Home  »  Company  »  Ontrack Systems Ltd.  »  Quotes  »  Auditor Report
Enter the first few characters of Company and click 'Go'

Auditor Report of Ontrack Systems Ltd.

Mar 31, 2013

Report on the Financial Statements

1. We have audited the accompanying financial statements of M/s. Ontrack Systems Ltd. which comprise the Balance Sheet as at 31st March 2013, 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.

Management''s Responsibility for the Financial Statements

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

Auditor''s Responsibility

3. 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.

Opinion

6. 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 Company Act, 1956 in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:

(i) In the case of the balance sheet, of the state of affairs of the Company as at 31st March 2013;

(ii) In the case of the statement of profit and loss, of the profit for the year ended on that date; and

(iii) In the case of the cash flow statement, of the cash flows for the year ended on that date.

Matter of Emphasis

7. Without qualifying our report, we draw attention to :

(i) Note No. 7.05 and 18.01 of the Notes forming part of the financial statements regarding the cheques worth of Rs. 1900.00 lacs issued to the creditor''s, which have not been presented to the bank on the request of the company, pending the realization of the cheques worth of Rs. 1992.57 lacs collected from customer and lying on hand. As per the management, the amount collected from the customers will be realized and cheque issued to the creditors will be honoured within the validity of the respective instruments.

(ii) Note No. 14.01 regarding the advance of Rs. 10.00 lacs under litigation, the recoverability thereof is uncertain upon the final outcome of the judicial proceeding.

(iii) Note No.14.02 regarding the advance of Rs.187.48 lacs on account of encashment of performance Bank guarantee, which was subsequently acknowledged by the customer with a commitment to repay. The recoverability thereof is uncertain till the fulfillment of the commitment of the customer.

(iv) Note No.11.03 regarding non-recognition of the share of the company on the asset constructed under joint development agreement, which in opinion of the management is not ascertainable.

Report on Other Legal and Regulatory Requirements

8. As required by the Companies (Auditor''s Report) Order, 2003 ("the Order"), as amended, 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 appears from our examination of those books and proper returns/statements adequate for the purposes of our audit have been received from garden not visited by us;

(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 sub-section (3C) of Section 211 of the Companies Act, 1956; and

(e) On the basis of written representations received from the directors as on 31st March 2013, and taken on record by the Board of Directors, none of the directors of the company 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 Companies Act, 1956;

ANNEXURE TO THE AUDITORS'' REPORT

The Annexure referred to in our report to the members of M/s. ONTRACK SYSTEMS LTD. for the year ended 31 March 2013. We report that:

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

(b) As informed, the fixed assets have been physically verified by the management at the year end and no material discrepancies are reported to have been noticed on such verification.

(c) During the year the company has not disposed off of substantial part of it''s fixed assets. Therefore the provision of the clause (ic) of paragraph 4 of the aforesaid Order in our opinion is not applicable to the Company.

ii (a) The inventory has been physically verified by the management during the year. In our opinion the frequency of verification is reasonable.

(b) In our opinion and according to the information & explanations given to us, the procedures of physical verification of inventories followed by the Management are reasonable and adequate in relation to the size of the Company and nature of its business.

(c) On the basis of our examination of records of inventory and in our opinion, the Company is maintaining proper records of inventory. The discrepancies noticed on verification between the physical stocks and the book records were not material in relation to the operation of the company.

iii. (a) On the basis of our examination of the books of account and according to the information and explanations given to us, the Company has during the year accepted interest free unsecured loan from a Company covered in the Register maintained under Section 301 of the Companies Act, 1956. The maximum amount involved was Rs. 289.00 lacs and the year end balance was Rs. 289.00 lacs.

(b) In our opinion and according to the information and explanations given to us, the other terms and conditions of the loans taken by the company are not prima facie prejudicial to the interest of the company.

(c) On the basis of our examination of the books of account and 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.

iv. In our opinion and according to the information and explanations given to us, there are adequate internal control procedures commensurate with the size of the Company and the nature of its business with regard to purchase of inventory and fixed assets and for the sale of goods and services. Further during the course

of our audit, we have neither come across, nor have we been informed of any continuing failure to correct major weaknesses in internal control system.

v. (a) On the basis of our examination of the books of account and according to the information and explanations given to us, the Company has during the year entered into transaction that needs to be entered into the Register maintained under Section 301 of the Companies Act, 1956.

