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

Auditor Report of SSPDL Ltd.

Mar 31, 2015

We have audited the accompanying standalone financial statements of SSPDL Limited ('the Company') which comprise the Balance Sheet as at 31st March, 2015, the Statement of Profit and Loss and the Cash Flow Statement for the year then ended and a summary of significant accounting policies and other explanatory information.

Management's Responsibility for the Standalone 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 standalone financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of 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 standalone financial statements based on our audit.

We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.

We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company's preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on whether the Company has in place an adequate internal financial controls system over financial reporting and the operating effectiveness of such controls. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company's directors, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements.

Opinion

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone 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, its PROFIT and its cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

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 paragraphs 3 and 4 of the Order, to the extent applicable.

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 standalone 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 the 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:

i. The Company has disclosed the impact of pending litigations on its financial position in its financial statements- Refer Note 25 to the financial statements.

ii. The Company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long-term contracts - Refer Note 8 to financial statements.

iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.

Annexure referred to in paragraph 1 of report on other legal and regulatory requirements section of our report of even date

Re: SSPDL Limited ('the Company')

i. In respect of its fixed assets:

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

(b) The Company has a phased program of physical verification of its fixed assets which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. In accordance with this program, substantial fixed assets were physically verified by management during the year and no material discrepancies were identified during such verification.

ii. In respect of its inventories:

(a) The management has conducted physical verification of inventory at reasonable intervals during the year, except for inventory represented by development rights. For inventory represented by development rights at the year-end, written confirmations have been obtained by the management.

(b) In our opinion and according to the information and explanations given to us, the procedures of physical verification of inventory 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 according to the information and explanations given to us and on the basis of our examination of the records of inventory, the Company is maintaining proper records of inventory. The discrepancies noticed on physical verification of inventory as compared to the books of account were not material and have been properly dealt with in the books of accounts.

iii. According to the information and explanations given to us, the Company has granted loans, unsecured to4wholly owned subsidiary companies, 1 associateand other company covered in the register maintained under section 189 of the Act. In respect of such loans:

(a) The said loans are interest free and repayable on demand and hence there is no repayment schedule.

(b) Since the loans are repayable on demand, the question of overdue amount does not arise.

iv. In our opinion and according to the information and explanations given to us, there are adequate internal control systems commensurate with the size of the Company and nature of its business with regard to the purchase of inventory and fixed assets and also for the sale of services. The activities of the Company do not involve sale of goods. During the course of our audit, we have not observed any major weakness or continuing failure to correct any major weakness in the internal control system of the Company in respect of these areas.

v. According to the information and explanations given to us, the Company has not accepted deposits from the public within the meaning of Section 73 and 76 or any other relevant provisions of the Act and the rules framed there under.

vi. We have broadly reviewed the books of account and records maintained by the Company pursuant to the Rules made by the Central Government of India for the maintenance of cost records prescribed under sub-section (1) of section 148 of the Act in respect of activities of the Company and are of the opinion that prima facie, the prescribed accounts and records have been maintained. We have however, not made a detailed examination of the records with a view to determine whether they are accurate or complete.

vii. In respect of Statutory dues:

(a) The Company is regular in depositing with appropriate authorities, undisputed statutory dues including provident fund, employees' state insurance, income-tax, sales-tax, wealth tax, service tax, value added tax, cess and other material statutory dues applicable to it. Having regard to the nature of the Company's business/activities/ results, statutory dues in respect of customs duty and duty of excise are not applicable to the Company. According to the information and explanations given to us, no undisputed amounts payable in respect of such statutory dues were outstanding, at the year end, for a period of more than six months from the date they became payable.

(b) According to the information and explanations given to us, the dues outstanding of income-tax, sales-tax, wealth tax, service tax, customs duty, value added tax and cess on account of dispute, in the Company are as follows:

Name of the Statute Nature of Due Amount Period to which (Rs, In Crores) amount relates to

Tamil Nadu General Disallowances of Input 0.33 2006-2007 Sales Tax Act. Tax Credit

Tamil Nadu General Disallowances of Input 1.25 2007-2008 Sales Tax Act. Tax Credit

Finance Act 1994 Service Tax demand 7.53 2006-2011

Finance Act 1994 Service Tax demand 0.19 2010-2012

Name of the Statute Forum where dispute is pending

Tamil Nadu General Supreme Court Sales Tax Act.

Tamil Nadu General Supreme Court Sales Tax Act.

