Dec 31, 2013
We have audited the accompanying financial statements of Vulcan
Engineers Limited ("the Company"), which comprise the balance sheet as
at 31st December 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'') read with the General
Circular 15/2013 dated 13th September 2013 of the Ministry of Corporate
Affairs in respect of section 133 of the Companies Act, 2013. This
responsibility includes the design, implementation and maintenance of
internal control relevant to the preparation and fair presentation of
the financial statements that 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 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 December 2013;
(b) in the case of the statement of profit and loss, of the loss of the
Company for the year ended on that date; and
(c) in the case of the cash flow statement, of the cash flows of the
Company for the year ended on that date.
Emphasis of Matter
We draw attention to note no.36 of the financial statements in regard
to amount aggregating to Rs. 45,026,202 due to Holding company which
has remained unsettled beyond time period as approved by Reserve Bank
of India. Our opinion is not qualified in respect of this matter.
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 sub-section (3) of Section 227 of the Act, we report
that:
a. we have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b. in our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books;
c. the balance sheet, statement of profit and loss and cash flow
Statement dealt with by this Report are in agreement with the books of
account;
d. in our opinion, the balance sheet, statement of profit and loss and
cash flow statement comply with the Accounting Standards referred to in
sub-section (3C) of Section 211 of the 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 and
e. on the basis of written representations received from the directors
of the Company as on 31 December 2013 and taken on record by the Board
of Directors, none of the directors is disqualified as on 31 December
2013, from being appointed as a director in terms of clause (g) of
sub-section (1) of Section 274 of the Act.
ANNEXURE TO THE AUDITORS'' REPORT
[REFERRED TO IN PARAGRAPH 1 UNDER THE HEADING OF REPORT ON OTHER LEGAL
AND REGULATORY REQUIREMENTS OF OUR REPORT OF EVEN DATE]
1. (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of its fixed
assets.
(b) All the fixed assets are physically verified by the management
according to a phased programme designed to cover all items over a
period of three financial years, which in our opinion, is reasonable
having regard to the size of the Company and the nature of its assets.
Pursuant to the programme, a portion of the fixed assets has been
physically verified by the management during the year and no material
discrepancies have been noticed by the management on such verification.
(c) During the year, the Company has not disposed off any part of its
fixed assets.
2. (a) According to the information and explanation given to us,
inventories purchased by the Company from its suppliers are directly
dispatched to customers. In the absence of any inventory being stocked
by the Company, clause 4(ii)(a) and 4(ii)(b) of the Order are not
applicable to the Company
(b) On the basis of our examination of the inventory records, in our
opinion, the Company has maintained proper records of inventory.
3. According to information and explanations given to us, the Company
has not granted/taken any loan, secured or unsecured, to/from
Companies, firms and other parties covered in the Register maintained
under Section 301 of the Act. Accordingly, the provisions of clause
4(iii)(b), 4(iii)(c), 4(iii)(d), 4(iii)(f) and 4(iii)(g) of the Order
are not applicable to the Company.
4. 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 the nature of its business, with
regard to purchase of inventory and fixed assets and for the sale of
goods and services. During the course of our audit, we have not
observed any continuing failure to correct major weaknesses in internal
control system.
5. (a) According to the information and explanations given to us, the
transactions made in pursuance of contracts or arrangements that need
to be entered into the register maintained under Section 301 of the Act
have been recorded in the register.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements entered in the register maintained under Section 301 of
the Act have been made at prices which are reasonable having regard to
prevailing market prices at the relevant time.
6. According to the information and explanations given to us, the
Company has not accepted any deposits from the public within the
meaning of Sections 58A and 58AA of the Act and the rules framed
thereunder during the year.
7. In our opinion, the Company has an internal audit system
commensurate with its size and the nature of its business.
8. According to the information and explanations given to us, the
Central Government has not prescribed maintenance of cost records under
Section 209(1)(d) of the Act in the case of the Company.
