Mar 31, 2016
Independent Auditors Report
To the Members of
MATRA KAUSHAL ENTERPRISE LIMITED (Formerly Known As P L ENTERPRISE), Report on the Financial Statements
We have audited the accompanying financial statements of MATRA KAUSHAL ENTERPRISE LIMITED ("the Company") which comprise the Balance Sheet as at March 31, 2016, the Statement of Profit and Loss, 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
The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 ("the Act") with respect to 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 principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, 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 have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statements. The procedures selected depend on the 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 financial control relevant to the Company''s preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on whether the Company has in place an adequate internal financial controls system over financial reporting and the operating effectiveness of such controls. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company''s Directors, 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 on the financial statements
Basis for Qualification
The Company has not received Interest from Loans & Advances of Rs.13.61 crores outstanding in the books of accounts as on 31.03.2016, and also Company has been providing Depreciation at the rates prescribed in the Income Tax Act 1961 instead of providing depreciation as per schedule II of Companies Act 2013.
If the Company has provided the Interest @12% on Loans& Advances of Rs.13.61 crores the company could earn the profit of Rs.1, 28, 83,664/- instead of getting loss of Rs.34, 48,812/- .The Management explained such that the party to whom Inter corporate deposit is extended has written to the company has stating its inability to pay interest on the ICD outstanding for the F.Y 2015-16.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, and subject to matter mentioned in Basis for Qualification the aforesaid financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2016, and its Loss and its Cash Flow for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2016 ("the Order"), as amended, issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in the "Annexure A" a statement on the matters specified in paragraphs 3 and 4 of the Order.
2. As required by section 143 (3) of the Act, we report that:
a. we have sought and 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 it appears from our examination of those books;
c. the Balance Sheet, the Statement of Profit and Loss and the Cash Flow Statement dealt with by this Report are in agreement with the books of account
d. in our opinion, the aforesaid financial statements comply with the Accounting Standards specified under section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
e. On the basis of written representations received from the directors as on March 31, 2016 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2016 from being appointed as a director in terms of Section 164 (2) of the Act.
f. With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in "Annexure B".
g. With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
i. The Company does not have any pending litigations which would impact its financial position.
ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.
iii. There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.
Referred to in paragraph 1 under the heading ''Report on Other Legal & Regulatory Requirement'' of our report of even date to the financial statements of the Company for the year ended March 31, 2016:
i) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets;
(b) The Fixed Assets have been physically verified by the management in a phased manner,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 nature of its business. Pursuant to the program, a portion of the fixed asset has been physically verified by the management during the year and no material discrepancies between the books records and the physical fixed assets have been noticed.
(c) The title deeds of immovable properties are held in the name of the company.
ii) According to the information and explanations given to us, the inventories have been physically verified during the year by the management. In our opinion, the frequency of such verification is reasonable. The discrepancies noticed on physical verification of inventories as compare to the book records, which in our opinion were not material, have been properly dealt with.
ii) The Company has granted unsecured loans to various parties from time to time which includes long outstanding advances to the tune of Rs.13.61 crores where in no interest is provided by the company on that advance amount of Rs.13.61crores for the current Financial Year and hence Considered to be Prejudicial to the interest of the Company for the year under review.
iii) According to the information and explanations furnished to us there being no such loans and investments, guarantees and security by the company and hence the clause 3(iv) is not applicable to the company for the year under review.
iv) The Company has not accepted any deposits from the public and hence the directives issued by the Reserve Bank of India and the provisions of Sections 73 to 76 or any other relevant provisions of the Act and the Companies (Acceptance of Deposit) Rules, 2015 with regard to the deposits accepted from the public are not applicable.
v) As informed to us, the maintenance of Cost Records has not been specified by the Central Government under sub-section (1) of Section 148 of the Act, in respect of the activities carried on by the company.
vi) In respect of statutory dues:
a. According to information and explanations given to us and on the basis of our examination of the books of accounts and records, the Company has been generally regular in depositing undisputed statutory dues including Provident Fund, Employees State Insurance, Income-Tax, Sales tax, Service Tax, Duty of Customs, Duty of Excise, Value added Tax, Cess and any other statutory dues with the appropriate authorities. According to the information and explanations given to us, following are undisputed amounts payable in respect of the above were in arrears as at March 31, 2016 for a period of more than six months from the date on when they become payable.
Sl. No. |
Name of the Statute |
Name of the tax due |
Amount(Rs.) |
Period to which the amount relates |
1. |
Income T ax Act 1961 |
Income T ax |
7,06,494 |
2011-12 |
2. |
Central sales tax act, 1956 and sales tax acts of various state |
Sales Tax/VAT |
2,69,000 |
2015-16 |
b) According to the information and explanation given to us, there are no dues of income tax, sales tax, service tax, duty of customs, duty of excise, value added tax and Cess which have not been deposited as on 31st March, 2016 on account of any dispute.
vii) In our opinion and according to the information and explanations given to us, the Company has not defaulted in the repayment of dues to banks. The Company has not taken any loan either from financial institutions or from the government and has not issued any debentures.
viii) Based upon the audit procedures performed and the information and explanations given by the management, the company has not raised moneys by way of initial public offer or further public offer including debt instruments and term Loans. Accordingly, the provisions of clause 3 (ix) of the Order are not applicable to the Company and hence not commented upon.