Finance Act 1994 CESTAT, Chennai

Finance Act 1994 CESTAT, Chennai

(c) According to the information and explanations given to us, the amount required to be transferred 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 has been transferred to such fund within time.

viii. The Company does not have any accumulated losses at the end of the financial year.The Company has not incurred cash losses during the current financial year covered by the audit. However, the Company has incurred cash losses amounting to Rs, 7.77crores in the immediately preceding financial year.

ix. Based on our audit procedures and on the basis of information and explanations given by the management, we are of the opinion that the Company has not defaulted in the repayment of dues to banks.The Company has not taken any loans from financial institutions and has not issued debentures during the year.

x. According to the information and explanations given to us, the Company has given guarantee for loans taken by its wholly owned subsidiary companies from banks, the terms and conditions whereof, in our opinion, are not prima-facie prejudicial to the interest of the Company.

xi. The Company did not have any term loans outstanding during the year.

xii. In our opinion and according to the information and explanations given to us, no material fraud on or by the Company has been noticed or reported during the year. Based upon the audit procedures performed for the purpose of reporting the true and fair view of the financial statements and as per the information and explanations given by the management, we report that no fraud on or by the Company has been noticed or reported during the year.

For KARVY & CO.,

Chartered Accountants

Firm Registration Number: 001757S

K.AJAY KUMAR

Place: Hyderabad PARTNER

Date : 30.05.2015 Membership No. 021989


Mar 31, 2014

We have audited the accompanying financial statements of SSPDL Limited ("the Company") which comprise the Balance Sheet as at March 31, 2014, and the Statement of Profit and Loss and the Cash Flow Statement for the year then ended and a summary of significant accounting policies and other explanatory information.

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 principles accepted in India, including 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 September 13, 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 Company''s 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 the 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 sub-section (3C) of section 211 of the Companies Act, 1956 read with the General Circular 15/2013 dated September 13, 2013 of the Ministry of Corporate Affairs in respect of Section 133 of the Companies Act, 2013; and

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.

The Annexure referred to in our report to the members of SSPDL Limited (''the Company'') for the year ended March 31, 2014. We report that.

i. In respect of its fixed assets

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

(b) The Company has a phased program of physical verification of its fixed assets which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. In accordance with this program, substantial fixed assets were physically verified by management during the year and no material discrepancies were identified during such verification.

(c) In our opinion, fixed assets disposed off during the year were not substantial and therefore do not affect the going concern assumption.

ii. In respect of its inventories

(a) The inventories have been physically verified during the year by the management. In our opinion, the frequency of verification is reasonable.

(b) In our opinion and according to the information and explanations given to us, the procedures of physical verification of inventory 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 according to the information and explanations given to us and on the basis of our examination of the records of inventory, the Company is maintaining proper records of inventory. The discrepancies noticed on physical verification of inventory as compared to the books of account were not material and have been properly dealt with in the books of accounts.

iii. In respect of loans granted by the Company

(a) The Company has granted loans to companies covered in the register maintained under Section 301 of the Companies Act, 1 956. The maximum amount outstanding during the year is Rs. 2,696.57 lakhs and the year end balances is Rs. 2,057.35 lakhs.

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

(c) The said loans are repayable on demand and hence no repayment schedule

(d) Since the loans are repayable on demand, the question of overdue amount does not arise.

In respect of loans taken by the Company;

(e) The Company has taken unsecured loans from one company and one individual covered in the register maintained under Section 301 of the Companies Act, 1956. The maximum amount outstanding during the year is Rs. 1,835.40 lakhs and the year end balances is Rs. 930.19 lakhs.

(f) In our opinion and according to the information and explanations given to us, the interest rate and other terms and conditions are not prima facie prejudicial to the interest of the Company.

(g) The said loans are repayable on demand and hence no repayment schedule

iv. In our opinion and according to the information and explanations given to us, there are adequate internal control systems commensurate with the size of the Company and nature of its business with regard to the purchase of inventory and fixed assets and also for the sale of goods and services. During the course of our audit, no major weakness has been noticed in the internal controls.

v. According to the information and explanations given to us, contracts or arrangements which need to be entered, during the period, in the register to be maintained under Section 301 of the Companies Act, 1956 have been so entered.

vi. The Company has not accepted deposits from the public within the meaning of Section 58A and 58AA of the Companies Act, 1956 and the rules framed there under.

vii. In our opinion, the Company has an internal audit system commensurate with the size and the nature of its business.

viii. We have broadly reviewed the books of account maintained by the Company pursuant to the Rules made by the Central Government of India for the maintenance of cost records prescribed under Clause (d) of sub-section (1) of Section 209 of the Companies Act, 1956 in respect of the financial year ended March 31, 2014 and are of the opinion that prima facie, the prescribed accounts and records have been maintained. However,we have not made a detailed examination of the records.

ix. In respect of Statutory dues:

(a) According to the books and records as produced and examined by us and also based on the Management representations, it was found that there were no undisputed statutory dues in respect of Provident Fund, Investor Education and Protection Fund, Employees'' State Insurance, Income tax, Sales Tax, Service Tax, Customs Duty, Excise Duty, Cess and other statutory dues to the extent applicable to be deposited with the appropriate authorities during the year. According to the information and explanations given to us, no undisputed amounts payable in respect of the above were in arrears as at March 31, 2014 for a period of more than six months from the date on which they became payable.

