Home  »  Company  »  Khoday India  »  Quotes  »  Auditor Report
Enter the first few characters of Company and click 'Go'

Auditor Report of Khoday India Ltd.

Mar 31, 2013

Report on the Financial Statements

We have audited the accompanying financial statements of Khoday India Limited ("the Company"), which comprise the Balance Sheet as at March 31s1, 2013, and the Statement of Profit and Loss and Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information.

Management''s Responsibility for Financial Statements

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

Auditor''s Responsibility

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

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Company''s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances. 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 31st, 2013;

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 Letjal 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''Uy section 227(3) of the Act, we report that:

a) we haVfe 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 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 on March 31st, 2013, and taken on record by the Board of Directors, none of the directors is disqualified as on March 31st, 2013, 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 AUDITOR''S REPORT

(Referred to in Para 1 of our report of even date)

i. (a) The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets.

(b) We have been informed that the fixed assets of the Company are physically verified by the Management according to a phased program designed to cover all the items over a period of three years, which in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. Pursuant to the program, physical verification was carried out during the year and to the best of our knowledge no material discrepancies were noticed.

(c) In our opinion, the Company has not disposed off any Fixed Assets during the year.

ii. (a) As explained to us, Inventories have been physically verified by the management at reasonable intervals during the year. The stocks in possession of the third parties have been confirmed by them.

(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) In our opinion and according to the information and explanations given to us, the Company has maintained proper records of inventories and we have been informed that no material discrepancies were noticed on physical verification.

iii. (a) The Company has not granted any Loans, secured or unsecured to Companies, firms or other parties covered in the Register maintained under Section 301 of the Companies Act, 1956. As the Company has not granted any loans, Clauses (iii) (b), (iii) (c) and (iii) (d) of paragraph 4 of the Companies (Auditors Report) order, 2003 are not applicable to the Company.

(b) The Company has not taken loans, secured or unsecured, from companies and firms which have been listed in the register maintained under section 301 of the Companies Act, 1956.

However, the Company has taken unsecured Interest free loan from four Directors'' of the Company and the maximum amount outstanding at any time during the year is Rs.75,651 thousands and the year end balance of such loan is Rs. 74,558 thousands.

(c) In our opinion, according to the information and explanations given to us, the loan taken from the Directors are interest free, and the terms and conditions are not, prima facie, prejudicial to the interest of the Company.

(d) Since there is no stipulation as to the repayment of principal and interest, we are of the opinion that there is no irregularity in the repayment of these loans.

iv. In our opinion and according to the information and explanations given to us, there is adequate internal control system commensurate with the size of the Company and the nature of its business with regard to purchase of inventory, fixed assets and for the sale of goods and services. During the course of our audit, we have neither come across nor have we been informed of any continuing failure to correct major weaknesses in the aforesaid internal control system.

v. (a) In our opinion and according to the information and explanations given to us, the particulars of contracts or arrangements referred to in section 301 of the Companies Act, 1956 that need to be entered into the register maintained under that section have been so entered.

(b) In our opinion and according to the information and explanations given to us, the transactions made in pursuance of such contracts or arrangements entered in the register maintained under section 301 of the Companies Act, 1956 and exceeding the value of Rs. 5 lakhs in respect of each party have been made at prices which are prima facie reasonable having regard to the prevailing market prices at the relevant time, where the market price is available.

vi. In our opinion and according to the information and explanations given to us, the Company has not accepted any deposits from the public within the meaning of Section 58A and 58AA of the Companies Act 1956 and the rules framed there under.

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

viii. We have broadly reviewed the books of accounts relating maintained by the Company pursuant to the Companies (Cost Accounting Records) Rules, 2011 prescribed 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) (i) According to the information and explanations given to us and as per our verification of the records of the Company, in our opinion, the company is generally regular in depositing undisputed statutory dues including Income Tax, Service Tax, Value Added Tax/Sales Tax, Wealth Tax, Customs Duty, Excise Duty and Cess, except certain amounts towards Professional Tax, Employees State Insurance, Provident Fund and Sales Tax.

