Home  »  Company  »  Starlite Compone  »  Quotes  »  Auditor Report
Enter the first few characters of Company and click 'Go'

Auditor Report of Starlite Components Ltd.

Mar 31, 2015

We have audited the accompanying standalone financial statements of Starlite Components Ltd.("theCompany"), 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 the significant accounting policiesand other explanatory information, [Company does not have any branches].

Management's Responsibility for the Standalone Financial Statements

The Company's Board of Directorsis 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 also includes maintenance of adequate accounting records inaccordance 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 theaudit 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 controls 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. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimatesmade 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, and its profit/loss and its cash flows for the year ended on that date.

Emphasis of Matters

The Company has reversed the provision of diminution on its investment in Starlite Lighting Limited and reinstated the value of shares at face value during the year.This is done in view of the fact that the net worth of the said Company is positive at the end of F.Y. 2014-15.This has resulted in substantial increase in the profits of the company.

Our opinion is not modified in respect of above matters.

Other Matters

The company has made reference to BIFR u/s 15 of the said vide Case No. 59/2005 dated 09/02/2005 and was declared sick on 29/09/2006.The BIFR sanctioned scheme of rehabilitation dated 10th October 2013 is under implementation. The share warrants issued to the strategic investor & outside investors amounting to Rs.7.20 crores were converted into share capital on 6th July, 2015 according to the sanctioned scheme of rehabilitation of BIFR. Similarly, preferential allotment to the Promoter group amounting to Rs. 90 lakhs was also done on 6th July, 2015 according to the sanctioned scheme of rehabilitation of BIFR. For this purpose, the authorized share capital was enhanced from Rs. 9 crores to Rs. 18 crores.

Company's financial year ended on 31st March 2014 covered the period of 9 months - From 1st July 2013 to 31st march 2014, while the results for F.Y. 2014-15 cover period of 12 months. To that extent, previous figures are not comparable. However, for the sake of information under Rule 5 of Companies (Appointment & Remuneration of Managerial Personnel) Rules, 2014 as given under Board Report, the figures of 12 months period ended on 31st March 2014 are considered to facilitate proper comparison.

Our opinion is not modified in respect of this matter. Report on Other Legal and Regulatory Requirements

1. As required by Companies (Auditor's Report) Order 2015, (the order), issued by Central Government of India in terms of sub section (11) of the Section 143 of the Companies Act, 2015 we give in Annexure a statement on the matters specified in paragraph 3 & 4 of the Order to the extent possible.

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 [and proper returns adequate for the purposes of our audit have been received from the branches not visited by us.]

c) [The reports on the accounts of the branch offices of the Company audited under Section 143(8) of the Act by branch auditors have been sent to us and have been properly dealt with by us in preparing this report.]

d) 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 [and with the returns received from the branches not visited by us].

e) 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.

f) Observations or comments on financial transactions or matters which have an adverse effect on the functioning of the Company-No such observations or comments.

g) 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 31stMarch, 2015 from being appointed as a director in terms of Section 164 (2) of the Act.

h) We do not have any qualification, reservation or adverse remark relating to the maintenance of the accounts & other matters connected there with.

i) The company has adequate internal financial controls system in place and the operating effectiveness of such controls is satisfactory.

j) 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 and according to the explanations given to us:

i. The Company has pending litigations which would impact its financial position. Following are the details -

- Appeal against order of Income tax Department for AY. 2004-05 pending in High Court - Mumbai. Demand raised Rs. 73,71,366/-

- Appeal against orders of Sales tax Department pending with Sales Tax Tribunal for various financial years levying interest & penalty on unpaid Sales Tax amount - Total demand Rs. 6,19,18,168/-.

ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.

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

As per Companies (Auditor's Report) Order, 2015 dt.10 th April 2015.

Referred to in Paragraph 1 under the heading of "Report on other legal & regulatory requirements" of our report of even date. Re: -Starlite Components Limited for the F.Y. 2014-15

1. Fixed assets -

- The Company has maintained proper record showing full particulars including quantitative details and situation of fixed assets.

- The management, at the end of the year, has physically verified the fixed assets and we have been informed that no material discrepancies were noticed on such verification as compared to book records.

2. Inventory -

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

- The procedures of physical verification of inventory followed by the management are reasonable and adequate in relation to size of Company & nature of its business.

- The Company is maintaining proper records of the inventory. The discrepancies noticed on verification between physical stock & book records were not material as reported by the management and the same nave been properly dealt with in the books of accounts.

3. Loans- No loans - secured or unsecured - have been granted to Companies, firms or other parties listed in the register maintained u/s 189of Companies Act,2013. Hence our comments on following matters are not attracted -

- Whether receipt of principal & interest is regular.

- In case overdue amount is more than Rs. 1 lakh, whether reasonable steps have been taken by the Company for recovery of principal & interest.

4. Internal control system - In our opinion & according to the information & explanations given to us, there is an adequate internal control system commensurate with the size of the Company & nature of its business with regard to purchase of inventory, & fixed assets & for sale of goods & services. In our opinion & according to the information & explanations given to us, there is no continuing failure to correct major weaknesses in the internal control system.

5. Deposits - The Company has not accepted any deposits from the public. Hence our comments on compliance of the directives of Reserve Bank of India, provisions of Sec.73 to 76 or any other relevant provisions of the Companies Act,2013 & the rules framed there under are not required. The nature of contravention is not applicable. No order has been passed by Company Law Board, or National Company Law Tribunal or Reserve Bank of India or any court or any other Tribunal requiring any compliance.

6. Cost records - The Company is not required to maintain cost records pursuant to Section 148(1) of the Companies Act 2013.

7. Statutory dues -

- According to the information & explanations given to us, Company is regular in depositing undisputed statutory dues including Provident Fund, Employees' State Insurance, Income-tax, Sales-tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, VAT, Cess and any other statutory dues with appropriate authority during theyear related only to the current financial year. Undisputed dues related to previous years which were outstanding as at the last day of financial year for a period of more than six months from due dateconsist of Provident Fund Rs. 4,78,383/-, ESI Rs. 98,355/-, Profession Tax Rs. 60,865/-, Old BST/CST dues Rs. 19,17,340/-,CST Rs. 16,063/- and VAT Rs. 15,02,69,481/-.

