case of the Statement of Profit and Loss, of the Profit of
the Company for the year ended on that date; and
iii) in the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
ANNEXURE TO AUDITOR'S REPORT OF M/s KAVVERI TELECOM PRODUCTS LIMITED
Referred to in Paragraph 3 of our report of even date
1. a. The company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
b. The Company has a regular programme of physical verification of
fixed assets which, in our opinion, is reasonable having regard to the
size of the Company and the nature of its assets. In accordance with
this programme, certain fixed assets were physically verified by the
management during the year and we are informed that no material
discrepancies were noticed on such verification.
c. In our opinion, there was no substantial disposal of fixed assets
by the Company during the year.
2. a. The management has conducted physical verification of inventory
at reasonable intervals during the year.
b. In our opinion, the procedures of physical verification of
inventory 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 inventory and as
explained to us, no material discrepancies were noticed on physical
verification of inventory as compared to the book records.
3. a. As informed, the Company has granted unsecured loan to five
companies covered in the register maintained under Section 301 of the
Companies Act, 1956. The maximum amount involved during the year was
Rs.1,135.14 Million and the year-end balance was Rs. 891.86 Million.
However, the Company has not granted any loan, secured or unsecured, to
firms or other parties covered in the register maintained under Section
301 of the Companies Act, 1956.
b. In our opinion and according to the information and explanations
given to us, the rate of interest and other terms and conditions on
which such loans have been granted are not prima facie prejudicial to
the interest of the Company.
c. The receipt of the principal amount and interest are in accordance
with the terms and conditions of such granted loan.
d. There are no overdue amounts due from such parties.
e. The company has not taken any loan secured/ unsecured from firms.
However in respect of unsecured loans taken from two parties and one
company covered in the register maintained under section 301 of the
Companies Act, 1956, the maximum amount involved was Rs. 48.25 Million
and the year-end balance was Rs.Nil.
f. In our opinion and according to the information and explanations
given to us, the rate of interest and other terms and conditions on
which such loans have been taken are not prima facie prejudicial to the
interest of the Company.
g. As the loans taken were repaid before the end of the year, the
clause relating to the repayment is not applicable.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control systems commensurate
with the size of the Company and nature of its business with regard to
the purchase of inventory, fixed assets and with regard to the sale of
goods and services. During the course of our audit, no major weakness
has been noticed in the internal control system in respect of these
areas.
5. a. In our opinion and according the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements referred to in Section 301 of the Companies Act, 1956,
have been entered in the register required to be maintained under
section 301 of the Companies Act, 1956.
b. In our opinion and according to the information and explanations
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 and exceeding value of rupees five lakhs in
respect of any party during the year have been made at prices which are
reasonable having regard to prevailing market prices at the relevant
time except that reasonableness could not be ascertained where
comparable quotations are not available having regard to the
specialized nature of some of the transactions of the Company.
6. The Company has not accepted any deposits from the public and hence
provisions of para (vi) of the said order (as amended) are not
applicable.
7. In our opinion, the Company has an internal audit system
commensurate with the size of the Company and nature of its business.
8. We have broadly reviewed the books of account relating to material,
labour and other items of cost maintained by the company, pursuant to
the Rules made by the Central Government for the maintenance of cost
records under Section 209 (1) (d) of the Companies Act, 1956, and we
are of the opinion that prima-facie the prescribed accounts and records
have been made and maintained. We have, however, not made a detailed
examination of the records with a view to determine whether they are
accurate or complete.