(b) According to the information and explanations given to us, the transaction made in pursuance of such contract or arrangement have been made at prices, which are reasonable having regard to the prevailing market prices as on the date of such transaction.

vi. In our opinion and according to the information and explanations given to us, the Company has not accepted any deposit from the public within the meaning of section 58A and 58AA or any other relevant provisions of the Companies Act, 1956 and the Companies (Acceptance of Deposits) Rule 1975. To the best of our knowledge and according to the information and explanations given to us, no order has been passed by the Company Law Board or National Company Law Tribunal or Reserve Bank of India or any other Tribunal against the company.

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

viii. On the basis of information & explanations made available to us, we are of the opinion that, The Central Government has not prescribed for the maintenance of any cost records under Section 209(1)(d) of the Companies Act, 1956 for the Company.

ix. (a) On the basis of our examination of the books of account and according to the information & explanations given to us, the Company is regular in depositing with appropriate authorities undisputed statutory dues, except Employee state insurance, Income Tax (T.D.S.), Fringe Benefit Tax, Service Tax and Professional Tax.

According to the information and explanations given to us, the undisputed amounts payable are Employees state insurance of Rs. 21.89 lacs, Income Tax (T.D.S.) of Rs. 36.71 lacs, Fringe benefit tax of Rs. 12.63 lacs, and Professional Tax of Rs. 8.38 lacs and Service tax of Rs. 0.47 lacs, which were outstanding as at 31st March 2013 for a period of more than six months from the date they became payable.

(b) According to the information and explanations given to us, there are no dues of sales tax, customs duty, excise duty, service tax, wealth tax and cess which have not been deposited on account of any dispute, except the disputed tax demand. The amounts involved and the forum where the dispute is pending are detailed in the statement given below:

Sl. Name of the statue Nature of Dues Rs. in lacs Forum where dispute is pending

01 Income Tax Assessed demand 8.36 ITAT, Chennai for A.Y: 2003-04

02 Income Tax Assessed demand 2.95 CIT (A), Chennai for A.Y: 2004-05

03 Income Tax Assessed demand 17.57 CIT (A), Chennai for A.Y: 2005-06

04 Income Tax Assessed demand 4.81 CIT (A), Chennai for A.Y: 2006-07

05 Income Tax Assessed demand 460.47 CIT (A), Chennai for A.Y: 2007-08

06 Income Tax Assessed demand 306.43 CIT (A), Chennai for A.Y: 2008-09

07 Central Sales Tax Demand for 1.80 JCCT, W.B. the Yr. 2006-07

08 Central Sales Tax Demand for 46.31 JCCT, W.B. the Yr. 2009-10

09 Value Added Tax Demand for 11.96 JCCT, W.B. the Yr. 2006-07

10 Value Added Tax Demand for 464.98 JCCT, W.B. the Yr. 2009-10

x. The Company has no accumulated losses during the year. It has incurred no cash loss during the financial year covered by our report and also in the immediately preceding financial year.

xi. Based on our audit procedures and according to the information and explanations given to us, we are of the opinion that the Company has not defaulted in repayment of dues to financial institution, banks or debenture holders during the year.

xii. The company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and other similar securities.

xiii. In our opinion the Company is not a chit fund or a nidhi / mutual benefit fund / society, therefore the provision of clause (xiii) of paragraph 4 of the aforesaid Order is not applicable to the Company.

xiv. As per records of the Company and the information & explanations given to us by the management, the Company is dealing in or trading in shares, securities, debenture and other investments and in our opinion, proper records have been maintained of the transactions and contracts, and timely entries have been made therein, also the shares, securities, debentures and the other investments have been held by the Company in its own name.

xv. According to the information & explanations given to us, the Company has not given any guarantee for loans taken by others, from banks or financial institutions, the terms & conditions whereof are prejudicial to the interest of the Company.

xvi. On the basis of our examinations and according to the information and explanations given to us, the company has during the year not raised any term loan.

xvii. According to the information and explanations given to us, and on an overall examination of the Balance Sheet of the Company, we report that no fund raised during the year on short-term basis have been used for long-term investment.

xviii. The Company has during the year not made any preferential allotment of shares to a party covered in the register maintained U/s.301 of the Companies Act, 1956.

xix The Company has not issued any debentures during the year under audit. Accordingly, the provision of clause (xix) of paragraph 4 of the aforesaid Order is not applicable to the Company.

xx The Company has not raised any money by way of public issue during the year. Therefore the provisions of clause (xx) of the paragraph 4 of the aforesaid Order are not applicable to the Company.

xxi During the course of our examination of the books of accounts carried out in accordance with Generally Accepted Auditing Practices, we have neither come across any instance of fraud on or by the Company nor have we been informed of any such case by the Management.

