Mar 31, 2018
Report on the Financial Statements
We have audited the accompanying financial statements of Precision Electronics Limited ("the company"), which comprise the balance sheet as at 31 March 2018, the statement of profit and loss (including other comprehensive income), the statement of cash flows and the statement of changes in equity for the year then ended and a summary of the significant accounting policies and other explanatory information (herein after referred to as " financial statements").
Management''s Responsibility for the Financial Statements
The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation of these financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income, cash flows and changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) prescribed under Section 133 of the Act read with relevant rules issued thereunder.
This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder.
We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company''s preparation of the financial statements that give true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on whether the company has in place an adequate internal financial controls system over financial reporting and the operating effectiveness of such controls. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by Company''s Directors, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial statements, give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, including the Ind AS, of the financial position of the Company as at 31 March, 2018, and its financial performance including other comprehensive income, its cash flows and the changes in equity for the year ended on that date
Report on other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2016 (''the order''), issued by the Central Government of India in terms of Sub Section (11) of Section 143 of the Act, we give in the Annexure - ''A'' statement on the matters specified in paragraph 3 & 4 of the Order, to the extent applicable.
2. As required by Section 143(3) of the Act, we report that:
a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
b) In our opinion proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books.
c) The Balance Sheet, the Statement of Profit and Loss, and the Cash Flow Statement dealt with by this Report are in agreement with the books of account.
d) In our opinion, the aforesaid financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
e) On the basis of written representations received from the directors as on 31st March, 2018, taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2018, from being appointed as a director in terms of Section 164(2) of the Act.
f) With respect to the adequacy of the internal financial controls over financial reporting of the company and the operating effectiveness of such controls, refer to our separate Report in "Annexure B"
g) With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us, we report that:
i. The Company has disclosed the impact of pending litigations on its financial position in its financial statements - Refer Note 36 to the financial statements,
ii. The Company did not have any long-term contracts including derivatives contracts for which there were any material foreseeable losses.
iii. There were no amounts which were required to be transferred, to the Investor Education and Protection Fund by the Company.
ANNEXURE - A TO THE INDEPENDENT AUDITORS REPORT
Referred to in paragraph 1 under the heading ''Report on Other Legal & Regulatory Requirement'' of our report of even date to the financial statements of the Company for the year ended March 31, 2018, we report that:
i) (a) The Company has maintained proper records showing full particulars, including Quantitative details and situation of fixed assets;
(b) The fixed assets have been physically verified by the management in a phased manner, designed to cover all the items over a period of three years, which in our opinion, is reasonable having regard to the size of the company and nature of its business. Pursuant to the program, a portion of fixed asset has been physically verified by the management during the year and no material discrepancies between the books records and physical fixed assets have been noticed.
(c) The title deeds of immovable properties are held in the name of the company.
ii) (a) The inventories excluding material in transit have been physically verified during the year by the management. In our opinion, the frequency of such verification is reasonable.
(b) The discrepancies noticed on physical verification of Inventory as compared to books records which has been properly dealt with in the books of account were not material.
iii) The Company has not granted any loans, secured or unsecured, to the companies, firms, Limited Liability Partnerships or other parties covered in the Register maintained under Section 189 of the Act. Accordingly, the provisions of clause 3 (iii) (a) to (c) of the order are not applicable to the company.
iv) In our opinion and according to the information and explanations given to us, the company has complied with the provisions of section 185 and 186 of the Companies Act, 2013 in respect of loans, investments, guarantees, and security.
v) The Company has not accepted any deposits from the public and hence the directives issued by the Reserve Bank of India and the provisions of Sections 73 to 76 or any other relevant provisions of the Act and the Companies (Acceptance of Deposits) Rules, 2015 with regard to the deposits accepted from the public are not applicable.
vi) The Central Government has not prescribed the maintenance of cost records under section 148(1) of the Companies Act, 2013. Therefore the provisions of this clause do not apply.
vii) (a) According to information and explanations given to us and on the basis of our examination of the books of account, and records, the company has been generally regular in depositing undisputed statutory dues including Provident Fund, Employees'' State Insurance, Income Tax, Sales Tax, Service Tax, Duty of Customs, Duty of Excise, Value Added Tax, Cess and any other statutory dues with the appropriate authorities. According to the information and explanations given to us, no undisputed amounts payable in respect of the above were in arrears as at 31st March 2018 for a period of more than six months from the date on when they become payable.
(b) According to the information and explanations given to us, there are disputed dues of Sales Tax aggregating to Rs. 13,49,432 which have not been deposited as at 31st March, 2018 are mentioned hereunder:
Name of the Statute |
Nature of Dues |
Period / Year (Rs. in Lakhs) |
Amount |
Forum Before which dispute is pending |
Central Sales Tax Act 1956 |
Central Sales Tax |
2012-2013 |
10,00,000 |
Additional Commissioner Sales Tax Appeals |
Central Sales Tax Act 1956 |
Central Sales Tax |
2013-2014 |
2,64,391 |
Additional Commissioner Sales Tax Appeals |
Central Sales Tax Act 1956 |
Central Sales Tax |
2014-2015 |
1,70,000 |
Additional Commissioner Sales Tax Appeals |
viii) In our opinion and according to information and explanations given to us, the company has not defaulted in repayment of dues to banks or financial institution;
ix) Based upon the audit procedures performed and the information and explanation given by the management, the company has not raised moneys during the year by way of initial public offer or further public offer including debt instruments and term loans. Accordingly, the provisions of clause 3 (ix) of the Order are not applicable to the company and hence not commented upon.
x) Based upon the audit procedures performed and the information and explanation given by the management, we report that no fraud by the company or on the company by its officers or employees has been noticed or reported during the year.
xi) Based upon the audit procedures performed and the information and explanation given by the management, the managerial remuneration has been paid or provided in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Companies Act.
xii) The Company is not a Nidhi Company. Therefore, the provisions of clause 4 (xii) of the Order are not applicable to the Company.
xiii) In our opinion, all transactions with related parties are in compliance with section 177 and 188 of the Companies Act, 2013 and the details have been disclosed in the Financial Statements as required by the applicable accounting standard.
xiv) Based upon the audit procedures performed and the information and explanation given by the management, the company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review. Accordingly, the provision of clause 3 (xiv) of the Order are not applicable to the company and hence not commented upon.
xv) Based upon the audit procedures performed and the information and explanation given by the management, the company has not entered into any non-cash transactions with directors or persons connected with him. Accordingly, the provision of clause 3 (xv) of the Order are not applicable to the company and hence not commented upon.
xvi) In our opinion, the company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934 and accordingly , the provisions of clause 3 (xvi) of the Order are not applicable to the company and hence not commented upon.
ANNEXURE - B TO THE INDEPENDENT AUDITOR''S REPORT
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 ("the Act")
We have audited the internal financial controls over financial reporting of Precision Electronics Limited ("the Company") as of March 31, 2018 in conjunction with our audit of the financial statements of the Company for the year ended on that date.