9. a. According to the information and explanations given to us and
books and records produced by the company and examined by us, in our
opinion, the undisputed statutory dues including Provident Fund,
Investor Education and Protection Fund, Employees' State Insurance,
Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess
wherever applicable and other material statutory dues have been
generally regularly deposited with the appropriate authorities. However
we have observed delays in remittance of Income Tax, Dividend Tax.
b. According to the information and explanations given to us, no
undisputed amounts payable in respect of Income Tax, Sales Tax, Wealth
Tax, Service Tax, Customs Duty, Excise Duty and cess were in arrears as
at 31st March 2012 for a period more than six months from the date they
became applicable.
c. According to the information and explanations given to us, there
are no dues of Income tax, Sales tax Wealth tax, Service tax, Customs
Duty, Excise duty, and cess which have fallen due on or before 31st
March 2012 and not been deposited with appropriate authorities on
account of any dispute except for the following:
Name of the Amount
(Rs. Period to
which Forum where
dispute is
Nature of dues
Statute in Lakhs) amount
relates pending
Availment of
cenvat credit February
2007 to
Central
Excise 5035.8 CESTAT Bangalore
(Including
Penalty) March 2009
However, the authorities have granted stay of the above, on payment of
Rs. 2 .15 crore within specific period.
Irregular
availment of Commissioner of
Customs
Central
Excise Cenvat Credit
(Including 33.2 2010-2011 and Central
Excise
Penalty) (Appeals)
Bangalore
2007 08 to Joint
Commissioner of
Sales Tax Rate of
tax levied 63.2 Commercial
2009-10 Taxes(Appeals)
Bangalore
Disallowance
of certain 01.04.2008 to Commissioner of
Income
Income Tax 514.1
claims and
deductions 31.03.2009 Tax Appeals-I
Bangalore
10. The company has no accumulated losses and has not incurred any
cash losses during the financial year covered by our audit and in the
immediately preceding financial year.
11. In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to
financial institutions or banks. The company has no debenture holders.
12. In our opinion and according to the information and explanations
given to us, the Company has not granted any loan or advance, on the
basis of security by way of pledge of shares, debentures and other
securities.
13. In our opinion, the Company is not a chit fund or a nidhi/mutual
benefit fund/society. Therefore the provisions of clause 4(xiii) of the
Companies (Auditor's Report) Order 2003 (as amended) are not applicable
to the Company.
14. In our opinion, the Company is not dealing in or trading in
shares, securities, debentures and other investments except those
investments, which are held as investments. Accordingly, the provisions
of clause 4(xiv) of the Companies (Auditor's Report) Order, 2003 (as
amended) are not applicable to the company.
15. According to the information and explanations given to us, the
Company has given guarantees for loans taken from banks by a subsidiary
company and prima facie, the terms and conditions on which such
guarantees have been extended are not prejudicial to the interest of
the Company.
16. According to the information and explanations given to us, term
loans availed by the Company were, prima facie, utilized by the company
for the purposes for which the loans were obtained.
17. According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the company, we report
that no funds raised on short-term basis have been used for long-term
investments.
18. During the year, the company has made preferential allotment of
shares to four parties covered in the register maintained under section
301 of the Companies Act, 1956 and in our opinion, the price at which
the shares have been issued is not prejudicial to the interest of the
Company.
19. During the year, the Company has not issued debentures and hence
the provisions of clause (xix) of para 4 of this order (as amended) are
not applicable.
20. The company has not raised any money by way of public issue during
the year and hence the provisions of clause (xx) of Para 4 of this
order (as amended) are not applicable.
21. During the course of our examination of the books of account
carried out in accordance with the generally accepted auditing practice
in India and according to the information and explanations given to us,
we have neither come across any instance of fraud on or by the company
noticed or reported during the year nor we have been informed of such
case by the management.
For S. Janardhan & Associates
Chartered Accountants
B. Anand
Partner
Membership No. : 29146
Firm Registration No:-005310S
Place: Bangalore,
Date: May 30, 2012
Mar 31, 2011
1. We have audited the attached Balance Sheet of Kaweri Telecom
Products Limited as at 31 st March, 2011, the Profit and Loss Account
and also the 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.
