Mar 31, 2014
We have audited the accompanying financial statements of NU-TECH
CORPORATE SERVICES LIMITED, which comprise the Balance Sheet as at
March 31, 2014, and the Statement of Profit and Loss and Cash Flow
Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements Management is
responsible for the preparation of these financial statements that give
a true and fair view of the financial position, financial performance
and cash flows of the Company in accordance with the Accounting
Standards referred to in sub-section (3C) of section 211 of the
Companies Act, 1956. This responsibility includes the design,
implementation and maintenance of internal control relevant to the
preparation and presentation of the financial statements that give a
true and fair view and are free from material misstatement, whether due
to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by management, as
well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2014;
b) in the case of the Profit and Loss Account, of the loss for the year
ended on that date; and
c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of sub-
section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b) In our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books
c) The Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
d) In our opinion, the Balance Sheet, Statement of Profit and Loss, and
Cash Flow Statement comply with the Accounting Standards referred to in
subsection (3C) of section 211 of the Companies Act, 1956;
e) On the basis of written representations received from the directors
as on March 31, 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.
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.
ANNEXURE TO THE AUDITORS'' REPORT TO THE MEMBERS OF NU-TECH CORPORATE
SERVICES LIMITED ON THE ACCOUNTS FOR THE YEAR ENDED 31ST MARCH, 2014
(Referred to in paragraph 1 of our report of even date)
(i) (a) The company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) The fixed assets, except for assets given on lease, have been
physically verified by the management during the year, which in our
opinion is reasonable having regard to the size of the company and
nature of its business. No material discrepancies were noticed on such
verification.
(c) During the year, the company has not disposed of a substantial part
of the fixed assets, and hence question of affecting the going concern
status of the company does not arise.
(ii) (a) According to the information and explanations give to us,
and having regard to the company''s business, the question of reporting
on clauses 4(ii)(a), 4(ii)(b) and 4(ii)(c) of the Companies (Auditor''s
Report) Order, 2003 (hereinafter referred to as the said Order) does
not arise.
(iii) (a) According to the information and explanations given to us,
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. Accordingly, clauses 4(iii)(b),
4(iii)(c) and 4(iii)(d) of the said Order, are not applicable.
(b) According to 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, Accordingly, clauses 4(iii)(f) and
4(iii)(g) of the said Order, are not applicable.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control systems commensurate
with the size of the company and the nature of its business with regard
to purchase of fixed assets. During the course of our audit, we have
not observed any continuing failure to correct major weaknesses in
internal control system.
(v) (a) In our opinion and according to the information and
explanations
given to us, the particulars of contracts and arrangements that need to
be entered in the register maintained under section 301 of the
Companies Act, 1956 have been so entered.
(b) Sub-clause (b) is not applicable.
(vi) Based on our scrutiny of the company''s records and according to
information and explanation provided by the management, in our opinion
the company has not accepted any public deposits within the meaning of
the provisions of the Section 58A & 58AA of the Companies Act, 1956 and
rules made there under.
(vii) In our opinion, the company has an internal audit system
commensurate with the size and nature of its business.
(viii) According to the information and explanations given to us,
maintenance of cost records has not been prescribed by the Central
Government under clause (d) of sub-section (1) of Section 209 of the
Companies Act, 1956, hence the question of reporting under clause
4(viii) of the said Order does not arise.
(ix) (a) According to the records of the company, the company is
generally regular in depositing with the appropriate authorities
undisputed statutory dues including provident fund, investor education
and protection fund, employees'' state insurance, income-tax, sales tax,
wealth-tax, service tax, customs duty, excise duty and other material
statutory dues applicable to it.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of income tax, wealth- tax,
service tax, sales tax, customs duty, excise duty and cess were in
arrears, as at 31st March, 2014 for a period of more than six months
from the date they became payable.
(c) According to the information and explanations given to us, there
are no dues of income tax, wealth-tax, service tax, sales tax, customs
duty, excise duty which have not been deposited on account of any
dispute, except as stated below:
Name of the Nature of the Amount Period to which Forum where
statute dues (Rupees) the amount dispute is
relates pending
The Income
Tax Act,1961 Penalty 8,242,448 A.Y.1993-94 Commissioner
of Income tax
(Appeals)
-do- Interest Tax 15,282,292 A.Y.1995-96 -do-
& Penalty
-do- -do- 40,899,122 A.Y.1996-97 -do-
-do- Income-tax 22,277,080 A.Y.1993-94 Income tax
Appelate
Tribunal
-do- -do- 22,286,394 A.Y.1995-96 -do-
-do- -do- 38,853,600 A.Y.1996-97 -do-
-do- -do- 19,294,317 A.Y.1999-2000 -do-
-do- -do- 18,857,022 A.Y.2000-2001 -do-
-do- -do- 12,191,336 A.Y. 2001-2002 -do-
-do- -do- 5,878,977 A.Y. 2002-2003 -do-
(x) In our opinion, the accumulated losses of the company are more than
fifty percent of its net worth. The company has incurred cash losses
during the financial year covered by our audit and in the immediately
preceding financial year.
