Home  »  Company  »  TCI Industries L  »  Quotes  »  Auditor Report
Enter the first few characters of Company and click 'Go'

Auditor Report of TCI Industries Ltd.

Mar 31, 2014

We have audited the accompanying financial statements of TCI Industries Ltd ("the Company"), which comprise the Balance Sheet as at 31st March, 2014, 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 Standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956 (''the Act''). This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Auditor''s Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatements.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Company''s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by Management, as well as evaluating the overall presentation of the financial statements.

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

Opinion

In our opinion and to the best of our information and according to the explanations given to us, the financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:

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

Emphasis of Matter

Without qualifying our opinion reference is invited to note no. 15(iv) regarding preparation of accounts on a going concern basis.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor''s Report) Order, 2003 ("the Order"), as amended, issued by the Central Government of India in terms of sub-section (4A) of section 227 of the Act, we give in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the Order.

2. As required by section 227(3) of the Act, we report that:

a. we have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit;

b. in our opinion proper books of account as required by law have been kept by the Company so far as appears from our examination of those books.

c. the Balance Sheet, Statement of Profit and Loss, and Cash Flow Statement dealt with by this Report are in agreement with the books of account.

d. in our opinion, the Balance Sheet, Statement of Profit and Loss, and Cash Flow Statement comply with the Accounting Standards referred to in subsection (3C) of section 211 of the Companies Act, 1956 and

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

Annexure to Independent Auditor''s Report

Referred to in paragraph 1 under the heading of "Report on other Legal and Regulatory Requirements" of our report of even date.

1. The Company has maintained proper records to show full particulars including quantitative details and situation of its fixed assets. The fixed assets have been physically verified by the management at reasonable intervals and no material discrepancies have been noticed.

2. During the year, the Company has not disposed off a substantial part of fixed assets.

3. Physical verification was conducted by the management in respect of inventories at reasonable intervals. The Company has maintained proper records of its inventories and no material discrepancies were noticed on physical verification. The procedures followed by the management for such physical verification are, in our opinion, reasonable and adequate in relation to the size of the Company and the nature of its business.

4. The Company has not granted any loans secured or unsecured during the year covered in the register maintained under section 301 of the Act. The yearend balance of interest free unsecured housing loans granted to its Executive director in previous year is Rs. 7 Lacs. The Company has not taken any other unsecured loans during the year from parties covered in the register maintained under section 301 of the Act. The year end balances of loans taken during earlier years amount to Rs. 25 lacs. The terms and conditions of loans taken are not prima facie prejudicial to the interest of the company. There are no stipulations as to the dates for repayment of principal and interest.

5. There is an adequate internal control system commensurate with the size and nature of the Company''s business for the purchase of inventories, fixed assets and for sale of goods. During the course of our audit, no major weakness has been noticed in the internal control system, nor we have been informed of any such instance.

6. a) To the best of our knowledge and belief and

according to the information and explanations given to us, the particulars of contracts or arrangements that need to be entered into the register in pursuance of Section 301 of Act, 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 into the register in pursuance of Section 301 of Act have been made at prices which are reasonable having regard to the prevailing market prices at the relevant time.

7. The Company has not accepted any deposits from the public.

8. The Company had no formal internal audit system during the year. However it has adequate internal control procedures commensurate with its size and nature of its business.

9. a) According to the books and records produced to us and based on management representations, undisputed statutory dues in respect of Provident Fund, Employees'' State Insurance dues, Investor Education and Protection Fund, Income Tax, Wealth Tax, Service Tax and other material statutory dues have generally been regularly deposited by the Company during the year with the appropriate authorities.

b) According to the information and explanations given to us and the records of the company examined by us, the particulars of Income Ta x dues, which have not been deposited on account of a dispute amounting to Rs.116 lacs, for which appeals are pending before the Income Tax Appellate Tribunal.

10. The Company''s accumulated losses at the yearend exceed its net worth. It has incurred cash losses in the financial year and in the immediately preceding financial year.

11. The Company has not given any guarantee for loans taken by others.

12. According to the information and explanations given to us, no material fraud on or by the Company was noticed or reported during the year.

13. Other matters specified in para 4 of the Companies (Auditors'' report) Order, 2003 (as amended) are, in our opinion, not applicable to the Company.

For R. S. Agarwala & Co.