(b) According to the information and explanation given to us the following amounts have not been deposited with the appropriate authorities on account of dispute.

Name of the Statute Nature of Due Amount (Rs. In Crores)

Tamilnadu General Disallowances of Input 0.33 Sales Tax Act. Tax Credit

Finance Act 1994 Service Tax demand 3.95

Finance Act 1994 Service Tax demand 0.023



Name of the Statute Period to which Forum where dispute is amount relates to pending

Tamilnadu General 2006-2007 Supreme Court Sales Tax Act,

Financle Act 1994 2006-2011 CESTAT, Chennai

Finacle Act 1994 2011-12 CESTAT, Chennai

x. The Company does not have accumulated losses at the end of the financial year. However, the Company has incurred cash losses amounting to Rs. 777.09 lakhs during the financial year covered by audit and Rs. 1,313.57 lakhs in the immediately preceding financial year.

xi. Based on our audit procedures and on the basis of information and explanations given by the management, we are of the opinion that the Company has not defaulted in the repayment of dues to banks and financial institutions. The Company did not have any debentures outstanding as at the Balance Sheet date.

xii. According to the information and explanations given to us, the Company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and other securities. Accordingly, Clause 4 (xii) of the Order is not applicable to the Company.

xiii. In our opinion, the Company is not a Chit fund or a Nidhi/ Mutual Benefit fund/ Society. Accordingly, Clause 4 (xiii) of the Order is not applicable to the Company.

xiv. In our opinion, the Company is not dealing in or trading in Shares, Securities, debentures and other investments. Accordingly, Clause 4 (xiv) of the Order is not applicable to the Company.

xv. According to the information and explanations given to us, the Company has given corporate guarantee for loans taken by wholly owned subsidiaries from banks. The terms and conditions of the guarantee are not prejudicial to the interest of the Company.

xvi. In our opinion, and according to the information and explanations given to us, the term loans have been applied, on an overall basis, for the purposes for which they were obtained.

xvii. According to the information and explanations given to us and overall examination of the balance sheet of the Company, we are of the opinion that there are no funds raised on short-term basis that have been used for long term investment.

xviii. The Company has not made any preferential allotment of shares to parties and companies covered in the register maintained under Section 301 of the Act, during the period.

xix. According to the information and explanations given to us and the records examined by us, no debentures were issued by the Company. Accordingly, Clause 4 (xix) of the Order is not applicable to the Company.

xx. The Company has not raised any money by public issues during the year.

xxi. In our opinion and according to the information and explanations given to us, no material fraud on or by the Company has been noticed or reported during the year.



For KARVY & CO. Chartered Accountants Firm Registration Number: 001757S

K. AJAY KUMAR Place : Hyderabad Partner Date : May 10, 2014 Membership No. 021989


Mar 31, 2012

1. We have audited the attached Balance Sheet of M/s. SSPDL Ltd ("the Company") as at 31st March, 2012 and also the Profit & Loss Account and the Cash Flow Statement for the year ended on that date annexed thereto. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audit.

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 estimates made by management, as well as evaluating the overall financial statements 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 Audit (Auditor's Report) (Amendment) Order, 2004 ("Order") issued by the Central Government of India in terms of sub-section (4A) of Section 227 of the Companies Act, 1956, we annex hereto a statement on the matters specified in paragraphs 4 and 5 of the said Order.

4. Further to our comments in the annexure referred to above, we state that:

(i) We have obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the purpose of our audit.

(ii) In our opinion, the company has kept proper books of accounts as required by Law so far as appears from our examination of those books.

(iii) The Balance Sheet, Profit & Loss account and Cash Flow statement dealt with by this report are in agreement with the books of account.

(iv) In our opinion, the Balance Sheet, Profit & Loss account and Cash Flow statement dealt with by this report comply with the Accounting Standards referred to in sub-section (3C) of Section 211 of the Companies Act, 1956, to the extent applicable.

(v) On the basis of written representation received from the directors of the company as at March 31, 2012 and taken on record by the Board of Directors, we report that none of the Directors is disqualified as on 31st March, 2012 from being appointed as a Director in terms of under Clause (g) of sub-section (1) of section 274 of the Companies Act, 1956.

(vi) In our opinion and to the best of our information and according to the explanations given to us, the said accounts read together with notes thereon gives the information required by the Companies Act, 1956 in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:

(a) In case of Balance Sheet, of the state of affairs of the Company as at 31st March, 2012.

(b) In case of Profit & Loss account, of the LOSS of the company for the year ended on that date.

And

(c) In case of Cash Flow Statement, of the cash flows for the year ended on that date.