For GOENKA SHAW & CO.

Chartered Accountants

FR No. 319075E

Sd/-

Kolkata, India (CA Saroj Kumar Swain)

30th May, 2013 Partner

Membership No. 061912


Mar 31, 2011

1. We have audited the attached Balance Sheet of ONTRACK SYSTEMS LIMITED as at 31st March 2011, the Profit & Loss Account and also the Cash Flow Statement for the year ended on that date. 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 conducted our audit in accordance with the Auditing Standards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by Management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

3. As required by the Companies (Auditor's Report) Order, 2003, as amended by the Companies (Auditor's Report) (Amendment) Order, 2004 issued by the Central Government of India in terms of sub- section (4A) of Section 227 of the Companies Act 1956 and on the basis of such checks as we considered appropriate and according to the information and explanations given to us, we enclose in the Annexure a statement on the matters specified in paragraphs 4 & 5 of the said Order.

4. Further to our comments in Annexure referred to in paragraphs 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 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 those books;

(iii) The Balance Sheet , Profit & 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(AS) referred to in sub-section (3C) of section 211 of the Companies Act 1956;

(v) We have no such observations, which have an adverse effect on the functioning of the company.

(vi) On the basis of written representations received from the Directors of the company, and taken on record by the Board of Directors, we report that none of the Directors is disqualified as at 31st March'2011 from being appointed as a Director of the company in terms of clause(g) of sub-section (1) of section 274 of the companies Act,1956.

(vii) In our opinion and to the best of our information and according to the explanations given to us the said accounts read in conjunction with Significant accounting policies and Notes to the accounts as referred to in Schedule "24", subject to the attention invited to note No. B(2) & B(7) regarding certain advances whereby the extent of amounts recoverable there against is not ascertainable and note no. B(4) regarding nonprovision of the accrued leave liabilities and the overall impact thereof if any on the financial statement for year can not be ascertainable and commented upon by us, give the information required by the Companies Act 1956 in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:

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

b. In 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 flows for the year ended on that date.

ANNEXURE TO THE AUDITORS' REPORT Re.: ONTRACK SYSTEMS LIMITED Referred to in paragraph 3 of our Report of even date

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

(b) As informed, the fixed assets have been physically verified by the management at the year end and no material discrepancies are reported to have been noticed on such verification.

(c) During the year the company has not disposed off of substantial part of it's fixed assets. Therefore the provision of the clause (ic) of paragraph 4 of the aforesaid Order in our opinion is not applicable to the Company.

ii (a) The inventory has been physically verified by the management during the year. In our opinion the frequency of verification is reasonable.

(b) In our opinion and according to the information & explanations given to us, the procedures of physical verification of inventories followed by the Management are reasonable and adequate in relation to the size of the Company and nature of its business.

(c) On the basis of our examination of records of inventory and in our opinion, the Company is maintaining proper records of inventory. The discrepancies noticed on verification between the physical stocks and the book records were not material in relation to the operation of the company.

iii. (a) On the basis of our examination of the books of account and according to the information and explanations given to us, the Company has during the year accepted interest free unsecured loan from a Company covered in the Register maintained under Section 301of the Companies Act' 1956. The maximum amount involved was Rs. 289.00 lacs and the year end balance was Rs. 289.00 lacs.

(b) In our opinion and according to the information and explanations given to us, the other terms and conditions of the loans taken by the company are not prima facie prejudicial to the interest of the company.

(c) On the basis of our examination of the books of account and according to the information and explanation 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.

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

v. (a) On the basis of our examination of the books of account and according to the information and explanations given to us, the Company has during the year entered into transaction that needs to be entered into the Register maintained under Section 301 of the Companies Act 1956.