Management''s Responsibility for Internal Financial Controls
The Company''s management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India (''ICAI''). 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 company''s 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.
Auditors'' Responsibility
Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the "Guidance Note") and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 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 auditor''s judgment, 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 our audit opinion on the Company''s internal financial controls system over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A company''s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company''s internal financial control over financial reporting includes those policies and procedures that (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 authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company''s assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over 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, 2018, 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 Nemani Garg Agarwal & Co.
Chartered Accountants
Firm Registration No. 010192N
Uday Gupta
Partner
Membership No: 085199
Place: New Delhi
Dated: 28th May, 2018
Mar 31, 2016
INDEPENDENT AUDITORS'' REPORT
To
The Members of
Precision Electronics Limited D-1081, New Friends Colony New Delhi-110025
Report on the Financial Statements
We have audited the accompanying financial statements of Precision Electronics Limited ("the company"), which comprise the Balance Sheet as at 31st March 2016, the Statement of Profit and Loss, the Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provision of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company''s preparation of the financial statements that give true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on whether the company has in place an adequate internal financial controls system over financial reporting and the operating effectiveness of such controls. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by Company''s Directors, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial statements, give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31st March, 2016, and its Loss and its cash flows for the year ended on that date.
Report on other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2016 (''the order''), issued by the Central Government of
India in terms of Sub Section (11) of Section 143 of the Act, we give in the Annexure - ''A'' statement on the matters specified in paragraph 3 & 4 of the Order, to the extent applicable.
2. As required by Section 143(3) of the Act, we report that:
a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
b) In our opinion proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books.
c) The Balance Sheet, the Statement of Profit and Loss, and the Cash Flow Statement dealt with by this Report are in agreement with the books of account.
d) In our opinion, the aforesaid financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
e) On the basis of written representations received from the directors as on 31st March, 2016, taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2016, from being appointed as a director in terms of Section 164(2) of the Act.
f) With respect to the adequacy of the internal financial controls over financial reporting of the company and the operating effectiveness of such controls, refer to our separate Report in "Annexure B"
g) With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us, we report that:
i. The Company has disclosed the impact of pending litigations on its financial position in its financial statements - Refer Note 27.1 to the financial statements,
ii. The Company did not have any long-term contracts including derivatives contracts for which there were any material foreseeable losses.
iii. There were no amounts which were required to be transferred, to the Investor Education and Protection Fund by the Company.
Referred to in paragraph 1 under the heading ''Report on Other Legal & Regulatory Requirement'' of our report of even date to the financial statements of the Company for the year ended March 31,2016:
i) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets;
(b) The fixed assets have been physically verified by the management in a phased manner, designed to cover all the items over a period of three years, which in our opinion, is reasonable having regard to the size of the company and nature of its business. Pursuant to the program, a portion of fixed asset has been physically verified by the management during the year and no material discrepancies between the books records and physical fixed assets have been noticed.
(c) The title deeds of immovable properties are held in the name of the company.
ii) (a) The inventories excluding material in transit have been physically verified during the year by the management. In our opinion, the frequency of such verification is reasonable.
(b) The discrepancies noticed on physical verification of Inventory as compared to books records which has been properly dealt with in the books of account were not material.
iii) The Company has not granted any loans, secured or unsecured, to the companies, firms, Limited Liability Partnerships or other parties covered in the Register maintained under Section 189 of the Act. Accordingly, the provisions of clause 3 (iii) (a) to (c) of the order are not applicable to the company and hence not commented upon.
iv) In our opinion and according to the information and explanations given to us, the company has complied with the provisions of section 185 and 186 of the Companies Act, 2013 in respect of loans, investments, guarantees, and security.
v) The Company has not accepted any deposits from the public and hence the directives issued by the Reserve Bank of India and the provisions of Sections 73 to 76 or any other relevant provisions of the Act and the Companies (Acceptance of Deposits) Rules, 2015 with regard to the deposits accepted from the public are not applicable.
vi) We have broadly reviewed the accounts and records maintained by the company pursuant to the rule made by the central government for maintenance of cost records under sub section (1) of section 148 of companies Act, and are the opinion that the prima facie the prescribed accounts and record have been made and maintained. However we have not made a detailed examination of the record with a view to determining whether they are accurate and complete;
vii) (a) According to information and explanations given to us and on the basis of our examination of the books of account, and records, the company has been generally regular in depositing undisputed statutory dues including Provident Fund, Employees'' State Insurance, Income Tax, Sales Tax, Service Tax, Duty of Customs, Duty of Excise, Value Added Tax, Cess and any other statutory dues with the appropriate authorities. According to the information and explanations given to us, no undisputed amounts payable in respect of the above were in arrears as at 31st March 2016 for a period of more than six months from the date on when they become payable.
(b) According to the information and explanations given to us, there are disputed dues of Income Tax, Service Tax, Entry Tax & Cess aggregating to Rs. 5,84,391 which have not been deposited as at 31st March, 2016 are mentioned hereunder:
Name of the Statute |
Nature of Dues |
Period / Year |
Amount (Rs. in Lakhs) |
Forum Before which dispute is pending |
The Central Excise Act 1944 |
A ailment of Cenvat Credit |
04/2009 - 03/2011 |
1,89,918 |
Custom Excise and Service Tax Appellate Tribunal |
Central Sales Tax Act 1956 |
Central Sales Tax |
2010-2011 |
34,473 |
Additional Commissioner Sales Tax Appeals |
Central Sales Tax Act 1956 |
Central Sales Tax |
2011-2012 |
1,25,000 |
Additional Commissioner Sales Tax Appeals |
The Uttar Pradesh Value Added Tax Act, 2008 |
Value Added Tax |
2011-2012 |
2,35,000 |
Additional Commissioner Sales Tax Appeals |
viii) In our opinion and according to information and explanations given to us, the company has not defaulted in repayment of dues to banks or financial institution;
ix) Based upon the audit procedures performed and the information and explanation given by the management, the company has not raised moneys during the year by way of initial public offer or further public offer including debt instruments and term loans. Accordingly, the provisions of clause 3 (ix) of the Order are not applicable to the company and hence not commented upon.
x) Based upon the audit procedures performed and the information and explanation given by the management, we report that no fraud by the company or on the company by its officers or employees has been noticed or reported during the year.
xi) Based upon the audit procedures performed and the information and explanation given by the management, the managerial remuneration has been paid or provided in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Companies Act.
xii) In our opinion, the Company is not a Nidhi Company. Therefore, the provisions of clause 4 (xii) of the Order are not applicable to the Company.
xiii) In our opinion, all transactions with related parties are in compliance with section 177 and 188 of the Companies Act, 2013 and the details have been disclosed in the Financial Statements as required by the applicable accounting standard.
xiv) Based upon the audit procedures performed and the information and explanation given by the management, the company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review. Accordingly, the provision of clause 3 (xiv) of the Order are not applicable to the company and hence not commented upon.
xv) Based upon the audit procedures performed and the information and explanation given by the management, the company has not entered into any non-cash transactions with directors or persons connected with him. Accordingly, the provision of clause 3 (xv) of the Order are not applicable to the company and hence not commented upon.
xvi) In our opinion, the company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934 and accordingly, the provisions of clause 3 (xvi) of the Order are not applicable to the company and hence not commented upon.