(xi) According to the information and explanations given to us, the
company has defaulted in the repayment of bank overdraft/ working
capital demand loans, including interest thereon, to banks. The period
and the amount of such defaults as on the balance sheet date are as
follows:
Name of the bank Due date Amount (RS)
1. Central Bank of India 78,920,893
Interest from 20.03.2001 to 31.03.2013 20.03.2001 118,951,300
Total 197,872,193
2. The Federal Bank Ltd. 78,744,765
interest from 02.01.2003 to 31.03.2013 02.01.2003 160,012,942
Total 238,757,707
TOTAL (1 2) 436,629,900
(xii) According to the information and explanations given to us, the
company has not granted any 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. Therefore, the provision of clause 4 (xiii) of the said
Order is not applicable to the company.
(xiv) The company is not dealing in or trading in shares, securities,
debentures and other investments. Accordingly, the provision of clause
4(xiv) of the said Order is not applicable to the company.
(xv) According to the information and explanations given to us, the
company has not given any guarantees for loans taken by others from a
bank or financial institution.
(xvi) During the year under consideration the company has not obtained
any term loans, accordingly, the question of reporting on its
application does not arise.
(xvii) According to the information and explanations given to us and on
an overall examination of the balance sheet of the company where the
accumulated losses oft 572,005,000 have exceeded share capital and
reserves oft 160,331,279 and the short term loan funds oft 436,629,900
appear to have been partly used to finance losses.
(xviii) The company has not made any preferential allotment of shares
to parties and companies covered in the register maintained under
section 301 of the Companies Act, 1956. Accordingly, the question of
reporting on whether the price at which such shares have been issued is
prejudicial to the interest of the company does not arise.
(xix) The company has not issued any debentures. Accordingly, the
question of creating a security or charge for such debentures does not
arise.
(xx) The company has not raised any money by public issues during the
year. Accordingly, the question of disclosure of end use of such monies
does not arise.
(xxi) According to the information and explanations given to us, no
fraud on or by the company has been noticed or reported during the
course of our audit.
For PRASHANT WAKHARIYA & CO.
(CHARTERED ACCOUTANTS)
FRN: 114945W
(PRASHANT WAKHARIYA)
Place: Mumbai PROPRIETOR
Date: 30.05.2014 Membership No. : 048877
Mar 31, 2012
We have audited the attached balance sheet of Nu-Tech Corporate
Services Limited, as at 31st March, 2012, and also the profit and loss
account and the cash flow statement for the year ended on that date
annexed thereto. These financial statements are the responsibility of
the company''s management. Our responsibility is to express an opinion
on these financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally
accepted in India. Those Standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
1. As required by the Companies (Auditor''s Report) Order, 2003,
issued by the Central Government of India in terms of sub-section (4A)
of section 227 of the Companies Act, 1956, we enclose in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the said
Order.
2. The financial statements are prepared on a going concern basis even
though the company has substantial accumulated losses and has eroded
its net worth as explained in note 2 in respect of which we are unable
to express an opinion.
3. Further to our comments in the Annexure referred to in paragraph 1
above, and subject to our comment in paragraph 2 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 purposes 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 the
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 Companies Act, 1956.
(v) On the basis of written representations received from the
directors, as on 31s1 March, 2012, and taken on record by the Board of
Directors, we report that none of the directors is disqualified as on
31st March, 2012 from being appointed as a director in terms of clause
(g) of sub-section (1) of section 274 of the Companies Act, 1956.
(vi) 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:
(a) in the case of the balance sheet, of the state of affairs of the
company as at 31st March, 2012;
(b) in the case of the profit and loss account, of the loss for the
year ended on that date; and
(c) in the case of the cash flow statement, of the cash flows for the
year ended on that date.
ANNEXURE TO THE AUDITORS'' REPORT TO THE MEMBERS OF NU-TECH CORPORATE
SERVICES LIMITED ON THE ACCOUNTS FOR THE YEAR ENDED 31st MARCH, 2012
(Referred to in paragraph 1 of our report of even date)
(i) (a) The company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) The fixed assets, except for assets given on lease, have been
physically verified by the management during the year, which in our
opinion is reasonable having regard to the size of the company and
nature of its business. No material discrepancies were noticed on such
verification.