2. We conducted the 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
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditors Report) Order, 2003 (as
amended) issued by 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 comments in the Annexure referred to above, we report
that:
a. We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
b. In our opinion, proper books of accounts as required by law have
been kept by the Company, so far as appears from our examination of
those books;
c. The Balance Sheet, Profit and Loss Account and Cash Flow dealt with
by this report are in agreement with the books of account;
d. In our opinion, the Balance Sheet, Profit and Loss Account and Cash
Flow Statement dealt with by this report comply with the Accounting
Standards referred to in sub section (3C) of Section 211 of the
Companies Act, 1956.
e. On the basis of written representations received from the
Directors, as on March 31,2011 and taken on record by the Board of
Directors, we report that none of the Directors is disqualified as on
31st March, 2011 from being appointed as a director in terms of clause
(g) of sub-section (I) 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, give the information
required by the Companies Act, 1956, in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India;
i) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31 st March,2011;
ii) in the case of the Profit and Loss Account, 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 TO AUDITOR'S REPORT OF KAWERI TELECOM PRODUCTS LIMITED
Referred to in Paragraph 3 of our report of even date
1. a. The company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
b. The Company has a regular programme of physical verification of
fixed assets which, in our opinion, is reasonable having regard to the
size of the Company and the nature of its assets. In accordance with
this programme, certain fixed assets were physically verified by the
management during the year and we are informed that no material
discrepancies were noticed on such verification.
c. In our opinion,there was no substantial disposal of fixed assets by
the Company during the year.
2. a. The management has conducted physical verification of inventory
at reasonable intervals during the year.
b. In our opinion, the procedures of physical verification of
inventory 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 inventory and as
explained to us, no material discrepancies were noticed on physical
verification of inventory as compared to the book records.
3. a. As informed,the Company has granted unsecured loan to one
company covered in the register maintained under Section 301 of the
Companies Act, 1956 during earlier year. The maximum amount involved
during the year was Rs. 132.866 Million (Previous Year Rs. 122.25
Million) and the year-end balance was Rs. 110.76 Million (Previous Year
Rs. 111.41 Million). However, the Company has not granted any loan,
secured or unsecured, to firms or other parties covered in the register
maintained under Section 301 of the Companies Act, 1956.
b. In our opinion and according to the information and explanations
given to us, the rate of interest and other terms and conditions on
which such loan has been granted are not prima facie prejudicial to the
interest of the Company.
c. The receipt of the principal amount and interest are in accordance
with the terms and conditions of such granted loan.
d. There are no overdue amounts due from such party.
e. The company has not taken any loan secured/unsecured from
companies, firms or other parties covered in the register maintained
under section 301 of the Companies Act, 1956, except that the opening
balance of the loans accepted during earlier year were repaid during
the year and hence provisions of sub-clause (e) to (g) of clause (iii)
of the order are not applicable.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control systems commensurate
with the size of the Company and nature of its business with regard to
the purchase of inventory and fixed assets and with regard to the sale
of goods and services. During the course of our audit, no major
weakness has been noticed in the internal control system in respect of
these areas.
5. a. In our opinion and according the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements referred to in Section 301 of the Companies Act, 1956,
have been entered in the register required to be maintained under
section 301 of the Companies Act, 1956.
b. In our opinion and according to the information and explanations
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 and exceeding value of rupees five lakhs in
respect of any party during the year have been made at prices which are
reasonable having regard to prevailing market prices at the relevant
time except that reasonableness could not be ascertained where
comparable quotations are not available having regard to the
specialized nature of some of the transactions of the Company.
6. The Company has not accepted any deposits from the public and hence
provisions of para (vi) of the said order (as amended) are not
applicable.
7. In our opinion, the Company has an internal audit system
commensurate with the size of the Company and nature of its business.
8. As explained to us, the Central Government has not prescribed the
maintenance of Cost Records under Section 209( I )(d) of the Companies
Act, 1956.
9. a. According to the information and explanations given to us and
books and records produced by the company and examined by us, in our
opinion, the undisputed statutory dues including Provident Fund,
Investor Education and Protection Fund, Employees' State Insurance,
Sales Tax,Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess
wherever applicable and other material statutory dues have been
generally regularly deposited with the appropriate authorities. However
we have observed delays in remittance of IncomeTax, DividendTax.
b. According to the information and explanations given to us, no
undisputed amounts payable in respect of Income Tax, Sales Tax,Wealth
Tax, Service Tax, Customs Duty, Excise Duty and cess were in arrears as
at 31 st March 2011 for a period more than six months from the date
they became applicable.