(ii) According to the information and explanations given to us, excepting for Rs. 16,290/- towards Professional Tax, Rs.39,272/- towards Employees State Insurance, Rs.79,553/- towards Provident Fund and Rs. 6,69,695/- towards VAT and Central Sales Tax, there are no other undisputed amounts payable in respect of statutory dues which have remained outstanding as at 31s'' March 2013 for a period of more than six months from the date they became payable. However, the entire dues have been paid subsequently.

x The company has accumulated losses at the end of the financial year. However the same does not exceed fifty percent of its net worth. The company has incurred cash loss during the financial year but has not incurred cash loss in the immediately preceding financial year.

xi. The Company has defaulted in repayment of principal dues to a bank. The details of which are given below;

xii. According to the information and explanations given to us, the Company has not granted any loans and advances secured by pledge of shares, debentures and other securities.

xiii. In our opinion, the Company is not a chit fund or a nidhi or a mutual fund society. Therefore the provision of clause 4 (xiii) of the Companies (Auditor''s Report) Order, 2003 are not applicable to the Company.

xiv. In our opinion, the Company is not dealing in or trading in shares, securities, debentures and other investments. Accordingly the provisions of clause 4(xiv) of the Companies (Auditors Report) Order, 2003 are not applicable to the Company.

xv. According to the information and explanations given to us, the Company has not given any guarantee for the loans taken by others from banks or financial institutions.

xvi. In our opinion, and according to information and explanations given to us, term loans have been applied for the purposes for which they were raised.

xvii. Based on the information and explanations given to us and overall examination of the Balance sheet of the Company, in our opinion, there are no funds raised on a short term basis which have 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 during the year.

xix. According to the information and explanations given to us, the Company has not issued any debentures during the year.

xx. The Company has not raised any money by way of public issue during the year.

xxi. According to the information and explanations given to us, no fraud on or by the company has been noticed or reported during the course of our audit.

For Rangaraju & Associates

Chartered Accountants

(Firm Regn No.6912S)

Krishnan Rangaraju

Place : Bangalore Partner

Date : 29.05.2013 Membership No. 18457


Mar 31, 2011

1. We have audited the attached Balance Sheet of Khoday India limited as at 31st 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 have conducted our audit in accordance with the auditing standards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

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

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

a. We have obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the 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, Profit and Loss account and Cash Flow statement dealt with by this report are in agreement with the books of account.

d. In our opinion, the Balance Sheet, Profit and Loss Account and Cash flow Statement dealt with by this report comply with the applicable Accounting Standards referred to in Sub-Section (3C) of Section 211 of the Companies Act, 1956.

e. In our opinion, on the basis of the information and explanations given to us and written representa- tion received from the directors, as on 31st March 2011 and taken on record by the Board of Directors, we report that none of the Directors are disqualified as on 31st March, 2011 from being appointed as a Director in terms of clause (g) of Sub-Section (1) of Section 274 of the Companies Act, 1956.

5. In our opinion, and to the best of our information and according to the explanations given to us, the said Balance Sheet and the Profit and Loss Account read together with the notes thereon and Accountinn Policies give the information required by the Companies Act, 1956, in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India;

a. In the case of the Balance Sheet, of the state of affairs of the Company as at 31st March 2011,

b. In the case of the Profit 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.

ANNEXURE TO THE AUDITOR'S REPORT. (Referred to in Para 3 of our report of even date)

i. (a) The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets.

(b) We have been informed that the fixed assets of the Company are physically verified by the Management according to a phased program designed to cover all the items over a period of three years, which in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. Pursuant to the program, physical verification was carried out during the year and to the best of our knowledge no material discrepancies were noticed.

(c) The fixed assets disposed off during the year were not substantial so as to affect the going concern status of the Company.

ii. (a) As explained to us, Inventories have been physically verified by the management at reasonable intervals during the year. The stocks in possession of the third parties have been confirmed by them.