Chartered Accountants

Firm Regn. No.: 304045E

R. S. Agarwala

Partner

Camp : Gurgaon

Membership No.5534

Date : 24th May, 2014


Mar 31, 2013

Report on the Financial Statements

We have audited the accompanying financial statements of TCI Industries Ltd ("the Company"), which comprise the Balance Sheet as at 31st March, 2013, the Statement of Profit and Loss and the Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information.

Management''s Responsibility for the Financial Statements

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

Auditor''s Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatements.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Company''s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by Management, as well as evaluating the overall presentation of the financial statements.

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

Opinion

In our opinion and to the best of our information and according to the explanations given to us, the financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:

(a) in the case of the Balance Sheet, of the state of affairs of the Company as at 31st March , 2013;

(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.

Emphasis of Matter

Without qualifying our opinion reference is invited to note no. 15(iv) regarding preparation of accounts on a going concern basis.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor''s Report) Order, 2003 ("the Order"), as amended, issued by the Central Government of India in terms of sub-section (4A) of section 227 of the Act, we give in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the Order.

2. As required by section 227(3) of the Act, we report that:

a. we have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit;

b. in our opinion proper books of account as required by law have been kept by the Company so far as appears from our examination of those books.

c. the Balance Sheet, Statement of Profit and Loss, and Cash Flow Statement dealt with by this Report are in agreement with the books of account.

d. in our opinion, the Balance Sheet, Statement of Profit and Loss, and Cash Flow Statement comply with the Accounting Standards referred to in subsection (3C) of section 211 of the Companies Act, 1956 and

e. on the basis of written representations received from the directors as on 31st March, 2013, and taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2013, from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the Companies Act, 1956.

Annexure to Independent Auditor''s Report

Referred to in paragraph 1 under the heading of "Report on other Legal and Regulatory Requirements" of our report of even date.

1. The Company has maintained proper records to show full particulars including quantitative details and situation of its fixed assets. The fixed assets have been physically verified by the management at reasonable intervals and no material discrepancies have been noticed.

2. During the year, the Company has not disposed off a substantial part of fixed assets.

3. Physical verification was conducted by the management in respect of inventories at reasonable intervals. The Company has maintained proper records of its inventories and no material discrepancies were noticed on physical verification. The procedures followed by the management for such physical verification are, in our opinion, reasonable and adequate in relation to the size of the Company and the nature of its business.

4. The Company has during the year granted interest free unsecured housing loan to its Executive director covered in the register maintained under Section 301 of the Act. The maximum amount involved during the year is Rs. 35 Lacs and the year end balance to Rs. 13 Lacs. The Company has not taken any other unsecured loans during the year from parties covered in the register maintained under section 301 of the Act. The year end balances of loans taken during earlier years amount to Rs. 25 lacs. The terms and conditions of loans taken are not prima facie prejudicial to the interest of the company. There are no stipulations as to the dates for repayment of principal and interest.

5. There is an adequate internal control system commensurate with the size and nature of the Company''s business for the purchase of inventories, fixed assets and for sale of goods. During the course of our audit, no major weakness has been noticed in the internal control system, nor we have been informed of any such instance.

6. a) To the best of our knowledge and belief and according to the information and explanations given to us, the particulars of contracts or arrangements that need to be entered into the register in pursuance of Section 301 of Act, 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 into the register in pursuance of Section 301 of Act have been made at prices which are reasonable having regard to the prevailing market prices at the relevant time.

7. The Company has not accepted any deposits from the public.

8. The Company had no formal internal audit system during the year. However it has adequate internal control procedures commensurate with its size and nature of its business.

9. a) According to the books and records produced to us and based on management representations, undisputed statutory dues in respect of Provident Fund, Employees'' State Insurance dues, Investor Education and Protection Fund, Income Tax, Wealth Tax, Service Tax and other material statutory dues have generally been regularly deposited by the Company during the year with the appropriate authorities.

b) According to the information and explanations given to us and the records of the company examined by us, the particulars of Income Ta x dues, which have not been deposited on account of a dispute amounting to Rs.116 lacs, for which appeals are pending before the Income Tax Appellate Tribunal.

10. The Company''s accumulated losses at the year end exceed its net worth. It has incurred cash losses in the financial year and in the immediately preceding financial year.

11. The Company has not given any guarantee for loans taken by others.

12. According to the information and explanations given to us, no material fraud on or by the Company was noticed or reported during the year.

13. Other matters specified in para 4 of the Companies (Auditors'' report) Order, 2003 (as amended) are, in our opinion, not applicable to the Company.

For R. S. Agarwala & Co.