(b) According to the information and explanations given to us, the transaction made in pursuance of such contract or arrangement have been made at prices, which are reasonable having regard to the prevailing market prices as on the date of such transaction.

vi. In our opinion and according to the information and explanations given to us, the Company has not accepted any deposit from the public within the meaning of section 58A and 58AA or any other relevant provisions of the Companies Act, 1956 and the Companies (Acceptance of Deposits) Rule 1975. To the best of our knowledge and according to the information and explanations given to us, no order has been passed by the Company Law Board or National Company Law Tribunal or Reserve Bank of India or any other Tribunal against the company.

vii. According to the information & explanations given to us, the Company has no internal audit system commensurate with the size and nature of its business during the year.

viii. On the basis of information & explanations made available to us, we are of the opinion that, The Central Government has not prescribed for the maintenance of any cost records under Section 209(1)(d) of the Companies Act 1956 for the Company

ix. (a) On the basis of our examination of the books of account and according to the information & explanations given to us, the Company is regular in depositing with appropriate authorities undisputed statutory dues, except Provident & allied fund, Employee state insurance, Income Tax (T.D.S.), Fringe benefit tax, Service tax and Professional Tax.

According to the information and explanations given to us, the undisputed amounts payable are Provident and allied Fund of Rs. 10.90 lacs, Employees state insurance of Rs. 11.42 lacs, Income Tax (T.D.S.) of Rs. 26.68 lacs, Fringe benefit tax of Rs. 15.13 lacs and Professional Tax of Rs. 6.91 lacs which were outstanding as at 31st March 2011 for a period of more than six months from the date they became payable.

(b) According to the information and explanations given to us, there are no dues of sales tax, customs duty, excise duty, service tax, wealth tax and cess which have not been deposited on account of any dispute, except the disputed Income tax demand. The amounts involved and the forum where the dispute is pending are detailed in the statement given below:

Sl. Name of the statute Nature of Dues Rs. in lacs Forum where dispute is pending

01 Income Tax Assessed demand 8.36 ITAT, Chennai for A.Y: 2003-04

02 Income Tax Assessed demand 2.95 CIT (A), for A.Y: 2004-05 Chennai

03 Income Tax Assessed demand 91.60 CIT (A), for A.Y: 2005-06 Chennai

04 Income Tax Assessed demand 171.45 CIT (A), for A.Y: 2006-07 Chennai

05 Income Tax Assessed demand 9.28 AO-VI Chennai for A.Y: 2007-08

06 Income Tax Assessed demand 2.36 AO-VI,Chennai for A.Y: 2008-09

x. The Company has accumulated losses of Rs. 153.72 lacs and it has incurred no cash loss during the financial year covered by our report and also in the immediately preceding financial year.

xi. Based on our audit procedures and according to the information and explanations given to us, we are of the opinion that the Company has not defaulted in repayment of dues to financial institution, banks or debenture holders during the year.

xii. The Company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and other similar securities.

xiii. In our opinion the Company is not a chit fund or a nidhi / mutual benefit fund / society, therefore the provision of clause (xiii) of paragraph 4 of the aforesaid Order is not applicable to the Company.

xiv. As per records of the Company and the information & explanations given to us by the management, the Company is dealing in or trading in shares, securities, debenture and other investments and in our opinion, proper records have been maintained of the transactions and contracts, and timely entries have been made therein, also the shares, securities, debentures and the other investments have been held by the Company in its own name.

xv. According to the information & explanations given to us, the Company has not given any guarantee for loans taken by others, from banks or financial institutions, the terms & conditions whereof are prejudicial to the interest of the Company.

xvi. On the basis of our examinations and according to the information and explanations given to us, the company has during the year not raised any term loan.

xvii. According to the information and explanations given to us and on an overall examination of the Balance Sheet of the Company, we report that no fund raised during the year on short-term basis have been used for long-term investment .

xviii.The Company has made preferential allotment of shares during the year to a party covered in the register maintained U/s. 301 of the Companies Act'1956. On the basis of record made available and according to the information & explanations given to us, we are of the opinion that the price at which the shares have been issued is not prejudicial to the interest of the company.

xix The Company has not issued any debentures during the year under audit. Accordingly, the provision of clause (xix) of paragraph 4 of the aforesaid Order is not applicable to the Company.

xx The Company has not raised any money by way of public issue during the year. Therefore the provisions of clause (xx) of the paragraph 4 of the aforesaid Order are not applicable to the Company.

xxi During the course of our examination of the books of accounts carried out in accordance with Generally Accepted Auditing Practices, we have neither come across any instance of fraud on or by the Company nor have we been informed of any such case by the Management.

For GOENKA SHAW & CO. Chartered Accountants FR No. 319075E

Sd/- (CA Saroj Kumar Swain) Partner Membership No. 061912

Kolkata, India 30th May, 2011

 
Subscribe now to get personal finance updates in your inbox!