ANNEXURE REFERRED TO IN PARAGRAPH 3 OF OUR AUDIT REPORT OF EVEN DATE TO THE MEMBERS OF M/S. SSPDL LIMITED FOR THE YEAR ENDED 31 ST MARCH, 2012.

i. In respect of its fixed assets:

a) The company has maintained proper records to show full particulars including quantitative details and situation of the fixed assets.

b) The company has a phased programme of physical verification of its fixed assets which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. In accordance with this programme, substantial fixed assets were physically verified by management during the year and no material discrepancies were identified during such verification.

c) In our opinion, the Company has not disposed off a substantial part of its fixed assets during the year and the going concern status of the Company is not affected.

ii. In respect of its inventories:

a) As explained to us, inventories have been physically verified during the year by the management. In our opinion, the frequency of verification is reasonable.

b) In our opinion, the procedures of physical verification of stocks followed by the Management and the frequency of verification are reasonable and adequate in relation to the size of the Company and the nature of its business.

c) The company is maintaining proper records of inventory, the discrepancies noticed between the physical inventory and book stocks were not material.

iii. In respect of the loans, secured or unsecured, granted or taken by the company to / from companies, firms or other parties covered in the register maintained under Section 301 of the Companies Act, 1956:

a) The company has granted loans to three subsidiaries and four associates of the company. In respect of the said loans, the maximum amount outstanding at any time during the year is Rs. 23.69 and the year end balance is Rs. 23.69 Crores.

b) In our opinion and according to the information and explanation given to us, the said loans are interest free and other terms and conditions of the loans, are not prima facie prejudicial to the interest of the company.

c) The outstanding amounts are repayable on demand and there is no repayment schedule.

d) In respect of the said loans, the same are repayable on demand and therefore the question of overdue does not arise.

e) According to the information and explanations given to us, the company has taken unsecured loans from parties covered in the register maintained under section 301 of the Companies Act, 1956. The maximum amount outstanding at any time during the year is Rs. 14.90 Crores and the year-end balance is Rs. 14.90 Crores.

f) In our opinion and according to the information and explanations given to us, the rate of interest and other terms and conditions are not prima facie prejudicial to the interest of the company.

g) The said loan is repayable on demand and there is no repayment schedule.

iv. In our opinion and according to the information and explanations given to us, there are adequate internal control procedures commensurate with the size of the company and nature of business with regard to the purchase of inventories and fixed assets and with regard to sale of goods and services. In our opinion and according to the information and explanations given to us, there is no continuing failure to correct major weaknesses in internal controls.

v. In respect of the contracts or arrangements referred to in Section 301 of the Companies Act, 1956:

a) In our opinion and according to the information and explanations given to us, the transactions that need to be entered in the register maintained under Section 301 of the Companies Act, 1956 have been so entered.

b) In our opinion, and according to the information and explanations given to us, the transactions made in pursuance of contracts or arrangements, entered in the register maintained under Section 301 of the Companies Act, 1956 and exceeding the value of Rs. 5 lakhs in respect of each party have been made at prices which appears reasonable as per information available with the company.

vi. According to information and explanations given to us, the company has not accepted any deposits from the public within the meaning of Section 58A and 58AA or any other relevant provisions of the Act. Accordingly, clause 4(vi) of the Order is not applicable.

vii. In our opinion the company has an internal audit system commensurate with size and nature of its business.

viii. We have broadly reviewed the cost records maintained by the Company pursuant to the Companies (Cost Accounting Records) Rules, 2011 prescribed by the Central Government under Section 209(1)(d) of the Companies Act, 1956 and are of the opinion that prima facie the prescribed cost records have been maintained. We have, however, not made a detailed examination of the cost records with a view to determine whether they are accurate or complete.

ix. a. According to the books and records as produced and examined by us in and also based on management representations, undisputed statutory dues in respect of Provident Fund, Investor Education and Protection Fund, Employees State Insurance, Income Tax, Wealth Tax, Sales Tax, Service tax, Custom duty, Excise duty and Cess and other material statutory dues, to the extent applicable, have been regularly deposited during the year with appropriate authorities. According to the information and explanation given to us, no undisputed amounts payable in respect of the above are in arrears as at the year end for a period of more than six months from the date on which they become payable.

b. According to the information and explanation given to us the following amounts have not been deposited with the appropriate authorities on account of dispute:

Name of the Statute Nature of Due Amount Period to which Forum where dispute is (Rs.In Crores) amount relates to pending

Tamilnadu General Disallowances of Input 0.33 2006-2007 Commercial Tax Officer, Sales Tax Act. Tax Credit Chennai

Finance Act 1994 Service Tax demand 3.76 2006-2010 The commiss ioner of service Tax, Chennai