(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) In our opinion and according to the information and explanation given to us, the Company has maintained proper records of inventories and we have been informed that no material discrepancies were noticed on physical verification.

iii. (a) The company has not granted any Loans, secured or unsecured to Companies, firms or other parties covered in the Register maintained under Section 301 of the Companies Act, 1956. As the Company has not granted any loans, Clauses (iii) (b), (iii) (c) and (iii) (d) of paragraph 4 of the Companies (Auditors Report) order, 2003 are not applicable to the Company.

(b) The Company has not taken loans, secured or unsecured, from companies and firms which have been listed in the register maintained under section 301 of the Companies Act, 1956 Further, the company has taken unsecured Interest free loan from four Directors' of the company and the maximum amount outstanding at any time during the year is ' 84,390 Thousands and the year end balance of such loan is ' 76,584 Thousands.

(c) In our opinion, according to the information and explanation given to us, the loan taken from the Directors are interest free, and the terms and conditions are not, prima facie, prejudicial to the interest of the Company.

(d) Since there is no stipulation as to the repayment of principal and interest, we are of the opinion that there is no irregularity in the repayment of these loans.

iv. In our opinion and according to the information and explanations given to us, there is adequate internal control system commensurate with the size of the company and the nature of its business with regard to purchase of inventory, fixed assets and for the sale of goods and services. During the course of our audit, we have neither come across nor have we been informed of any continuing failure to correct major weaknesses in the aforesaid internal control system.

v. (a) In our opinion and according to the information and explanations given to us, the particulars of contracts or arrangements referred to in section 301 of the Companies Act, 1956 that need to be entered into the register maintained under that section have been so entered.

(b) In our opinion and according to the information and explanation given to us, the transactions made in pursuance of such contracts or arrangements entered in the register maintained under section 301 of the Companies Act, 1956 and exceeding the value of Rs. 5 lakhs in respect of each party have been made at prices which are prima facie reasonable having regard to the prevailing market prices at the relevant time, where the market price is available.

vi. In our opinion and according to the information and explanations given to us, the Company has not accepted any deposits from the public within the meaning of Section 58A and 58AA of the Companies Act and the rules framed there under.

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

viii. We have broadly reviewed the books of accounts maintained by the Company in respect of Industrial Alcohol and paper products pursuant to the Rules made by 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 by the company.

ix. (a) According to the information and explanations given to us and as per our verification of the records of the company, in our opinion, the company is generally regular in depositing undisputed statutory dues including Wealth Tax, Service Tax, Income Tax, Tax collected at source, Custom Duty, Value Added Tax / Sales tax, Excise Duty, Cess and other material statutory dues with the appropriate authorities.

(b) According to the information and explanations given to us and as per records of the Company, the following are the particulars of dues on account of Sales Tax and Income Tax which have not been deposited on account of dispute before the forum mentioned there against.

Name of the Nature of Dues & Rupees in Forum where dispute Statute related Period Thousands is pending.

Kamataka Sales Tax Sales tax, Entry Tax and 2,096 Joint Commissioner of Act, 1957 penalty for F.Y. 2002-03 Commercial Taxes (Appeal) Bangalore.

Kamataka Sales Tax Sales tax, Entry Tax and 12 Joint Commissioner of Act, 1957 penalty for F.Y. 2005-06 Commercial Taxes (Appeal) Bangalore.

Income Tax Act, 1961 Income tax for the 19,655 Commissioner of AY-2007-08 Income Tax (Appeals)

Income Tax Act, 1961 Income tax for the 1,170 Commissioner of AY-2008-09 Income Tax (Appeals)

x The Company has accumulated losses at the end of the financial year. However, the same does not exceed 50% of its net worth. The Company has incurred cash losses during the financial year and also in the immediately preceding financial year.

xi. According to information and explanations given to us, the Company has not defaulted in repayment of principal and interest dues to the bank or any financial institutions.

xii. According to the information and explanations given to us, the Company has not granted any loans and advances secured by pledge of shares, debentures and other securities.

xiii. In our opinion, the Company is not a chit fund or a nidhi or a mutual fund society. Therefore the provision of clause 4 (xiii) of the companies (Auditor's Report) Order, 2003 are not applicable to the Company.

xiv. In our opinion, the Company is not dealing in or trading in shares, securities, debentures and other investments. Accordingly the provisions of clause 4(xiv) of the Companies (Auditors Report) Order, 2003 are not applicable to the Company.

xv. According to the information and explanation given to us, the Company has not given any guarantee for the loans taken by others from banks or financial institutions.

xvi. In our opinion, and according to information and explanations given to us, term loans have been applied for the purposes for which they were raised.

xvii. Based on the information and explanations given to us and overall examination of the Balance sheet of the Company, in our opinion, there are no funds raised on a short term basis which have been used for long term investment.

