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

Auditor Report of KLK Electrical Ltd.

Mar 31, 2014

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

Management Responsibility for the Financial Statements

1. Management is responsible for the preparation of these financial statements that give a true and fair view of financial position, financial performance 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"); read with General Circular 812014 dated 4 April 20I4,issued by the Ministry of Corporate Affairs: and The responsibility includes the design, implementation and maintenance of internal control relevant to the preparation and presentation of financial statements that give a time and fair view and are free from material misstatements, 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 whetherthe financial statements are free from misstatements.

Audit involves performing procedure to obtain audit evidence about the amounts and disclosure in the financial statements. The procedure selected depend upon auditor''s judgement, including the assessment of the risk of material misstatements of the financial statements, whether due to fraud or error. In making those risk assessment, the auditor considers internal control relevant to the Company''s preparation and fair presentation of the financial statements in order to design audit procedure that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of financial statements.

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

Opinion

In ouropinion 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:

Annexure to the Auditors'' Report

Annexure referred to in paragraph 3 of the Auditors'' Report to the Members of M/s KLK Electrical Limited on the accounts for the year ended 31"t, March,20I4 On the basis of such checks as we considered appropriate and according to the inform5.tion and explanation given to us during the course of our audit, we report that;

01. Fixed Assets

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

(b) As explained to us, fixed assets have been physically verified by the management at reasonable intervals: no material discrepancies were noticed on such verification.

(c) In our opinion and according to the information and explanations given to us, no fixed asset has been disposed during the gear and therefore does not affect the going concern assumption.

02. Inventory

According to the information and explanations given to us and on the basis of our examination of the books of accounts, the Company does not have any inventories hence not applicable.

03. Loans Granted/taken

(a) According to the information and explanations given to us and on the basis of our examination of the books of account, the Company has not granted any loans, secured or unsecured, to companies, firms or other parties listed in the register maintained under Section 301 of Companies Act, 1956. Consequently, the provisions of clauses iii (b),iii©and iii(d) of the order are not applicable to the company.

(b) According to the information and explanations given to us and on the basis of our examination of the books of accounts, the Company has not taken loans from companies, firms or other parties listed in the register maintained under Section 301 of the Companies Act, 1956,thus sub clauses 9(f) & (g) are not applicable to the company,

04. Internal Control System

In our opinion and according to the information and explanations given to us, there are adequate internal control procedures commensurate with the size of the company and the nature of its business with regard to purchases of inventory, fixed assets and with regard to the sale of goods and services, during the course of our audit, no major instance of continuing failure to correct any weaknesses in the internal controls has been noticed.

05. Related Party transactions

(a) In our opinion and according to the information and explanations provided by the management, we are of the opinion that the transactions that need to be entered into the register maintained under Section 301 have been so entered.

(b) In our opinion and according to the information and explanations given to us, there are no transactions made in pursuance of contracts or arrangements entered in the registers maintained under Section 30 1 and has been made at prices which are reasonable having regard to prevailing market prices at the relevant time.

06. Deposits:

The company has not accepted any deposits from the public within the meaning of Sections 58A and 58AA or any other provisions of the act and the rules framed there under.

07. Internal Audit

As per information & explanations given by the management, the company has an internal audit system commensurate with its size and the nature of its business.

08. Cost Records

According to the information and explanations given to us and on the basis of our examination of the-bboks of accounts Maintenance of cost records not applicable to this company since the company not commenced production activities

09. Stafittont Dues

(a) According to the records of the company, 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 to the extent applicable and any other statutory dues have generally been regularly deposited with the appropriate authorities, According to the information and explanations given to us there were no outstanding statutory duesason3l st of March,2014 for a period of more than six months from the date they became payable.

(b) According to the information and explanations given to us, there is no amounts payable in respect of Income tax, wealth tax, service tax, sales tax, customs duty and excise duty which have not been deposited on account of any disputes.

10. Accumulation of Losses

The company have accumulated losses of Rs 99.12 lacs and has incurred cash losses during the financial year covered by our audit Rs. 3.87 lacs and Rs. 3.46 lacs in the immediately preceding financial year.