- No such dues of Wealth Tax, Service Tax, Custom Duty, Excise Duty and Cess were outstanding on account of any dispute pending with any forum. Demands on account of disallowances by Income Tax Department & Interest-penalty levied by Sales Tax Department are reported separately in our Audit Report.

- No amount was required to be transferred to Investor Education & Protection Fund in accordance with relevant provisions of Companies Act 1956 (1 of 1956) or Rules made thereunder.

8. Net worth & losses - The Company was registered on 13th of November 2011. Hence the Company is registered for a period more than five years. The Company has accumulated losses of Rs. 15,05,48,206/- i.e. more than 100% of its net worth and has earned cash profit of Rs. 44,35,655/- during the current year and cash loss of Rs. 85,16,775/- in the immediately preceding financial year.

9. Defaults in repayment - The Company has not defaulted in repayment of dues to a Bank or financial institution or debenture holders. Hence it is not necessary to report the period & amount of such default.

10. Third party guarantee - The Company has not given any guarantee for loans taken by others from bank or financial institutions. Hence our comments are not required on whether the terms and conditions are prejudicial to the interest of the Company.

11. Utilization of Term loans - The term loans taken by the Company were applied for the purpose for which the loans were obtained.

12. Fraud - No fraud on or by the company has been noticed or reported during the year. Hence our comments on the nature of fraud and the amount involved are not required.

The reasons for any of our unfavourable or qualified report/remark are mentioned in the relevant point itself.

For HMA & Associates

Chartered Accountants

FRN - 100537W

sd/-

H.V.Godse

Partner

M. No. 034056

Place : Pune

Date :30thMay, 2015


Mar 31, 2014

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

Management''s Responsibility for the Financial Statements

The Company''s 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 notified under the Companies Act, 1956 (the Act) read with the General Circular 15/2013 dated 13thSeptember, 2013 of the Ministry of Corporate Affairs in respect of Section 133 of the Companies Act, 2013 and in accordance with the accounting principles generally accepted in India. 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 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 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:

(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 profit/ 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[and proper returns adequate for the purposes of our audit have been received from branches not visited by us]

-e. the Balance Sheet, Statement of Profit and Loss, and Cash Flow Statement dealt with by this Report are in agreement with the books of accounts[and with the returns received from branches not visited by us]

d. In our opinion, the Balance Sheet, the Statement of Profit and Loss, and the Cash Flow Statement comply with Accounting Standards notified under 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;

e. on the basis of written representations received from the directors as on March 31, 2014, and taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2014, from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the Companies Act, 1956.

f. Since the Central Government has not issued any notification as to the rate at which the cess is to be paid under section 441A of the Companies Act,1956 nor has it issued any Rules under the said section, prescribing the manner in which such cess is to be paid, no cess is due and payable by the Company.

ANNEXURE TO INDEPENDENT AUDITORS'' REPORT Referred to in Paragraph 1 under the heading of "Report on other legal & regulatory requirements" of our report of even date Re: - Starlite Components Ltd. (F.Y. 2013-14)

1. Fixed assets -

- The Company has maintained proper record showing full particulars including quantitative details and situation of fixed assets.

- The management, at the end of the year, has physically verified the fixed assets and we have been informed that no material discrepancies were noticed on such verification as compared to book records.

- The Company has not disposed off substantial part of fixed assets during the year and hence the question of its effect on going concern basis does not arise.

2.Inventory -

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

- The procedures of physical verification of inventory followed by the management are reasonable and adequate in relation to size of Company and nature of its business.

- The Company is maintaining proper records of the inventory. The discrepancies noticed on verification between physical stock and book records were not material as reported by the management and the same have been properly dealt with in the books of accounts.

3. Loans -

A. Loans granted - No loans - secured or unsecured - have been granted to Companies, firms or other parties listed in the register maintained u/s 301 of Companies Act 1956. Hence our comments on following matters are not attracted -

- Number of parties and amount involved in the transactions.

- Whether the rate of interest and other terms and conditions are prima facie prejudicial to the interest of the Company.

- Whether receipt of principal and interest is regular.

- In case overdue amount is more than R 1 lakh, whether reasonable steps have been taken by the Company for recovery of principal & interest.

B. Loans taken - loans - secured or unsecured - have been taken from Companies, firms or other parties listed in the register maintained u/s 301 of Companies Act 1956. Hence our comments on following matters are provided below -

- Number of parties - 1 and amount involved in the transactions - R 7,78,03,619/- (including accrued interest).

- Whether the rate of interest and other terms and conditions are prima facie prejudicial to the interest of the Company - No.

- No terms of payment of principal and interest have been specified between the parties

4. Internal control system - In our opinion and according to the information and explanations given to us, there is an adequate internal control system commensurate with the size of the Company and nature of its business with regard to purchase of inventory and fixed assets and for 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 the internal control system.

5. Contracts with interested parties -

- There were contracts or arrangements that need to be entered into a register in pursuance of Section 301 of the Companies Act.

- The prices of such contracts or arrangements were reasonable having regard to prevailing market prices at the relevant time

6. Deposits - The Company has not accepted any deposits from the public. Hence our comments on compliance of the directives of

Reserve Bank of India, provisions of Sec.58A and 58AA or any other relevant provisions of the Act and the rules framed there under are not required. The nature of contravention is not applicable. No order has been passed by Company Law Board, or National Company Law Tribunal or Reserve Bank of India or any court or any other Tribunal requiring any compliance.

7.Internal audit system - The Company is required to have internal audit system commensurate with its size and nature of its

business since the Company is listed. The company has implemented such system internally, but the same is not adequate considering the size of Company and nature of its business. It needs to be strengthened.

8. Cost records - As represented to us by the Company, it is required to maintain cost records as prescribed by Central Government u/s 209(1) (d) of Companies Act & Notification no. G.S.R. 429(E) dt. 03/06/2011. However we have been informed that the maintenance of cost records & compliances requirements thereto was in process as on the date of this report.