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

xix. According to the information and explanations given to us, the Company has not issued any debentures during the year.

xx. The Company has not raised any money by way of public issue during the year.

xxi. During the course of examination of the books and records of the Company, carried out in accordance with the generally accepted auditing practices in India, and according to the information and explanations given to us, we report that no case of fraud on or by the Company has been noticed or reported during the year under audit.

Place : Bangalore For Rangaraju & Associates

Date : 23-09-2011 Chartered Accountants

(Firm Regn No.6912S)

Krishnan Rangaraju

Partner

Membership No. 18457










Mar 31, 2010

1. We have audited the attached Balance Sheet of Khoday India limited as at 31st 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 have conducted our audit in accordance with the auditing standards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

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

4. Further to our comments in the Annexure referred to above, We report that:

a. We have obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the 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, Profit and Loss account and Cash Flow statement dealt with by this report are in agreement with the books of account.

d. In our opinion, the Balance Sheet, Profit and Loss Account and Cash flow Statement dealt with by this report comply with the applicable Accounting Standards referred to in Sub-Section (3C) of Section 211 of the Companies Act, 1956.

e. In our opinion, on the basis of the information and explanations given to us and written representation received from the directors, as on 31st March 2010 and taken on record by the Board of Directors, We report that none of the Directors are disqualified as on 31st March, 2010 from being appointed as a Director in terms of clause (g) of Sub-Section (1) of Section 274 of the Companies Act, 1956.

5. In our opinion, and to the best of our information and according to the explanations given to us, the said Balance Sheet and the Profit and Loss Account read together with the notes thereon and Accounting Policies give the information required by the Companies Act, 1956, in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:

a. In the case of the Balance Sheet, of the state of affairs of the company as at 31st March 2010,

b. In the case of the Profit 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.

ANNEXURE TO THE AUDITORS REPORT. (Referred to in Para 3 of our report of even date)

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

(b) We have been informed that the fixed assets of the Company are physically verified by the Management according to a phased program designed to cover all the items over a period of three years, which in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. Pursuant to the program, physical verification was carried out during the year and to the best of our knowledge no material discrepancies were noticed.

(c) The fixed assets disposed off during the year were not substantial so as to affect the going concern status of the Company.

ii. (a) As explained to us, Inventories have been physically verified by the management at reasonable intervals during the year. The stocks in possession of the third parties have been confirmed by them.

(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) In our opinion and according to the information and explanation given to us, the Company has maintained proper records of inventories and we have been informed that no material discrepancies were noticed on physical verification.

iii. (a) The company has not granted any Loans, secured or unsecured to Companies, firms or other parties covered in the Register maintained under Section 301 of the Companies Act, 1956. As the Company has not granted any loans, Clauses (iii) (b), (iii) (c) and (iii) (d) of paragraph 4 of the Companies (Auditors Report) order, 2003 are not applicable to the Company.

(e) The Company has not taken loans, secured or unsecured, from companies and firms which have been listed in the register maintained under section 301 of the Companies Act, 1956

Further, the company has taken unsecured Interest free loan from four Directors of the company and the maximum amounts outstanding at any time during the year are Rs 972.96 Lakhs and the year end balance of such loan is Rs.843.90 Lakhs.

(f) In our opinion, according to the information and explanation given to us, the loan taken from the Directors are interest free, and the terms and conditions are not, prima facie, prejudicial to the interest of the Company.