ix) Based upon the audit procedures performed and the information and explanations given by the management, we report that no fraud by the Company or on the company by its officers or employees has been noticed or reported during the year.
x) Based upon the audit procedures performed and the information and explanations given by the management, the managerial remuneration has been paid or provided in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Companies Act;
xi) As the company is not a Nidhi Company and Nidhi Rules, 2014 are not applicable to it, the provisions of Clause 3 (xii) of the Order are not applicable to the Company.
xii) In our opinion, all transactions with the related parties are in compliance with section177 and 188 of Companies Act, 2013 and the details of such related party transactions have been disclosed in the Financial Statements as required under Accounting Standard - 18, Related Party Disclosures specified under section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
xiii) Based upon the audit procedures performed and the information and explanations given by the management, the company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review. Accordingly, the provisions of clause 3 (xiv) of the Order are not applicable to the Company and hence not commented upon.
xiv) Based upon the audit procedures performed and the information and explanations given by the management, the company has not entered into any non-cash transactions with directors or persons connected with him. Accordingly, the provisions of clause 3 (xv) of the Order are not applicable to the Company and hence not commented upon.
xv) In our opinion, the company is not required to be registered under section 45 IA of the Reserve Bank of India Act, 1934 and accordingly, the provisions of clause 3 (xvi) of the Order are not applicable to the Company and hence not commented upon.
"Annexure B" to the Independent Auditor''s Report of even date on the Financial Statements of MATRA KAUSHAL ENTERPRISE LIMITED.
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013("the Act")
We have audited the internal financial controls over financial reporting of MATRA KAUSHAL ENTERPRISE LIMITE The Company") as of March 31,206 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.
The Company''s management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India. These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the or derlyand efficient conduct of its business. Including adherence to company''s policies, the safeguarding of it assets, the prevention and detection of fauds and errors, the accuracy and completeness of the accounting records, and the tinely preparation of reliable financial information, as required under the Companies Act,2013.
Auditors'' Responsibility
Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on our audit. We conducted our auditing accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the "Guidance Note")and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section l43(10) of the CompaniesAct,2013,tothe extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that material weakness exists and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. 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 fraudorer.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
Our audit opinion on the Company''s internal financial controls system over financial reporting.
A company''s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company''s internal financial control over financial reporting includes those policies and procedures that (l) pertain to the maintenance of records that in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or tinely detection of unauthorized acquisition use, or disposition of the company''s assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over in financial reporting, including the possibility of collusion or improper management override of controls material misstatements due to error or fraud may occur and not be detected. Also projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that then internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
According to the information and explanations given to us and based on our audit, the following material weakness have been identified as at March 3, 206
a) The Company did not have an appropriate internal control system for Procure to pay, to ensure that purchase requisition is raised by authorized personnel, Purchase transactions are approved, Invoice Processing and payment functions.
A ''material weakness'' is a deficiency, or a combination of deficiencies, in internal financial control over financial reporting, such that there is a reasonable possibility that a material misstatement of the company''s annual or interim financial statements will not be prevent meted on a timely basis.
In our opinion, except for the effects of the material weaknesses described above on the achievement of the objectives of the control criteria, the Company has maintained, in all material respects, adequate internal financial controls over financial reporting and such internal financial controls over financial reporting were operating effectively as of March 31, 2016, based on "the internal control over financial reporting criteria established by the Company considering the ential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India"].
We have considered the material weaknesses identified and reqiorbove in determining the nature, timing, and extent of audit tests applied in our audit of the standalone financial statements of the Company as at March 3J206, and these material weaknesses does not affect our opinion on the standalone financial sta;ements of the Company.
For and on behalf of
S.K BANG & CO
Chartered Accountants
Firm Registration: 0003 86
Sampath Kumar Bang
Partner
Membership No. 026010
Place: Hyderabad
Date: 30.05.2016
Mar 31, 2015
We have audited the accompanying standalone financial statements of
MATRA KAUSIIAL ENTERPRISE LIMITED (Formerly Known As P L ENTERPRISES
LTD) (' the company"), which comprise the Balance Sheet as at 31 March
2015, the Statement of Profit and Loss, the 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
The Company's Board of Directors is responsible for the matters in
section 134(5) of the Companies Act. 2013 ("the Act") with respect to
the preparation of these standalone 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 principles
generally accepted in India, including the Accounting Standards
specified under Section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014. This responsibility also includes the
maintenance of adequate accounting records in accordance with the
provision of the Act for safeguarding of the assets of the Company and
for preventing and detecting the frauds and other irregularities;
selection and application of appropriate accounting policies; making
judgments and estimates that arc reasonable and prudent; and design,
implementation and maintenance of internal financial control, that were
operating effectively for ensuring the accuracy and completeness of the
accounting records, 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 standalone
financial statements based on Our audit. We have taken into account the
provisions of the Act, the accounting and auditing standards and
matters which are required to he included in the audit report under the
provisions of the Act and the Rules made there under.
We have conducted our audit in accordance with the Standards on
Auditing specified under section 143(10) of the Act. Those Standards
require that we comply with ethical requirements and plan and perform
the audit to obtain reasonable assurance about whether the financial
statements arc free from material mis-statement.