9. Statutory dues -

- The Company is not regular in depositing undisputed statutory dues within the prescribed period with appropriate authority. The amount of such dues outstanding on the last day of the financial year for a period more than six months from due date consists of Provident fund Rs. 4,78,383/-, ESI R 83,507/-, Professional Tax Rs. 60,865/-, VAT Rs. 15,37,46,497/-, CST Rs. 16,062/-, Old BST/ CST dues Rs. 23,13,435/-.

- No such dues were outstanding on account of any dispute pending with any forum.

10. Net worth & losses - The Company was registered on 13th November 1991. Hence the Company is registered for a period of more than five years. Its accumulated losses at the end of financial year are Rs. 16,98,72,515/- (including Deferred Tax Asset), i.e. more than 100% of its net worth and have incurred cash loss of Rs. 85,16,775/- during the financial year and had earned a cash loss of Rs. 4,73,29,880/- in the immediately preceding financial year.

11. Defaults in repayment - As represented to us by the company, there has been no default in repayment of dues to a financial institution or bank during the year.

12. Loans against pledge of securities - The Company has not granted loans or advances against the security of pledge of shares, debentures or other securities. Hence our comments on the adequacy of documents and records, or the deficiencies therein are not required.

13. Nidhi/Chit fund - The Company is not a chit fund or nidhi/mutual benefit fund/society. Hence our comments on compliance of any special statute, ratio greater than 1:20 of net own funds to deposit liability, compliance of prudential norms on income recognition and provisioning, adequacy of procedures for appraisal of credit proposal & repayment schedule based on repayment capacity of the borrower are not required.

14. Share/Security trading - The Company is not dealing or trading in shares, securities, debentures and other investments. Hence our comments on maintenance of proper records of the transactions and contracts, and whether timely entries have been made therein; also whether the shares, securities, debentures and other securities have been held by the company, in its own name except to the extent of the exemption, if any, granted under section 49 of the Act are not required.

15. Third party guarantee - The Company has not given any guarantee for loans taken by others from bank or financial institutions. Hence our comments are not required on whether the terms and conditions are prejudicial to the interest of the Company.

16. Utilization of Term loans - The term loan taken by the Company in the Current financial year has been applied for the purpose for which the loan was obtained.

17. Utilization of short-term funds - The Company has not raised short-term funds during the year. Therefore, our comment on whether the funds raised by the Company on short-term basis were used for long-term purposes is not attracted.

18. Preferential allotment of shares - The Company has made preferential allotment of shares to parties and companies covered in the Register maintained under section 301 of the Act on 07/01/2014. However the said allotment has been made pursuant to an order made by the Hon''ble BIFR dtd. 10/10/2013. Hence our comments on whether the prices at which shares have been issued are prejudicial to the interest of the company or not are not attracted.

19. Debentures - The Company has not issued any debentures. Hence our comments on whether security or charge has been created in respect of debentures issued are not attracted.

20. Utilization of funds raised by public issue - The Company has not raised funds by way of public issue during the year. Hence our comments on disclosure by the management on the end use of money raised by public issues and its verification are not attracted.

21. Fraud - As represented to us by the company, no fraud on or by the company has been noticed or reported during the year. Hence our comments on the nature of fraud and the amount involved are not required.

22. Reasons for qualification - The reasons for any of our unfavourable or qualified report/remark are mentioned in the relevant point itself.

For HMA & Associates Chartered Accountants FRN - 10053 Place: Pune sd/- Date: 30th May 2014 Harshad Joshi Partner M. No. 131625


Jun 30, 2013

We have audited the accompanying financial statements of Starlite Components Limited ("the Company"), which comprise the Balance Sheet as at June 30, 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 principles generally accepted in India including Accounting Standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956 ("the Forming an Opinion and Reporting on Financial Statements 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 materialmisstatement, 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 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:

(a) In the case of the Balance Sheet, of the state of affairs of the Company as at June 30, 2013;

(b) In the case of the Statement of Profit and Loss, of the profit/ 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 [and proper returns adequate for the purposes of our audit have been received from branches not visited by us]

c. the Balance Sheet, Statement of Profit and Loss, and Cash Flow Statement dealt with by this Report are in agreement with the books of account [and with the returns received from branches not visited by us]

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 June 30, 2013, and taken on record by the Board of Directors, none of the directors is disqualified as on June 30, 2013, from being appointed as a director in terms of clause (g) of sub- section (1) of section 274 of the Companies Act, 1956.

f. Since the Central Government has not issued any notification as to the rate at which the cess is to be paid under section 441A of the Companies Act,1956 nor has it issued any Rules under the said section, prescribing the manner in which such cess is to be paid, no cess is due and payable by the Company.

ANNEXURE TO INDEPENDENT AUDITORS'' REPORT

Referred to in Paragraph 1 under the heading of "Report on other legal & regulatory requirements" of our report of even date Re: - Starlite Components Ltd. (F.Y. 2012-13)

1. Fixed assets -

- The Company has maintained proper record showing full particulars including quantitative details and situation of fixed assets.

- The management, at the end of the year, has physically verified the fixed assets and we have been informed that no material discrepancies were noticed on such verification as compared to book records.

- The Company has not disposed off substantial part of fixed assets during the year and hence the question of its effect on going concern basis does not arise.

2. Inventory -

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

- The procedures of physical verification of inventory followed by the management are reasonable and adequate in relation to size of Company and nature of its business.

- The Company is maintaining proper records of the inventory. The discrepancies noticed on verification between physical stock and book records were not material as reported by the management and the same have been properly dealt with in the books of accounts.

3. Loans -

A. Loans granted - No loans - secured or unsecured - have been granted to Companies, firms or other parties listed in the register maintained u/s 301 of Companies Act 1956. Hence our comments on following matters are not attracted -

- Number of parties and amount involved in the transactions.

- Whether the rate of interest and other terms and conditions are prima facie prejudicial to the interest of the Company.

- Whether receipt of principal and interest is regular.

- In case overdue amount is more than Rs. 1 lakh, whether reasonable steps have been taken by the Company for recovery of principal & interest.

A. Loans taken - loans - secured or unsecured - have been taken from Companies, firms or other parties listed in the register maintained u/s 301 of Companies Act 1956. Hence our comments on following matters are provided below -

- Number of parties - 1 and amount involved in the transactions - Rs. 8,73,28,179/- (including accrued interest).

