Mar 31, 2016
INDEPENDENT AUDITORâS REPORT
TO THE MEMBERS OF MVL LTD 1. Report on the Financial Statements
We have audited the accompanying financial statements of MVL Limited (âthe Companyâ), which comprise the Balance Sheet as at March 31, 2016, and the Statement of Profit and Loss and the Cash Flow Statement for the year then ended and a summary of significant accounting policies and other explanatory information.
2. Managementâs responsibility for the Financial Statements
The Companyâs Board of Directors is responsible for the matters stated in section 134 (5) of the Companies Act, 2013 ( âthe Actââ) 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 the 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 the frauds and other irregularities; selection and application of appropriate accounting policies; making judgment and estimates that are 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 financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
3. Auditors 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 disclosures in the financial statements. The procedures selected depend on the auditorâs 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 Companyâs 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 companies 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.
4. Basis for Qualified Opinion
Reference is invited to
a) Note No. 39 in respect of non provision of interest with retrospective effect from 01.04.2014 (vide Board Resolution dated 17.02.2015) on loans from banks and financial institutions declared as Non Performing Account (NPA). As a result of non provision of said interest of Rs.40,96,85,873/- (previous year 32,39,14,890) payable during the year on the said NPA Accounts : -
- Revenue from operation has been understated by Rs. 18,99,09,679/- (previous year Rs. 26,14,60,650/-) arising out of percentage of completion (POC) method of accounting, due to non-capitalization of interest directly attributable to project work-in-progress.
- Loss from operation has been understated by Rs. 21,97,75,894 (previous year Rs.6,24,54,240/-)
b) Note No. 40 regarding non provision of advances to group companies considered doubtful of recovery and the lonee companies do not have the capacity / net-worth to repay the principal / or the interest charged thereon.
5. Qualified Opinion
In our opinion and to the best of our information and according to the explanation given to us, except for possible effects of
the matters described in paragraph , 4 above - the basis of qualified opinion , the financial statements give a true and fair
view :-
a) In the case of the Balance sheet, of the state of affairs of the company as at 31st March 2016;
b) In the case of statement of Profit and Loss of the loss for the year ending on 31st March, 2016.
c) In the case of the Cash Flow Statement, of the Cash flow for the year ending on 31st March, 2016.
6. Emphasis matters
Attention is invited to:-
a) Note No. 49 of the accompanying financial statements there exists material uncertainty over the realisability of certain loans and advances claimed as given/advanced for purchase/acquisition of land, rights, projects or properties which are pending either for transfer of property or refund of advances aggregating Rs. 6817.72 lacs as on 31.3.2016 , (previous year Rs. 11780.53 lacs). Out of these advances we are unable to ascertain whether the outstanding advances are fully recoverable/adjustable, since the same are outstanding/remained unadjusted for long. In the absence of some of confirmations and valid supporting agreements, we are unable to ascertain the impact, if any, that may arise on any future date, in case any of these advances are subsequently determined to be doubtful for recovery.
b) Note No. 50 in respect of purchase of commercial space and included as part of inventory/ WIP of the value of Rs.
3886.02 lacs. In view of non- registration of title of the said property in the name of the company, we are unable to comment about the authenticity of the title of the said commercial space acquired during the year.
c) Note No. 37 in respect of non availability of confirmations in respect of some debit and/or credit balances. In the absence of such confirmations, any provision to be made for the adverse variation in carrying amounts of these balances, are not quantified, as well as the quantum of adjustment if any, required to be made remain unascertained.
Our opinion is not qualified in respect of these matters.
7. Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors report) Order, 2016 (âThe Orderâ) issued by the central government of India in terms of subsection 11 of section 143 of the Act, We give in the annexure âAâ statement on the matter specified in paragraphs 3 & 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, 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 section 133 of the Companies Act, 2013, 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, and 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 sub section (2) of section 164 of the Companies Act, 2013.
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 âAnnexure Bâ and.
g) With respect to the other matters included in the auditorâs report and to best of our information and according to the explanation given to us.
1) The company has disclosed the impact of pending litigation on its financial position in its financial statement.
2) The company has made provision, as required under the applicable law or Accounting Standards, for material foreseeable losses, if any, on long term contracts including derivative contracts.
3) There has been no delay in transferring amounts, required to be transferred, to the investorâs education and protection fund by the company.
Annexure âAâ to the Independent Auditorsâ Report
The Annexure referred to in paragraph 1 under âReport on Other Legal and Regulatory requirementsâ section of our report of even date
(i) In Respect of its Fixed Assets:
a) The company is maintaining records showing particulars, including quantitative details and situation of fixed assets;
b) Major items of fixed assets were physically verified during the year by the management in accordance with a regular program of verification which, in our opinion, provides for physical verification of the fixed assets at reasonable intervals. No material discrepancies were noticed on such verification.
c) The title deeds of immovable properties are held in the name of the company.
(ii) In Respect of its inventory:
a) The inventory includes land, material at site and project work in progress which is inclusive of other direct and indirect costs. As explained to us, inventories of building materials are physically verified by the management at reasonable intervals.
b) In our opinion and according to the information and explanations given to us, the procedure of physical verification of inventories followed by the management was 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 of building material. No material discrepancies were noticed on verification, between physical stocks and book records..