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 financial control relevant to the Company's
preparation of the financial statements that give true and fair view 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 Company's Directors, 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 on the financial
statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements, give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India of state of affairs of the company as at
March 31,2015. and its 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,2015 (The
Order') issued by the central Government of India in terms of
sub-section (11) of section 143 of the act, we give the Annexure a
Statement on the matters specified in the paragraph 3 and 4 of the
Order, to the extent applicable
2 As required by section 143(3) of the Act, we report that:
a) We have sought and obtained all the information and explanations
which to the best of Our knowledge and belief were necessary for the
purposes of Our audit.
b) In Our opinion proper books of account as required by law have been
kept by the Company so far as appears from Our examination of those
books.
c) The Balance Sheet, the Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
e) In Our opinion, the aforesaid financial statements comply with the
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules. 2014.
e) On the basis of written representations received from the directors
as on 31 March, 2015. taken on record by the Board of Directors, none
of the directors is disqualified as on 31 March. 2015, from being
appointed as a director in terms of Section 164(2) of the Act.
f) With respect to the other matters included in the Auditor's Report
and to best of our information and according to the explanations given
to me:
i. The Company does not have any pending litigations which would impact
its financial position
ii. The Company did not have any long-term contracts including
derivatives contracts for which there were any material foreseeable
losses
iii. There were. no amounts which required to be transferred to the
Investor Education and Protection Fund by the Company
Anncxure to Independent Auditor's Report
(Referred to in paragraph 1 of the Our Report on other Legal and
Regulatory Requirements forming part of (he Independent Auditor's
Report dated 24-06-2015 to the members of MATRA KAUSHAL ENTERPRISE
LIMITED (Formerly Known As P L ENTERPRISES LTD) on the accounts of the
company for the year ended 31st March, 2015.
1. a) The company has maintained proper records showing full
particulars including quantitative details and situation of its fixed
assets.
(b) According to the information and explanations given to us, fixed
assets have been physically verified by the management at reasonable
intervals; no material discrepancies were noticed on such verification.
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, firns or
other parties listed in the register maintained under Section 301 of
the Companies Act. 2013. Consequently, the provisions of clauses iii
(b), iii(c) and ill id) of the order are not applicable to the Company.
4. In our opinion and according to the information and explanations
given to us. there is an adequate internal control procedure
commensurate with the size of the company and the nature of its
business, for the purchase of inventories and 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. The Company has not accepted any deposits from the public covered
under section 58A and 58AA of the Companies Act, 2013.
6. As per information & explanation given by the management, maintenance
of cost records has not been prescribed by the Central Government under
clause (d) of sub-section (1) of section 209 of the Act.
7 (a) According to the records of the company, undisputed statutory
dues including Provident Fund,Investor Education and Protection Fund,
Employees' State Insurance, Wealth Tax, Service Ta Custom Duty. Excise
Duty, cess Except Income tax .sales tax to the extent applicable and
any other statutory dues have generally been regularly deposited with
the appropriate authorities. According the information and explanations
given to us there were outstanding statutory dues in respect of Income
Tax which amounts 11,59,107 and in respect of sales tax which amounts
to 12.29,653 as on 31st of March, 2015 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
are no amounts payable respect of income tax, wealth tax, value added
lax, service tax. customs duty excise duty which have not been
deposited on account of disputes.
(c ) According to the information and explanation given to us and on
the basis of examination records, during the year under review there
were no amounts which were required to be transferred to Investor
Education and Protection Fund by the company . Hence clause 4 (vii) (
C)of the Order is not applicable
8 The Company does not have any accumulated losses during the financial
year covered by our audit and in the immediately preceding financial
year.
9 Based on our audit procedures and on the information and explanations
given by the managemet we are of the opinion that, the Company has not
defaulted in repayment of dues to a financial institution, bank or
debenture holders.
10 According to the information and explanations given to us, (he
Company has not given any guarantees for loan taken by others from a
bank or financial institution, bank
11 Based on our audit procedures and on the information given by the
management, we report that t company has not raised any term loans
during the year.
12 Based on our audit procedures and according lo information and
explanations given to us . no fraud on or by the company has been
noticed or reported during the course of our audit
Fur S.K.BANG & CO
Chartered Accountants
Sd/-
Sampath Kumar Bang
Partner
Membership No. :026010
Date: 24-06-2015
Place: Secunderabad
Mar 31, 2014
We have audited the accompanying financial statements of M/s MATRA
KAUSHAL ENTERPRISE LIMITED Formerly known as P L ENTERPRISE 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 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, 2013 ("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.
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, 2014;
b) in the case of the Profit and Loss Account, of the profit for the
year ended on that date; and
c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
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 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, 2013; Except
a) AS-15 in respect to gratuity for which the company is not accounting
on accrual basis and instead accounting the same on payment basis.
b) As- 6-Depreciation- In respect of depreciation for which the company
is not providing as per the rates & method provided by the companies
act and instead it is providing the same as per the rates prescribed
under the income Tax Act.
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, 2013.
f) Since the Central Government has not issued any notification as to
the rate at which the cess is to be paid under section 441A of the
Companies Act, 2013 nor has it issued any Rules under the said section,
prescribing the manner in which such cess is to be paid, no cess is due
and payable by the Company.