- Whether the rate of interest and other terms and conditions are prima facie prejudicial to the interest of the Company - No.

- No terms of payment of principal and interest have been specified.

4. Internal control system -

In our opinion and according to the information and explanations given to us, there is an adequate internal control system commensurate with the size of the Company and nature of its business with regard to purchase of inventory and fixed assets and for 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 the internal control system.

5. Contracts with interested parties -

- There were contracts or arrangements that need to be entered into a register in pursuance of Section 301 of the Companies Act.

- The prices of such contracts or arrangements were reasonable having regard to prevailing market prices at the relevant time.

6. Deposits -

The Company has not accepted any deposits from the public. Hence our comments on compliance of the directives of Reserve Bank of India, provisions of Sec.58A and 58AA or any other relevant provisions of the Act and the rules framed there under are not required. The nature of contravention is not applicable. No order has been passed by Company Law Board, or National Company Law Tribunal or Reserve Bank of India or any court or any other Tribunal requiring any compliance.

7. Internal audit system -

The Company is required to have internal audit system commensurate with its size and nature of its business since the Company is listed. The company has implemented such system internally, but the same is not adequate considering the size of Company and nature of its business. It needs to be strengthened.

8. Cost records -

The Company is required to maintain cost records as prescribed by Central Government u/s 209(1) (d) of Companies Act & Notification no. G.S.R. 429(E) dt. 03/06/2011. However we have been informed that the maintenance of cost records & compliances requirements thereto was in process as on the date of this report.

9. Statutory dues -

The Company is not regular in depositing undisputed statutory dues within the prescribed period with appropriate authority. The amount of such dues outstanding on the last day of the financial year for a period more than six months from due date consists of Provident fund Rs. 4,78,383/-, ESI Rs. 2,05,135/-, Professional Tax Rs. 70,190/-, VAT Rs. 13,36,28,718/-, CST Rs. 16,062/-.

- No such dues were outstanding on account of any dispute pending with any forum.

10. Net worth & losses -

The Company was registered on 13th November 1991. Hence the Company is registered for a period more than five years. Its accumulated losses at the end of financial year are Rs. 21,07,75,066/- (including Deferred Tax Asset), i.e. more than 100% of its net worth and have incurred cash loss of Rs. 4,73,29,880/- during the financial year and had earned a cash loss of Rs. 4,59,03,756/- in the immediately preceding financial year.

11. Defaults in repayment -

As represented to us by the company, there has been no default in repayment of dues to a financial institution or bank during the year.

12. Loans against pledge of securities -

The Company has not granted loans or advances against the security of pledge of shares, debentures or other securities. Hence our comments on the adequacy of documents and records, or the deficiencies therein are not required.

13. Nidhi/Chit fund -

The Company is not a chit fund or nidhi/mutual benefit fund/society. Hence our comments on compliance of any special statute, ratio greater than 1:20 of net own funds to deposit liability, compliance of prudential norms on income recognition and provisioning, adequacy of procedures for appraisal of credit proposal & repayment schedule based on repayment capacity of the borrower are not required.

14. Share/Security trading -

The Company is not dealing or trading in shares, securities, debentures and other investments. Hence our comments on maintenance of proper records of the transactions and contracts, and whether timely entries have been made therein; also whether the shares, securities, debentures and other securities have been held by the company, in its own name except to the extent of the exemption, if any, granted under section 49 of the Act are not required.

15. Third party guarantee -

The Company has not given any guarantee for loans taken by others from bank or financial institutions. Hence our comments are not required on whether the terms and conditions are prejudicial to the interest of the Company.

16. Utilization of Term loans -

There are no term loans utilized during the year. Therefore, our comment on whether the term loans taken by the Company were applied for the purpose for which the loans were obtained is not required to be given.

17. Utilization of short-term funds -

The company has not raised short-term funds during the year. Therefore, our comment on whether the funds raised by the Company on short-term basis were used for long-term purposes is not attracted.

18. Preferential allotment of shares -

The Company has not made preferential allotment of shares to parties and companies covered in the Register maintained under section 301 of

1. the Act. Hence our comments on whether the prices at which shares have been issued are prejudicial to the interest of the company or not are not attracted.

2. Debentures - The Company has not issued any debentures. Hence our comments on whether security or charge has been created in respect of debentures issued are not attracted.

3. Utilization of funds raised by public issue - The Company has not raised funds by way of public issue during the year. Hence our comments on disclosure by the management on the end use of money raised by public issues and its verification are not attracted.

19. Debentures -

The Company has not issued any debentures. Hence our comments on whether security or charge has been created in respect of debentures issued are not attracted.

20. Utilization of funds raised by public issue -

The Company has not raised funds by way of public issue during the year. Hence our comments on disclosure by the management on the end use of money raised by public issues and its verification are not attracted.

21. Fraud -

As represented to us by the company, no fraud on or by the company has been noticed or reported during the year. Hence our comments on the nature of fraud and the amount involved are not required.

22. Reasons for qualification -

The reasons for any of our unfavorable or qualified report/remark are mentioned in the relevant point itself.

Place - Pune For HMA Associates

Date - 1st September 2013 Chartered Accountants

sd/-

Harshad Joshi

Partner

M. No. 131625

FRN - 100537W


Jun 30, 2012

We have audited the attached Balance sheet of Starlite Components Limited as at 30thJune 2012 and also the Statement of Profit & Loss for the year ended on that date annexed thereto. These Financial Statements are the responsibility of the Company''s management. Our responsibility is to express an opinion on these Financial Statements based on our Audit.

We conducted our Audit in accordance with Auditing Standards generally accepted in India. These Standards require that we plan and perform the Audit to obtain reasonable assurance about whether the Financial Statements are free of material misstatements. 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 the management, as well as evaluating the overall Financial Statements presentation. We believe that our Audit provides a reasonable basis for our opinion.

As required by the Companies (Auditors Report) (Amendment) Order 2004 dt. 25hNovember 2004 issued by the Central Govt, of India in terms of sub section (4A) of Sec.227 of the Companies Act 1956, we enclose in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the said Order.

Further to our comments in the Annexure referred above, we report that-

1. 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.