(c) During the year, the company has not disposed of a substantial part
of the fixed assets, and hence question of affecting the going concern
status of the company does not arise.
(ii) (a) According to the information and explanations give to us, and
having regard to the company''s business, the question of reporting on
clauses 4(ii)(a), 4(ii)(b) and 4(ii)(c) of the Companies (Auditor''s
Report) Order, 2003 (hereinafter referred to as the said Order) does
not arise.
(iii) (a) According to the information and explanations given to us,
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. Accordingly, clauses
4(iii)(b), 4(iii)(c) and 4(iii)(d) of the said Order, are not
applicable.
(b) According to 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. Accordingly, clauses 4(iii)(f) and
4(iii)(g) of the said Order, are not applicable.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control systems commensurate
with the size of the company and the nature of its business with regard
to purchase of fixed assets. During the course of our audit, we have
not observed any continuing failure to correct major weaknesses in
internal control system.
(v) (a) In our opinion and according to the information and
explanations given to us, the particulars of contracts and arrangements
that need to be entered in the register maintained under section 301 of
the Companies Act, 1956 have been so entered.
(b) Sub-clause (b) is not applicable.
(vi) In our opinion and according to the information and explanations
given to us, the company has complied with the provisions of sections
58A and 58AA or any other relevant provisions of the Companies Act,
1956 and the Companies (Acceptance of Deposits) Rules, 1975 with regard
to the deposits accepted from the public. As informed to us no order
has been passed by the Company Law Board or National Company Law
Tribunal or Reserve Bank of India or any Court or any other Tribunal.
(vii) In our opinion, the company has an internal audit system
commensurate with the size and nature of its business.
(viii) According to the information and explanations given to us,
maintenance of cost records has not been prescribed by the Central
Government under clause (d) of sub-section (1) of Section 209 of the
Companies Act, 1956, hence the question of reporting under clause
4(viii) of the said Order does not arise.
(ix) (a) According to the records of the company, the company is
generally regular in depositing with the appropriate authorities
undisputed statutory dues including provident fund, investor education
and protection fund, employees'' state insurance, income-tax, sales
tax, wealth-tax, service tax, customs duty, excise duty and other
material statutory dues applicable to it.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of income tax, wealth-tax,
service tax, sales tax, customs duty, excise duty and cess were in
arrears, as at 31st March, 2012 for a period of more than six months
from the date they became payable.
(c) According to the information and explanations given to us, there
are no dues of income tax, wealth-tax, service tax, sales tax, customs
duty, excise duty which have not been deposited on account of any
dispute, except as stated below:
Name of the Nature of Amount Period to which Forum where
statute the dues (Rs.) the amount dispute
relates is pending
The Income Penalty 8,242,448 A.Y. 1993-94 Commissioner
Tax Act, 1961 of Income-
tax
(Appeals)
-do- Interest tax
& Penalty 15,282,292 A.Y. 1995-96 - do -
-do- -do- 40,899,122 A.Y. 1996-97 - do -
-do- Income-tax 22,277,080 A.Y 1993-94 Income-tax
Appellate
Tribunal
-do- -do- 22,286,394 A.Y. 1995-96 - do -
-do- -do- 38,853,600 A.Y. 1996-97 - do -
- do - -do- 19,294,317 A.Y. 1999-2000 - do -
-do- -do- 18,857,022 A.Y. 2000-2001 - do -
-do- -do- 12,191,336 A.Y. 2001-2002 - do -
-do- -do- 5,878,977 A.Y. 2002-2003 - do -
(x) In our opinion, the accumulated losses of the company are more than
fifty percent of its net worth. The company has incurred cash losses
during the financial year covered by our audit and in the immediately
preceding financial year.
(xi) According to the information and explanations given to us, the
company has defaulted in the repayment of bank overdraft/ working
capital demand loans, including interest thereon, to banks. The period
and the amount of such defaults as on the balance sheet date are as
follows:
Name of the bank Due date Amount (Rs.)
1. Central Bank of India 20.03.2001 78,920,893
Interest from 20.03.2001
to 31.03.2012 108,678,136
Total 187,599,029
2. The Federal Bank Ltd. 02.01.2003 78,744,765
Interest from 02.01.2003
to 31.03.2012 144,357,040
Total 223,101,805
TOTAL (1 2) 410,700,834
(xii) According to the information and explanations given to us, the
company has not granted any 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. Therefore, the provision of clause 4 (xiii) of the said
Order is not applicable to the company.