(iii) In respect of unsecured loans, granted to the companies, firms or other parties covered in the registrar maintained u/s 189
of the Companies Act 2013 according to the explanation and information given to us;.
a) The company has granted loans to their group companies, as at the year end, the outstanding balance of such loan was Rs. 2815.94 Lacs and the maximum outstanding at any time during the year was Rs. 2849.58 Lacs. In our opinion loans to their group companies are prima facie prejudicial to the interest of the company.
b) No interest is charged on loan of Rs. 56.51 to one of the group company.
c) Since the loan is repayable on demand and there is no stipulation for repayment, regularity of payments cannot be commented upon.
d) As per the information and explanation given to us, the company has not taken any loans, secured or unsecured from companies, firms or other parties covered in the register maintained under section 189 of the Companies Act, 2013.
e) Since the company has not taken any loans, secured or unsecured provisions of clause 4 (iii) (e), (f) & (g) of the company (Auditors Report) Order 2016 are not applicable.
(iv) According to information and explanations given to us,
a) The provision of section 185 are not applicable, since the company has not advanced any loan to directors
b) Loans and Advances / guarantee provided to related parties are detailed under note no. 46 and 47 of financial statements, loans covered under part âCâ of note no. 47 are not in accordance with sub clause 5 of section 186 of Companies Act, 2013.
(v) According to information and explanations given to us the company has not accepted any deposits during the year.
(vi) According to the information and explanations given to us the Central Government has not prescribed maintenance of cost
records under sub-section (1) of section 148 of the Companies Actâ2013.
(vii) (a) According to the information and explanations given to us undisputed amounts in respect of dues including provident
fund, investor education and protection fund, employee state insurance , income tax, sales tax, wealth tax, service tax, custom duty, excise duty, cess and any other material statutory dues as applicable which were outstanding as at 31st March 2016 for a period of more than 6 months from the date they became payable, are Rs. 203.35 Lacs (Previous year Rs. 260.04 Lacs) as on the balance sheet date.
(b) According to the information and explanations given to us following dues have not been admitted as payable on account of disputes /appeals pending with appropriate authorities:-
S. No. |
Name of the statute |
Period |
Amount under dispute (Rs. in Lacs) |
Forum where dispute is pending |
1. |
Income Tax |
A.Y. 2010-11 |
86.95 Lacs |
CIT (Appeals) New Delhi |
2. |
Income Tax |
A.Y. 2011-12 |
57.91 Lacs |
CIT (Appeals) New Delhi |
3. |
Income Tax |
A.Y. 2012-13 |
39.25 Lacs |
CIT (Appeals) New Delhi |
4. |
Income Tax |
A.Y. 2013-14 |
47.48 Lacs |
CIT (Appeals) New Delhi |
5. |
Service Tax |
Upto 31.03.2015 |
907.73 Lacs |
Show cause notice received. No adjudication order passed by the commission, Alwar |
Total |
1139.32 Lacs |
*The above figures are exclusive of interest if any payable thereon.
(c) Based on the information and explanations obtained, the company has no liability or requirement to transfer any amount to Investor Education & Protection Fund in accordance with the relevant provisions of the Act and the Rules thereunder.
(viii) According to the information and explanations give to us and in our opinion, the Company has overdue amounting to Rs. 329.62 crores (previous year Rs. 156.22 crores) including unprovided interest on NPA accounts from 01.04.2014 due to the Banks and Financial institutions. These defults have been continuing from different dates begining from July, 2012. However, the Company has made an application for one time settlement/restructuring of loan and proposals are under consideration. The Company has no liability for debentures.
(ix) The Company has not raised moneys by way of initial public offer or further public offer (including debt instruments) and term loans during the year.
(x) We have not noticed or reported any fraud by the company or any fraud on the Company by its officers or employees during the year
(xi) 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.
(xii) As this is not a nidhi company, the provision in respect thereof are not applicable
(xiii) According to the information and explanations given to us, all transactions with the related parties are in compliance with sections 177 and 188 of Companies Act, 2013 where ever applicable and the details have been disclosed in the Financial Statements etc., as required by the applicable accounting standards
(xiv) According to the information and explanations given to us, the company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review.
(xv) According to the information and explanations given to us, the company has not entered into any non-cash transactions with directors or persons connected with him and the provisions of section 192 of Companies Act, 2013 have been complied with;
(xvi) This clause of the Caro 2016 is not applicable to the Company as the company is not a required to be registered under section 45-IA of the Reserve Bank of India Act, 1934.
ANNEXURE âBâ TO THE INDEPENDENT AUDITORâS REPORT OF EVEN DATE ON THE FINANCIAL STATEMENTS OF MVL LIMITED
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
We have audited the internal financial controls over financial reporting of MVL Limited (âthe Companyâ) as of March 31, 2016 in conjunction with our audit of the financial statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
The Companyâs 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 orderly and efficient conduct of its business, including adherence to companyâs policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditorsâ Responsibility
Our responsibility is to express an opinion on the Companyâs internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the âGuidance Noteâ) and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the 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 a 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 auditorâs judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for my /our audit opinion on the Companyâs internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A companyâs 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 companyâs internal financial control over financial reporting includes those policies and procedures that (1) 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 authorisations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the companyâs 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 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 the 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
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2016, 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.