2.In our opinion, proper books of accounts as required by law have been kept by the Company so far as appears from our examination of those books.

3. The Balance Sheet and Statement of Profit & Loss dealt with by this Report are in agreement with books of Accounts

4 .In our opinion, the Balance Sheet and Statement of Profit & Loss dealt with by this Report comply with the Accounting Standards referred to in Sec.211 (3C) of the Companies Act 1956.

5. On the basis of written representation received from the Directors, as on 3(fjune 2012, and taken on record by the Board of Directors, we report that none of the Directors is disqualified as on stfjune 2012 from being appointed as a Director in terms of sec.274 (l)(g) of the Companies Act 1956.

6. In our opinion and to the best of our information and according to the explanations given to us, the said accounts give the information required by the Companies Act 1956, in the manner so required and give 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 30 June 2012

b) In case of Profit & Loss Account, of the profit for the year ended on that date.

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

ANNEXURE TO AUDITORS'' REPORT As per Companies (Auditor''s Reportl(Amendment) Order. 2004 dt.25fe Nov.04.

Re: - Starlite Components Ltd. As on 30"1 June 2012.

(Referred to in Paragraph 3 of Audit Report)

1. Fixed assets -

- The Company has maintained proper record showing full particulars including quantitative details and situation of fixed assets.

- The management, at the end of the year, has physically verified the fixed assets and we have been informed that no material discrepancies were noticed on such verification as compared to book records.

- The Company has not disposed off substantial part of fixed assets during the year and hence the question of its effect on going concern basis does not arise.

2. Inventory -

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

- The procedures of physical verification of inventory followed by the management are reasonable and adequate in relation to size of Company and nature of its business.

- The Company is maintaining proper records of the inventory. The discrepancies noticed on verification between physical stock and book records were not material as reported by the management and the same have been properly dealt with in the books of accounts.

3. Loans -

A. Loans granted - No loans - secured or unsecured - have been granted to Companies, firms or other parties listed in the register maintained u/s 301 of Companies Act 1956. Hence our comments on following matters are not attracted -

- Number of parties and amount involved in the transactions.

- Whether the rate of interest and other terms and conditions are prima facie prejudicial to the interest of the Company. -

- Whether receipt of principal and interest is regular.

- In case overdue amount is more than Rs. 1 lakh, whether reasonable steps have been taken by the Company for recovery of principal & interest.

B. Loans taken - loans - secured or unsecured - have been taken from Companies, firms or other parties listed in the register maintained u/s 301 of Companies Act 1956. Hence our comments on following matters are provided below -

- Number of parties -1 and amount involved in the transactions - Rs. 7,65,79,768/- {including accrued interest).

- Whether the rate of interest and other terms and conditions are prima facie prejudicial to the interest of the Company -No.

- No terms of payment of principal and interest have been specified.

4. Internal control systpm - In our opinion and according to the information and explanations given to us, there is an adequate internal control system commensurate with the size of the Company and nature of its business with regard to purchase of inventory and fixed assets and for 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 the internal control system.

5. Contracts with interested parties -

- There were contracts or arrangements that need to be entered into a register in pursuance of Section 301 of the Companies Act.

- The prices of such contracts or arrangements were reasonable having regard to prevailing market prices at the relevant time.

6. Deposits - The Company has not accepted any deposits from the public. Hence our comments on compliance of the directives of Reserve Bank of India, provisions of Sec.58A and 58AA or any other relevant provisions of the Act and the rules framed there under are not required. The nature of contravention is not applicable. No order has been passed by Company Law Board, or National Company Law Tribunal or Reserve Bank of India or any court or any other Tribunal requiring any compliance.

7. Internal audit system - The Company is required to have internal audit system commensurate with its size and nature of its business since the Company is listed. The company has implemented such system internally, but the same is not adequate considering the size of Company and nature of its business. It needs to be strengthened.

8. Cost records - The Company is required to maintain cost records as prescribed by Central Government u/s 209(1) (d) of Companies Act & notification no. G.S.R 429(E) dt.03/06/2011. However we have been inform that the maintenance of cost records & compliance requirements thereto was in process on the date of this report.

9. Statutory dues -

- The Company is not regular in depositing undisputed statutory dues within the prescribed period with appropriate authority.

The amount of such dues outstanding on the last day of the financial year for a period more than six months from due date consists of Provident fund Rs. 4,78,383/-, ESI Rs. 2,05,135/-, Professional Tax Rs. 60,665/-, VAT Rs. 9,80,39,285/-,CST Rs. 16,062/-.

- No such dues were outstanding on account of any dispute pending with any forum.

10. Net worth & losses - The Company was registered on 13th November 1991. Hence the Company is registered for a period of more than five years. Its accumulated losses at the end of financial year are 16,20,56,467/-(including Deferred Tax Asset), i.e. more than 100% of its net worth and have incurred loss of 4,59,03,7sb/ during IIm rmuntiul yuui J»(i hull uumud u (imjh — profit of Rs. 8,03,59,772/- in the immediately preceding financial year.

11. Defaults in repayment - The company has settled the secured loans of banks / financial institutions outstanding under OTS scheme & there are no secured loans payable as at the year end to banks / financial institutions. Therefore our comment on defaults in repayment of loans is not required to be given. Also in case of secured & unsecured loan obtained from M/s Solarcopyer Ltd, terms of payment of principal and interest have not been specified till date of this report. Therefore to that extent there is no default in repayment of this loan.

12. Loans against pledge of securities - The Company has not granted loans or advances against the security of pledge of shares, debentures or other securities. Hence our comments on the adequacy of documents and records, or the deficiencies therein are not required.

13. Nidhi/Chit fund - The Company is not a chit fund or nidhi/mutual benefit fund/society. Hence our comments on compliance of any special statute, ratio greater than 1:20 of net own funds to deposit liability, compliance of prudential norms on income recognition and provisioning, adequacy of procedures for appraisal of credit proposal & repayment schedule based on repayment capacity of the borrower are not required.

14. Share/Security trading - The Company is not dealing or trading in shares, securities, debentures and other investments. Hence our comments on maintenance of proper records of the transactions and contracts, and whether timely entries have been made therein; also whether the shares, securities, debentures and other securities have been held by the company, in its own name except to the extent of the exemption, if any, granted under section 49 of the Act are not required.