11. Dues to Financial Institutions

Based on our audit procedures and on the information and explanations given by the management, we are of the opinion that the company has not defaulted in repayment of dues to a financial institution, bank or debenture holders.

12. Security against Loans

According to the information and explanations given to us, the company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

13. Applicability of Special Status

The Company is not a chit fund or a nidhi / mutual benefit fund/society. Therefore the provisions of this clause of the Companies (Auditor''s Report) Order, 2003(as amended is not applicable to the Company

14. Maintenance of Proper Records for Security Transactions

The company is not a dealer or trader in shares, securities, debentures and other investments.

15. Guarantees Given

According to the information and explanations given to us, The company has not given any guarantee for loans taken by others from bank or financial institutions.

16. Term Loans

Based on our audit procedures and on the information given by the management we report that the company has not raised any term loans during the year: hence utilization of funds does not arise.

17. Utilization of Short, term Funds

Based on information and explanations given to us and on an overall examination of the Balance Sheet of the company as at 3Lst March,2014,we report that no funds raised on short-term basis have been used for long-term investment by the company

18. Preferential Allotment

We are informed that 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. Security / Charges for Debentures

The company has not issued debentures and hence requirement of reporting regarding creation of security in respect of debentures issued does notarise.

20. Frauds

Based upon the audit procedures performed and as per information and explanations given by the management, we report that no fraud on or by the company has been noticed or reported during the year.

(a) in case of the Balance Sheet, of the state of affairs of the Company as at 3l''st March''2014;

(b) in case Statement of Profit and Loss Account, of the for the year ended on that date; and

(c) in case of the Cash Flow Statements, 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 Central Government of India in terms of sub-section (4A) of section 227 of the Act, We give in the Annexure a statements 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 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 l-arv have been kept by the Company so far as appears from our examinations 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, comply with the Accounting Standards referred to in sub-section(3C) of section 2I I of the Companies Act,1956; read with General Circular 8/2014 dated 4 April 20l4,issued by the Ministry of Corporate Affairs: and

e. On the basis of written representations received from the directors as on March,3I.20I4 and taken on record by the Board of Directors, none of the director is disqualified as on, from being appointed as a director in terms of clause (g) of sub section (1) of section 274 of the Companies Act, 1956.

Date : 15/05/2014 Place: CHENNAI For Chitta & Associates Chartered Accountants FRN:009490S

Chitta Nageswara Sastry Proprietor M.NO.210531


Mar 31, 2013

We have audited the accompanying financial statements of M/s K.L.K.ELECTRICAL LIMITED ("the Company"), which comprise the Balance Sheet as at March 31,2013, and the Statement of Profit and Loss and Gash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information.

MANAGEMENTS RESPONSIBILITY FOR THE FINANCIAL SWEWIENTS

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 t ;e preparation and presentation of the financial statements mat give a true and fair view and are free from material misstatement, whether due to fraud or error.

AUDITORS RESPONSIBILITY

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

An audit involves performing procedures to obtain audit evidence about the amounts and 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

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

a) in the case of the Balance Sheet, of the state of affairs of the Company as at March 31, 2013;

b) in the case of the Profit and Loss Account, of the profit/ 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 MATTERS

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 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 31, 2013, and taken on record by the Board of Directors, none of the directors is disqualified as on March 31,2013, from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the Companies Act, 1956.

The Annexure referred to in paragraph 1 of the Our Report of even date to the members of KLK ELECTRICAL LIMITED, on the accounts of the company for the year ended 31st March, 2013.

On the basis of such checks as we considered appropriate and according to the information and explanation given to us during the course of our audit, we report that:

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

(b) As explained to us, fixed assets have been physically verified by the management at reasonable intervals; no material discrepancies were noticed on such verification.

(c) In our opinion and according to the information and explanations given to us, no fixed asset has been disposed during the year and therefore does not affect the going concern assumption.