For ARUN KISHORE & COMPANY
CHARTERED ACCOUNTANTS
( ICAI FRN : 001898 N)
Sd/-
Place : New Delhi CA ARUN KISHORE
Date : 3rd June, 2016 PARTNER
[Membership No. 10770]
Mar 31, 2015
Not available
Mar 31, 2014
1. We have audited the accompanying financial statements of MVL
LIMITED ("the Company") which comprise the Balance Sheet as at 31st
March 2014, the Statement of Profit & Loss and also the Cash Flow
Statement of the company for the year ending on 31.03.2014 and a
summary of significant accounting policies and other explanatory
information.
2. Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of financial position and
financial performance of the company in accordance with the Accounting
Standards referred to in sub section (3C) of section 211 of the Company
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.
3. Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
4. 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.
5. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our audit opinion.
6. Basis for Qualified Opinion
Reference is invited to
- Note No. 37 regarding non availability of confirmations in respect of
some of the debit and/or credit balances of trade receivables, trade
payable, loans, advances, bank account and deposits. In the absence of
such confirmations, any provision to be made for the adverse variation
in carrying amounts of these balances, are not quantified, as well as
the quantum of adjustment if any, required to be made remain
unascertained.
7. Qualified Opinion
In our opinion and to the best of our information and according to the
explanation given to us, except for possible effects of the matters
described in paragraph , 6 above - on the basis of qualified opinion ,
the financial statements give a true and fare view :-
i) In the case of the Balance sheet, of the state of affairs of the
company as at 31st March 2014;
ii) In the case of statement of Profit and Loss of the Profit for the
year ending on 31st March, 2014.
iii) In the case of the Cash Flow Statement, of the Cash flow for the
year ending on 31st March, 2014
Report on Other Legal and Regulatory Requirements
8. As required by the Companies (Auditor''s Report) Order,2003 (as
amended) ("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.
9. 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 it appears from our examination of those
books.
c. The Financial statements 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
sub-section (3C) of section 211 of the Companies Act, 1956 Except
provision of leave encashment made on own estimate, rather than on
actuarial valuation basis in terms of Accounting standard AS-15 .
e. On the basis of written representations received from the directors
as on March 31, 2014, and taken on record by the board of directors,
none of the directors is disqualified as on March 31, 2014, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the companies act, 1956
ANNEXURE TO THE AUDITORS'' REPORT
Referred to in paragraph 8 of the our report of even date to the
members of MVL Limited on the financial statements for the year ended
31st March, 2014
I) a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of its
fixed assets.
b) The fixed assets have been physically verified by the management at
reasonable intervals, as informed to us which in our opinion, is
considered reasonable having regard to the size of the Company and the
nature of its assets. No material discrepancies were noticed on such
verification. During the year company has not disposed off substantial
part of fixed assets which affects its going concern assumption.
II) a) The Inventory includes lands, under construction projects,
construction and development material and development
rights in identified lands. Physical verification of inventory have
been conducted at reasonable intervals by the management.
b) In our opinion the procedure for physical verification of
inventories followed by the management are reasonable and adequate in
relation to the size of the company and the nature of its business;
c) The company has maintained proper records of inventory. As explained
to us no sizeable discrepancies were noticed on physical verification
of inventory as compared with the book records;
III) In respect of unsecured loans, granted to the Companies, firms or
other parties covered in the register maintained u/s 301 of the
Companies Act, 1956 according to the information and explanations given
to us;
a) The company has granted loan to its subsidiary, as at the year end,
the outstanding balance of such loan was Rs 312.37 Lacs and the maximum
outstanding at any time during the year was Rs. 321.64 Lacs.
b) The loan is repayable on demand. There is no provision in respect of
interest payable.
c) Since the loan is repayable on demand and there is no stipulation
for repayment, regularity of payments can not be commented upon.
d) As per the information and explanations given to us, the Company has
not taken any loans, secured or unsecured, from companies, firms or
other parties covered in the register maintained under section 301 of
the Companies Act, 1956.
e) Since the company has not taken any loans, secured or unsecured
provisions of clause 4 (iii) (e), (f) & (g) of the company (Auditors
Report) Order 2003 are not applicable.
IV) 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 purchase of inventory and fixed assets and for sale of
goods and services. During the course of audit, we have neither come
across nor have been informed of any continuing failure to correct
major weakness in the aforesaid internal control procedures given to
us.
V) a) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements, that needed to be entered into in the register maintained
under Section 301 of the Act have been so entered
b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered into the register maintained in pursuance of
section 301 of the Act and exceeding the value of rupees five lacs in
respect of any party during the year have been made, at prices which
are reasonable having regard to the prevailing market prices at the
relevant time.
VI) In our opinion and according to the information and explanations
given to us, the Company has not accepted deposits from public within
the meaning of Sections 58A and 58AA of the Companies Act, 1956 and the
rules framed there under.