9. (a) According to the information and explanation given to us, the
Company has been generally regular in depositing the undisputed
statutory dues including provident fund, investor education and
protection fund, employees'' state insurance, income tax, sales tax,
wealth tax, service tax, custom duty, excise duty, cess and other
material statutory dues as applicable with the appropriate authorities.
No undisputed amounts payable in respect of aforesaid statutory dues
were outstanding as on the last day of the financial year for a period
of more than six months from the date they became payable.
(b) According to the information and explanations given to us, there
are no dues on account of income tax, sales tax, service tax, customs
duty, wealth tax, excise duty and cess, which have not been deposited
on account of any dispute.
10. The accumulated losses of the Company at the end of the financial
year are more than fifty percent of its net worth and the Company has
incurred cash loss during the current financial year and in the
immediately preceding financial year.
11. According to the information and explanations given to us, the
Company has not defaulted in repayment of dues to the banks. The
Company does not have any borrowings from financial institutions and by
way of debentures.
12. According to the information and explanation given to us, the
Company has not granted any loans and advances on the basis of security
by way of pledge of shares, debentures and other securities.
13. According to the information and explanations given to us, the
Company is not a chit fund or a nidhi / mutual benefit fund / society.
Accordingly, the provisions of clause 4(xiii) of the Order are not
applicable to the Company.
14. According to the information and explanations given to us, the
Company is not dealing or trading in shares, securities, debentures and
other investments. Accordingly, the provisions of clause 4(xiv) of the
Order are not applicable to the Company.
15. According to the information and explanations given to us, the
Company has not given any guarantee for loan taken by others from banks
or financial institutions during the year.
16. According to the information and explanations given to us, the
Company has not taken any term loan during the year.
17. According to the information and explanations given to us and on
an overall examination of the balance sheet of the Company, in our
opinion, as at 31st December 2013, funds raised on short term basis
have not been used for long term investments.
18. The Company has not made preferential allotment of shares to the
parties or companies covered in the register maintained under Section
301 of the Act during the year.
19. The Company has not issued any debentures during the year.
20. The Company has not raised any money by way of public issue during
the year.
21. During the course of our examination of the books and records of
the Company carried out in accordance with the generally accepted
auditing practices in India, and according to the information and
explanation given to us, we have neither come across any instances of
fraud on or by the Company, noticed or reported during the year, nor
have we been informed of any such cases by the management
FOR SURESH SURANA & ASSOCIATES LLP
Chartered Accountants
ICAI Reg. No. 121750W / W-100010
(Vinodkumar Varma)
PARTNER
Membership No. 105545
Place: Mumbai
Dated: 28th February 2014
Dec 31, 2012
1. We have audited the attached balance sheet of Vulcan Engineers
Limited ("the Company") as at 31 December 2012 and also the statement
of profit and loss and cash flow statement of the Company for the year
ended on that date annexed thereto. These financial statements are the
responsibility of the Company''s management. Our responsibility is to
express an opinion on these financial statements based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on 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 Companies (Auditor''s Report) 2003 (''the
Order'') issued by Central Government of India in terms of Section
227(4A) of the Companies Act, 1956 (''the Act''), on the basis of
such checks of the books and records of the Company, as we considered
appropriate, and according to information and explanations given to us,
we annex hereto a statement on the matters specified in paragraphs 4
and 5 of the said Order.
4. Further to our comments in the Annexure referred to in paragraph 3
above, we report that:
a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the 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 appears from our examination of those
books;
c) The balance sheet, the 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, the statement of profit and loss
and the cash flow statement dealt with by this report comply with the
Accounting Standards referred to in sub-section (3C) of Section 211 of
the Act, to the extent applicable except in respect of Accounting
Standard (AS)-22 ''Accounting for Taxes on Income'' for recognising
deferred tax assets (net), though there is no virtual certainty
supported by convincing evidence that sufficient future taxable income
will be available against which such deferred tax assets can be
realised, due to which loss after tax for the year is lower by Rs.