c. According to the information and explanations given to us, there
are no dues of Income tax, Sales tax Wealth tax, Service tax, Customs
Duty, Excise duty, and cess which have not been deposited with
appropriate authorities on account of any dispute except for the
following: appropriate authorities on account of any dispute except for
the following:
Name of the Nature of Dues Amount Period to which Forum where
statute (Rs.in
Million) amount relates dispute is pending
Central
Excise Availment of 298.96 February 2007 to CESTAT Bangalore
cenvat credit April 2008
Sales Tax Kate of tax
levied 6.32 2007-08 to
2009-10 Commissioner of
Sales Tax appeals
Bangalore
10. The company has no accumulated losses and has not incurred any cash
losses during the financial year covered by our audit and in the
immediately preceding financial year.
11. In our opinion and according to the information and explanations
given to us,the Company has not defaulted in repayment of dues to
financial institutions or banks.The company has no debenture holders.
12. In our opinion and according to the information and explanations
given to us, the Company has not granted any loan or advance. on the
basis of security by way of pledge of shares, debentures and other
securities.
13. In our opinion, the Company is not a chit fund or a nidhi/mutual
benefit fund/society. Therefore the provisions of clause 4(xiii) of the
Companies (Auditor's Report) Order 2003 (as amended) are not applicable
to the Company.
14. In our opinion, the Company is not dealing in or trading in shares,
securities, debentures and other investments except those investments,
which are held as investments. Accordingly, the provisions of clause
4(xiv) of the Companies (Auditor's Report) Order, 2003 (as amended) are
not applicable to the company.
15. According to the information and explanations given to us, the
Company has given guarantees for loans taken from banks by a subsidiary
company and prima facie, the terms and conditions on which such
guarantees have been extended are not prejudicial to the interest of
the Company.
16. According to the information and explanations given to us, term
loans availed by the Company were, prima facie, utilized by the company
for the purposes for which the loans were obtained.
17. According to the information and explanations given to us and on an
overall examination of the Balance Sheet of the company, we report that
no funds raised on short-term basis have been used for long-term
investments.
18. During the year, the company has not made preferential allotment of
shares to parties covered in the register maintained under section 301
of the Companies Act, 1956 except in the case of three parties to whom
shares and convertible warrants have been allotted on a preferential
basis and in our opinion. the price at which the shares and convertible
warrants have been issued is not prejudicial to the interest of the
Company.
19. During the year, the Company has not issued debentures and hence
the provisions of clause (xix) of para 4 of this order (as amended) are
not applicable.
20. The company has not raised any money by way of public issue during
the year and hence the provisions of clause (xx) of Para 4 of this
order (as amended) are not applicable.
21. During the course of our examination of the books of account
carried out in accordance with the generally accepted auditing practice
in India and according to the information and explanations given to us,
we have neither come across any instance of fraud on or by the company
noticed or reported during the year nor we have been informed of such
case by the management.
For S.Janardhan & Associates
Chartered Accountants
B.Anand
Partner
Membership No.:29146
Firm Registration No:-00531 OS
Place: Bangalore,
Date: May 30,2011
Mar 31, 2010
1. We have audited the attached Balance Sheet of Kaweri Telecom
Products Limited as at 31 st March, 2010, the Profit and Loss Account
and also the 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.
2. We conducted the 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
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditors Report) Order, 2003 (as
amended) issued by 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 comments in the Annexure referred to above, we report
that:
a. We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
b. In our opinion, proper books of accounts as required by law have
been kept by the Company, so far as appears from our examination of
those books;
c. The Balance Sheet, Profit and Loss Account and Cash Flow dealt with
by this report are in agreement with the books of account;
d. In our opinion, the Balance Sheet, Profit and Loss Account and Cash
Flow Statement dealt with by this report comply with the Accounting
Standards referred to in sub section (3C) of Section 211 of the
Companies Act, 1956.