(xiv) The company is not dealing in or trading in shares, securities,
debentures and other investments. Accordingly, the provision of clause
4(xiv) of the said Order is not applicable to the company.
(xv) According to the information and explanations given to us, the
company has not given any guarantees for loans taken by others from a
bank or financial institution.
(xvi) During the year under consideration the company has not obtained
any term loans, accordingly, the question of reporting on its
application does not arise.
(xvii) According to the information and explanations given to us and on
an overall examination of the balance sheet of the company where the
accumulated losses of f 528,782,062 have exceeded share capital and
reserves of Rs. 160,331,279 and the short term loan funds of Rs.
429,391,732 appear to have been partly used to finance losses.
(xviii)The company has not made any preferential allotment of shares to
parties and companies covered in the register maintained under section
301 of the Companies Act, 1956. Accordingly, the question of reporting
on whether the price at which such shares have been issued is
prejudicial to the interest of the company does not arise.
(xix) The company has not issued any debentures. Accordingly, the
question of creating a security or charge for such debentures does not
arise.
(xx) The company has not raised any money by public issues during the
year. Accordingly, the question of disclosure of end use of such monies
does not arise.
(xxi) According to the information and explanations given to us, no
fraud on or by the company has been noticed or reported during the
course of our audit.
For PRASHANT WAKHARIYA & CO
Chartered Accountants
PRASHANT WAKHARIYA
Proprietor
Membership No. 048877
MUMBAI : 25th May, 2012
Mar 31, 2010
We have audited the attached balance sheet of Nu-Tech Corporate
Services Limited, as at 31st March, 2010, and also the profit and loss
account and the cash flow statement for the year ended on that date
annexed thereto. These financial statements are the responsibility of
the companys management. Our responsibility is to express an opinion
on these financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally
accepted in India. Those Standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
1. As required by the Companies (Auditors Report) Order, 2003, issued
by the Central Government of India in terms of sub-section (4A) of
section 227 of the Companies Act, 1956, we enclose in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the said
Order.
2. The financial statements are prepared on a going concern basis even
though the company has substantial accumulated losses and has eroded
its net worth as explained in note 2 in respect of which we are unable
to express an opinion.
3. Further to our comments in the Annexure referred to in paragraph 1
above, and subject to our comment in paragraph 2 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 purposes 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 the
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 Companies Act, 1956.
(v) On the basis of written representations received from the
directors, as on 31st March, 2008, and taken on record by the Board of
Directors, we report that none of the directors is disqualified as on
31st March, 2008 from being appointed as a director in terms of clause
(g) of sub-section (1) of section 274 of the Companies Act, 1956.
(vi) 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:
(a) in the case of the balance sheet, of the state of affairs of the
company as at 31st March, 2010;
(b) in the case of the profit and loss account, of the loss for the
year ended on that date; and
(c) in the case of the cash flow statement, of the cash flows for the
year ended on that date.
ANNEXURE TO THE AUDITORS REPORT TO THE MEMBERS OF NU-TECH CORPORATE
SERVICES LIMITED ON THE ACCOUNTS FOR THE YEAR ENDED 31ST MARCH, 2010
(Referred to in paragraph 1 of our report of even date)
(i) (a) The company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) The fixed assets, except for assets given on lease, have been
physically verified by the management during the year, which in our
opinion is reasonable having regard to the size of the company and
nature of its business. No material discrepancies were noticed on such
verification.
(c) During the year, the company has not disposed of a substantial part
of the fixed assets, and hence question of affecting the going concern
status of the company does not arise.
(ii) (a) According to the information and explanations give to us, and
having regard to the companys business, the question of reporting on
clauses 4(ii)(a), 4(ii)(b) and 4(ii)(c) of the Companies (Auditors
Report) Order, 2003 (hereinafter referred to as the said Order) does
not arise.
(iii) (a) According to the information and explanations given to us,
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. Accordingly, clauses
4(iii)(b), 4(iii)(c) and 4(iii)(d) of the said Order, are not
applicable.
(b) According to 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. Accordingly, clauses 4(iii)(f) and
4(iii)(g) of the said Order, are not applicable.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control systems commensurate
with the size of the company and the nature of its business with regard
to purchase of fixed assets. During the course of our audit, we have
not observed any continuing failure to correct major weaknesses in
internal control system.
(v) (a) In our opinion and according to the information and
explanations given to us, the particulars of contracts and arrangements
that need to be entered in the register maintained under section 301 of
the Companies Act, 1956 have been so entered.
(b) Sub-clause (b) is not applicable.