12,788,466; deferred tax assets (net) is higher and profit and loss
(debit balance) is lower by Rs. 28,288,516 as at 31 December 2012;
e) On the basis of written representations received from the directors
as on 31 December 2012, and taken on record by the Board of directors,
we report that none of the directors is disqualified as on 31 December
2012 from being appointed as a director in terms of clause (g) of
sub-Section (1) of Section 274 of the Act; and
f) In our opinion and to the best of our information and according to
the explanations given to us, subject to our comments in paragraph 4(d)
above, the said financial statements together with the notes thereon
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:
i) in the case of the balance sheet, of the state of affairs of the
Company as at 31 December 2012;
ii) in the case of the statement of profit and loss, of the loss of the
Company for the year ended on that date; and
iii) in the case of the cash flow statement of the cash flows of the
Company for the year ended on the date.
ANNEXURE TO THE AUDITORS'' REPORT
REFERRED TO IN PARAGRAPH 3 OF OUR REPORT OF EVEN DATE
1. (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of its fixed
assets.
(b) All the fixed assets are physically verified by the management
according to a phased programme designed to cover all items over a
period of three financial years, which in our opinion, is reasonable
having regard to the size of the Company and the nature of its assets.
Pursuant to the programme, a portion of the fixed assets has been
physically verified by the management during the year and no material
discrepancies have been noticed by the management on such verification.
(c) During the year, the Company has not disposed off substantial part
of its fixed assets.
2. (a) According to the information and explanation given to us,
inventories purchased by the Company from its suppliers are directly
dispatched to customers. In the absence of any inventory being stocked
by the Company, clause 4(ii)(a) and 4(ii)(b) of the Order are not
applicable to the Company.
(b) On the basis of our examination of the inventory records, in our
opinion, the Company has maintained proper records of inventory.
3. According to information and explanations given to us, the Company
has not granted/taken any loan, secured or unsecured, to/from
Companies, firms and other parties covered in the Register maintained
under Section 301 of the Act. Accordingly, the provisions of clause
4(iii)(b), 4(iii)(c), 4(iii)(d), 4(iii)(f) and 4(iii)(g) of the Order
are not applicable to the Company.
4. 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 the nature of its business, with
regard to purchase of inventory and fixed assets and for the sale of
goods and services. During the course of our audit, we have not
observed any continuing failure to correct major weaknesses in internal
control system.
5. (a) According to the information and explanations given to us, the
transactions made in pursuance of contracts or arrangements that need
to be entered into the register maintained under Section 301 of the Act
have been recorded in the register.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements entered in the register maintained under Section 301 of
the Act have been made at prices which are reasonable having regard to
prevailing market prices at the relevant time.
6. According to the information and explanations given to us, the
Company has not accepted any deposits from the public within the
meaning of Sections 58A and 58AA of the Act and the rules framed
thereunder during the year.
7. In our opinion, the Company has an internal audit system
commensurate with its size and the nature of its business.
8. According to the information and explanations given to us, the
Central Government has not prescribed maintenance of cost records under
Section 209(1 )(d) of the Act in the case of the Company.
9. (a) According to the information and explanation given to us, the
Company has been generally regular in depositing the undisputed
statutory dues including provident fund, investor education and
protection fund, employees'' state insurance, income tax, sales tax,
wealth tax, service tax, custom duty, excise duty, cess and other
material statutory dues as applicable with the appropriate authorities.
No undisputed amounts payable in respect of aforesaid statutory dues
were outstanding as on the last day of the financial year for a period
of more than six months from the date they became payable.
(b) According to the information and explanations given to us, there
are no dues on account of income tax, sales tax, service tax, customs
duty, wealth tax, excise duty and cess, which have not been deposited
on account of any dispute.
10. The accumulated losses of the Company at the end of the financial
year are not more than fifty percent of its net worth and the Company
has incurred cash loss during the current financial year and in the
immediately preceding financial year.
11. According to the information and explanations given to us, the
Company has not defaulted in repayment of dues to the banks. The
Company does not have any borrowings from financial institutions and by
way of debentures.
12. According to the information and explanations given to us, the
Company has not granted any loans and advances on the basis of security
by way of pledge of shares, debentures and other securities.
13. According to the information and explanations given to us, the
Company is not a chit fund or a nidhi / mutual benefit fund / society.