e. On the basis of written representations received from the
Directors, as on March 31, 2010 and taken on record by the Board of
Directors, we report that none of the Directors is disqualified as on
31 st March, 2010 from being appointed as a director in terms of clause
(g) of sub-section (I) 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, give the information
required by the Companies Act, 1956, in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India;
i) in the case of the Balance Sheet, of the state of affairs of the
Company at 31 st March,2010;
ii) in the case of the Profit and Loss Account, 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 TO AUDITORS REPORT OF KAWERI TELECOM PRODUCTS LIMITED
1. a. The company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
b. The Company has a regular program of physical verification of fixed
assets which, in our opinion, is reasonable having regard to the size
of the Company and the nature of its assets. In accordance with this
program, certain fixed assets were physically verified by the
management during the year and we are informed that no material
discrepancies were noticed on such verification.
c. In our opinion, there was no substantial disposal of fixed assets
by the Company during the year.
2. a. The management has conducted physical verification of inventory
at reasonable intervals during the year. In respect of stocks lying
with the third parties, confirmation for most of the stocks has been
received.
b. In our opinion, the procedures of physical verification of
inventory 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 inventory and as
explained to us, no material discrepancies were noticed on physical
verification of inventory as compared to the book records.
3. a. As informed, the Company has granted unsecured loan to one
company covered in the register maintained under Section 301 of the
Companies Act, 1956 during earlier year. The maximum amount involved
during the year was Rs. 122.25 Million (Previous Year Rs. 211.38
Million) and the yearend balance was Rs. 111.41 Million (Previous Year
Rs. 159.13 Million). However, the Company has not granted any loan,
secured or unsecured, to firms or other parties covered in the register
maintained under Section 301 of the Companies Act, 1956.
b. In our opinion and according to the information and explanations
given to us, the rate of interest and other terms and conditions on
which such loan has been granted are not prima facie prejudicial to the
interest of the Company.
c. The Company has not taken any loan, secured or unsecured from
Companies, firms covered in the register maintained under section 301
of the Companies Act, 1956. However the company had taken interest free
loan of Rs.332.93 Million during the year from two parties covered in
the register maintained under Section 301 of the Companies Act, 1956
d. In our opinion and according to the information and explanations
given to us, the rate of interest and other terms and conditions on
which such loan has been taken from such other parties covered in the
register maintained under section 301 of the Companies Act, 1956, are
not, prima- facie prejudicial to the interest of the company.
e. Due to the fact that these loans are interest free loans, there is
no applicability of the clause relating to the repayment of interest
and with regard to the repayment of principal, it is in accordance with
the terms and conditions on which such loans have been taken.
4 In our opinion and according to the information and explanations
given to us, there are adequate internal control systems commensurate
with the size of the Company and the nature of its business with regard
to the purchase of inventory, and fixed assets and with regard to the
sale of goods and services. During the course of our audit, no major
weakness has been noticed in the internal control system in respect of
these areas.
5 a. In our opinion and according the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements referred to in Section 301 of the Companies Act, 1956,
have been entered in the register required to be maintained under
section 301 of the Companies Act, 1956.
b. In our opinion and according to the information and explanations
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 and exceeding value of rupees five lakhs in
respect of an/ party during the year have been made at prices which are
reasonable having regard to prevailing market prices at the relevant
time except that reasonableness could not be ascertained where
comparable quotations are not available having regard to the
specialized nature of some of the transactions of the Company.
6. The Company has not accepted any deposits from the public and hence
provisions of para (vi) of the said order (as amended) are not
applicable.
7 In our opinion, the company has an internal audit system commensurate
with the size and nature of its business.
8. As explained to us, the Central Government has not prescribed the
maintenance of Cost Records under Section 209( I )(d) of the Companies
Act, 1956.