The Annexure referred to in paragraph 1 of the Our Report of even date
to the members of M/s. MATRA KAUSHAL ENTERPRISE LIMITED Formerly known
as P L ENTERPRISE LIMITED on the accounts of the company for the year
ended 31st March, 2014.
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, 2013. Consequently, the provisions of clauses iii
(b), iii(c) 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 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, 2013. 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, 2013.
7. As per information & explanations given by the management, the
Company has no 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 not been prescribed by the Central
Government under clause (d) of sub-section (1) of section 209 of the
Act.
9. (a) According to the records of the company, undisputed statutory
dues including Provident Fund, Investor Education and Protection Fund,
Employees'' State Insurance, Wealth Tax, Service Tax, Custom Duty,
Excise Duty, cess Except Income tax ,sales tax 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 outstanding statutory dues in
respect of Income Tax which amounts 11,59,107 and in respect of sales
tax which amounts to 12,29,653 as on 31st 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 no
amounts payable in respect of income tax, wealth tax, sales tax,
service tax, customs duty excise duty which have not been deposited on
account of disputes.
10. The Company have accumulated loss and have no cash loss during the
financial year covered by our audit and has cash loss 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 not trading in Shares, Mutual funds & other investments.
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, 2014, we report that no funds raised on short-term basis have
been used for long-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 T.P.RAO & CO
Chartered Accountants
Sd/-
T.PRASADA RAO
Proprietor
Membership No. :019196
Place: Hyderabad
Date: 30-05-2014
Mar 31, 2013
We have audited the accompanying financial statements of M/s MATRA
KAUSHAL ENTERPRISE LIMITED Formerly known as P L ENTERPRISE LIMITED,
("the Company"), which comprise the Balance Sheet as at March 31, 2013,
and the Statement of Profit and Loss and Cash Flow Statement for the
year then ended, and a summary of significant accounting policies and
other explanatory information.
Management 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.
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 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.
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 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.
f) Since the Central Government has not issued any notification as to
the rate at which the cess is to be paid under section 441A of the
Companies Act, 1956 nor has it issued any Rules under the said section,
prescribing the manner in which such cess is to be paid, no cess is due
and payable by the Company.
The Annexure referred to in paragraph 1 of the Our Report of even date
to the members of M/s. MATRA KAUSHAL ENTERPRISE LIMITED Formerly known
as P L ENTERPRISE 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.
(b) 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 no 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 not been prescribed by the Central
Government under clause (d) of sub-section (1) of section 209 of the
Act.
9. (a) According to the records of the company, 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 Except Income tax 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 in
respect of Income Tax 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 and has incurred cash loss during
the financial year covered by our audit and 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 not trading in Shares, Mutual funds & other investments.
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
been used for long-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 T.P. Rao & Co.
Chartered Accountants
FRN:
T. Prasada Rao
Place: Hyderabad Proprietor
Date: 05/09/2013 Membership No.: 019196
Mar 31, 2012
1. I have audited the attached Balance Sheet of P.L. Enterprises Ltd.,
Hyderabad as on 31st March 2012 and the Profit & Loss Account for the
year ended on that date annexed thereto. These financial statements are
the responsibility of the Company's management. My responsibility is
to express opinion on these financial statements based on my audit.
2. I conducted my audit in accordance with auditing 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 also
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.
3. As required by the Companies (Auditors' Report) order, 2003, as
amended by the Companies (Auditor's Report) (Amendment) Order 2004,
issued by the Department of Company Affairs, in terms of section
227(4A) of the Companies Act 1956, I enclose in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the
said order.
4. Further to my comments in the annexure referred to above, I report
that:
i) 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.
ii) 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 such
books.
iii) The Balance Sheet and Profit & Loss Account referred to in this
report are in agreement with the books of account.
iv) In my opinion the Balance Sheet & Profit & 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, except.
a) AS-15 in respect to gratuity for which the company is not accounting
on accrual basis and instead accounting the same on payment basis.
b) As- 6-Depreciation- In respect of depreciation for which the company
is not providing as per the rates & method provided by the companies
act and instead it is providing the same as per the rates prescribed
under the income Tax Act.
v) On the basis of written confirmation received from the directors as
on 31-3-2012, and taken on record by the Board of Directors and
information and explanations given to me I report that none of the
directors of the company are disqualified from being appointed as a
director in term of clause (g) of sub-section (1) of section 274 of the
Companies Act, 1956.
vi) In my opinion and to the best of our 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 requried and give
a true and fair view in conformity with the accounting principles
generally accepted in India.
a) In the case of Balance sheet, of the affairs of the company as at
31st March 2012 and
b) In the case of the profit and loss account, of the profit of the
year ended on the date.
ANNEXURE TO AUDITORS' REPORT
P.L .ENTERPRISE LIMITED
(i) (a) Company has maintained proper records showing full
particulars including quantities details and situation of fixed assets,
except in the case of Furniture & fixtures.
(b) All the assets have been physically verified by the management
during the year. No discrepancies were noticed on such verification.
(c) During the year, the company has not disposed off substantial/
major part of the fixed assets having effect on going concern status.
(ii) (a) The inventory has been physically verified during the previous
year by the management. In our opinion, the frequency of verification
is reasonable.
(b) The procedure 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 business.
(c) The company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stocks and
the book records were not material.