VII) In our opinion and according to the information and explanations
provided to us, the Company has an internal audit system commensurate
with its size and nature of its business.
VIII) According to the information given to us, the central government
has not prescribed maintenance of cost record under clause (d) of
sub-section (1) of section 209 of the companies Act, 1956 in respect of
the activities of the company.
IX) a) According to the records of the company, the Company is regular
in depositing 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 and any other material statutory dues as applicable
with the appropriate authorities, the undisputed statutory dues
outstanding for a period of more than six months from the date they
become payable are Rs. 200.01 Lacs (Previous period Rs. 230.91lacs) as
at the date of balance sheet .
b) According to the information and explanations given to us, demands
for Income Tax for Assessment Year 2010-11 amounting to Rs. 86.95 Lacs
and for Assessment Year 2011-12 amounting to Rs.57.91 Lacs raised upto
the date of balances sheet, against which appeals are pending with CIT
(Appeals) New Delhi. The company has not accepted them as payable on
account of pending disputes.
X) The Company does not have any accumulated losses as at the year end
and has not incurred cash losses during the current year and
immediately preceding year.
XI) According to the information and explanations given to us and in
our opinion, the company has over dues amounting to Rs. 41.60 crores
towards banks. These defaults have occurred on different dates starting
from July, 2012. However, the company has applied for restructuring of
these loans and the proposals are under consideration of the respective
Banks. The Company has no liability for debentures.
XII) Based on our examination and 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.
XIII) The Company is not a chit fund or a nidhi / mutual benefit fund /
society.
XIV) In our opinion and according to the information and explanations
given to us, the company is not a dealer or trader of securities and
other investments. Investments in equity share of unlisted companies
and mutual funds are held in its own name.
XV) According to the information and explanations given to us, and the
representation made by the management, the guarantees given by the
company for loans taken by others from banks, in our opinion are prima
facie, not prejudicial to the interest of the company.
XVI) In our opinion and according to the information and explanations
given to us, on an overall basis, the term loans have been applied for
the purposes for which they were obtained.
XVII) On the basis of an overall examination of the balance sheet of
the Company, in our opinion and according to the information and
explanations given to us, funds raised on a short-term basis have not
been used for long-term investment.
XVIII) The Company has not made any preferential allotment of shares to
parties or companies covered in the register maintained u/s 301 of the
Act. Accordingly, the provisions of clause 4(xviii) of the order are
not applicable.
XIX) During the year, the company has not issued any warrant or
debentures.
XX) The Company has not raised any money by public issue during the
year.
XXI) During the course of the audit carried out and according to the
information and explanations given to us, we have neither come across
any instance of fraud on or by the Company, noticed nor reported during
the year nor have we been informed of such case by the management.
For ARUN KISHORE & COMPANY
CHARTERED ACCOUNTANTS
( ICAI Regd.No. 001898 N)
Sd/-
Place : New Delhi CA ARUN KISHORE
Date : 30th May 2014 PARTNER
[Membership No. 10770]
Mar 31, 2013
1. We have audited the attached Balance Sheet of MVL Limited ("the
Company") as at 31st Marc 2013, and also the statement of Profit and
Loss and Cash Flow Stateme nt of the Company for the period of 15
months ended on that date annexed thereto. These financial statements
are the responsibility of the Company''s Management. Our
responsibility is to express an opinion on these financial statements
based on our audit.
2. We have conducted our audit in accordance with the auditing
standards generally accepted in India. Those standards require that
we plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free of material mis-statement.
An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the
overall financial statement presentation.
We believe that our audit provides a reasonable basis for our opinion.
3. As equired by the Companies (Auditor''s report) Order 2003 as
amended by Companies (Auditor''s report (Amendment) Order 2004
(together the Order) issued by the Central Government of India in
terms of sub Section (4A) of Section 227 of the Companies Act, 1956,
(The Act) and on the basis ]of such checks of books and records of
the company as we considered appropriate and according to information
and explanation given to us we enclose in the Annexure, a statement
on the matters specified in paragraphs 4 and 5 of the said order.
4. Further to our comments in the Annexure referred to in paragraph 3
above, we report that:-i) 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;
ii) 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
these books;
iii) 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;
iv) In our opinion, the balance sheet, statement of profit and loss and
Cash Flow statement dealt with by this report comply with the
accounting standards referred to in sub section (3C) of Section 211 of
the Act;
v) On the basis of written representations received from Directors as
on 31st March 2013 and taken on record by the Board of Directors, we
report that none of the Directors is disqualified as on 31st March 2013
from being appointed as a Director in terms of clause (g) of Sub
Section (1) of Section 274 of the Act;
vi) In our opinion and to the best of our information and according to
the explanations given to us the said accounts subject to Note No. 31
of the financial statements regarding advances considered doubtful of
recovery of Rs. 369.53 Lacs, for which no provision has been made, Note
No. 37 regarding unconfirmed balances and read together with
thesignificant accounting Policies and notes thereon, 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 31st March, 2013; b) in the case of the Statement of
Profit and Loss , of the Profit for the 15 months period ended on that
date and c) in the case of Cash Flow Statement, of the cash flow for
the 15 months period ended on that date.