9. a. According to the information and explanations given to us and
books and records produced by the company and examined by us, in our
opinion, the undisputed statutory dues including Provident Fund,
Investor Education and Protection Fund, Employees State Insurance,
Income Tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise
Duty, Cess wherever applicable and other material 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 of Income Tax, Sales Tax, Wealth
Tax, Service Tax, Customs Duty, Excise Duty and cess were in arrears as
at 31 st March 2010 for a period more than six months from the date
they became applicable.
c. According to the information and explanations given to us, there
are no dues of Income tax, Sales tax Wealth tax, Service tax, Customs
Duty, Excise duty, and cess which have not been deposited with
appropriate authorities on account of any dispute except for the
following:
Name of the Nature of Dues Amount Period to which
statute (Rs.in Million) amount relates
Central Excise Availment of 298.96 February 2007 to
cenvat credit April 2008
Sales Tax Rate of tax levied 6.32 2007-08 to 2009-10
Name of the Forum where
Statue dispute is pending
Central Excise CESTAT Bangalore
Sales Tax Commissioner of Sales
Tax appeals Bangalore
10. The company has no accumulated losses and has not incurred any cash
losses during the financial year covered by our audit and in the
immediately preceding financial year.
11. In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to
financial institutions or banks. The company has no debenture holders.
12. In our opinion and according to the information and explanations
given to us, the Company has not granted any loan or advance, on the
basis of security by way of pledge of shares, debentures and other
securities.
13. In our opinion, the Company is not a chit fund or a nidhi/mutual
benefit fund/society. Therefore the provisions of clause 4(xiii) of the
Companies (Auditors Report) Order 2003 (as amended) are not applicable
to the Company.
14. In our opinion, the Company is not dealing in or trading in shares,
securities, debentures and other investments except those investments,
which are held as investments. Accordingly, the provisions of clause
4(xiv) of the Companies (Auditors Report) Order, 2003 (as amended) are
not applicable to the company.
15. According to the information and explanations given to us, the
Company has given guarantees for loans taken from banks by a subsidiary
company and prima facie, the terms and conditions on which such
guarantees have been extended are not prejudicial to the interest of
the Company.
16. According to the information and explanations given to us, term
loans availed by the Company during the year were, prima facie,
utilized by the company for the purposes for which the loans were
obtained.
17. According to the information and explanations given to us and on an
overall examination of the Balance Sheet of the company, we report that
no funds raised on short-term basis have been used for long-term
investments.
18. 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.
19. During the year, the Company has not issued debentures and hence
the provisions of clause (xix) of para 4of this order (as amended) are
not applicable.
20. The company has not raised any money by way of public issue during
the year and hence the provisions of clause (xix) of Para 4 of this
order (as amended) are not applicable.
21. During the course of our examination of the books of account
carried out in accordance with the generally accepted auditing practice
in India and according to the information and explanations given to us,
we have neither come across any instance of fraud on or by the company
noticed or reported during the year nor we have been informed of such
case by the management.
For S. Janardhan & Associates
Chartered Accountants
B. Anand
Partner
Membership no. 29146
Bangalore, May 15, 2010
Jun 30, 2000
We have audited the attached Balance Sheet of KAVERI TELECOMS LIMITED,
BANGALORE as at June 30,2000 and the annexed Profit & Loss Account of
the Company for the period ended on that date and report as under : -
1. As required by the Manufacturing & Other Companies (Auditors
Report) Order, 1988 issued by the Company Law Board in terms of Section
227(4A) of the Companies Act 1956, we annexed hereto, a statement on
the matters specified in paragraphs 4 & 5 of the said Order.
2. Further to our comments in the annexure referred to in paragraph 1
above : -
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 Accounts as required by law have
been kept by the Company so far as appears from our examination of such
Books.
c. The Balance Sheet and the Profit & Loss Account, dealt with by this
Report are in agreement with the Books of Accounts.
d. In our opinion, the Profit and Loss Account and Balance Sheet
comply with the Accounting Standards referred to under Sub-section (3C)
of Section 21,1 of the Companies Act, 1956.
e. In our opinion, and to the best of our information and according to
the explanation given to us, the said accounts read together with
Accounting Policies and notes therin give the information required by
the Companies Act, 1956 in the manner so required and subject to :
i) Note (i) regarding non provision of acturialy evaluated gratuity
liability as at June 30th 2000, amount not quantified , ii) Note (j)
regarding non provision of leave encashment benefit amounting to Rs.5
lakhs and iii) Note 4 regarding non provision for possible dimunition
in the value of debtors and loans/advances aggregating in value
Rs.192.48 lakhs , give a true and fair view :
i. In case of the Balance Sheet, of the State of Affairs of the
Company as at June 30, 2000 and
ii. In case of Profit and Loss Account of the Profit for the period
ended on that date.