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 ("the Act")
We have audited the internal financial controls over financial reporting of Precision Electronics Limited ("the Company") as of March 31,2016 in conjunction with our audit of the financial statements of the Company for the year ended on that date.
Management''s Responsibility for Internal Financial Controls
The Company''s management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India (''ICAI''). 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 company''s 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.
Auditors'' Responsibility
Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the "Guidance Note") and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 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 auditor''s judgment, 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 our audit opinion on the Company''s internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A company''s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company''s internal financial control over financial reporting includes those policies and procedures that (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 authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company''s assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internal financial controls over 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 Rajendra K. Goel & Co.
Chartered Accountants
FRN-001457N
Place: New Delhi R.K Goel
Date : 21" May, 2016 (Partner)
Membership No: 006154
Mar 31, 2015
We have audited the accompanying financial statements of Precision
Electronics Limited ("the company"), which comprise the Balance Sheet
as at 31st March 2015, the Statement of Profit and Loss, the Cash Flow
Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
The Company's Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 ("the Act") with respect
to the preparation of these financial statements that give a true and
fair view of the financial position, financial performance and cash
flows of the Company in accordance with the accounting principles
generally accepted in India, including the Accounting Standards
specified under Section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014. This responsibility also includes
maintenance of adequate accounting records in accordance with the
provision of the Act for safeguarding the assets of the Company and for
preventing and detecting frauds and other irregularities; selection and
application of appropriate accounting policies; making judgments and
estimates that are reasonable and prudent and design, implementation
and maintenance of adequate internal financial controls, that were
operating effectively for ensuring the accuracy and completeness of the
accounting records, relevant to the preparation and presentation of the
financial statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit.
We have taken into account the provisions of the Act, the accounting
and auditing standards and matters which are required to be included in
the audit report under the provisions of the Act and the Rules made
thereunder.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial control relevant
to the Company's preparation of the financial statements that give true
and fair view in order to design audit procedures that are appropriate
in the circumstances, but not for the purpose of expressing an opinion
on whether the company has in place an adequate internal financial
controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by Company's Directors, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the financial
statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements, give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India, of the state of affairs of the Company as
at 31st March, 2015, and its Profit and its cash flows for the year
ended on that date.
Report on other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2015('the
order'), issued by the Central Government of India in terms of Sub
Section (11) of Section 143 of the Act, we give in the Annexure - 'A'
statement on the matters specified in paragraph 3 & 4 of the Order, to
the extent applicable.
2. As required by Section 143(3) of the Act, we report that:
a) We have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purposes of our audit.
b) In our opinion proper books of account as required by law have been
kept by the Company so far as it appears from our examination of those
books.
c) The Balance Sheet, the Statement of Profit and Loss, and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account.
d) In our opinion, the aforesaid financial statements comply with the
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014.
e) On the basis of written representations received from the directors
as on 31st March, 2015, taken on record by the Board of Directors, none
of the directors is disqualified as on 31st March, 2015, from being
appointed as a director in terms of Section 164(2) of the Act.
f) With respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us, we report that:
i. The Company has disclosed the impact of pending litigations on its
financial position in its financial statements - Refer Note 27.1 to the
financial statements,
ii. The Company did not have any long-term contracts including
derivatives contracts for which there were any material foreseeable
losses.
iii. There were no amounts which required to be transferred, to the
Investor Education and Protection Fund by the Company.
ANNEXURE -'A' TO INDEPENDENT AUDITORS REPORT
i. (a) The Company is maintaining proper records showing full
particulars, including quantitative details and situation of fixed
assets;
(b) The fixed assets have been physically verified by the management at
regular intervals. No material discrepancies were noticed during such
verification;
ii. (a) The inventories excluding material in transit have been
physically verified during the year by the management. In our opinion,
the frequency of such verification is reasonable;
(b) The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business;
(c) The Company is maintaining proper records of inventories. The
discrepancies noticed on physical verification of Inventories, wherever
material, have been properly dealt with in the books of account;
iii. The Company has not granted any loans, secured or unsecured, to
the companies, firms and other parties covered in the register
maintained under Section 189 of the Companies Act. Accordingly, the
provisions of clause (iii)(a) & (b) of the paragraph 3 & 4 of the order
are not applicable;
iv. In our opinion and according to the information and explanations
given to us, there is adequate internal control system commensurate
with the size of the Company and the nature of its business for the
purchase of inventory and fixed assets and for the sale of goods and
services. During the course of our audit, we have not observed any
continuing failure to correct major weaknesses in internal control
system;
v. The Company has not accepted any deposit within the meaning of the
directives issued by the Reserve Bank of India and the provisions of
Sections 73 to 76 or any other relevant provisions of the Companies Act
and the rules framed there under. Therefore the provisions of clause
(v) of the paragraph 3 & 4 of the order are not applicable;
vi. We have broadly reviewed the accounts and records maintained by
the Company pursuant to the rules made by the Central Government for
maintenance of cost records under Sub-Section (1) of Section 148 of the
Companies Act, and are of the opinion that prima facie the prescribed
accounts and records have been made and maintained. However we have
not made a detailed examination of the records with a view to
determining whether they are accurate and complete;
vii. (a) Undisputed statutory dues including Provident Fund, Employees'
State Insurance, and Income Tax, Sales Tax, Wealth Tax, Service Tax,
Duty of Customs, Duty of Excise, Value Added Tax, Cess and other
statutory dues have generally been regularly deposited with the
appropriate authorities. According to the information and explanations
given to us, no undisputed amounts payable in respect of the aforesaid
statutory dues were in arrears as at 31st March 2015 for a period of
more than six months from the date they became payable;
(b) According to the records of the Company and explanations given to
us, there are disputed dues of Income Tax, Service Tax, Entry Tax &
Cess aggregating to Rs. 6,61,591 which have not been deposited. The
details of the disputed dues as at 31st March, 2015 are mentioned
hereunder:
Name of the Statute Nature of Dues Period / Year
The Central Excise Availment of 04/2009 - 03/2011
Act 1944 Cenvat Credit
Central Sales Tax Central Sales Tax 2010-2011
Act 1956
Central Sales Tax Central Sales Tax 2011-2012
Act 1956
Central Sales Tax Central Sales Tax 2011-2012
Act 1956
The Uttar Pradesh Value Added Tax 2011-2012
Value Added Tax
Act, 2008
Name of the Statute Amount Forum Before which
(Rs. in Lakhs) dispute is pending
The Central Excise 1,89,918 Custom Excise and
Act 1944 Service Tax Appellate
Tribunal
Central Sales Tax 34,473 Additional
Act 1956 Commissioner Sales
Tax Appeals
Central Sales Tax 1,25,000 Additional
Act 1956 Commissioner Sales
Tax Appeals
Central Sales Tax 77,200 Additional
Act 1956 Commissioner Sales
Tax Appeals
The Uttar Pradesh 2,35,000 Additional
Value Added Tax Commissioner Sales
Act, 2008 Tax Appeals
(c) The Company is not required to transfer any amount to investor
education and protection fund in accordance with the relevant
provisions of the Companies Act, 1956 (1 of 1956) and rules made there
under.