15. Third party guarantee - The Company has not given any guarantee for loans taken by others from bank or financial institutions Hence our comments are not required on whether the terms and conditions are prejudicial to the interest of the Company.

16. Utilization of Term loans-There are no term loans utilized during the year. Therefore, our comment on whether the term loans taken by the Company were applied for the purpose for which the loans were obtained is not required to be given. ;

17. Utilization of short-term funds - The company has not raised shor- term funds during the year. Therefore, our comment on whether the funds raised by the Company on short-termbasis were used for long-term purposes is not attracted.

18. Preferential allotment nf shares - The Company has not made preferential allotment of shares to parties and companies covered in the Register maintained under section 301 of the Act. Hence our comments on whether the prices at which shares have been issued are prejudicial to the interest of the company or not are not attracted.

19. Debentures - The Company has not issued any debentures. Hence our comments on whether security or charge has been created in respect of debentures issued are not attracted.

20. Utilization of funds raised by public issue - The Company has not raised funds by way of public issue during the year. Hence our comments on disclosure by the management on the end use of money raised by public issues and its verification are not attracted.

21. Fraud - No fraud on or by the company has been noticed or reported during the year. Hence our comments on the nature of fraud and the amount involved are not required.

22. Reasons for qualification - The reasons for any of our unfavourable or qualified report/remark are mentioned in the relevant point itself.

Place - Nasik For HMA Associates

Date - 30th August 2012. Chartered Accountants

sd/-

Harshad Joshi

Partner

M. No. 131625

FRN - 100537W


Jun 30, 2010

We have audited the attached Balance sheet of Starlite Components Limited as at 30th June, 2010 and also the Profit & Loss Account for the year ended on that date annexed thereto. These Financial Statements are the responsibility of the Companys management. Our responsibility is to express an opinion on these Financial Statements based on our Audit.

We conducted our Audit in accordance with Auditing Standards generally accepted in India. These Standards require that we plan and perform the Audit to obtain reasonable assurance about whether the Financial Statements are free of material misstatements. 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 the management, as well as evaluating the overall Financial Statements presentation. We believe that our Audit provides a reasonable basis for our opinion.

As required by the Companies (Auditors Report) (Amendment) Order 2004 dt. 25th November 2004 issued by the Central Govt, of India in terms of sub section (4A) of Sec.227 of the Companies Act 1956, we enclose in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the said Order.

Further to our comments in the Annexure referred above, we report that-

1. 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.

2. In our opinion, proper books of accounts as required by law have been kept by the Company so far as appears from our examination of those books.

3. The Balance Sheet and Profit & Loss Account dealt with by this Report are in agreement with books of Accounts

4. In our opinion, the Balance Sheet and Profit & Loss Account dealt with by this Report comply with the Accounting Standards referred to in Sec.211 (3C) of the Companies Act 1956.

5. On the basis of written representation received from the Directors, as on 30th June 2010, and taken on record by the Board of Directors, we report that none of the Directors is disqualified as on 30th June 2010 from being appointed as a Director in terms of sec.274 (l)(g) of the Companies Act 1956.

6. In our opinion and to the best of our information and according to the explanations given to us, the said accounts give the information required by the Companies Act 1956, in the manner so required and give 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 30th June 2010

b) In case of Profit & Loss Account, of the loss for the year ended on that date.

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

ANNEXURE TO AUDITORS REPORT As per Companies (Auditors Report (Amendment) Order, 2004 dt.25lh Nov.04. Re: - Starlite Components Ltd. As on 30th June 2010.

(Referred to in Paragraph 1 of Audit Report)

1. Fixed assets -

- The Company has maintained proper record showing full particulars including quantitative details and situation of fixed assets.

- The management, at the end of the year, has physically verified the fixed assets and we have been informed that no material discrepancies were noticed on such verification as compared to book records.

- The Company has not disposed off substantial part of fixed assets during the year and hence the question of its effect on going concern basis does not arise.

2. Inventory -

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

- The procedures of physical verification of inventory followed by the management are reasonable and adequate in relation to size of Company and nature of its business.

- The Company is maintaining proper records of the inventory. The discrepancies noticed on verification between physical stock and book records were not material as reported by the management and the same have been properly dealt with in the books of accounts.

3. Loans -

A. Loans granted - No loans - secured or unsecured - have been granted to Companies, firms or other parties listed in the register maintained u/s 301 of Companies Act 1956. Hence our comments on following matters are not attracted -

- Number of parties and amount involved in the transactions.

- Whether the rate of interest and other terms and conditions are prima facie prejudicial to the interest of the Company.

- Whether receipt of principal and interest is regular.

- In case overdue amount is more than Rs. 1 lakh, whether reasonable steps have been taken by the Company for recovery of principal & interest.

B. Loans taken - No loans - secured or unsecured - have been taken from Companies, firms or other parties listed in the register maintained u/s 301 of Companies Act 1956. Hence our comments on following matters are not attracted -

- Number of parties and amount involved in the transactions.

- Whether the rate of interest and other terms and conditions are prima facie prejudicial to the interest of the Company.

- Whether payment of principal and interest is regular.

G The Company settled and arranged repayment of certain loans taken by it earlier from Banks, and the documentation in respect of assignment of lenders rights to the provider of funds are at final stage of completion. The Company has therefore, not adjusted in its books of account the pre-settlement outstanding of Banks with the settlement payments arranged by the Company. Also, pending finalisation of terms of aforesaid assignment, the Company has neither provided interest on aforesaid loans of Banks nor on funds provided by the assignees.

4. Internal control system - In our opinion and according to the information and explanations given to us, there is an adequate internal control system commensurate with the size of the Company and nature of its business with regard to purchase of inventory and fixed assets and for 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 the internal control system.

5. Contracts with interested parties -

- There were contracts or arrangements that need to be entered into a register in pursuance of Section 301 of the Companies Act.

- The prices of such contracts or arrangements were reasonable having regard to prevailing market prices at the relevant time.