Finance Act 1994 Service Tax demand 0.023 2011-12 Decided to appeal before Appellate Tribunal, Hyderabad

x. The company does not have accumulated losses at the end of the year. However, the company has incurred cash losses amounting to Rs. 6 crores during the financial year covered by audit. There was no cash loss in the immediately preceding financial year.

xi. Based on our audit procedures and on the basis of information and explanations given by the management, we are of the opinion that the Company has not defaulted in the repayment of dues to banks. The company has not taken any loans from financial institutions.

xii. In our opinion and according to information and explanations given to us and as per verification of records, the company has not granted any loans or advances on the basis of security by way of pledge of shares, debentures and other securities. Accordingly, clause 4(xii) of the Order is not applicable.

xiii. In our opinion, the company is not a Chit fund / Nidhi Mutual benefit fund / societies / NBFC. Accordingly, clause 4(xiii) of the Order is not applicable.

xiv. The Company has not dealt or traded in shares, securities, debentures and other investments. Accordingly, clause 4(xiv) of the Order is not applicable.

xv. In our opinion and as per information and explanations given to us, the company has not given any guarantee for loans taken by others from banks and financial institutions during the year.

xvi. To the best of our knowledge and belief and according to the information and explanations given to us, no term loans were taken by the company during the year. Accordingly, Clause 4(xvi) of the order is not applicable.

xvii. According to the information and explanation given to us and on an overall examination of the balance sheet of the company, we are of the opinion that no funds raised on short-term basis have been used for long term investment.

xviii. The company has not made any preferential allotment of shares to the parties covered in the register maintained under Section 301 of the Companies Act, 1956 during the year. Accordingly clause 4 (xviii) of the Order is not applicable.

xix. The company during the year has not issued any debentures. Accordingly, clause 4(xix) of the Order is not applicable.

xx. The company has not raised any money from the public by issue of shares during the year.

xxi. According to the information and explanations given to us and on the basis of examination of records, no fraud on or by the company was noticed or reported during the year.

For KARVY & CO.,

Chartered Accountants

(Registration No: 001757S) (K.AJAY KUMAR)

Place : Hyderabad PARTNER

Date : 26.05.2012 M. No.: 021989


Mar 31, 2011

1. We have audited the attached Balance Sheet of M/s. SSPDL Ltd ("the Company") as at 31st March, 2011 and also the Profit & Loss Account and the Cash Flow Statement for the year ended on that date annexed thereto. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audit.

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 estimates made by management, as well as evaluating the overall financial statements 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 Audit (Auditor's Report) (Amendment) Order, 2004 ("Order") issued by the Central Government of India in terms of sub-section (4A) of Section 227 of the Companies Act, 1956, we annex hereto a statement on the matters specified in paragraphs 4 and 5 of the said Order.

4. Further to our comments in the annexure referred to above, we state that:

(i) We have obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the purpose of our audit.

(ii) In our opinion, the company has kept proper books of accounts as required by Law so far as appears from our examination of those books.

(iii) The Balance Sheet, Profit & Loss account and Cash Flow statement dealt with by this report are in agreement with the books of account.

(iv) In our opinion, the Balance Sheet, Profit & Loss account and Cash Flow statement dealt with by this report comply with the Accounting Standards referred to in sub-section (3C) of Section 211 of the Companies Act, 1956, to the extent applicable.

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

(vi) In our opinion and to the best of our information and according to the explanations given to us, the said accounts read together with notes thereon gives the information required by the Companies Act, 1956 in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:

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

(b) In case of Profit & Loss account, of the PROFIT of the company for the year ended on that date.

And

(c) In case of Cash Flow Statement, of the cash flows for the year ended on that date.

ANNEXURE REFERRED TO IN PARAGRAPH 3 OF OUR AUDIT REPORT OF EVEN DATE TO THE MEMBERS OF M/S. SSPDL LIMITED FOR THE YEAR ENDED 31ST MARCH, 2011.

i. In respect of its fixed assets:

a) The company has maintained proper records to show full particulars including quantitative details and situation of the fixed assets.

b) The company has a phased programme of physical verification of its fixed assets which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. In accordance with this programme, substantial fixed assets were physically verified by management during the year and no material discrepancies were identified during such verification.

c) According to the information and explanations given to us, the company has sold major portion of its fixed assets to one of its subsidiary companies. However, this transaction has got no impact on the going concern status of the company.

ii. In respect of its inventories:

a) As explained to us, inventories have been physically verified during the year by the management. In our opinion, the frequency of verification is reasonable.

b) In our opinion, the procedures of physical verification of stocks followed by the Management and the frequency of verification are reasonable and adequate in relation to the size of the Company and the nature of its business.

c) The company is maintaining proper records of inventory, the discrepancies noticed between the physical inventory and book stocks were not material.