(vi) In our opinion and according to the information and explanations
given to us, the company has complied with the provisions of sections
58A and 58AA or any other relevant provisions of the Companies Act,
1956 and the Companies (Acceptance of Deposits) Rules, 1975 with regard
to the deposits accepted from the public. As informed to us no order
has been passed by the Company Law Board or National Company Law
Tribunal or Reserve Bank of India or any Court or any other Tribunal.
(vii) In our opinion, the company has an internal audit system
commensurate with the size and nature of its business.
(viii) According to the information and explanations given to us,
maintenance of cost records has not been prescribed by the Central
Government under clause (d) of sub-section (1) of Section 209 of the
Companies Act, 1956, hence the question of reporting under clause
4(viii) of the said Order does not arise.
(ix) (a) According to the records of the company, the company is
generally regular in depositing with the appropriate authorities
undisputed statutory dues including provident fund, investor education
and protection fund, employees state insurance, income-tax, sales tax,
wealth-tax, service tax, customs duty, excise duty and other material
statutory dues applicable to it.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of income tax, wealth-tax,
service tax, sales tax, customs duty, excise duty and cess were in
arrears, as at 31st March, 2010 for a period of more than six months
from the date they became payable.
(c) According to the information and explanations given to us, there
are no dues of income tax, wealth-tax, service tax, sales tax, customs
duty, excise duty which have not been deposited on account of any
dispute, except as stated below:
Name of the Nature of Amount Period to which Forum where
statute the dues (Rupees) the amount dispute is
relates pending
The Income Penalty 8,242,448 A. Y. 1993-94 Commissioner
Tax Act, 1961 of Income-
tax (Appeals)
Interest
tax
- do - 15,282,292 A. Y. 1995-96
& Penalty - do -
- do - - do - 40,899,122 A.Y. 1996-97 - do -
- do - Income-tax 22,277,080 A.Y. 1993-94 Income-tax
Appellate
Tribunal
- do - - do - 22,286,394 A.Y. 1995-96 - do -
- do - - do - 38,853,600 A.Y. 1996-97 - do -
- do - - do - 19,294,317 A.Y. 1999-2000 - do -
- do - - do - 18,857,022 A.Y. 2000-2001 - do -
- do - - do - 12,191,336 A.Y. 2001-2002 - do -
- do - - do - 5,878,977 A.Y. 2002-2003 - do -
(x) In our opinion, the accumulated losses of the company are more than
fifty percent of its net worth. The company has incurred cash losses
during the financial year covered by our audit and in the immediately
preceding financial year.
(xi) According to the information and explanations given to us, the
company has defaulted in the repayment of bank overdraft/ working
capital demand loans, including interest thereon, to banks. The period
and the amount of such defaults as on the balance sheet date are as
follows:
Amount
Name of the bank Due date (Rupees)
1. Central Bank of India 20.03.2001 78,920,893
Interest from 20.03.2001 to
31.03.2010 88,075,517
Total 166,996,410
2. The Federal Bank Ltd. 02.01.2003 78,744,765
Interest from 02.01.2003 to
31.03.2010 112,959,347
Total 191,704,112
TOTAL ( 1 +2 ) 358,700,522
(xii) According to the information and explanations given to us, the
company has not granted any 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. Therefore, the provision of clause 4 (xiii) of the said
Order is not applicable to the company.
(xiv) The company is not dealing in or trading in shares, securities,
debentures and other investments. Accordingly, the provision of clause
4(xiv) of the said Order is not applicable to the company.
(xv) According to the information and explanations given to us, the
company has not given any guarantees for loans taken by others from a
bank or financial institution.
(xvi) During the year under consideration the company has not obtained
any term loans, accordingly, the question of reporting on its
application does not arise.
(xvii) According to the information and explanations given to us and on
an overall examination of the balance sheet of the company where the
accumulated losses of Rs. 503,821,183 have exceeded share capital and
reserves of Rs. 160,331,279 and the short term loan funds of Rs.
377,533,588 appear to have been partly used to finance losses.
(xviii)The company has not made any preferential allotment of shares to
parties and companies covered in the register maintained under section
301 of the Companies Act, 1956. Accordingly, the question of reporting
on whether the price at which such shares have been issued is
prejudicial to the interest of the company does not arise.
(xix) The company has not issued any debentures. Accordingly, the
question of creating a security or charge for such debentures does not
arise.
(xx) The company has not raised any money by public issues during the
year. Accordingly, the question of disclosure of end use of such monies
does not arise.
(xxi) According to the information and explanations given to us, no
fraud on or by the company has been noticed or reported during the
course of our audit.
For PRASHANT WAKHARIYA & CO.
Chartered Accountants
PRASHANT WAKHARIYA
Proprietor
Membership No. 048877
MUMBAI: May 26,2010