6. Deposits - The Company has not accepted any deposits from the public. Hence our comments on compliance of the directives of Reserve Bank of India, provisions of Sec.58A and 58 AA or any other relevant provisions of the Act and the rules framed there under are not required. The nature of contravention is not applicable. No order has been passed by Company Law Board, or National Company Law Tribunal or Reserve Bank of India or any court or any other Tribunal requiring any compliance.

7. Internal audit system - The Company is required to have internal audit system commensurate with its size and nature of its business since the Company is listed. But the same is not adequate considering the size of Company and nature of its business.

8. Cost records - The Company is not required to maintain cost records as prescribed by Central Government u/s 209(1) (d) of Companies Act 1956.

9. Statutory dues -

- The Company is not regular in depositing undisputed statutory dues within the prescribed period with appropriate authority. The amount of such dues outstanding on the last day of the financial year for a period more than six months from due date consists of Provident fund Rs.4,78,383/- ESI Rs.1,93,662/- Professional Tax Rs.60,665/-, VAT Rs.4,81,72,843/-, CSTRs. 8442A Listing fees payable Rs.70,050/-.

- No such dues were outstanding on account of any dispute pending with any forum.

10. Net worth & losses - The Company was registered on 13th November 1991. Hence the Company is registered for a period more than five years. Its accumulated losses at the end of financial year are Rs.172858375/-, i.e. more than 100% of its net worth and have incurred cash loss of Rs. 13376045/- during the financial year and cash loss of Rs. 6684388/- in the immediately preceding financial year.

11. Defaults in repayment - The Company has defaulted in repayment of dues to a Bank or financial institution or debenture holders. The period and amount of such default is as under -

- Nasik Peoples Co-Op. Bank Ltd.(Now known as The Saraswat Co-op. Bank Ltd.) Principal Due from January 2004 - Rs.2,72,16,172/-.

- M.S.F. C. 1,61,26,346/- Entire principal amount overdue @ Rs.20 Lakhs per half year commencing from October 2001.

- Interest component is not considered in above referred figure in view of OTS proposal given to these Banks/FI.

12. Loans against pledge of securities - The Company has not granted loans or advances against the security of pledge of shares, debentures or other securities. Hence our comments on the adequacy of documents and records, or the deficiencies therein are not required.

13. Nidhi/Chit fund - The Company is not a chit fund or nidhi/mutual benefit fund/society. Hence our comments on compliance of any special statute, ratio greater than 1:20 of net own funds to deposit liability, compliance of prudential norms on income recognition and provisioning, adequacy of procedures for appraisal of credit proposal & repayment schedule based on repayment capacity of the borrower are not required.

14. Share/Security trading - The Company is not dealing or trading in shares, securities, debentures and other investments. Hence our comments on maintenance of proper records of the transactions and contracts, and whether timely entries have been made therein; also whether the shares, securities, debentures and other securities have been held by the company, in its own name except to the extent of the exemption, if any, granted under section 49 of the Act are not required.

15. Third party guarantee - The Company has not given any guarantee for loans taken by others from bank or financial institutions. Hence our comments are not required on whether the terms and conditions are prejudicial to the interest of the Company.

16. Utilization of Term loans - The term loans taken by the Company were applied for the purpose for which the loans were obtained.

17. Utilization of short-term funds - The funds raised by the Company on short-term basis were not used for long-term investment.

18. Preferential allotment of shares - The Company has not made preferential allotment of shares to parties and companies covered in the Register maintained under section 301 of the Act. Hence our comments on whether the prices at which shares have been issued are prejudicial to the interest of the company or not are not attracted.

19. Debentures - The Company has not issued any debentures. Hence our comments on whether security or charge has been created in respect of debentures issued are not attracted.

20. Utilization of funds raised by public issue - The Company has not raised funds by way of public issue during the year. Hence our comments on disclosure by the management on the end use of money raised by public issues and its verification are not attracted.

21. Fraud - No fraud on or by the company has been noticed or reported during the year. Hence our comments on the nature of fraud and the amount involved are not required.

22. Reasons for qualification - The reasons for any of our unfavourable or qualified report/remark are mentioned in the relevant point itself.

For HMA Associates Chartered Accountants Harshad Joshi

Partner

M. No. 131625

FRN-100537W

Place - Nasik

Date - 16th November 2010.


Jun 30, 2009

We have audited the attached Balance sheet of Starlite Components Limited as at 30th June, 2009 and also the Profit & Loss Account for the year ended on that date annexed thereto. These Financial Statements are the responsibility of the Companys management. Our responsibility is to express an opinion on these Financial Statements based on our Audit.

We conducted our Audit in accordance with Auditing Standards generally accepted in India. These Standards require that we plan and perform the Audit to obtain reasonable assurance about whether the Financial Statements are free of material misstatements. 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 the management, as well as evaluating the overall Financial Statements presentation. We believe that our Audit provides a reasonable basis for our opinion.

As required by the Companies (Auditors Report) (Amendment) Order 2004 dt. 25th November 2004 issued by the Central Govt. Of India in terms of sub section (4A) of Sec.227 of the Companies Act 1956, we enclose in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the said Order.

Further to our comments in the Annexure referred above, we report that-

1. 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.

2. In our opinion, proper books of accounts as required by law have been kept by the Company so far as appears from our examination of those books.

3. The Balance Sheet and Profit & Loss Account dealt with by this Report are in agreement with books of Accounts

4. In our opinion, the Balance Sheet and Profit & Loss Account dealt with by this Report comply with the Accounting Standards referred to in Sec.211 (3C) of the Companies Act 1956.

5. On the basis of written representation received from the Directors, as on 30th June 2009, and taken on record by the Board of Directors, we report that none of the Directors is disqualified as on 30th June 2009 from being appointed as a Director in terms of sec.274 (l)(g) of the Companies Act 1956.

6. In our opinion and to the best of our information and according to the explanations given to us, the said accounts give the information required by the Companies Act 1956, in the manner so required and give 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 30th June 2009 and

b) In case of Profit & Loss Account, of the loss for the year ended on that date.

ANNEXURE TO AUDITORS REPORT As per Companies (Auditors Report Amendment) Order. 2004 dt.25th Nov.04. Re: - Starlite Components Ltd. As on 30th June 2009. (Referred to in Paragraph 1 of Audit Report)

1. Fixed assets -

- The Company has maintained proper record showing full particulars including quantitative details and situation of fixed assets.