ANNEXURE TO THE AUDITORS'' REPORT Referred to in paragraph 3 of the our
report of even date to the members of MVL Limited on the financial
statements for the 15 months period ended 31st March, 2013
I) a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of its fixed
assets
b) The fixed assets have been physically verified by the management at
reasonable intervals, as informed to us which in our opinion, is
considered reasonable having regard to the size of the Company and the
nature of its assets. No material discrepancies were noticed on such
verification. During the period the company has not disposed off
substantial part of fixed assets which affects its going concern
assumption.
II) a) The Inventory includes lands, under construction projects,
construction and development material and development rights in
identified lands. Physical verification of inventory have been
conducted at reasonable intervals by the management. b) In our opinion
the procedure for physical verification of inventories followed by the
management are reasonable and adequate in relation to the size of the
company and the nature of its business; c) The company has maintained
proper records of inventory. As explained to us no sizeable
discrepancies were noticed on physical verification of inventory as
compared with the book records;
III) In respect of unsecured loans, granted to the Companies, firms or
other parties covered in the register maintained u/s 301 of the
Companies Act, 1956 according to the information and explanations given
to us;
a) The company has granted loan to its subsidiary, as at the period
end, the outstanding balance of such loan was Rs 321.64 Lacs. and the
maximum outstanding at any time during the period was Rs. 321.64 Lacs.
b) The loan is repayable on demand. There is no provision in respect of
interest payable.
c) Since the loan is repayable on demand and there is no stipulation
for repayment, regularity of payments can not be commented upon. d) As
per the information and explanations given to us, the Company has not
taken any loans, secured or unsecured, from companies, firms or other
parties covered in the register maintained under section 301 of the
Companies Act, 1956.
e) Since the company has not taken any loans, secured or unsecured
provisions of clause 4 (iii) (e), (f) & (g) of the company (Auditors
Report) Order 2003 are not applicable.
IV) 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 purchase of inventory and fixed assets and for sale of
goods and services. During the course of audit, we have neither come
across nor have been informed of any continuing failure to correct
major weakness in the aforesaid internal control procedures given to
us.
V) a) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements, that needed to be entered into in the register maintained
under Section 301 of the Act have been so entered
b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered into the register required to be maintained in
pursuance of section 301 of the Act and exceeding the value of rupees
five lacs in respect of any party during the period have been made, at
prices which are reasonable having regard to the prevailing market
prices at the relevant time.
VI) In our opinion and according to the information and explanations
given to us, the Company has not accepted deposits from public within
the meaning of Sections 58A and 58AA of the Companies Act, 1956 and the
rules framed there under.
VII) In our opinion and according to the information and explanations
provided to us,, the Company has an internal audit system commensurate
with its size and nature of its business.
VIII) According to the information given to us, the central government
has not prescribed maintenance of cost record under clause (d) of
sub-section (1) of section 209 of the companies Act, 1956 in respect of
the activities of the company.
IX) a) According to the records of the company, the Company is
generally regular in depositing undisputed statutory dues through there
are some delayed payments including provident fund, investor education
and protection fund, employees state insurance, income-tax, sales-tax,
wealth tax, service tax, custom duty, excise duty, cess and any other
material statutory dues as applicable with the appropriate authorities.
The undisputed statutory dues outstanding for a period of more than six
months from the date they became payable are Rs. 230.91 Lacs as on the
date of Balance sheet.
b) According to the information and explanations given to us, a demand
for Income Tax for Assessment Year 2010-11 amounting to Rs. 86.95 Lacs
was raised during the period against which appeal is pending with CIT
(Appeals) New Delhi. The company has not accepted it as payable on
account of pending dispute.
X) The Company does not have any accumulated losses as at the period
end and has not incurred cash losses during the current period (15
months) and immediately preceding period.
XI) According to the information and explanations given to us and in
our opinion, the company has over dues amounting to Rs. 51.01 crores
towards financial institutions and banks. These over dues have occurred
on different dates starting from December, 2011. However, the company
has applied for restructuring of these loans and the proposals are
under consideration of Financial Institutions and Banks. The Company
has no liability for debentures.
XII) Based on our examination and 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.
XIII) The Company is not a chit fund or a nidhi / mutual benefit fund /
society.
XIV) In our opinion and according to the information and explanations
given to us, the company is not a dealer or trader of securities and
other investments. Investments in equity share of unlisted companies
and mutual funds are held in its own name. XV) According to the
information and explanations given to us, and the representation made
by the management, the guarantees given by the company for loans taken
by others from banks, in our opinion are prima facie, not prejudicial
to the interest of the company.
XVI) In our opinion and according to the information and explanations
given to us, on an overall basis, the term loans have been applied for
the purposes for which they were obtained.
XVII) On the basis of an overall examination of the balance sheet of
the Company, in our opinion and according to the information and
explanations given to us, funds raised on a short-term basis have not
been used for long-term investment.