2. (a) As explained to us, inventories have been physically verified during the year by the management at reasonable intervals.

(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 on the basis of our examination of the records, the Company is generally maintaining proper records of its inventories. No material discrepancy was noticed on physical verification of stocks by the management as compared to book records.

3. (a) According to the information and explanations given to us and on the basis of our examination of the books of account, the Company has not granted any loans, secured or unsecured, to companies, firms or other parties listed in the register maintained under Section 301 of the Companies Act, 1956. Consequently, the provisions of clauses iii (b), iii(c) and iii (d) of the order are not applicable to the Company.

(e) According to the information and explanations given to us and on the basis of our examination of the books of account, the Company has not taken loans from companies, firms or other parties listed in the register maintained under Section 301 of the Companies Act, 1956. Thus sub clauses (f) & (g) are not applicable to the company.

4. In our opinion and according to the information and explanations given to us, there is generally an adequate internal control procedure commensurate with the size of the company and the nature of its business, for the purchase of inventories & fixed assets and payment for expenses & for sale of goods. During the course of our audit, no major instance of continuing failure to correct any weaknesses in the internal controls has been noticed.

5. a) Based on the audit procedures applied by us and according to the information and explanations provided by the management, the particulars of contracts or arrangements referred to in section 301 of the Act have been entered in the register required to be maintained under that section.

b) As per information & explanations given to us and in our opinion, the transaction entered into by the company with parties covered u/s 301 of the Act does not exceeds five lacs rupees in a financial year therefore requirement of reasonableness of transactions does not arises.

6. The Company has not accepted any deposits from the public covered under section 58A and 58AA of the Companies Act, 1956.

7. As per information & explanations given by the management, the Company has an internal audit system commensurate with its size and the nature of its business.

8. As per information & explanation given by the management, maintenance of cost records has been prescribed by the Central Government under clause (d) of sub-section (1) of section 209 of the Act and we are of the opinion that prima facie the prescribed accounts and records have been made and maintained.

9. (a) According to the records of the company, 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 to the extent applicable and any other statutory dues have generally been regularly deposited with the appropriate authorities. According to the information and explanations given to us there were no outstanding statutory dues as on 31st of March, 2013 for a period of more than six months from the date they became payable.

(b) According to the information and explanations given to us, there is no amounts payable in respect of income tax, wealth tax, service tax, sales tax, customs duty and excise duty which have not been deposited on account of any disputes.

10. The Company have accumulated loss of Rs.28.97 lacs and has incurred cash loss during the financial year covered by our audit Rs.3.44 lacs and Rs.18.78 lacs in the immediately preceding financial year.

11. Based on our audit procedures and on the information and explanations given by the management, we are of the opinion that, the Company has not defaulted in repayment of dues to a financial institution, bank or debenture holders.

12. According to the information and explanations given to us, the Company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

13. The Company is not a chit fund or a nidhi /mutual benefit fund/society. Therefore, the provision of this clause of the Companies (Auditor''s Report) Order, 2003 (as amended) is not applicable to the Company.

14. According to information and explanations given to us, the Company is trading in Shares, Mutual funds & other Investments. Proper records & timely entries have been maintained in this regard & further investments specified are held in their own name.

15. According to the information and explanations given to us, the Company has not given any guarantees for loan taken by others from a bank or financial institution.

16. Based on our audit procedures and on the information given by the management, we report that the company has not raised any term loans during the year.

17. Based on the information and explanations given to us and on an overall examination of the Balance Sheet of the Company as at 31st March, 2013, we report that no funds raised on short- term basis have Dean used for iong-term investment by the Company.

18. Based on the audit procedures performed and the information and explanations given to us by the management, we report that the Company has not made any preferential allotment of shares during the year.

19. The Company has no outstanding debentures during the period under audit.

20. The Company has not raised any money by public issue during the year.

21. Based on the audit procedures performed and the information and explanations given to us, we report that no fraud on or by the Company has been noticed or reported during the year, nor have we been informed of such case by the management.