Chartered Accountants

Firm Regn. No.: 304045E

R. S. Agarwala

Partner

Camp : Gurgaon

Membership No.5534

Date : 15th May, 2013


Mar 31, 2012

We have audited the attached Balance Sheet of TCI Industries Ltd., as at 31st March,2012 and the annexed Statement of Profit and Loss and the Cash Flow of the Company for the year ended on that date and report that:

1. 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 required 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 management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

3. As required by the Companies (Auditors' Report) Order, 2003 (as amended) issued by the Central Government in terms of sub-section (4A) of Section 227 of the Companies Act, 1956 and on the basis of such checks as we considered appropriate and according to the information and explanations given to us during the course of audit, we enclose in the Annexure hereto a statement on the matters specified in paragraph 4 & 5 of the said Order to the extent applicable.

4. Further to our comments in the Annexure, refer to in paragraph 3 above, we report that:

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

(ii) In our opinion, proper books of account as required by law have been kept by the Company so far as appears from our examination of the books and proper returns adequate for the purpose of our audit have been received from the Mumbai branch visited by us.

(iii) 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.

(iv) In our opinion, the Balance Sheet, Statement of Profit and Loss and Cash Flow Statement comply with the accounting standards referred to in Section 211 (3C) of the Companies Act, 1956.

(v) On the basis of written representations received from the directors as on 31st March, 2012 and taken on record by the Board of Directors, none of the directors is disqualified as on 31st March 2012 from being appointed as a Director under section 274(1) (g) of the Companies Act, 1956.

(vi) Reference is invited to the Note No. 15.4 regarding preparation of accounts on a going concern basis.

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

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

b) In the case of Statement of Profit and Loss , of the loss of the Company for the year ended on that date; and

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

Annexure to Auditor's Report

Referred to in paragraph 3 of our report of even date.

1. The Company has maintained proper records to show full particulars including quantitative details and situation of its fixed assets. The fixed assets have been physically verified by the management at reasonable intervals and no material discrepancies have been noticed.

2. During the year, the Company has not disposed off a substantial part of fixed assets.

3. Physical verification was conducted by the management in respect of inventories at reasonable intervals. The Company has maintained proper records of its inventories and no material discrepancies were noticed on physical verification. The procedures followed by the management for such physical verification are, in our opinion, reasonable and adequate in relation to the size of the Company and the nature of its business.

4. The Company has not granted during the year any loans, secured or unsecured to companies, firms or other parties covered in the register maintained under Section 301 of the Act. The Company has not taken during the year any unsecured loans covered in the register maintained under section 301 of the Act. The year end balances of loans taken during earlier years amount to Rs. 67.50 lacs. The terms and conditions of loan taken are not prima facie prejudicial to the interest of the company. There are no stipulations as to the dates for repayment of principal and interest.

5. There is an adequate internal control system commensurate with the size and nature of the Company's business for the purchase of inventories, fixed assets and for sale of goods. During the course of our audit, no major weakness has been noticed in the internal control system, nor we have been informed of any such instance.

6. a) To the best of our knowledge and belief and according to the information and explanations given to us, the particulars of contracts or arrangements that need to be entered into the register in pursuance of Section 301 of Act, 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 into the register in pursuance of Section 301 of Act have been made at prices which are reasonable having regard to the prevailing market prices at the relevant time.

7. The Company has not accepted any deposits from the public.

8. The Company has appointed a firm of Chartered Accountants to do the internal audit regularly. The internal audit system is commensurate with the size and nature of Company's business.

9. a) According to the books and records produced to us and based on management representations, undisputed statutory dues in respect of Provident Fund, Employees' State Insurance dues, Investor Education and Protection Fund, Income Tax, Wealth Tax, Service Tax and other material statutory dues have generally been regularly deposited by the Company during the year with the appropriate authorities.

b) According to the information and explanations given to us and the records of the Company examined by us , the particulars of income-tax dues, which have not been deposited on account of a dispute amounting to Rs. 116 lacs, for which appeals are pending before the Income-tax Appellate Tribunal.

10. The Company's accumulated losses at the year end exceed its net worth. It has incurred cash losses in the financial year and in the immediately preceding financial year.

11. The Company has not given any guarantee for loans taken by others.

12. According to the information and explanations given to us, no material fraud on or by the Company was noticed or reported during the year.

13. Other matters specified in para 4 of the Companies (Auditors' report) Order, 2003 (as amended) are, in our opinion, not applicable to the Company.