viii. The Company has no accumulated losses and has not incurred cash
losses during the financial year covered by our audit; however the
company has incurred cash loss in the immediately preceding year.
ix. In our opinion and according to information and explanations given
to us, the company has not defaulted in repayment of dues to a
Financial Institution or Banks;
x. In our opinion and according to the information and explanations
given to us, the Company has not given any guarantees for loans taken
by others from banks or Financial Institutions;
xi. In our opinion, the term loans have been applied for the purpose
for which they were obtained;
xii. Based upon the audit procedures performed and the information and
explanations given by the management, we report that no material fraud
on or by the company has been noticed or reported during the course of
our audit.
For Rajendra K. Goel & Co.
Chartered Accountants
FRN-001457N
R.K Goel
Place: New Delhi (Partner)
Date : 28th May, 2015 Membership No: 006154
Mar 31, 2014
We have audited the accompanying financial statements of "Precision
Electronics Limited" ("the Company"), which comprise the Balance Sheet
as at March 31, 2014, 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 ("the Act") read with the General Circular
15/2013 dated 13th September 2013 of the Ministry of Corporate affairs
in respect of section 133 of the Companies Act 2013. 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, but not for the
purpose of expressing an opinion on the effectiveness of the entity
internal control. 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 Statement of Profit and Loss, 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 read with the
General Circular 15/2013 dated 13th September 2013 of the Ministry of
corporate affairs in respect of section 133 of the Companies Act 2013;
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 INDEPENDENT AUDITORS'' REPORT
The Annexure referred to in paragraph 1 under the heading "report on
other legal & regulatory requirements" of the our report of even date
On the basis of such checks as we considered appropriate and according
to the information and explanation given to us during the course of our
audit, we report that:
(i) (a) The Company is maintaining proper records showing full
particulars, including quantitative details and situation of fixed
assets;
(b) The Fixed Assets are physically verified by the management during
the year based on a phased programme of verifying all assets over three
years, which in our opinion is reasonable having regard to the size of
the Company and the nature of its fixed assets. The discrepancies
noticed on such verification were not material and have been properly
dealt with in the books of account;
(c) Fixed assets disposed off during the year, are negligible so as to
affect the Company as a going concern;
(ii) (a) As explained to us, inventories have been physically verified
during the year by the management at reasonable intervals;
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the company and the nature of its business;
(c) In our opinion and on the basis of our examination of the records,
the Company is generally maintaining proper records of its inventories.
No material discrepancy was noticed on physical verification of stocks
by the management as compared to book records;
(iii) (a) According to the information and explanations given to us and
on the basis of our examination of the books of account, the Company
has not granted any loans, secured or unsecured, to companies, firms or
other parties listed in the register maintained under Section 301 of
the Companies Act, 1956. Consequently, the provisions of clauses iii
(a), iii (b), iii(c) and iii (d) of the order are not applicable to the
Company;
(b) According to the information and explanations given to us and on
the basis of our examination of the books of account, the Company has
taken unsecured loan from directors of the company, the maximum amount
during the year being Rs 5,47,97,915/- (Previous year Rs.
5,30,97,915/-) and at the year end Rs. 2,23,75,570/- (Previous year Rs.
5,30,97,915/-) covered under the register maintained under Section 301
of the Companies Act, 1956;
(c) In our opinion and having regard to the loan taken by the company ,
the rate of interest and other terms and conditions wherever stipulated
are not prima facie prejudicial to the interest of the company;
(d) Payment of principal amount and interest are also regular as
stipulated;
(iv) In our opinion, there is an adequate internal control system
commensurate with the size of the company and the nature of its
business for the purchase of inventory and fixed assets and payment for
expenses and for sale of goods. During the course of our audit we have
not observed any continuing failure to correct major weaknesses in
internal control system;
(v) (a) Based on the audit procedures applied by us and according to
the information and explanations provided by the management, the
particulars of contracts or arrangements referred to in section 301 of
the Act have been entered in the register required to be maintained
under that section;
(b) Based on the audit procedures applied by us and according to the
information and explanations given to us we are of the opinion that the
transaction made in pursuance of contracts/ arrangements entered in the
register maintained under section 301 of the Companies Act, 1956 and
exceeding the value of Rs.5,00,000 in respect of each party during the
year have been made at prices which appear reasonable as per
information available to the company.
(vi) The Company has not accepted any deposits from the public covered
under section 58A and 58AA of the Companies Act, 1956;
(vii) As per information & explanations given by the management, the
Company has an internal audit system commensurate with its size and the
nature of its business;
(viii) We have broadly reviewed the books of accounts maintained by the
company pursuant to the rule made by the Central Government for the
maintenance of the cost records under section 209 (I)(d) of the
Companies Act, 1956 and are of the opinion prima facie, the prescribed
account and records have been made and maintained;
(ix) (a) As per records produced before us and according to the
information and explanations given to us the company is generally
regular in depositing undisputed statutory dues applicable to it like
provident fund, Investor Education & Protection Fund, Employees State
Insurance, Income Tax, Customs duty, Excise Duty, Cess etc. with
appropriate authorities, and there were no arrears of such dues at the
year end which have remained outstanding for a period of more than six
months from the date they became payable;
(b) As per records produced before us and according to the information
and explanations given to us there are no dues of Income Tax, Sales
tax, Customs duty, Wealth Tax, Service tax, Excise Duty or Cess which
have not been deposited on account of any dispute;
(x) The Company does not have any accumulated losses at the end of the
financial year and has incurred cash losses in the current year.