Accordingly, the provisions of clause 4(xiii) of the Order are not
applicable to the Company.
14. According to the information and explanations given to us, the
Company is not dealing or trading in shares, securities, debentures and
other investments. Accordingly, the provisions of clause 4(xiv) of the
Order are not applicable to the Company.
15. According to the information and explanations given to us, the
Company has not given any guarantee for loan taken by others from banks
or financial institutions during the year.
16. According to the information and explanations given to us, the
Company has not taken any term loan during the year.
17. According to the information and explanations given to us and on
an overall examination of the balance sheet of the Company, in our
opinion, as at 31 December 2012, funds raised on short term basis have
not been used for long term investments.
18. The Company has not made preferential allotment of shares to the
parties or companies covered in the register maintained under Section
301 of the Act during the year.
19. The Company has not issued any debentures during the year.
20. The Company has not raised any money by way of public issue during
the year.
21. During the course of our examination of the books and records of
the Company carried out in accordance with the generally accepted
auditing practices in India, and according to the information and
explanation given to us, we have neither come across any instances of
fraud on or by the Company, noticed or reported during the year, nor
have we been informed of any such cases by the management.
FOR SURESH SURANA & ASSOCIATES
Chartered Accountants
Firm Reg. No.: 121750W
(Nirmal Jain)
PARTNER
Membership No. 34709
Mumbai, Dated : 21 Februrary 2013
Dec 31, 2010
1. We have audited the attached balance sheet of Vulcan Engineers
Limited ("the Company") as at 31 December 2010 and also the profit and
loss account and cash flow statement of the Company for the period
ended on that date annexed thereto. These financial statements are the
responsibility of the Companys management. Our responsibility is to
express an opinion on the financial statements based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on test basis, evidences 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 (the
Order) issued by Central Government of India in terms of section
227(4A) of the Companies Act, 1956, on the basis of such checks of the
books and records of the Company, as we considered appropriate and
according to information and explanations given to us, we annex hereto
a statement on the matters specified in paragraphs 4 and 5 of the
Order.
4. Further to our comments in the annexure referred to in paragraph 3
above, we report that:
a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the 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 appears from our examination of those
books;
c) The balance sheet, profit and loss account and cash flow statement
dealt with by this report are in agreement with the books of account;
d) In our opinion, the balance sheet, the profit and loss account and
cash flow statement dealt with by this report comply with the
accounting standards referred to in sub-section (3C) of Section 211 of
the Companies Act, 1956 to the extent applicable except Accounting
Standard (AS)-2 Valuation of Inventories for reason mentioned in Note
2 of Schedule 18, impact of which on the profit for the period and
inventories and accumulated losses as at 31/12/2010 is not
ascertainable;
e) On the basis of written representations received from the directors
of the Company as on 31 December 2010 and taken on record by the Board
of Directors, we report that none of the directors is disqualified as
on 31 December 2010 from being appointed as a director in terms of
clause (g) of sub-section (1) of Section 274 of the Companies Act,
1956; and
f) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts, subject to our
comments in paragraph 4(d) above and read together with other notes
thereon in Schedule 18, give the information required by the
Companies Act, 1956 in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
a) in the case of the balance sheet, of the state of affairs of the
Company as at 31 December 2010;
b) in the case of the profit and loss account, of the profit for the
period ended on that date; and
c) in the case of cash flow statement of the cash flows for the period
ended on the date.
ANNEXURE TO THE AUDITORS REPORT
REFERRED TO IN PARAGRAPH 3 OF OUR REPORT OF EVEN DATE
1. In respect of its fixed assets:
a) The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
b) The fixed assets are physically verified by the Management according
to a phased programme designed to cover all items over a period of
three financial years, which in our opinion, is reasonable having
regard to the size of the Company and the nature of its assets.
Pursuant to the programme, a portion of the fixed assets has been
physically verified by the Management during the period and no material
discrepancies between the book records and the physical verification of
fixed assets have been noticed.
c) During the period, the Company has not disposed off substantial part
of its fixed assets.