(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, during the year.
b) As the company has not granted any loans during the year, the clause
relating to rate of Interest and other terms & conditions given by the
Company is not applicable to the company.
c) As the company has not granted any loans during the year, the clause
relating to the receipt of the principal and interest is not applicable
to the company.
d) As the company has not granted any loans during the year, the clause
relating to the steps taken for the recovery of the principal and
interest on overdue of more than one lakh is not applicable to the
company.
e) The Company has taken unsecured loan from parties covered in the
register under section 301 of the Companies Act, 1956 during the year.
f) The rates of interest and other terms and conditions of such
unsecured loans taken by the company during the year, are prima-facie
not prejudicial to the interest of the company.
g) The company is regular in repaying the principal amount and interest
amount. There are no over dues.
(iv) In my opinion and according the information and explanations 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
purchase of inventory, fixed assets and sale of goods and services.
During the course of my audit, I have not observed any major weaknesses
in internal controls.
(v) a) According to the information and explanations given to me, I am
of the opinion that the particulars of contracts/ arrangements referred
to in section 301 of the Companies Act, 1956 have been entered in the
register required to be maintained under that section.
b) In my opinion and according to the information and explanations
given to me, 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 prices which are
reasonable having regard to prevailing, market prices wherever such
market prices are available at the relevant time.
(vi) In my opinion and according to the information and explanations
given to me, the company has not accepted any deposits with in the
meaning the provisions of sections 58A of the Companies Act, 1956 and
the Companies (Acceptance of Deposits) Rules, 1975 or any other
relevant provisions of the Act.
(vii) In my opinion, the company has an internal audit system
commensurate with the size and nature of its business.
(viii) Maintenance of cost records u/s. 209(1)(d) of the Companies Act,
1956 has not been prescribed by the Central Government for this
company.
(ix) a) According to the books and records as produced and examined by
me in accordance with generally accepted auditing practices in India.
Undisputed statutory dues in respect of Income-tax, Service-tax and
other statutory dues have generally been regularly deposited, by the
company during the year with the appropriate authorities in India. As
explained to me the Company did not have any dues on account of
Provident Fund, Employees State Insurance, Investor Education and
Protection Fund, Wealth tax, Custom Duty, Excise Duly & Cess and other.
b) According to the information and explanation given to me, no
undisputed amounts payable in respect of Provident Fund, Employees
State Insurance, Investor Education and Protection fund, Income tax,
Sales tax, Wealth tax, service tax, Custom Duty, Excise duty and which
have not been deposited with the appropriate authorities on account
dispute.
(x) The company's accumulated losses at the end of the financial year
are more than 92% of the net worth of the company. However accounts
are prepared under the going convert basis as the company is making all
the efforts to turn around. The company has incurred cash loss of Rs.
275.41 Lacs during the current financial year and it has not incurred
cash loss in the immediately preceding financial year during the year.
(xi) In my opinion and according to the information and explanations
given to me, the company has not defaulted in repayment of dues to
Banks. There are no borrowings from financial institutions and the
company has issued no debentures.
(xii) In my opinion, the provisions of any special statute applicable
to chit fund or nidhi/mutual benefit fund/society are not applicable to
the company.
(xiii) In my opinion, the company is not dealing in our trading in
shares, securities, debentures and other investments.
(xiv) In my opinion, and according to the information and explanations
given to me, the company has not, given guarantees for loans taken by
others from banks or financial Institutions.
(xv) In my opinion and according to the information and explanations
given to me the company has not taken term loans from financial
institutions, etc.
(xvi) In my opinion and according to the information and explanations
given to us and on an overall examination of the balance sheet of the
company, we report that the company has used no funds raised on
short-term basis during the year for long-term purposes.
(xvii) According to the information and given to me, the company has
not issued any debentures since inception.
(xviii) In my opinion, and according to the information and
explanations, the company has not raised money by public issues since
inception.
(xix) According to the information and explanations given to me, no
fraud by the company has been, noticed or reported during the course of
our audit.
For T.P. RAO & CO.
Chartered Accountants
T. PRASADSA RAO
Proprietor
Membership No.: 019196
Place : Hyderabad
Date : 30-05-2012
Mar 31, 2011
1. I have audited the attached Balance Sheet of M/s. P.L. Enterprises
Ltd., as at 31st March 2011 and also the Profit & Loss Account for the
year ended on that date annexed thereto. 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.
2. I conducted my audit in accordance with auditing 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 also
includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the over-all
financial statement presentation. I believe that my audit provides a
reasonable basis for my opinion.
3. As required by the Companies (Auditors' Report) order, 2003, as
amended by the Companies (Auditor's Report) (Amendment) Order 2004,
issued by the Department of Company Affairs, in terms of section
227(4A) of the Companies Act, 1956,1 enclose in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the said
order.