XVIII)The Company has not made any preferential allotment of shares to
parties or companies covered in the register maintained u/s 301 of the
Act. Accordingly, the provisions of clause 4(xviii) of the order are
not applicable. XIX) During the period, the company has not issued any
warrant or debentures. XX) The Company has not raised any money by
public issue during the period
XXI) During the course of the audit carried out and according to the
information and explanations given to us, we have neither come across
any instance of fraud on or by the Company, noticed nor reported during
the period nor have we been informed of such case by the management.
For ARUN KISHORE & COMPANY
CHARTERED ACCOUNTANTS
(ICAI FRN: 001898 N)
Sd/-
Place : New Delhi CA ARUN KISHORE
Date : 30th May'' 2013 PARTNER
[Membership No. 10770]
Dec 31, 2011
1. We have audited the attached Balance Sheet of MVL Limited ("the
Company") as at 31st December 2011, the Profit and Loss Account and
the Cash Flow Statement of the Company for the year ended on that date
annexed thereto. These financial statements are the responsibility of
the Company's Management. Our responsibility is to express an opinion
on these financial statements based on our audit.
2. We have conducted our audit in accordance with the auditing
standards generally accepted in India. Those standards require that we
plan and perform the audit to obtain reasonable assurance about whether
the financial statements are free of material mis-statement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditor's report) Order 2003 as
amended by Companies Auditor's report (Amendment) Order 2004
(together the Order) issued by the Central Government of India in terms
of sub Section (4A) of Section 227 of the Companies Act, 1956, (The
Act) and on the basis of such checks of books and records of the
company as we considered appropriate and according to information and
explanation given to us we enclose in the Annexure, a statement on the
matters specified in paragraphs 4 and 5 of the said order.
4. Further to our comments in the Annexure referred to in paragraph 3
above, we report that:-
i) 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;
ii) 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
these books;
iii) The balance sheet, profit and loss account and Cash Flow statement
dealt with by this report are in agreement with the books of account;
iv) In our opinion, the balance sheet, profit and loss account and Cash
Flow statement dealt with by this report comply with the accounting
standards referred to in sub section (3C) of Section 211 of the Act;
v) On the basis of written representations received from Directors as
on 31st December 2011 and taken on record by the Board of Directors, we
report that none of the Directors is disqualified as on 31st December
2011 from being appointed as a Director in terms of clause (g) of Sub
Section (1) of Section 274 of the Act.
vi) In our opinion and to the best of our information and according to
the explanations given to us the said accounts subject to Note No. B-10
of Schedule 'Q' regarding unconfirmed balances and read together
with the significant accounting Policies and notes thereon, 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 31st December, 2011;
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 Cash Flow Statement, of the cash flow for the year
ended on that date.
Referred to in paragraph 3 of the our report of even date to the
members of MVL Limited on the financial statements for the year ended
December, 2011
I) a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of its fixed
assets.
b) The fixed assets have been physically verified by the management at
reasonable intervals, as informed to us which in our opinion, is
considered reasonable having regard to the size of the Company and the
nature of its assets. No material discrepancies were noticed on such
verification. During the year the company has not disposed off
substantial part of fixed assets which affects its going concern
assumption.
II) a) The Inventory includes lands, under construction projects,
construction and development material and development rights in
identified lands. Physical verification of inventory have been
conducted at reasonable intervals by the management.
b) In our opinion the procedure for physical verification of
inventories followed by the management are reasonable and adequate in
relation to the size of the company and the nature of its business;
c) The company has maintained proper records of inventory. As explained
to us no sizeable discrepancies were noticed on physical verification
of inventory as compared with the book records;
III) In respect of loans, secured or unsecured ,granted or taken by the
Company to or from Companies, firms or from other parties covered in
the register maintained under Section 301 of the Companies Act,1956,
according to the information and explanations given to us :
a) The Company has availed inter corporate loan from one party. Year
end, balance of such loan was Rs. Nil (Previous Year Rs.830.83 Lacs)
and the maximum balance during the year was Rs.1054.29 Lacs (Rupees Ten
Crore Fifty Four Lacs & Twenty Nine Thousand only).
b) In our opinion, the rate of interest and other terms and conditions
of the loans are not prima facie, prejudicial to the interest of the
Company.
c) In respect of Loan taken by the company, the same is repayable on
demand and therefore there is no overdue amount.
d) Since the company has not granted any loans, secured or unsecured
provisions of clause 4 (iii) (d), (e), (f) & (g) of the Companies
(Auditors Report) Order 2003 are not applicable.
IV) 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 purchase of inventory and fixed assets and for sale of
goods and services. During the course of audit, we have neither come
across nor have been informed of any continuing failure to correct
major weakness in the aforesaid internal control procedures given to
us.
V) a) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements, that needed to be entered into in the register maintained
under Section 301 of the Act have been so entered.
b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered into the register required to be maintained in
pursuance of section 301 of the Act and exceeding the value of rupees
five lacs in respect of any party during the year have been made, at
prices which are reasonable having regard to the prevailing market
prices at the relevant time.
VI) In our opinion and according to the information and explanations
given to us, the Company has not accepted deposits from public within
the meaning of Sections 58A and 58AA of the Companies Act, 1956 and the
rules framed there under.