ANNEXURE TO AUDITORS REPORT (Referred to in paragraph 1 of our report
of even date)
1. The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets. All the
assets have been physically verified by the Management during the
period and no serious discrepancies were noticed on such verification.
2. None of the fixed assets were revalued during the period.
3. As explained to us, physical verification has been conducted by the
Management at reasonable intervals in respect of finished goods,
semi-finished goods, stores and raw materials.
4. In our opinion and according to the information and explanations
given to us, the procedure of physical verification of stocks followed
by the Management are reasonable and adequate in relation to the size
of the company and nature of its business.
5. The discrepancies noticed on verification between physical stock
and book stock were not material.
6. In our opinion and on the basis of our examination of the stock
records, the valuation of stocks is fair and proper and in accordance
with the normally accepted accounting principles and is on the same
basis as in the preceding year.
7. The company has not taken any loans, secured or unsecured from
companies, firms or other parties listed in the registers maintained
under section 301 of the Companies Act, 1956 and/or from the companies
under the same management as defined under section 370 (IB) of the
Companies Act, 1956 except from Directors which is free of interest.
The terms and conditions of such loans are not prejudicial to the
interest of the company.
8. The company has not granted any loans, secured or unsecured to
Companies, Firms and other parties listed in the register maintained
under Section 301 of the Companies Act 1956 and/or to Companies under
the same Management as denned under Section 370(1B) of the Companies
Act, 1956.
9. Since the Company has not given any loans or advances in the nature
of loans, commenting on the recovery of principal/interest does not
arise except in case of staff advance which is being recovered
regularly.
10. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures which needs
to be strenthened to commensurate with the size of the company and the
nature of the business with regard to the purchase of raw materials
including stores, plant & machinery, equipments and other assets and
for the sale of goods.
11. The company has not made any transaction of purchase of goods and
materials and sale of goods, materials and services in pursuance of
contracts or arrangements entered in the register(s) maintained under
Section 301 of the Companies Act, 1956 and aggregating during the year
to Rs.50,000/- or more in respect of each party.
12. According to the information and explanations given to us, the
company has procedure for determining unserviceable or damaged stores,
raw materials and finished goods and consequential adjustments have
been made in the accounts, though, not significant.
13. The company has not accepted any deposits from the public. Hence
provisions of Section 58A of the Companies Act, 1956 and the rules
framed thereunder are not applicable.
14. In our opinion , reasonable records have been maintained by the
company for the sale or disposal of realisable scrap . The company has
no by products.
15. In our opinion, the Company has an Internal audit system which
needs to be strengthened to commensurate with the size and nature of
its business .
16. According to the information furnished to us, maintenance of cost
records under section 209(l)(d) of the Companies Act, 1956 has not been
prescribed by the Central Government.
17. Provident Fund due relating to the period July 99 to June 2000
aggregating to Rs.9,04,509/- and Employees State Insurance Fund
relating to the period March 2000 to June 2000 aggregating to
Rs.83,002/- which had fallen due for deposit with the appropriate
authorities had not been so deposited as on date.
18. According to the information and explanations given to us, there
are no undisputed amounts in respect of Income-Tax, Wealth Tax, Sales
tax, Customs Duty and Excise Duty which were outstanding as on June 30,
2000 for a period of more than six months from thedate on which they
became payable.
19. According to the information and explanations given to us, and as
per the records examined by us, no personal expenses of employees or
directors have been charged to revenue account other than those payable
under contractual obligations or in accordance with generally accepted
business practice.
20. The company is not a sick industrial company, within the meaning
of Clause (O) of Sub Section 1 Section 3 of the Sick Industrial
Companies (Special Provisions) Act, 1985.
For Rajagopal & Badri Narayanan
Chartered Accountants
Place : Bangalore M.S. Rajagopal
Date : 27-11-2000 Partner
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