(g) Since there is no stipulation as to the repayment of principal and interest, we are of the opinion that there is no irregularity in the repayment of these loans.

iv. In our opinion and according to the information and explanations given to us, there is adequate internal control system commensurate with the size of the company and the nature of its business with regard to purchase of inventory, fixed assets and for the sale of goods and services. During the course of our audit, we have neither come across nor have we been informed of any continuing failure to correct major weaknesses in the aforesaid internal control system.

v (a) In our opinion and according to the information and explanations given to us, the particulars of contracts or arrangements referred to in section 301 of the Companies Act, 1956 that need to be entered into the register maintained under that section have been so entered.

(b) In our opinion and according to the information and explanation given to us, the transactions made in pursuance of such contracts or arrangements entered in the register maintained under section 301 of the companies Act, 1956 and exceeding the value of Rs 5 lakhs in respect of each party have been made at prices which are prima facie reasonable having regard to the prevailing market prices at the relevant time, where the market price is available.

vi. In our opinion and according to the information and explanations given to us, the company has not accepted any deposits from the public within the meaning of Section 58A and 58AA of the Companies Act and the rules framed there under.

vii. In our opinion, the company has an internal Audit system commensurate with its size and nature of business.

viii. We have broadly reviewed the books of accounts maintained by the company in respect of Industrial Alcohol and paper products pursuant to the Rules made by 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 by the company.

ix. (a) According to the information and explanations given to us and as per our verification of the records of the company, in our opinion, the company is generally regular in depositing undisputed statutory dues including Wealth Tax, Service Tax, Income Tax, Tax collected at source, Custom Duty, Value Added Tax / Sales tax, Excise Duty, Cess and other material statutory dues with the appropriate authorities except certain amount towards Tax deducted at source where it is not regular.

(b) According to information and explanation given to us, excepting for Rs. 0.16 Lakhs towards TDS, there are no other undisputed amounts payable in respect of statutory dues which have remained outstanding as at 31st March 2010 for a period of more than six month from the date they became payable. However, the entire dues have been paid subsequently.

(c)According to the information and explanations given to us and as per records of the company, the following are the particulars of dues on account of sales Tax which have not been deposited on account of dispute before the forum mentioned there against.

Name of the Nature of Dues & Rupees in Forum where dispute

Statute related Period Lacs is pending.

Karnataka Sales Tax Sales tax, Entry Tax and 20.96 Joint Commissioner of

Act, 1957 penalty for F.Y. 2002-03 Commercial Taxes (Appeal) Bangalore.

i. The company does not have any accumulated losses at the end of the financial year. The company has incurred cash losses during the financial year but not in the immediately preceding financial year.

ii. According to information and explanations given to us, the company has not defaulted in repayment of principal and interest dues to the bank or any financial institutions.

iii. According to the information and explanations given to us, the company has not granted any loans and advances secured by pledge of shares, debentures and other securities.

iv. In our opinion, the company is not a chit fund or a nidhi or a mutual fund society. Therefore the provision of clause 4 (xiii) of the companies (Auditors Report) Order, 2003 are not applicable to the company.

v. In our opinion, the company is not dealing in or trading in shares, securities, debentures and other investments. Accordingly the provisions of clause 4(xiv) of the Companies (Auditors Report) Order, 2003 are not applicable to the Company.

vi. According to the information and explanation given to us, the company has not given any guarantee for the loans taken by others from banks or financial institutions.

vii. In our opinion, and according to information and explanations given to us, term loans have been applied for the purposes for which they were raised.

viii. Based on the information and explanations given to us and overall examination of the Balance sheet of the company, in our opinion, there are no funds raised on a short term basis which have been used for long term investment.

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

x According to the information and explanations given to us, the company has not issued any debentures during the year.

xi. The company has not raised any money by way of public issue during the year.

During the course of examination of the books and records of the company, carried out in accordance with the generally accepted auditing practices in India, and according to the information and explanations given to us, we report that no case of fraud on or by the company has been noticed or reported during the year under audit.



Place : Bangalore For Rangaraju & Associates

Date : 06-09-2010 Chartered Accountants

(Firm Regn No.6912S)

Krishnan Rangaraju

Partner

Membership No. 18457

 
Subscribe now to get personal finance updates in your inbox!