4. Further to my comments above, I report that:
i) 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;
ii) 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 such
books.
iii) The Balance Sheet and Profit & Loss Account referred to in this
report are in agreement with the books of account.
iv) In my opinion the Balance Sheet & Profit & Loss account comply with
the Accounting standards referred to in sub section (3C) of section 211
of the Companies Act, 1956, except AS-15 in respect of retirement
benefits.
v) On the basis of the written confirmation received from the directors
as on 31-3- 2010 and taken on record by the Board of Directors and
information and explanations given to me I report that none of the
directors of the company are disqualified from being appointed as a
director under clause (g) of sub-section (1) of section 274 of the
Companies Act, 1956.
vi) In my opinion and to the best of my information and according to
the explanations given to me, the said Balance Sheet and Profit & Loss
Account read together with the notes thereon, gives the information
required under the Companies Act, 1956 in the manner so required and
gives a true and fair view:
a) In so far as it relates to the Balance Sheet of the state of affairs
of the Company as at 31st March 2011.
b) In so far as it relates to the Profit & Loss Account of the
company's profit for the Year ended on that date.
Annexure to Auditor's Report regarding M/s. P.L. Enterprises
Ltd. referred to in Para (3) of my Report of even date Annexed to
accounts for the year ended 31s March 2011.
(i) (a) Company has maintained proper records showing full particulars
including quantities details and situation of fixed assets, except in
the case of Furniture & fixtures.
(b) All the assets have been physically verified by the management
during the year. No discrepancies were noticed on such verification.
(c) During the year, the company has not disposed off substantial/maj
or part of the fixed assets having effect on going concern status.
(ii) (a) As explained to me the inventory has been physically verified
during the year by the management. In my opinion, the frequency of
verification is reasonable.
(b) The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the company and the nature of its business.
(c) The company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stocks and
the book records were not material.
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, during the year.
b) As the company has not granted any loans during the year, the clause
relating to rate of interest and other terms and conditions given by
the company is not applicable to the company.
c) As the company has not granted any loans during the year, the clause
relating to the receipt of the principal and interest is not applicable
to the company.
d) As the company has not granted any loans during the year, the clause
relating to the steps taken for the recovery of the principal and
interest on overdue of more than one lakh is not applicable to the
company.
e) The Company has taken unsecured loan from parties covered in the
register under section 301 of the Companies Act, 1956 during the year.
f) The rates of interest and other terms and conditions of such
unsecured loans taken by the company during the year, are prima-facie
not prejudicial to the interest of the company.
g) The company is regular in repaying the principal amount and interest
amount.
There are no over dues.
(iv) In my opinion and according the information and explanations 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
purchase of inventory, fixed assets and sale of goods and services.
During the course of my audit, I have not observed any major weaknesses
in internal controls.
(v) a) According to the information and explanations given to me, I am
of the opinion that the particulars of contracts/arrangements referred
to in section 301 of the Companies Act, 1956 have been entered in the
register required to be maintained under that section.
b) In my opinion and according to the information and explanations
given to me, 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 prices which are
reasonable having regard to prevailing market prices wherever such
market prices are available at the relevant time.
(vi) In my opinion and according to the information and explanations
given to me, the company has not accepted any deposits with in the
meaning the provisions of sections 58A of the Companies Act, 1956 and
the Companies (Acceptance of Deposits) Rules, 1975 or any other
relevant provisions of the Act.
(vii) In my opinion, the company has an internal audit system
commensurate with the size and nature of its business.
(viii) Maintenance of cost records u/s. 209(l)(d) of the Companies Act,
1956 has not been prescribed by the Central Government for this
company.
(ix) a) According to the books and records as produced and examined by
me in accordance with generally accepted auditing practices in India,
undisputed statutory dues in respect of Income-tax, Service-tax and
other statutory dues have generally been regularly deposited, by the
company during the year with the appropriate authorities in India. As
explained to me the Company did not have any dues on account of
Provident Fund, Employees State Insurance, Investor Education and
Protection Fund, Wealth tax, Custom Duty, Excise Duty & Cess.
b) According to the information and explanations given to me, no
undisputed amounts payable in respect Provident Fund, Investor
Education and Protection Fund, Employees State Insurance, Income tax,
Sales tax, Wealth tax, service tax, Custom Duty, Excise duty/Cess which
have not been deposited with the appropriate authorities on account
dispute.
(x) The company has no accumulated losses and has not incurred any cash
losses during the financial year covered by my audit or in the
immediately preceding financial year.
(xi) In my opinion and according to the information and explanations
given to me, the company has not defaulted in repayment of dues to
Banks. There are no borrowings from financial institutions and the
company has issued no debentures.
(xiii) In my opinion, the provisions of any special statute applicable
to chit fund or a nidhi/mutual benefit fund/society are not applicable
to the company.
(xiv) In my opinion, the company is not dealing in or trading in
shares, securities, debentures and other investments.
(xv) In my opinion, and according to information and explanations given
to me, the company has not given guarantees for loans taken by others
from banks or financial institutions.
(xvi) In my opinion and according to information and explanations given
to me the company has not obtained any term loans during the year.
(xvii) According to the information and explanations given to me and on
an overall examination of the balance sheet of the company, I report
that the company has used no funds raised on short-term basis during
the year for long-term purposes.
(xviii) In my opinion, and according to the information and
explanations given to me, the company has not issued any debentures
since inception.
(xix) In my opinion, and according to the information and explanations
given to me, the company has not raised money by public issues since
inception.
(xx) According to the information and explanations given to me, no
fraud by the company has been noticed or reported during the course of
our audit.