VII) In our opinion and according to the information and explanations
provided to us,, the Company has an internal audit system commensurate
with its size and nature of its business.
VIII) According to the information given to us, the central government
has not prescribed maintenance of cost record under clause (d) of
sub-section (1) of section 209 of the companies Act, 1956 in respect of
the activities of the company.
IX) a) According to the records of the company, the Company is
generally regular in depositing 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 and any other material statutory dues as applicable
with the appropriate authorities. The undisputed amounts outstanding as
at year end for a period of more than six months from the date they
became payable are Rs.520.55 Lacs (Rs. Five Crore Twenty Lacs and Fifty
Five Thousand only) towards statutory dues.
b) According to the information and explanations given to us, and as
per the records of the company examined by us, there are no disputed
amounts in respect of provident fund, investor education and protection
fund, employees' state insurance, income- tax, wealth- tax, sales-
tax, custom duty, excise duty, cess and other statutory dues,
outstanding, as at the year end which have not been deposited on
account of any dispute.
X) The Company does not have any accumulated losses as at the year end
and has not incurred cash losses during the current year and
immediately preceding year.
XI) According to the information and explanations given to us and in
our opinion, during the year the Company has delayed in re-payment of
dues to financial institution or banks. The Company has no liability
for debentures.
XII) Based on our examination and 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.
XIII) The Company is not a chit fund or a nidhi / mutual benefit fund /
society.
XIV) In our opinion and according to the information and explanations
given to us, the company is not a dealer or trader of securities and
other investments. Investments in equity share of unlisted companies
and mutual funds are held in its own name.
XV) According to the information and explanations given to us, and the
representation made by the management the guarantees given by the
company for loans taken by others from banks, in our opinion are prima
facie, not prejudicial to the interest of the company.
XVI) In our opinion and according to the information and explanations
given to us, on an overall basis, the term loans have been applied for
the purposes for which they were obtained.
XVII) On the basis of an overall examination of the balance sheet of
the Company, in our opinion and according to the information and
explanations given to us, funds raised on a short-term basis have not
been used for long-term investment.
XVIII) The Company has not made any preferential allotment of shares to
parties or companies covered in the register maintained u/s 301 of the
Act. Accordingly, the provisions of clause 4(xviii) of the order are
not applicable.
XIX) During the year, the company has not issued any warrant or
debentures.
XX) The Company has not raised any money by public issue during the
year.
XXI) During the course of the audit carried out and according to the
information and explanations given to us, we have neither come across
any instance of fraud on or by the Company, noticed nor reported during
the year nor have we been informed of such case by the management.
For ARUN KISHORE & COMPANY
CHARTERED ACCOUNTANTS
(ICAI FRN : 001898N)
Sd/-
CA ARUN KISHORE
Place: New Delhi PARTNER
Date: 9th March, 2012 [Membership No. 10770]
Dec 31, 2009
1. We have audited the attached Balance Sheet of MVL Limited (The
Company) as at 31sl December 2009, the Profit and Loss Account and the
Cash Flow Statement of the Company for the year ended on that date
annexed thereto. These financial statements are the responsibility of
the Companys Management. Our responsibility is to express an opinion
on these financial statements based on our audit.
2. We conducted our audit in accordance with the auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material mis-statement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditors report) Order 2003 as
amended by Companies (Auditors report (Amendment) Order 2004 (together
the Order) issued by the Central Government of India in terms of sub
Section (4A) of Section 227 of the Companies Act, 1956, (The Act) and
on the basis of such checks of books and records of the company as we
considered appropriate and according to information and explanation
given to us we enclose in the Annexure, a statement on the matters
specified in paragraphs 4 and 5 of the said order.
4. Further to our comments in the Annexure referred to in paragraph 3
above, we report that:-
i) 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;
ii) 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
these books;
iii) The balance sheet, profit and loss account and Cash Flow statement
dealt with by this report are in agreement with the books of account;
iv) In our opinion, the balance sheet, profit and loss account and Cash
Flow statement dealt with by this report comply with the accounting
standards referred to in sub section (3C) of Section 211 of the Act;
v) On the basis of written representations received from Directors as
on 31st December 2009 and taken on record by the Board of Directors, we
report that none of the Directors is disqualified as on 31st December
2009 from being appointed as a Director in terms of clause (g) of Sub
Section (1) of Section 274 of the Act;
vi) In our opinion and to the best of our information and according to
the explanations given to us the said accounts subject to Note No. B-11
of Schedule P regarding unconfirmed balances and read together with
the significant accounting Policies and notes thereon, 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 31st December, 2009;
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 Cash Flow Statement, of the cash flow for the year
ended on that date.
ANNEXURE TO THE AUDITORS REPORT (Referred to in paragraph 3 of the our
report of even date to the members of MVL Ltd on the accounts for the
year ending on 318 Dec. 2009)
I) a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of its fixed
assets.
b) The fixed assets have been physically verified by the management at
reasonable intervals, which in our opinion, is considered reasonable
having regard to the size of the Company and the nature of its assets.