However there is no cash loss in the immediately preceding financial
year;
(xi) Based on our audit procedures and on the information and
explanation given by the management, we are of the opinion that company
has not defaulted in repayment of dues to any financial institution,
bank or debenture holders;
(xii) 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. Therefore, the provision of this clause of the Companies
(Auditor''s Report) Order, 2003 (as amended) is not applicable to the
Company;
(xiv) In our opinion the company is not dealing in or trading of
shares, debentures and other investments. Accordingly, clause (xiv) of
Para 4 of the order is not applicable;
(xv) According to the information and explanations given to us, the
Company has not given any guarantees for loan taken by others from a
bank or financial institution;
(xvi) In our opinion & according to the information & explanation given
to us, the term loans have been applied for the purpose for which they
were raised;
(xvii) According to the information & explanation given to us and an
overall examination of the balance sheet of the company, we find that
no fund raised on short term basis have been used for long term
investment;
(xviii) Based on the audit procedures performed and the information and
explanations given to us by the management, we report that the Company
has not made any preferential allotment of shares during the year;
(xix) The Company has no outstanding debentures during the period under
audit;
(xx) The Company has not raised any money by public issue during the
year;
(xxi) Based on the audit procedures performed and the information and
explanations given to us, we report that no fraud on or by the Company
has been noticed or reported during the year, nor have we been informed
of such case by the management.
For; Rajendra K Goel & Co.
Chartered Accountants
F.R.N. 001457N
R. K. Goel
(Partner)
M.No. 006154
Place: New Delhi
Dated: 30th May, 2014
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of "Precision
Electronics Limited" ("the Company"), which comprise the Balance Sheet
as at March 31, 2013, and the Statement of Profit and Loss and Cash
Flow Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management''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 ("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
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, 2013;
b) in the case of Statement of Profit and Loss, of the profit for the
year ended on that date; and
c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003
("theOrder") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b) In our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books
c) The Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
d) In our opinion, the Balance Sheet, Statement of Profit and Loss, and
Cash Flow Statement comply with the Accounting Standards referred to in
subsection (3C) of section 211 of the Companies Act, 1956;
e) On the basis of written representations received from the directors
as on March 31, 2013, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2013, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
ANNEXURE TO THE INDEPENDENT AUDITORS'' REPORT
The Annexure referred to in paragraph 1 of the Our Report of even date
to the members of PRECISION ELECTRONICS LIMITED on the accounts of the
company for the year ended 31st March, 2013.
On the basis of such checks as we considered appropriate and according
to the information and explanation given to us during the course of our
audit, we report that:
(i) (a) The Company is maintaining proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) The Fixed Assets are physically verified by the management during
the year based on a phased programme of verifying all assets over three
years, which in our opinion is reasonable having regard to the size of
the Company and the nature of its fixed assets. The discrepancies
noticed on such verification were not material and have been properly
dealt with in the books of account.
(c) Fixed assets disposed off during the year, are negligible so as to
affect the Company as a going concern.
(ii) (a) As explained to us, inventories have been physically verified
during the year by the management at reasonable intervals.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the company and the nature of its business.
(c) In our opinion and on the basis of our examination of the records,
the Company is generally maintaining proper records of its inventories.
No material discrepancy was noticed on physical verification of stocks
by the management as compared to book records.
(iii) (a) According to the information and explanations given to us and
on the basis of our examination of the books of account, the Company
has not granted any loans, secured or unsecured, to companies, firms or
other parties listed in the register maintained under Section 301 of
the Companies Act, 1956. Consequently, the provisions of clauses iii
(b), iii(c) and iii (d) of the order are not applicable to the Company.
(e) According to the information and explanations given to us and on
the basis of our examination of the books of account, the Company has
taken unsecured loan from two directors of the company, the maximum
amount during the year being Rs. 5,30,97,915/- (Previous year Rs.
4,03,47,915/-) and at the year end Rs. 5,30,97,915/- (Previous year Rs.
4,03,47,915/-) and from a company in which one director of the company
was interested maximum amount during the year being Rs. Nil (Previous
year Rs. 70,00,000/-) and at the year end Rs. Nil (Previous year Rs.
Nil) covered under the register maintained under Section 301 of the
Companies Act, 1956.
(f) In our opinion and having regard to the loan taken by the company ,
the rate of interest and other terms and conditions wherever stipulated
are not prima facie prejudicial to the interest of the company.
(g) Payment of principal amount and interest are also regular as
stipulated.
(iv) In our opinion, there is an adequate internal control system
commensurate with the size of the company and the nature of its
business for the purchase of inventory and fixed assets and payment for
expenses & for sale of goods. During the course of our audit we have
not observed any continuing failure to correct major weaknesses in
internal control system.
(v) a) Based on the audit procedures applied by us and according to the
information and explanations provided by the management, the
particulars of contracts or arrangements referred to in section 301 of
the Act have been entered in the register required to be maintained
under that section.
b) Based on the audit procedures applied by us and according to the
information and explanations given to us we are of the opinion that the
particulars of the contracts or arrangements referred to section 301 of
the Companies Act, 1956 have been entered into the register required to
be maintained under that Section. The transactions made in pursuance
of such contracts or arrangements have been made at prices which are
reasonable having regard to prevailing market price at the relevant
time.
(vi) The Company has not accepted any deposits from the public covered
under section 58A and 58AA of the Companies Act, 1956.
(vii) As per information & explanations given by the management, the
Company has an internal audit system commensurate with its size and the
nature of its business.
(viii) We have broadly reviewed the books of accounts maintained by the
company pursuant to the rule made by the Central Government for the
maintenance of the cost records under section 209 (I)(d) of the
Companies Act, 1956 and are of the opinion prima facie, the prescribed
account and records have been made and maintained.
(ix) (a) As per records produced before us and according to the
information and explanations given to us the company is generally
regular in depositing undisputed statutory dues applicable to it like
provident fund, Income Tax, Customs duty, Cess etc. with appropriate
authorities, and there were no arrears of such dues at the year end
which have remained outstanding for a period of more than six months
from the date they became payable.
(b) As per records produced before us and according to the information
and explanations given to us there are no dues of Income Tax, Sales
tax, Customs duty, Wealth Tax, Service tax, Excise Duty or Cess which
have not been deposited on account of any dispute.
(x) The Company does not have any accumulated losses at the end of the
financial year and has not incurred cash losses in the current year as
well as in the immediately preceding financial year.
(xi) Based on our audit procedures and on the information and
explanation given by the management, we are of the opinion that company
has not defaulted in repayment of dues to any financial institution,
bank or debenture holders.
(xii) 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. Therefore, the provision of this clause of the Companies
(Auditor''s Report) Order, 2003 (as amended) is not applicable to the
Company.
(xiv) In our opinion the company is not dealing in or trading of
shares, debentures and other investments. Accordingly, clause (xiv) of
Para 4 of the order is not applicable.
(xv) According to the information and explanations given to us, the
Company has not given any guarantees for loan taken by others from a
bank or financial institution.
(xvi) In our opinion & according to the information & explanation given
to us, the term loans have been applied for the purpose for which they
were raised.
(xvii) According to the information & explanation given to us and an
overall examination of the balance sheet of the company, we find that
no fund raised on short term basis have been used for long term
investment.
(xviii) Based on the audit procedures performed and the information and
explanations given to us by the management, we report that the Company
has not made any preferential allotment of shares during the year.