For R. S. Agarwala & Co.

Chartered Accountants

R. S. Agarwala

Partner

Camp : Gurgaon Membership No. F-5534

Date : 30th May, 2012 Firm Regn. No.: 304045E


Mar 31, 2011

We have audited the attached Balance Sheet of TCI Industries Ltd., as at 31st March, 2011 and the annexed Profit and Loss Account and the Cash Flow statement of the Company for the year ended on that date and report that:

1. 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 required 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 management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

3. As required by the Companies (Auditors Report) Order, 2003 (as amended) issued by the Central Government in terms of sub-section (4A) of Section 227 of the Companies Act, 1956 and on the basis of such checks as we considered appropriate and according to the information and explanations given to us during the course of audit, we enclose in the Annexure hereto a statement on the matters specified in paragraph 4 & 5 of the said Order to the extent applicable.

4. Further to our comments in the Annexure, refer to in paragraph 3 above, we report that:

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

(ii) In our opinion, proper books of account as required by law have been kept by the Company so far as appears from our examination of the books and proper returns adequate for the purpose of our audit have been received from the Mumbai branch visited by us.

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

(iv) In our opinion, the Profit and Loss Account, the Balance Sheet and Cash Flow Statement comply with the accounting standards referred to in Section 211 (3C) of the Companies Act, 1956.

(v) On the basis of written representations received from the directors as on 31s March, 2011 and taken on record by the Board of Directors, none of the directors is disqualified as on 31st March 2011 from being appointed as a Director under section 274(1 )(g) of the Companies Act, 1956.

(vi) Reference is invited to the following notes on Schedule 14:

a) Note 4 regarding preparation of accounts on a going concern basis.

b) Note 5 regarding certain administrative expenses debited to property development expenses carried in the Balance Sheet.

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

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

b) In the case of Profit and Loss Account, of the Loss of the Company for the year ended on that date; and

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

Annexure to Auditors Report Referred to in paragraph 3 of our report of even date.

1. The Company has maintained proper records to show full particulars including quantitative details and situation of its fixed assets. The fixed assets have been physically verified by the management at reasonable intervals and no material discrepancies have been noticed.

2. During the year, the Company has not disposed off a substantial part of fixed assets.

3. Physical verification was conducted by the management in respect of inventories at reasonable intervals. The Company has maintained proper records of its inventories and no material discrepancies were noticed on physical verification. The procedures followed by the management for such physical verification are, in our opinion, reasonable and adequate in relation to the size of the Company and the nature of its business.

4. The Company has not granted during the year any loans, secured or unsecured to companies, firms or other parties covered in the register maintained under Section 301 of the Act. The Company has not taken during the year any unsecured loans during the year covered in the register maintained under section 301 of the Act. The year end balances of loans taken during earlier years amount to Rs. 67.50 lacs. The terms and conditions of loan taken are not prima facie prejudicial to the interest of the company. There are no stipulations as to the dates for repayment of principal and interest.

5. There is an adequate internal control system commensurate with the size and nature of the Companys business for the purchase of inventories, fixed assets and for sale of goods. During the course of our audit, no major weakness has been noticed in the internal control system, nor we have been informed of any such instance.

6. a) To the best of our knowledge and belief and

according to the information and explanations given to us, the particulars of contracts or arrangements that need to be entered into the register in pursuance of Section 301 of Act, 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 into the register in pursuance of Section 301 of Act have been made at prices which are reasonable having regard to the prevailing market prices at the relevant time.

7. The Company has not accepted any deposits from the public.

8. The Company has appointed a firm of Chartered Accountants to do the internal audit regularly. The internal audit system is commensurate with the size and nature of Companys business.

9. According to the books and records produced to us and based on management representations, undisputed statutory dues in respect of Provident Fund, Employees State Insurance dues, Investor Education and Protection Fund, Income Tax, Wealth Tax, Service Tax and other material statutory dues have generally been regularly deposited by the Company during the year with the appropriate authorities. There are no unpaid disputed statutory dues at the year end.

10. The Companys accumulated losses at the year end exceed its net worth. It has incurred cash losses in the financial year and in the immediately preceding financial year.

11. The Company has not given any guarantee for loans taken by others.

12. According to the information and explanations given to us, no material fraud on or by the Company was noticed or reported during the year.

13. Other matters specified in para 4 of the Companies (Auditors report) Order, 2003 (as amended) are, in our opinion, not applicable to the Company.

For R. S. Agarwala & Co.