iii. In respect of the loans, secured or unsecured, granted or taken by the company to / from companies, firms or other parties covered in the register maintained under Section 301 of the companies act, 1956:

a) The company has granted loans to eight subsidiaries of the company. In respect of the said loans, the maximum amount outstanding at any time during the year is Rs. 18.54 And the year end balance is Rs. 18.45 Crores.

b) In our opinion and according to the information and explanation given to us, the said loans are interest free and other terms and conditions of the loans are not prima facie prejudicial to the interest of the company.

c) The outstanding amounts are repayable on demand and there is no repayment schedule.

d) In respect of the said loans, the same are repayable on demand and therefore the question of overdue does not arise.

e) According to the information and explanations given to us, the company has taken unsecured loans from parties covered in the register maintained under section 301 of the Companies Act, 1956. The maximum amount outstanding at any time during the year is Rs. 16.23 Crores and the year-end balance is Rs. 14.03 Crores.

f) In our opinion and according to the information and explanations given to us, the rate of interest and other terms and conditions are not prima facie prejudicial to the interest of the company.

g) The said loan is repayable on demand and there is no repayment schedule.

iv. In our opinion and according to the information and explanations given to us, there are adequate internal control procedures commensurate with the size of the company and nature of business with regard to the purchase of inventories and fixed assets and with regard to sale of goods and services. In our opinion and according to the information and explanations given to us, there is no continuing failure to correct major weaknesses in internal controls.

v. In respect of the contracts or arrangements referred to in Section 301 of the Companies Act, 1956:

a) In our opinion and according to the information and explanations given to us, the transactions that need to be entered in the register maintained under Section 301 of the Companies Act, 1956 have been so entered.

b) In our opinion, and according to the information and explanations given to us, the transactions made in pursuance of contracts or arrangements, entered in the register maintained under Section 301 of the Companies Act, 1956 and exceeding the value of Rs. 5.00 lakhs in respect of each party have been made at prices which appears reasonable as per information available with the company.

vi. According to information and explanations given to us, the company has not accepted any deposits from the public within the meaning of Section 58A and 58AA or any other relevant provisions of the Act. Accordingly, clause 4(vi) of the Order is not applicable.

vii. In our opinion the company has an internal audit system commensurate with size and nature of its business.

viii. In respect of this company, maintenance of cost records has not been prescribed by the Central Government under Section 209 (1) (d) of the Companies Act, 1956. Accordingly, clause 4(viii) of the Order is not applicable.

ix. a) According to the books and records as produced and examined by us in and also based on management representations, undisputed statutory dues in respect of Provident Fund, Investor Education and Protection Fund, Employees State Insurance, Income Tax, Wealth Tax, Sales Tax, Service tax, Custom duty, Excise duty and Cess and other material statutory dues, to the extent applicable, have been regularly deposited during the year with appropriate authorities. According to the information and explanation given to us, no undisputed amounts payable in respect of the above are in arrears as at the year end for a period of more than six months from the date on which they become payable.

b) According to the information and explanation given to us the following amounts have not been deposited with the appropriate authorities on account of dispute:

Name of the Statute Nature of Due Amount Period to which Forum where dispute is (Rs. In Crores) amount relates pending

Tamilnadu General Sales tax on inter-state 0.03 2002-2003 Appellate Tribunal Sales Tax Act. purchase of goods

Tamilnadu General Disallowances of Input 0.33 2006-2007 Commercial Tax Officer, Sales Tax Act. Tax Credit Chennai

Income Tax Act, 1961 Income Tax 5.15 2008-2009 CIT (Appeals)-IV, Hyderabad

x. The company does not have any accumulated losses at the end of the year. Also, the company has not incurred any cash losses during the financial year covered by audit. However, the company has incurred cash loss amounting to Rs. 4.00 crores during the immediate preceding financial year.

xi Based on our audit procedures and on the basis of information and explanations given by the management, we are of the opinion that the Company has not defaulted in the repayment of dues to banks. The company has not taken any loans from financial institutions.

xii. In our opinion and according to information and explanations given to us and as per verification of records, the company has not granted any loans or advances on the basis of security by way of pledge of shares, debentures and other securities. Accordingly, clause 4(xii) of the Order is not applicable.

xiii. In our opinion, the company is not a Chit fund / Nidhi Mutual benefit fund / societies / NBFC. Accordingly, clause 4(xiii) of the Order is not applicable.

xiv. The Company has not dealt or traded in shares, securities, debentures and other investments. Accordingly, clause 4(xiv) of the Order is not applicable.

xv. As per information and explanations given to us, the company has not given any guarantee for loans taken by others from banks and financial institutions during the year.

xvi. To the best of our knowledge and belief and according to the information and explanations given to us, no term loans were taken by the company during the year. Accordingly, Clause 4 (xvi) of the order is not applicable.

xvii. According to the information and explanation given to us and on an overall examination of the balance sheet of the company, we are of the opinion that no funds raised on short-term basis have been used for long term investment.

xviii. The company has not made any preferential allotment of shares to the parties covered in the register maintained under Section 301 of the Companies Act, 1956 during the year. Accordingly clause 4 (xviii) of the Order is not applicable.

xix. The company during the year has not issued any debentures. Accordingly, clause 4(xix) of the Order is not applicable.

xx. The company has not raised any money from the public by issue of shares during the year.

xxi. According to the information and explanations given to us and on the basis of examination of records, no fraud on or by the company was noticed or reported during the year.