For Chitta & Associates

Chartered Accountants

Place : Hyderabad -50 FRN: 0094905

Date: 30/5/2013

Chitta Nageswara Sastry

Proprietor

Membership No. 210531


Mar 31, 2012

We have audited the attached Balance Sheet of M/s. KLK ELECTRICAL LIMITED, CHENNAI, as at March 31, 2012 and also the Profit and Loss Account and Cash flow Statement for the year ended on that date annexed thereto all of which I have signed under reference to this report. These financial statements are the responsibility of the Company's management. my responsibility is to express an opinion on these financial statements based on my audit.

we conducted my audit in accordance with the auditing statement standards generally accepted in India. Those Standards require that I plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. I believe that my audit provides a reasonable basis for my opinion.

As required by the Companies (Auditors' Report) Order, 2003 issued by the Central Government of India in terms of Sub-Section (4A) of Section 227 of the Companies Act, 1956,1 give below, a statement on the matters specified in paragraph 4 & 5 of the said Order.

1.The Company has maintained proper records showing full particulars including quantitative details and the situation of its fixed assets. There are no tangible fixed assets in the company physical verification at the year-end of the same does not arise..

2.(a) During the year there was no inventory at the year-end and hence the physical verification of inventory is not applicable.

(b) On the basis of my examination of the records of inventory, I am of the opinion that the company is maintaining proper records of inventory. The discrepancies if any, noticed on verification of physical stocks and the book record does not arise.

3.(a) The company had not granted any loan, secured or unsecured, to other companies, firms or persons covered in the register maintained under section 301 of the Companies Act, 1956.

(b) The company had taken interest free unsecured loan from three parties listed in the register maintained u/s.301 of the Act. The maximum amount due during the year was Rs.4,241,135/- and the balance outstanding as at the end of the financial year is Rs.15,000/-

(c) No interest is payable on such loans taken from them and the other terms and conditions with regard to repayment are, in my opinion prima facie, not prejudicial to the interest of the Company.

4. In my opinion and according to the information and explanation given to me, there are adequate internal control procedures commensurate with the size of the company and the nature of its business with regard to purchases of inventory and with regard to the sale of goods. During the course of my audit, no major weakness has been noticed in the internal controls.

5.Based on the audit procedures applied by me and according to the information and explanations provided by the management, I am of the opinion that the transactions that need to be entered into the register maintained under section 301 have been so entered.

6.In my opinion and according to the information and explanations given to me, that there are no transactions made in pursuance of contracts or arrangements, entered in the registers maintained under section 301 and exceeding the value of 5 Lakh rupees during the year.

7.ln my opinion and according to the information and explanations given to me, the company has not accepted deposits from public under sections 58A and 58AA of the Companies Act, 1956 during the year.

8.The company has an internal audit system during the year commensurate with the size of the company and nature of its business.

9.ln my opinion and according to the information and explanations given to me, the Central Government has not prescribed any rules under clause (d) of sub-section (1) of Section 209 of the Act for the maintenance of cost records in respect of the products dealt with by the company.

10(a) According to the records of the company, there is no amount payable in respect of sale tax, income tax, customs tax or wealth tax, excise duty / cess which are outstanding as at March 31,2012 for a period of more than six months from the date they become payable.

(b) According to the records of the company, there are no dues of sale tax, income tax, customs tax or wealth tax, excise duty / cess which have not been deposited on account of any dispute.

11. The company has incurred cash losses during the financial year covered by my audit as well as in the financial year immediately preceding the financial year. The accumulated loss has not exceeded 50% of the net worth of the company.

12.Based on my audit procedures and on the information and explanations given by the management, I am of the opinion that the company has not defaulted in repayment of dues to a bank. The company does not have any debenture holders.

13.Based on my examination of documents and records, I am of the opinion that the company has not granted during the year any loans or advances on the basis of security by way of pledge of shares, debentures and other securities.

14.Based on my examination of documents and records, I am of the opinion the company is not carrying on any activity relating to chit fund, nidhi, mutual benefit fund/society, no special statute is applicable to the company.