T.P. Rao & Co.,
Chartered Accountants
Place: Hyderabad T. Prasadsa Rao
Date : 16/06/2011 Proprietor
Membership No: 019196
Mar 31, 2010
We have audited the attached Balance Sheet of P.LEnterprise Limited,
Hyderabad as on 31st March 2010 and the Profit and Loss Account for the
year ended on that date annexed thereto. These financial statements are
the responsibility of the Companys management. Our responsibility is
to express opinion on these financial statements based on our audit.
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 test basis, evidence supporting the amounts a disclosures
in the financial statements. An audit also includes assessing the
accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
1. As required by the Manufacturing and Other Companies (Auditors
Report) Order, 1998 issued by the Company Law Board in terms of Section
227 (4A) of the Companies Act, 1956, and on the basics of such checks
as we consider necessary and according to the information and
explanations given to us. We enclose in the annexure here to a
statement on the matters specified in paragraphs and 5 of the said
order.
2. 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 in the region so far as appears from our examinations of those
books.
c) The Balance Sheet and the Profit and Loss Account dealt with by this
reports are in agreement with the books of account.
d) In our opinion, the Balance Sheet and profit and Loss Account dealt
with by this report comply with the accounting standards (except
deviation of A S9), Note No. 10) 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 3 Ist March 2010, and taken on record by the Board of Directors,
we 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
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 me, 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;
1) In the case of Balance Sheet, of the affairs of the Company as at
31st March 2010 and
2) In the case of the Profit and Loss Account, of the Profit of the
year ended on that date.
ANNEXURE TO AUDITORS REPORT RL .ENTERPRISE LIMITED
(Referred to in Paragraph No. 3 of our Report of even date)
1. (a) The Company has maintained proper records showing full
particulars, incuding quantitative details and situation of fixed
assets.
(b) All the assets have been physically verified by the management.
During the year but there is a irregular programmed of verification
which in our opinion, is reasonable having regard to the size of the
company and the nature of its assets. No material discrepancies were
noticed on such verification.
(c) No fixed assests were disposed off during the year, therefore, do
not affect the going concern status of the company.
2. (a) The Inventory has been physically verified during the previous
year by the management. In our opinion, the frequency of verification
is reasonable.
(b) The procedure 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 business.
(c) The company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stocks and
the book records were not material.
3. The Company has neither granted nor taken loans, secured or
unsecured to & from Companies or other Parties covered in the registers
maintained under Section 301 of the Companies Act, 1956. Accordingly,
the Clauses 4 (iii) (b) to (d) 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 procedures
commensurate with the size of the Company and the nature of its
business with regards to purchases of inventory and fixed assets and
with regard to the sale of goods. During the course of our audit, we
have not observed and continuing failure to correct major weakness in
internal controls.
5. As per the Company Secretary and according to the information and
explanations given to us, there are no transactions that need to be
entered into the register maintained under section 301 of the companies
Act, 1956. Accordingly the clause 4 (v) (b) of the order is not
applicable.
6. In our opinion and according to the information and explanations
given to us, compliance with the provisions of section 58Aand 58AA of
the Companies Act, 1956 and the Companies (Acceptance of Deposits)
Rules, 1975 with regards to the deposits accepted from the public is
not applicable, since the company has not accepted any deposits from
public.
7. In our opinion, the company has an internal audit system
commenusurate with the size and nature of its business.
8. According to the following & explanations given to us, the Central
Government has not prescribed the maintenance of cost records under
Section 209 (I) (d) of the Companies Act, 1956 in respect of activities
carries out by the company.
(a) The company is generally been regular in depositing with
appropriate authorities undisputed statutory dues including provident
fund, employees state insurance, income tax, sales tax, wealth tax,
custom duty, excise duty, cess and other material statutory dues
applicable to it.
(b) According to the information and Explanation given to us, no
undisputed amounts payable in respect of income tax, wealth tax, sales
tax, Customs Duty, Excise duty and cess were in arrears, as at 31 st
March, 2010 for a period of more than six months from the date they
become payable except TDS.
(c) According to the information and Explanation given to us there are
no dues of Sales Tax, Income Tax, Execise duty, Wealth tax and Cess
which has not been deposited on account of any dispute.
9. In our opinion and according to the information and explanation
given to us, the company has not granted loans & advances on the basis
of security by way of pledge of shares, debentures & other securities.
Hence clause 4 (XII) of the order is not applicable.
10. In our opinion, the company is not dealing in or trading in shares
securities, debentures & other Investments. Accordingly the provision
of clause 4 (xiv) of the companies (Auditors Report) order, 2003 are
not applicable.
11. In our opinion the company is not a Chit Fund or a nidhi/mutual
benefit fund/society. Therefore the provision of clause 4 (xiii) of the
Companies (Auditors Report) Order, 2003 are not applicable to the
company. In our opinion, the terms and conditions on which the company
has given guarantees for the loans taken by other from Banks or
financial Institutions are not prejudicial to the interest of the
company.
12. In our opinion the company has not taken term loans from financial
institutions, etc.
13. According to the information and explanation given to us and on an
overall examination of the balance sheet of the company, we report that
the no funds raised on short-term basis have been used for long-term
investment. No long-term funds have been used to finanace short-term
assets Except Permanent Working Capital.
14. According to the information and explanation given to us, the
company has not made preferential allotment of shares to parties and
companies covered in the register maintained under section 301 of the
Act. Accordingly Clause 4(xviii) the order is not applicable.