(xix) The Company has no outstanding debentures during the period under
audit.
(xx) The Company has not raised any money by public issue during the
year
(xxi) Based on the audit procedures performed and the information and
explanations given to us, we report that no fraud on or by the Company
has been noticed or reported during the year, nor have we been informed
of such case by the management
For; Rajendra K Goel & Co.
Chartered Accountants
F.R.N. 01457N
R. K. Goel
Place: New Delhi (Partner)
Dated: 23.05.2013 M.No. 6154
Mar 31, 2012
1. We have audited the attached Balance Sheet of M/s. PRECISION
ELECTRONICS LIMITED, New Delhi as at 31st March 2012, Statement of
Profit & Loss and the Cash Flow Statement for the year ended on that
date annexed thereto. These financial statements are the
responsibilities 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 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 estimate made
by the 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 in terms of sub-section (4A) of section 227
of the Companies Act, 1956, and on the basis of such checks as we
consider appropriate and according to the information and explanation
given to us, we enclose in the Annexure a statement on the matters
specified in paras 4 & 5 of the said Order.
4. Further to our comments in the Annexure referred to in paragraph-3
above we report that:
(a). We have obtained all the information and explanations, which to
the best of our knowledge and belief were necessary for the purpose of
our audit.
(b). In our opinion, the Company has kept proper books of accounts as
required by law so far, as appears from our examination of these books.
(c). The Balance Sheet, Statement of Profit & Loss and Cash Flow
Statement dealt with the report are in agreement with the books of
accounts.
(d). In our opinion, financial statements have been prepared in
accordance with accounting standard referred to in Section 211 (3C) of
the Companies Act, 1956
(e). On the basis of the written representations received from the
directors and taken on record by the Board of Directors, we report that
none of the director is disqualified as on 31 st 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.
(f). In our opinion and to the best of our information and according to
the explanations given to us, the said Balance Sheet, Statement of
Profit & Loss and Cash Flow Statement read with Significant Accounting
Policies and Notes to financial statements give the information
required by the companies act, 1956 in the manner so required and give
a true and fair view in conformity with the Accounting principles
generally accepted in India:
i) In the case of the Balance Sheet of the state of affairs of the
Company as at 31st March, 2012.
ii) In the case of Statement of Profit & Loss of the loss for the year
ended on that date.
iii) In the case of Cash Flow Statement, of the Cash Flows for the year
ended on that date.
Annexure to the Auditor's Report of Precision Electronics Limited for
the year ended on 31st March, 2012 referred to in Paragraph 3 of our
report of even date:
1) (a) The Company is maintaining proper records showing full
particulars, including quantitative details and situation of its fixed
assets.
(b) The Fixed Assets are physically verified by the management during
the year based on a phased programme of verifying all assets over three
years, which in our opinion is reasonable having regard to the size of
the Company and the nature of its fixed assets. The discrepancies
noticed on such verification were not material and have been properly
dealt with in the books of account.
(c) In our opinion and according to the information and explanations
given to us, The Company has sold old fixed assets having a written
down value amounting to Rs. 36,61,072/-.
2) (a) The management has conducted physical verification of inventory
at reasonable intervals.
(b) In our opinion, the procedure for physical verification of
inventory followed by the management is reasonable and adequate in
relation to the size of the Company and nature of its business.
(c) The Company is maintaining proper records of inventory. The
discrepancies noticed on physical verification were not material and
have been properly dealt with in the books of account.
3) (a) In our opinion 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.
(b) The company has taken unsecured loan from two directors of the
company in which one director of the company is interested and related
party (ies) covered under the register maintained under Section 301.The
maximum amount during the year was Rs.4,73,47,915/- (Previous year Rs.
3,40,47,915/-) and at the year end was Rs. (Previous year
Rs.3,40,47,915/-). As per the information made available to us the
aforesaid loans taken by the company are repayable 2 to 3 years. In our
opinion and having regard to the loan taken by the company, the rate of
interest and other terms and conditions wherever stipulated are not
prima facie prejudicial to the interest of the company. In respect of
aforesaid loans and advances there is no overdue amount as at the year
end.
4) In our opinion and according to the information and explanation
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 sale
of goods and services. During the course of our audit, no major
weakness has been noticed in the internal controls.
5) In respect of transactions entered in the register maintained in
pursuance of Section 301 of the Companies Act, 1956:
(a) To the best of our knowledge and belief and according to the
information and explanations given to us, the transactions that needed
to be entered into the register have been so entered.
(b) In our opinion and according to the information and explanations
given to us the transactions made in pursuance of contract/arrangement
entered in the register maintained under Section 301 of the Companies
Act, 1956, are at prevailing market prices at the relevant time.
6) The Company has not accepted any deposits from the public.
7) The Company has an internal audit system, which, in our opinion, is
commensurate with the size and nature of its business.
8) We have broadly reviewed the books of accounts maintained by the
company pursuant to the rule made by the Central Government for the
maintenance of the cost records under section 209 (I)(d) of the
Companies Act, 1956 and are of the opinion pritnafacie, the prescribed
account and records have been made and maintained.
9) (a) According to the information and explanations given to us and on
the basis of our examination of the books of account, the Company has
been generally regular in depositing undisputed statutory dues
including provident fund, employees state insurance, income tax, sales
tax, wealth tax, excise duty, customs duty, service tax and any other
statutory dues applicable, during the year with the appropriate
authorities. There are no outstanding statutory dues as at 31st March,
2012 for a period of more than six months from the date they become
payable.
(b) As at balance sheet date there were no disputed dues of Sales Tax,
VAT, Income Tax, Service Tax, Customs Duty, Wealth Tax, Excise Duty and
cess.
10) The Company does not have any accumulated losses at the end of the
financial year and has not incurred cash losses in the current year as
well as in the immediately preceding financial year.
11) The company has not defaulted in repayment of dues to any banks as
at the balance sheet date.
12) The Company has not granted loans or advances on the basis of
security by way of pledge of shares, debentures and other securities.
13) As explained to us, the provisions of special statute applicable to
Chit Fund, Nidhi or Mutual Benefit society are not applicable to the
Company.
14) Based on our examination of records and information and the
explanations given to us, the Company has not dealt/traded in shares,
securities, debentures and other securities during the year.
15) In our opinion and according to the information and explanation
given to us, the company has not given any guarantee for loans taken by
others from bank or financial institution.
16) To the best of our knowledge and belief and according to the
information and explanations given to us the Term Loan taken during the
year has been applied for the purpose for which it was obtained.
17) On the basis of information provided by the management and our
examination, we are of the opinion that the funds raised on short-term
basis have not been used for long-term investment.
18) The Company has not made any preferential allotment of shares to
parties or companies covered in the register maintained under section
301 of the Companies Act, 1956.
19) The Company did not have any debentures outstanding during the
year.
20) The Company has not raised any money by public issues during the
year.