15.Based on my examination of the records and evaluation of the related internal controls, I am of the opinion that the company is not dealing or trading in shares, securities, debentures and other investments and hence the question of maintenance of adequate records relating to the same does not arise.

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

17.The company has not raised any term loans during the year and hence the application of the funds for the purpose for which they were raised does not arise.

18.According to the information and explanations given to me and on an overall examination of the balance sheet of the company, I report that no funds raised on short-term basis have been used for long-term investment. No long-term funds have been used to finance short-term assets.

19.Based on my examination of records and the information provided to me by the management, I report that the company hast made preferential allotment of shares during the year and the same are not prejudicial to the interest of the company or its members.

20.During the period covered by my audit report, the company had not issued any debentures and hence the question of creation of any security in the respect of these debentures does not arise.

21.The company had not raised any money through public issues during the year under audit.

22.Based upon the audit procedures performed and information and explanations given by the management, I report that no fraud on or by the company has been noticed or reported during the course of my audit.

IV.Further to my comments in Para III above, I report that:

a)l have obtained all the information and explanations, which to the best of my knowledge and belief were necessary for the purpose of my audit;

b)ln my opinion, proper books of account as required by law have been kept by the company so far as appears from my 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 my opinion, the balance sheet and the profit and loss account 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 representation received from the Directors as on 31st March, 2012 and taken on record by the Board of Directors, I report that none of the Director is disqualified as on 31st March 2012 from being appointed as a director in terms of clause (g) of Section 274 of the Companies Act, 1956;

f) In my opinion and to the best of my information and according to the explanations given to me, the said accounts give the information required by the Companies Act, 1956, in the manner so required:

i.In the case of Balance Sheet of the State of Affairs of the Company as at March 31, 2012;

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 for the year ended on that date.

03-11-12 N.Subramanian

Chennai Chartered Accountant

Mem. No. 21628


Mar 31, 2010

I We have audited the attached Balance Sheet of M/s. KLK ELECTRICAL LIMITED, CHENNAI, as at March 31,2010 and also the Profit and Loss Account and Cash flow Statement for the year ended on that date annexed thereto all of which I have signed under reference to this report These financial statements are the responsibility of the Companys management. my responsibility is to express an opinion on these financial statements based on my audit.

II I conducted my audit in accordance with the auditing statement standards generally accepted in India. Those Standards require that I plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. I believe that my audit provides a reasonable basis for my opinion.

III As required by the Companies (Auditors Report) Order, 2003 issued by the Central Government of India in terms of Sub-Section (4A) of Section 227 of the Companies Act, 1956,1 give below, a statement on the matters specified in paragraph 4 & 5 of the said Order.

1. The Company has maintained proper records showing full particulars including quantitative details and the situation of its fixed assets. It is reported that the assets have been physically verified by the management during the year and there is a regular program of verification of the fixed assets. In my opinion, the frequency of verification is reasonable having regard to the size of the company and the nature of its business and no material discrepancies were noticed on such verification. The company has not sold/disposed off any major items of the fixed assets during the year.

2.(a) During the year the management verified physically the inventory at the year end and the frequency of, physical verification is commensurate with the size of the company and nature of its business.

(b) On the basis of my examination of the records of inventory, I am of the opinion that the company is maintaining proper records of inventory. The discrepancies noticed on verification between the physical stocks and the book records were not material and the same have been properly dealt with in the books of account.

3.(a) The company had not granted any loan, secured or unsecured, to other companies, firms or persons covered in the register maintained under section 301 of the Companies Act, 1956.

(b) The company had taken interest free unsecured loan from three parties listed in the register maintained u/s.301 of the Act. The maximum amount due during the year was Rs.41,79,827/- and the balance outstanding as at the end of the financial year is Rs.41 ;79,827/-

(c) No interest is payable on such loans taken from them and the other terms and conditions with regard to repayment are, in my opinion prima facie, not prejudicial to the interest of the Company.