15. According to the information and explanation given to us, the
company has not issued any debentures. Accordingly Clause 4 (xix) of
the order is not applicable.
16. The Company has not raised any money by public issues during the
year. Accordingly Clause 4 (xx) of the order is not applicable.
FOR T.P. RAO & CO
Chartered Accountants
Sd-
(T.R RAO)
Proprietor
Place : Hyderabad
Date : 01-09-2010
Mar 31, 2004
1. We have audited the attached Balance Sheet of P.L. Enterprise
Limited, Hyderabad as on 31st March 2004 and the Profit and Loss
Account 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 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 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 (Auditor's Report) Order, 2003
issued by the Central Government of India in terms of Section 227 (4A)
of the Companies Act, 1956, we enclose in the annexure a statement on
the matters specified in paragraph 4 and 5 of the said order.
4. Further to our comments in the information and explanations, which
to the best of our knowledge and belief were necessary for the purpose
of our audit :
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 appear from our examination of those books.
c) The Balance Sheet and the Profit and Loss Account and cash flow
statement dealt with by this reports are in agreement with the books of
account,
d) In our opinion, the Balance Sheet and Profit and Loss Account and
Cash flow account dealt with by this report comply with the accounting
standards referred to in sub- section (3c) of section 21 I of the
companies Act, 1956; except
e) On the basis of written representation received from the directors,
as on 3 Ist March 2004, and taken on record by the Board of Directors,
we report that none of the directors is disqualified as on 31st March
2004, 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 31st March, 2004.
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 cash flow statement, of the cash flows for the year
ended on that date.
(Referred to in Paragraph No. I of our Report of even date)
1. In respect of fixed assets :
(a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets.
(b) The fixed assets were physically verified during the year by the
management in accordance with a program of verification, which in our
opinion provides for physical verification of all the fixed assets at
reasonable intervals. According to the information and explanations
given to us, no material discrepancies were noticed on such
verification.
(c) The Company has not sold / disposed off any significant portion of
fixed assets during the year.
2. In respect of its inventories :
(a) As explained to us, inventories were physically verified by the
management at reasonable intervals.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verifications of inventories
followed by the management were 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 its
inventories. The discrepancies noticed on physical verification between
physical stock and book records were not material.
3. The Company has not taken for granted any loans, secured or
unsecured from the Companies, firms or other Parties covered in the
registers maintained under Section 301 of the Companies Act.
4. 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 for the purchase of inventory and fixed assets and for the
sale of goods. During the course of our audit, we have not observed any
continuing failure to correct major weakness in internal control.
5. In respect of transactions entered in the register maintained in
pursuance of section 301 of the companies Act, 1956 :
a) According to the information and explanations given to us, the
transactions that needed to be entered into the register have been so
entered.
b) In our opinion and according to the information and explanations
given to us, where each of such transactions is in excess of Rs.5 Lakhs
in respect of any party during the year, the transactions have been
made at prices which are prima facie reasonable having regard to the
prevailing market prices at the relevant time.
6. The company has not accepted any deposits from the public during
the year.
7. The Central Government has not Prescribed any rules relating to
Maintenance of cost records under rule 209(1) (d) of the companies act.
8. Statutory & Other dues.
(a) According to the information and explanations given to us. The
Company has been regular in depositing undisputed statutory dues like
Sales Tax; however, the company has been irregular in payment of Tax
deducted at sources in respect of Income Tax.
(b) According to the information and explanation given to us there are
no dues of Sales Tax, Customs duty, Wealth Tax, Exercise duty and Cess.
The Company is disputing Income Tax Penalty of Rs. 1,00,000/- levied
U/s 271 B Hence not paid.
9. In our opinion, the accumulated losses of the company have not
exceeded fifty percent of its net worth as at the end of the year. The
company has not incurred cash losses during the current and the
immediately preceding financial year.
10. According to the information and explanations given to us by the
management, we are of the opinion that the Company has defaulted in
repayment of dues to banks.
11. Based on our examination of documents and records, we are of the
opinion that on loans or advances have been granted by the company on
the basis of security by way of pledge of shares, debentures and other
securities.
12. In our opinion, the company is not a chit fund or nidhi mutual
benefit fund / society. Therefore, the provisions of clause 4 (xiii) of
the Companies (Auditor's Report) Order, 2003, are not applicable to
the company.
13. In our opinion the company is not dealing in or trading in share,
securities, debentures and other investments. Accordingly the
provisions of clause 4(xiv) of the companies (Auditor's Report)
Order, 2003 are not applicable to the company.
14. In our opinion and according to the information and explanations
given to us, the company has not given any guarantee for loans taken by
others from banks and Financial Institutions during the year.
15. The company has not availed any term loans during the year.
16. According to the information and explanation 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 investment by the company. No long-term funds have been used to
finances short-term assets except permanent working capital.
17. The Company has not made preferential allotment of shares to
parties and companies covered in the register maintained under 301 of
the act.
18. The Company has not issued any debentures during the year.
19. The Company has not raised any money by public issues during the
year.
20. To the best of our knowledge and belief and according to the
information and explanations given to us, no fraud on or by the company
was noticed or reported during the year.
For T.P. RAO & CO.
Chartered Accountants
Sd/-
(T.P. RAO)
Proprietor
Place : Hyderabad
Date : 04-08-2004