Chartered Accountants

R. S. Agarwala

Place : Kolkata Partner

18th May, 2011 Membership No. F-5534

Firm Regn. No.: 304045E


Mar 31, 2010

We have audited the attached Balance Sheet of TCI Industries Ltd., as at 31st March,2010 and the annexed Profit and Loss Account and the Cash Flow statement of the Company for the year ended on that date and report that:

1. 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 required that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

3. As required by the Companies (Auditors Report) Order, 2003 (as amended) issued by the Central Government in terms of sub-section (4A) of Section 227 of the Companies Act, 1956 and on the basis of such checks as we considered appropriate and according to the information and explanations given to us during the course of audit, we enclose in the Annexure hereto a statement on the matters specified in paragraph 4 & 5 of the said Order to the extent applicable.

4. Further to our comments in the Annexure, refer to in paragraph 3 above, we report that:

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

(ii) In our opinion, proper books of account as required by law have been kept by the Company so far as appears from our examination of the books and proper returns

adequate for the purpose of our audit have been received from the Mumbai branch visited by us.

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

(iv) In our opinion, the Profit and Loss Account, the Balance Sheet and Cash Flow Statement comply with the accounting standards referred to in Section 211 (3C) of the Companies Act, 1956.

(v) On the basis of written representations received from the directors as on 31st March, 2010 and taken on record by the Board of Directors, none of the directors is disqualified as on 31st March 2010 from being appointed as a Director under section 274(1 )(g) 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 the notes and accounting policies thereon, give the information required by the Companies Act, 1956 in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:

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

b) In the case of Profit and Loss Account, of the Loss of the Company for the year ended on that date; and

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

Annexure to Auditors Report

Referred to in paragraph 3 of our report of even date.

1. The Company has maintained proper records to show full particulars including quantitative details and situation of its fixed assets. The fixed assets have been physically verified by the management at reasonable intervals and no material discrepancies have been noticed.

2. During the year, the Company has not disposed off a substantial part of fixed assets.

3. Physically verification was conducted by the management in respect of inventories at reasonable intervals. The Company has maintained proper records of its inventories and no material discrepancies were noticed on physical verification. The procedures followed by the management for such physical verification are, in our opinion, reasonable and adequate in relation to the size of the Company and the nature of its business.

4. The Company has not granted any loans, secured or unsecured to companies, firms or other parties covered in the register maintained under Section 301 of the Act. The Company has taken interest free unsecured loans of Rs. 47.50 lacs during the year from three parties covered in the register maintained under section 301 of the Act. The maximum amount involved during the year and the year end balances amounts to Rs. 67.50 lacs. The terms and conditions of loan taken are not prima facie prejudicial to the interest of the company. There are no stipulations as to the dates for repayment of principal and interest.

5. There is an adequate internal control system commensurate with the size and nature of the Companys business for the purchase of inventories, fixed assets and for sale of goods. During the course of our audit, no major weakness has been noticed in the internal control system, nor we have been informed of any such instance.

6. a) To the best of our knowledge and belief and

according to the information and explanations given to us, the particulars of contracts or arrangements that need to be entered into the register in pursuance of Section 301 of Act, 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 into the register in pursuance of Section 301 of Act have been made at prices which are reasonable having regard to the prevailing market prices at the relevant time.

7. The Company has not accepted any deposits from the public.

8. The Company has appointed a firm of Chartered Accountants to do the internal audit regularly. The internal audit system is commensurate with the size and nature of Companys business.

9. According to the books and records produced to us and based on management representations, undisputed statutory dues in respect of Provident Fund, Employees State insurance dues, Investor Education and Protection Fund, Income Tax, Wealth Tax, Service Tax and other material statutory dues have generally been regularly deposited by the Company during the year with the appropriate authorities. There are no unpaid disputed statutory dues at the year end.

10. The Companys accumulated losses at the year end exceed its net worth. It has,incurred cash losses in the financial year and in the immediately preceding financial year.

11. The Company has not given any guarantee for loans taken by others.

12. According to the information and explanations given to us, no material fraud on or by the Company was noticed or reported during the year.

13. Other matters specified in para 4 of the Companies (Auditors report) Order, 2003 (as amended) are, in our opinion, not applicable to the Company.

For R. S. Agarwala & Co. Chartered Accountants R. S. Agarwala Place : Kolkata Partner 14th May, 2010 Membership No. F-5534 Firm Regn. No.: 304045E

 
Subscribe now to get personal finance updates in your inbox!