No material discrepancies were noticed on such verification.
c) During the year the company has not disposed off substantial part of
fixed assets.
II) a) The inventory of material at site has been physically verified
by the management during the year. In our opinion, the frequency of
verification is reasonable.
b) In our opinion the procedures for physical verification of
inventories followed by the management are reasonable and adequate in
relation to the size of the company and the nature of its business;
c) The company has maintained proper records of inventory. As explained
to us no sizeable discrepancies were noticed on physical verification
of inventory as compared with the book records;
III) In respect of loans, secured or unsecured .granted or taken by the
Company to or from Companies, firms or from other parties covered in
the register maintained under Section 301 of the Companies Act, 1956,
according to the information and explanations given to us:
a) The Company has availed inter corporate loan from one party. Year
end, balance of such loan was Rs. 3,802.85 Lacs (Previous Year 739.90
Lacs) and the maximum balance during the year was Rs.3,802.85 Lacs.
b) In our opinion, the rate of interest and other terms and conditions
of the loans are not prima facie, prejudicial to the interest of the
Company.
c) In respect of Loan taken by the company, the same is repayable on
demand and therefore there is no overdue amount.
d) Since the company has not granted any loans, secured or unsecured
provisions of clause 4 (iii) (a), (b), (c) (d),
(e), (f) & (g) of the Companies (Auditors Report) Order 2003 are not
applicable.
IV) In Our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business with regard
to purchase of inventory, fixed assets and with regard to the sale of
goods and services. During the course of our audit, no major weakness
has been noticed in the said internal controls.
V) a) In uur opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements, that needed to be entered into in the register maintained
under Section 301 of the Act have been so entered. b) In our opinion
and according to the information and explanations given to us, the
transactions made in pursuance of contracts or arrangements entered
into the register required to be maintained in pursuance of section 301
of the Act and exceeding the value of rupees five lacs in respect of
any party during the year have been made, at prices which are
reasonable having regard to the prevailing market prices at the
relevant time.
VI) In our opinion and according to the information and explanations
given to us, the Company has not accepted deposits from public;
VII) In our opinion, the Company has an internal audit system
commensurate with its size and nature of its business.
VIII) According to the information given to us, the central government
has not prescribed maintenance of cost record under clause (d) of
sub-section (1) of section 209 of the companies Act, 1956 in respect of
the activities of the company.
IX) a) According to the records of the company, the Company
is generally regular in depositing 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 and any other material statutory dues as
applicable with the appropriate authorities. The undisputed amounts
payable as at 31st December 2009 for a period of more than six months
are Rs. 45.00 Lacs towards dividend distribution tax and Rs. 135.00
Lacs towards income tax for Assessment year 2008-09. b) According to
the information and explanations given to us, and the records of the
company examined by us, there are no disputed or undisputed amounts in
respect of provident fund, investor education and protection fund,
employees state insurance, income- tax, wealth- tax, sales- tax,
custom duty, excise duty, cess and other statutory dues, outstanding,
as at 31st December 2009 which have not been deposited on account of
dispute.
X) The Company does not have any accumulated losses at 31st December
2009 and has not incurred cash losses during the current year and
immediately preceding year.
XI) According to the information and explanations given to us and in
our opinion, during the year the Company has not defaulted in
re-payment of dues to any financial institution or banks. The Company
has no liability for debentures.
XII) Based on our examination and 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.
XIII) The Company is not a chit fund or a nidhi / mutual benefit fund /
society.
XIV) In our opinion and according to the information and explanations
given to us, the company is not dealer or trader in shares, securities,
debentures and other investments. However long term investment in
quoted shares was disposed off during the year in a private arrangement
with proper documentation. Balance investments in unlisted companies
are held in its own name.
XV) 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 or financial institutions during the year.
XVI) In our opinion and according to the information and explanations
given to us, on an overall basis, the term loans have been applied for
the purposes for which they were obtained.
XVII) On the basis of an overall examination of the balance sheet of
the Company, in our opinion and according to the information and
explanations given to us, funds raised on a short-term basis have not
been used for long-term investment.
XVIII) During the year, The Company has made preferential allotment to
non promoters of 5,65,739 equity shares of Rs. 10/- each on 30th June
2009 at a premium of Rs. 78.38 per share and 93,932 equity share of
Rs. 10/- each on 31st July 2009 at a premium of Rs. 96.46 per share.
These preferential allotments were made on conversion of fully
convertible debentures allotted during the year.
XIX) During the year, the Company had issued 6,00,000 fully convertible
debentures to Non Promoters group on preferential basis. These
debentures were converted into 6,59,671 equity shares of Rs. 10/-
during the year.
XX) The Company has not raised any money by public issue during the
year covered by our audit.
XXI) During the course of the audit carried out and according to the
information and explanations given to us, we have neither come across
any instance of fraud on or by the Company, noticed nor reported during
the year nor have we been informed of such case by the management.
For ARUN KISHORE & COMPANY
CHARTERED ACCOUNTANTS
Sd/-
CA ARUN KISHORE
Place : New Delhi PARTNER
Date : 31st March 2010. [Membership No. 10770]