For KARVY & CO.,

Chartered Accountants

(Registration No: 001757S)

(K.AJAY KUMAR)

Place : Hyderabad Partner

Date : 13.08.2011 M. No.: M. No. 021989


Mar 31, 2010

1. We have audited the attached Balance Sheet of M/s. SSPDL Ltd ("the Company") as at 31st March, 2010 and also the Profit & Loss Account and the Cash Flow Statement for the year ended on that date annexed thereto. These financial statements are the responsibility of the Companys management. Our responsibility is to express an opinion on these financial statements based on our audit.

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 estimates made by management, as well as evaluating the overall financial statements presentation. We believe that our audit provides a reasonable basis for our opinion.

3. As required by the Companies (Auditors Report) Order 2003,as amended by the Companies Audit (Auditors Report) (Amendment) Order, 2004 ("Order") issued by the Central Government of India in terms of sub-section (4A) of Section 227 of the Companies Act, 1956, we annex hereto a statement on the matters specified in paragraphs 4 and 5 of the said Order.

4. Further to our comments in the annexure referred to above, we state that:

(i) We have obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the purpose of our audit.

(ii) In our opinion, the company has kept proper books of accounts as required by Law so far as appears from our examination of those books.

(iii) The Balance Sheet, Profit & Loss account and Cash Flow statement dealt with by this report are in agreement with the books of account.

(iv) In our opinion, the Balance Sheet, Profit & Loss account and Cash Flow statement dealt with by this report comply with the Accounting Standards referred to in sub-section (3C) of Section 211 of the Companies Act, 1956, to the extent applicable.

(v) On the basis of written representation received from the directors of the company as at March 31, 2010 and taken on record by the Board of Directors, we report that none of the Directors is disqualified as on 31st March, 2010 from being appointed as a Director in terms of under Clause (g) of sub-section (1) of section 274 of the Companies Act, 1956.

(vi) In our opinion and to the best of our information and according to the explanations given to us, the said accounts read together with notes thereon gives the information required by the Companies Act, 1956 in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:

(a) In case of Balance Sheet, of the state of affairs of the Company as at 31st March 2010.

(b) In case of Profit & Loss account, of the LOSS of the company for the year ended on that date. And

(c) In case of Cash Flow Statement, of the cash flows for the year ended on that date.

ANNEXURE REFERRED TO IN PARAGRAPH 3 OF OUR AUDIT REPORT OF EVEN DATE TO THE MEMBERS OF M/S. SSPDL LIMITED FOR THE YEAR ENDED 31ST MARCH, 2010.

i. In respect of its fixed assets:

a) The company has maintained proper records to show full particulars including quantitative details and situation of the fixed assets.

b) The company has a phased programme of physical verification of its fixed assets which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. In accordance with this programme, substantial fixed assets were physically verified by management during the year and no material discrepancies were identified during such verification.

c) As explained to us, the company has not disposed off a substantial part of its fixed assets during the year and the going concern status of the company is not affected.

ii. In respect of its inventories:

a) As explained to us, inventories have been physically verified during the year by the management. In our opinion, the frequency of verification is reasonable.

b) In our opinion, the procedures of physical verification of stocks followed by the Management and the frequency of verification are reasonable and adequate in relation to the size of the Company and the nature of its business.

c) The company is maintaining proper records of inventory, the discrepancies noticed between the physical inventory and book stocks were not material.

iii. In respect of the loans, secured or unsecured, granted or taken by the company to / from companies, firms or other parties covered in the register maintained under Section 301 of the companies act, 1956:

a) The company has granted loans to seven wholly owned subsidiaries of the company. In respect of the said loans, the maximum amount outstanding at any time during the year is Rs. 17.13 Crores and the year end balance is Rs. 17.13 Crores.

b) In our opinion and according to the information and explanation given to us , the said loan is interest free and other terms and conditions of the loans given by the company, are not prima facie prejudicial to the interest of the company.

c) The outstanding amounts are repayable on demand and there is no repayment schedule.

d) In respect of the said loans, the same are repayable on demand and therefore the question of overdue does not arise.

e) According to the information and explanations given to us, the company has taken an unsecured loans from parties covered in the register maintained under section