4.In my opinion and according to the information and explanation given to the information and explanation given to me, there are adequate internal control procedures commensurate with the size of the company and the nature of its business with regard to purchases of inventory and with regard to the sale of goods. During the course of my audit, no major weakness has been noticed in the internal controls.

5. Based on the audit procedures applied by me and according to the information and explanations provided by the management, I am of the opinion that the transactions that need to be entered into the register maintained under section 301 have been so entered.

6.ln my opinion and according to the information and explanations given to me, that there are no transactions made in pursuance of contracts or arrangements, entered in the registers maintained under section 301 and exceeding the value of 5 Lakh rupees during the year.

7.ln my opinion and according to the information and explanations given to me, the company has not accepted deposits from public under sections 58A and 58AA of the Companies Act, 1956 during the year.

8.The company has an internal audit system during the year commensurate with the size of the company and nature of its business.

9.ln my opinion and according to the information and explanations given to me, the Central Government has not prescribed any rules under clause (d) of sub-section (1) of Section 209 of the Act for the maintenance of cost records in respect of the products dealt with by the company.

10(a) According to the records of the company, the company is yet to remit the undisputed income tax arrears of Rs.566,607/- relating to the asst. years 1984 - 85 to 1989 - 90, which is outstanding as at March 31. 2010 for a period of more than six months from the date they become payable.

(b) According to the records of the company, there are no dues of sale tax, income tax, customs tax or wealth tax, excise duty / cess which have not been deposited on account of any dispute.

11. The company has not incurred any cash losses during the financial year covered by my audit but incurred cash loss in the immediately preceding financial year. The accumulated loss has not exceeded 50% of the net worth of the company.

12,Based on my audit procedures and on the information and explanations given by the management, I am of the opinion that the company has not defaulted in repayment of dues to a bank. The company does not have any debenture holders.

13.Based on my examination of documents and records, I am of the opinion that the company has not granted during the year any loans or advances on (he basis of security by way of pledge of shares, debentures and other securities.

14.Based on my examination of documents and records, I am of the opinion the company is not carrying on any activity relating to chit fund, nidhi, mutual benefit fund/society, no special statute is applicable to the company.

15.Based on my examination of the records and evaluation of the related internal controls, I am of the opinion that the company is not dealing or trading in shares, securities, debentures and other investments and hence the question of maintenance of adequate records relating to the same does not arise.

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

17.The company has not raised any term loans during the year and hence the application of the funds for the purpose for which they were raised does not arise.

18.According to the information and explanations given to me and on an overall examination of the balance sheet of the company, I report that no funds raised on short-term basis have been used for long-term investment. No long-term funds have been used to finance short-term assets.

19.Based on my examination of records and the information provided tome by the management I report that the company has not made any preferential allotment of shares to parties covered in the register maintained under section 301 of the Act.

20.During the period covered by my audit report, the company had not issued any debentures and hence the question of creation of any security in the respect of these debentures does not arise.

21. The company had not raised any money through public issues during the year under audit.

22.8ased upon the audit procedures performed and information and explanations given by the management I report that no fraud on or by the company has been noticed or reported during the course of my audit.

IV. Further to my comments in Para III above, I report that:

a)I have obtained all the information and explanations, which to the best of my knowledge and belief were necessary for the purpose of my audit;

b)In my opinion, proper books of account as required by law have been kept by the company so far as appears from my 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 my opinion, the balance sheet and the profit and loss account 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 representation received from the Directors as on 31st March, 2010 and taken on record by the Board of Directors, I report that none of the Director is disqualified as on 31st March 2010 from being appointed as a director in terms of clause (g) of Section 274 of the Companies Act, 1956;

f)In my opinion and to the best of my information and according to the explanations given to me, the said accounts give the information required by the Companies Act, 1956, in the manner so required:

i.In the case of Balance Sheet of the State of Affairs of the Company as at March 31,2010;

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 for the year ended on that date.

N. SUBRAMANIAN

Chartered Accountant

Date 28.08.2010 Membership Number. 21628



 
Subscribe now to get personal finance updates in your inbox!