21) To the best of our knowledge and belief and according to the
information and explanations given to us, no fraud on or by the Company
was noticed or reported during the year.
for Rajendra K. Goel & Co.
Chartered Accountants
FRN: 001457N
Place : New Delhi R.K Goel
Date : May 30, 2012 Partner
Membership no.:6154
Mar 31, 2011
1. We have audited the attached Balance Sheet of M/s. PRECISION
ELECTRONICS LIMITED, New Delhi as at 31st March 2011 and the Profit &
Loss Account and the Cash Flow Statement for the year ended on that
date annexed thereto. These financial statements are the
responsibilities 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 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 estimate made
by the 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) (Amendment) Order,
2004 issued by the Central Government in terms of Section 227(4A) of
the Companies Act, 1956, and on the basis of such checks as we consider
appropriate and according to the information and explanation given to
us, we enclose in the Annexure a statement on the matters specified in
paras 4 & 5 of the said Order.
4. Further to our comments in the Annexure referred to in paragraph-3
above we report that:
a) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of our
audit.
b) In our opinion, the Company has kept proper books of accounts as
required by law so far, as appears from our examination of these books.
c) The Balance Sheet, Profit & Loss Account and Cash Flow Statement
dealt with the report are in agreement with the books of accounts.
d) In our opinion, financial statements have been prepared in
accordance with accounting standard referred to in Section 211(3C) of
the Companies Act, 1956.
e) On the basis of the written representations received from the
directors and taken on record by the Board of Directors, we report that
none of the director is disqualified as on 31" March 2011 from being
appointed as a director in terms of clause (g) of sub-section (1) of
Section 274 of the Companies Act, 1956.
f) In our opinion and to the best of our information and according to
the explanations given to us, the said Balance Sheet, Profit & Loss
Account and Cash Flow Statement read with Accounting Policies and Notes
to Accounts as per scheduleÃ16 give the information required by the
companies act, 1956 in the manner so required and give a true and fair
view in conformity with the Accounting principles generally accepted in
India:
i) In the case of the Balance Sheet of the state of affairs of the
Company as at 31stMarch, 2011.
ii) In the case of the Profit & Loss Account of the Profit for the year
ended on that date.
iii) In the case of Cash Flow Statement, of the Cash Flows for the year
ended on that date.
Annexure to the Auditor's Report of Precision Electronics Limited for
the year ended on 31" March, 2011 referred to in Paragraph 3 of our
report of even date:
1. (a) The Company is maintaining proper records showing full
particulars, including quantitative details and situation of its fixed
assets.
(b) The Fixed Assets are physically verified by the management during
the year based on a phased programme of verifying all assets over three
years, which in our opinion is reasonable having regard to the size of
the Company and the nature of its fixed assets. The discrepancies
noticed on such verification were not material and have been properly
dealt with in the books of account.
(c) In our opinion and according to the information and explanations
given to us, a substantial part of fixed assets has not been disposed
off by the Company during the year.
2. (a) The management has conducted physical verification of inventory
at reasonable intervals.
(b) In our opinion, the procedure for physical verification of
inventory followed by the management is reasonable and adequate in
relation to the size of the Company and nature of its business.
(c) The Company is maintaining proper records of inventory. The
discrepancies noticed on physical verification were not material and
have been properly dealt with in the books of account.
3. a) In our opinion 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.
b) The Company has taken unsecured loan from Directors of the Company
covered under the register maintained under Section 301 of the
Companies Act, 1956.The maximum amount during the year was Rs.
3,40,47,915/- (Previous year Rs. 2,90,47,915/-) and at the year end was
Rs. 3,40,47,915/- (Previous year Rs. 2,90,47,915/-).As per the
information made available to us the aforesaid loans taken by the
company are repayable on demand. In our opinion and having regard to
the loan taken by the company , the rate of interest and other terms
and conditions wherever stipulated are not prima facie prejudicial to
the interest of the company. In respect of aforesaid loans and advances
there is no overdue amount as at the year end.
4. In our opinion and according to the information and explanation
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 ofinventory and fixed assets and sale
of goods and services. During the course of our audit, no major
weakness has been noticed in the internal controls.
5. In respect of transactions entered in the register maintained in
pursuance of Section 301 of the Companies Act, 1956:
a) To the best of our knowledge and belief and according to the
information and explanations given to us, transactions that needed to
be entered into the register have been so entered.
b) In our opinion and according to the information and explanations
given to us the transactions made in pursuance of contract/arrangement
entered in the register maintained under Section 301 of the Companies
Act, 1956, are at prevailing market prices at the relevant time.
6. The Company has not accepted any deposits from the public.
7. The Company has an internal audit system, which, in our opinion, is
commensurate with the size and nature of its business.
8. We have broadly reviewed the books of accounts maintained by the
Company pursuant to the rule made by the Central Government for the
maintenance of the cost records under section 209 (I)(d) of the
Companies Act, 1956 and are of the opinion prima facie, the prescribed
account and records have been made and maintained. We have not, however
carried out a detailed examination of the same.
9. a) According to the information and explanations given to us and on
the basis of our examination of the books of account, the Company has
been generally regular in depositing undisputed statutory dues
including provident fund, employees state insurance, income tax, sales
tax, wealth tax, excise duty, customs duty, service tax and any other
statutory dues applicable, during the year with the appropriate
authorities. There are no outstanding statutory dues as at 31st March,
2011 for a period of more than six months from the date they become
payable.
b) As at balance sheet date there were no disputed dues of Sales Tax,
VAT, Income Tax, Service Tax, Customs Duty, Wealth Tax, Excise Duty and
Cess.
10. The Company does not have any accumulated losses at the end of the
financial year and has not incurred cash losses in the current year as
well as in the immediately preceding financial year.
11. The company has not defaulted in repayment of dues to any banks as
at the balance sheet date.
12. The Company has not granted loans or advances on the basis of
security by way of pledge of shares, debentures and other securities.
13. As explained to us, the provisions of special statute applicable
to Chit Fund, Nidhi or Mutual Benefit society are not applicable to the
Company.
14. Based on our examination of records and information and the
explanations given to us, the Company has not dealt/traded in shares,
securities, debentures and other securities during the year.
15. In our opinion and according to the information and explanation
given to us, the Company has not given any guarantee for loans taken by
others from bank or financial institution.
16. To the best of our knowledge and belief and according to the
information and explanations given to us the Term Loan taken during the
year has been applied for the purpose for which it was obtained.
17. On the basis of information provided by the management and our
examination, we are of the opinion that the funds raised on short-term
basis have not been used for long-term investment.
18. The Company has not made any preferential allotment of shares to
parties or Companies covered in the register maintained under section
301 of the Companies Act, 1956.
19. The Company did not have any debentures outstanding during the
year.
20. The Company has not raised any money by public issues during the
year.