- The management, at the end of the year, has physically verified the fixed assets and we have been informed that no material discrepancies were noticed on such verification as compared to book records.

- The Company has not disposed off substantial part of fixed assets during the year and hence the question of its effect on going concern basis does not arise.

2. Inventory -

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

- The procedures of physical verification of inventory followed by the management are reasonable and adequate in relation to size of Company and nature of its business.

- The Company is maintaining proper records of the inventory. The discrepancies noticed on verification between physical stock and book records were not material as reported by the management and the same have been properly dealt with in the books of accounts.

3. Loans -

A. Loans granted - No loans - secured or unsecured - have been granted to Companies, firms or other parties listed in the register maintained u/s 301 of Companies Act 1956. Hence our comments on following matters are not attracted -

- Number of parties and amount involved in the transactions.

- Whether the rate of interest and other terms and conditions are prima facie prejudicial to the interest of the Company.

- Whether receipt of principal and interest is regular.

- In case overdue amount is more than Rs. 1 lakh, whether reasonable steps have been taken by the Company for recovery of principal & interest.

B. Loans taken - No loans - secured or unsecured - have been taken from Companies, firms or other parties listed in the register maintained u/s 301 of Companies Act 1956. Hence our comments on following matters are not attracted -

- Number of parties and amount involved in the transactions.

- Whether the rate of interest and other terms and conditions are prima facie prejudicial to the interest of the Company.

- Whether payment of principal and interest is regular.

4. Internal control system - In our opinion and according to the information and explanations given to us, there is an adequate internal control system commensurate with the size of the Company and nature of its business with regard to purchase of inventory and fixed assets and for 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 the internal control system.

5. Contracts with interested parties -

- There were contracts or arrangements that need to be entered into a register in pursuance of Section 301 of the Companies Act.

- The prices of such contracts or arrangements were reasonable having regard to prevailing market prices at the relevant time.

6. Deposits - The Company has not accepted any deposits from the public. Hence our comments on compliance of the directives of Reserve Bank of India, provisions of Sec.58A and 58AA or any other relevant provisions of the Act and the rules framed there under are not required. The nature of contravention is not applicable. No order has been passed by Company Law Board, or National Company Law Tribunal or Reserve Bank of India or any court or any other Tribunal requiring any compliance.

7. Internal audit system - The Company is required to have internal audit system commensurate with its size and nature of its business since the Company is listed. But the same is not adequate considering the size of Company and nature of its business.

8. Cost records - The Company is not required to maintain cost records as prescribed by Central Government u/s 209(1) (d) of Companies Act 1956.

9. Statutory dues -

- The Company is not regular in depositing undisputed statutory dues within the prescribed period with appropriate authority. The amount of such dues outstanding on the last day of the financial year for a period more than six months from due date consists of Provident fund Rs.4,78,383/- ESI Rs.1,93,662/- Professional Tax Rs.60,665/-, Sales Tax Rs.2,85,67,124/-, Listing fees payable Rs.70,050/-.

- No such dues were outstanding on account of any dispute pending with any forum.

10. Net worth & losses - The Company was registered on 13th November 1991. Hence the Company is registered for a period more than five years. Its accumulated losses at the end of financial year are Rs. 172858375/-, i.e. more than 100% of its net worth and have incurred cash loss of Rs.6684388/- during the financial year and cash loss of Rs. 7248490/- in the immediately preceding financial year.

11. Defaults in repayment - The Company has defaulted in repayment of dues to a Bank or financial institution or debenture holders. The period and amount of such default is as under -

- Nasik Peoples Co-Op. Bank Ltd.- Principal Due from January 2004 - Rs.2,72,16,172/-.

- M.S.F.C. 1,61,26,346/- Entire principal amount overdue <§> Rs.20 Lakhs per half year commencing from October 2001.

- Interest component is not considered in above referred figures.

12. Loans against pledge of securities - The Company has not granted loans or advances against the security of pledge of shares, debentures or other securities. Hence our comments on the adequacy of documents and records, or the deficiencies therein are not required.

13. Nidhi/Chit fund - The Company is not a chit fund or nidhi/mutual benefit fund/society. Hence our comments on compliance of any special statute, ratio greater than 1:20 of net own funds to deposit liability, compliance of prudential norms on income recognition and provisioning, adequacy of procedures for appraisal of credit proposal & repayment schedule based on repayment capacity of the borrower are not required.

14. Share/Security trading - The Company is not dealing or trading in shares, securities, debentures and other investments. Hence our comments on maintenance of proper records of the transactions and contracts, and whether timely entries have been made therein; also whether the shares, securities, debentures and other securities have been held by the company, in its own name except to the extent of the exemption, if any, granted under section 49 of the Act are not required.

15. Third party guarantee - The Company has not given any guarantee for loans taken by others from bank or financial institutions. Hence our comments are not required on whether the terms and conditions are prejudicial to the interest of the Company.

16. Utilization of Term loans - The term loans taken by the Company were applied for the purpose for which the loans were obtained.

17. Utilization of short-term funds - The funds raised by the Company on short-term basis were not used for long-term investment.

18. Preferential allotment of shares - The Company has not made preferential allotment of shares to parties and companies covered in the Register maintained under section 301 of the Act. Hence our comments on whether the prices at which shares have been issued are prejudicial to the interest of the company or not are not attracted.

19. Debentures - The Company has not issued any debentures. Hence our comments on whether security or charge has been created in respect of debentures issued are not attracted.

20. Utilization of funds raised by public issue - The Company has not raised funds by way of public issue during the year. Hence our comments on disclosure by the management on the end use of money raised by public issues and its verification are not attracted.

21. Fraud - No fraud on or by the company has been noticed or reported during the year. Hence our comments on the nature of fraud and the amount involved are not required.

22. Reasons for qualification - The reasons for any of our unfavourable or qualified report/remark are mentioned in the relevant point itself.



Place - Pune For Godse Joshi & Associates

Date - 3rd December 2009 Chartered Accountants

Anand D. Joshi

Partner

M. No. 113805





 
Subscribe now to get personal finance updates in your inbox!