301 of the Companies Act, 1956. The maximum amount outstanding at any time during the year is Rs. 17.25 Crores and the year-end balance is Rs. 16.23 Crores.

f) In our opinion and according to the information and explanations given to us, the rate of interest and other terms and conditions are not prima facie prejudicial to the interest of the company.

g) The said loan is repayable on demand and there is no repayment schedule.

iv. In our opinion and according to the information and explanations given to us, there are adequate internal control procedures commensurate with the size of the company and nature of business with regard to the purchase of inventories and fixed assets and with regard to sale of goods and services. In our opinion and according to the information and explanations given to us, there is no continuing failure to correct major weaknesses in internal controls.

v. In respect of the contracts or arrangements refereed to in Section 301 of the Companies Act, 1956:

a) In our opinion and according to the information and explanations given to us, the transactions that need to be entered in the register maintained under Section 301 of the Companies Act, 1956 have been so entered.

b) In our opinion, and according to the information and explanations given to us, the transactions made in pursuance of contracts or arrangements, entered in the register maintained under Section 301 of the Companies Act, 1956 and exceeding the value of Rs.5.00 lakhs in respect of each party have been made at prices which appears reasonable as pre information available with the company.

vi. According to information and explanations given to us, the company has not accepted any deposits from the public within the meaning of Section 58A and 58AA or any other relevant provisions of the Act. Accordingly, clause 4(vi) of the Order is not applicable.

vii. In our opinion the company has an internal audit system commensurate with size and nature of its business.

viii. In respect of this company, maintenance of cost records has not been prescribed by the Central Government under Section 209 (1) (d) of the Companies Act, 1956. Accordingly, clause 4(viii) of the Order is not applicable.

ix. a. According to the books and records as produced and examined by us in and also based on management representations, undisputed statutory dues in respect of Provident Fund, Investor Education and Protection Fund, Employees State Insurance, Income Tax, Wealth Tax, Sales Tax, Service tax, Custom duty, Excise duty and Cess and other material statutory dues, to the extent applicable, have been regularly deposited during the year with appropriate authorities. According to the information and explanation given to us, no undisputed amounts payable in respect of the above are in arrears as at the year end for a period of more than six months from the date on which they become payable.

b) According to the information and explanation given to us the following amounts have not been deposited with the appropriate authorities on account of dispute:

Name of the Statute Nature of Due Amount Period to which Forum where dispute is

Rs. amount relates pending

Tamilnadu General Sales tax on inter-state 3,20,340 2002-03 Appellate Tribunal

Sales Tax Act. purchase of goods

Tamilnadu General Disallowances of Input 32,96,101/- 2006-2007 Commercial Tax Officer,

Sales Tax Act. Tax Credit Chennai

x. The company does not have any accumulated losses at the end of the year. The company has incurred cash losses amounting to Rs. 4,00,27,540/- during the financial year covered by audit and Rs. 6,20,33,805/- cash losses reported in the immediately preceding financial year.

xi. Based on our audit procedures and on the basis of information and explanations given by the management, we are of the opinion that the Company has not defaulted in the repayment of dues to banks. The company has not taken any loans from financial institutions.

xii. In our opinion and according to information and explanations given to us and as per verification of records, the company has not granted any loans or advances on the basis of security by way of pledge of shares, debentures and other securities. Accordingly, clause 4(xii) of the Order is not applicable.

xiii. In our opinion, the company is not a Chit fund / Nidhi Mutual benefit fund / societies / NBFC. Accordingly, clause 4(xiii) of the Order is not applicable.

xiv. The Company has not dealt or traded in shares, securities, debentures and other investments. Accordingly, clause 4(xiv) of the Order is not applicable.

xv. As per information and explanations given to us, the company has not given any guarantee for loans taken by others from banks and financial institutions during the year.

xvi. To the best of our knowledge and belief and according to the information and explanations given to us, term loans availed by the company during the year were prima-facie applied for the purposes for which the loans were obtained.

xvii. According to the information and explanation given to us and on an overall examination of the balance sheet of the company, we are of the opinion that no funds raised on short-term basis have been used for long term investment.

xviii.The company has not made any preferential allotment of shares to the parties covered in the register maintained under Section 301 of the Companies Act, 1956 during the year. Accordingly clause 4 (xviii) of the Order is not applicable.

xix. The company during the year has not issued any debentures. Accordingly, clause 4(xix) of the Order is not applicable.

xx. The company has not raised any money from the public by issue of shares during the year.

xxi. According to the information and explanations given to us and on the basis of examination of records, no fraud on or by the company was noticed or reported during the year.

For KARVY & CO.,

Chartered Accountants

(Registration No: 001757S)

(K.AJAY KUMAR)

Place :Hyderabad Partner

Date :12.08.2010 M. No.: M. No. 21989

 
Subscribe now to get personal finance updates in your inbox!