21. To the best of our knowledge and belief and according to the
information and explanations given to us, no fraud on or by the Company
was noticed or reported during the year.
For RAJENDRA K GOEL & CO.
CHARTERED ACCOUNTANTS
(ER. No. 001457N)
R.K.Goel
(Partner)
Membership No.6154
Place: New Delhi
Date : 18th May 2011
Mar 31, 2010
1. We have audited the attached Balance Sheet of M/s. PRECISION
ELECTRONICS LIMITED, New Delhi as at 31st March 2010 and the Profit &
Loss Account and the Cash Flow Statement for the year ended on that
date annexed thereto. These financial statements are the
responsibilities 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 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 estimate made
by the 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)(Amendment) Order,
2004 issued by the Central Government in terms of Section 227(4A) of
the Companies Act, 1956, and on the basis of such checks as we consider
appropriate and according to the information and explanation given to
us, we enclose in the Annexureastatement on the matters specified
inparas 4 &5of the said Order.
4. Furtherto our comments intheAnnexure referred toin paragraph-3
above we report that:
a) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose ofour
audit.
b) In our opinion, the Company has kept proper books of accounts as
required by law so far, as appears from our examination ofthese books.
c) The Balance Sheet and Profit & Loss Account and Cash Flow Statement
dealt with the report are in agreementwiththebooksofaccounts.
d) In our opinion, financial statements have been prepared in
accordance with accounting standard referred to inSection 211 (3C)of
the CompaniesAct, 1956.
e) On the basis of the written representations received from the
directors and taken on record by the Board of Directors, we report that
none of the director is disqualified as on 31st March 2010 from being
appointed as a director in terms of clause (g) of sub-section (1) of
Section 274 of the Companies Act, 1956.
f) Inour opinion and to the best of our information and accordingto the
explanations given to us, the said Balance Sheet, Profit & Loss Account
and Cash Flow Statement read with Accounting Policies and Notes on
Accounts as per scheduleÃ14 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
inIndia:
i) In the case ofthe Balance Sheetof the state ofaffairsof the
Companyas at31st March, 2010.
ii) In the case ofthe Profit &LossAccount of the Profit for the year
endedonthat date.
iii) In the case ofCash Flow Statement,of the Cash Flows for the year
ended on that date.
Annexure to the Auditors Report of Precision Electronics Limited for
the year ended 31st March, 2010 referred to in Paragraph 3 of our
report of even date
1. The Company is maintaining proper records showing full particulars,
including quantitative details and situation of its fixed assets. Fixed
Assets have been physically verified by the management during the year
based on a phased programme of verifying all assets over three years,
which in our opinion is reasonable having regard to the size of the
Company and the nature of its fixed assets. The discrepancies noticed
on such verification were not material and have been properly dealt
with in the booksof account. There was no substantial disposalof fixed
assets during the year.
2. The management has conducted physical verification of inventory at
reasonable intervals. The procedure for physical verification of
inventory followed by the management are reasonable and adequate in
relation to the size of the Company and nature of its business. The
Company is maintaining proper records of inventory. The discrepancies
noticed on physical verification were not material and have been
properly dealt with inthe books of account.
3. a) In our opinion 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. The company has taken
unsecured loan from two directors of the company and related party
(ies) covered under the register maintained under Section 301.The
maximum amount during the year was Rs. 2,90,47,915/- and atthe year end
was Rs. 2,90,47,915/-.
b) As per the information made available to us the aforesaid loans
taken by the company are repayableondemand.
c) In our opinion and having regard to the loan taken by the company ,
the rate of interest and other terms and conditions wherever stipulated
are not prima facie prejudicial to the interest of the company.
d) In respect of aforesaid loans and advances thereis nooverdue
amountas atthe year end.
4. In our opinion and according to the information and explanation
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 sale
of goods and services. During the courseof our audit, nomajor weakness
has been noticedin the internal controls.
5. In respect of transactions entered in the register maintained in
pursuance of Section 301 of the CompaniesAct,1956:
a) To the best of our knowledge and belief and according to the
information and explanations given to us, the transactions that needed
tobe entered into the register have been soentered.
b) In our opinion and according to the information and explanations
given to us the transaction made in pursuance of contract/arrangement
entered in the register maintained under Section 301 ofthe
CompaniesAct, 1956, areat prevailing market prices atthe relevant time.
6. TheCompanyhas not accepted any deposits from the public.
7. The Company has an internal audit system, which, in our opinion, is
commensurate with the size and natureof its business.
8. We have broadly reviewed the books of accounts maintained by the
company pursuant to the rule made by the Central Government for the
maintenance of the cost records under section 209 (I)(d) of the
Companies Act, 1956 and are of the opinion prima facie, the prescribed
account and records have beenmade and maintained.
9. a) Accordingto the information and explanations given tous and on
the basis of our examination of the books of account, the Company has
been generally regular in depositing undisputed statutory dues
including provident fund, employees state insurance, income tax, sales
tax, wealth tax, excise duty, customs duty, service tax and any other
statutory dues applicable, during the year with the appropriate
authorities. There are no outstanding statutory dues as at 31st March,
2010 for a period of more than six monthsfromthedate they become
payable.
b) As at balance sheet date there were no disputed dues of Sales Tax,
VAT, Income Tax, Service Tax, Customs Duty,WealthTax,ExciseDutyand
cess.
10. The Company does not have any accumulated losses at the end of the
financial year and has not incurred cash losses in the current year as
wellas in the immediately preceding financial year.
11. The company has not defaulted inrepaymentof dues to any banks as
at the balance sheet date.
12. The Company has not granted loans or advances on the basis of
security by way of pledge of shares, debentures and other securities.
13. As explained to us, the provisions of special statute applicable
to Chit Fund, Nidhi or Mutual Benefit society are not applicable tothe
Company.
14. Based on our examination of records and information and the
explanations given to us, the Company has not dealt/tradedin shares,
securities, debentures and other securities during the year.
15. In our opinion and according to the information and explanation
given to us, the company has not given any guarantee for loans taken by
others from bankor financial institution.
16. To the best of our knowledge and belief and according to the
information and explanations given to us the Term Loan taken during the
year has been applied for the purpose for which itwas obtained.
17. On the basis of information provided by the management and our
examination, we are of the opinion that the funds raised on short-term
basis have not been used for long-term investment and vice versa.
18. The Company has not made any preferential allotment of shares to
parties or companies covered in the register maintained under section
301 ofthe Companies Act, 1956.
19. TheCompany did not have any debentures out standing during the
year.
20. The Companyhas not raisedany money by public issues duringthe
year.
21. To the best of our knowledge and belief and according to the
information and explanations given to us, nofraudonor by the Company
was noticed or reported during the year.
For RAJENDRA K GOEL & CO.
CHARTERED ACCOUNTANTS
(Registration No. 001457N)
R.K.Goel
Place : New Delhi (Partner)
Date : 27th May 2010 Membership No.6154