2. In respect of its inventories:
a) In our opinion and according to information and explanations given
to us, physical verification of inventory has been conducted by the
management at reasonable intervals.
b) In our opinion and according to information and explanations given
to us, the procedures of physical verification of inventory followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
c) According to the information and explanations given to us, the
discrepancies noticed on physical verification of inventory as compared
to book records were not material and the same have been properly dealt
with by the Company in the books of account.
3. The Company has not granted / taken any loans, secured or unsecured
to / from companies, firms and other parties listed in the register
maintained under Section 301 of the Companies Act, 1956. Accordingly,
the provisions of clause 4(iii)(b), 4(iii)(c), 4(iii)(d), 4(iii)(f) and
4(iii)(g) of the Order are not applicable to the Company.
4. 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 the nature of its business for the
purchase of inventory, fixed assets and for the sale of goods and
services. During the course of our audit, we have not observed any
continuing failure to correct major weaknesses in such internal control
system.
5. a) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements, that need to be entered into the register maintained
under Section 301 of the Companies Act, 1956 have been recorded in
register.
b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements entered in the register maintained under Section 301 of
the Companies Act, 1956 have been made at prices which are reasonable
having regard to prevailing market prices at the relevant time.
6. The Company has not accepted any deposits from public during the
period.
7. In our opinion, the Company has an adequate internal audit system
commensurate with its size and nature of its business.
8. As explained to us, the Central Government has not prescribed
maintenance of cost records under Section 209(1) (d) of the Act in case
of the Company.
9. a) According to the information and the explanations given to us,
the Company has been generally regular in depositing undisputed
statutory dues including Provident Fund, Investor Education and
Protection Fund, Employees State Insurance, Sales-tax, Wealth tax,
Service tax, Custom duty, Excise duty, Cess and other statutory dues,
with the appropriate authorities, wherever applicable. There are no
undisputed amounts payable in respect of such statutory dues which have
remained outstanding as at 31 December 2010 for a period of more than
six months from the date they became payable.
b) According to information and explanations given to us, there are no
dues on account of income tax / sales tax / wealth tax / service tax /
custom duty / excise duty / cess which has not been deposited on
account of any dispute.
10. The accumulated losses of the Company at the end of the financial
period are not more than fifty percent of its net worth and the Company
has not incurred cash losses during the current financial period and in
the immediately preceding financial year.
11. According to information and explanations given to us, the Company
has not defaulted in repayment of dues to the banks. The Company does
not have any borrowing from financial institution and by way of
debentures.
12. According to the information and explanations given to us, the
Company has not granted any loans or advances on the basis of security
by way of pledge of shares, debentures, and other securities.
13. According to the information and explanations given to us, the
Company is not a chit fund or a nidhi / mutual benefit fund / society.
Accordingly, provision of clause (xiii) of paragraph 4 of the Order is
not applicable to the Company.
14. In our opinion and according to information and explanations given
to us, the Company is not dealing or trading in shares, securities,
debentures and other investments. Accordingly, provision of clause 4
(xiv) of the Order is not applicable to the Company.
15. According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks and financial institutions during the period.
16. According to information and explanations given to us, the Company
has not taken any term loan during the period. As at period end, there
are no term loans outstanding.
17. According to information and explanations given to us and on an
overall examination of the balance sheet of the Company, we report that
as at 31 December 2010, no funds raised on short-term basis have been
used for long-term investment.
18. During the period, the Company has not made any preferential
allotment of shares to parties and companies covered in the register
maintained under section 301 of the Companies Act, 1956.
19. The Company has not issued any debentures.
20. The Company has not raised any money by way of public issue during
the period.
21. According to the information and explanations given to us, no
fraud on or by the Company has been noticed or reported during the
period.
FOR SURESH SURANA & ASSOCIATES
Chartered Accountants
Firm Reg. No.: 121750W
(Nirmal Jain)
PARTNER
Membership No. 34709
Mumbai,
Dated : 28th February, 2011
Mar 31, 2010
1. We have audited the attached balance sheet of Vulcan Engineers
Limited as at 31 March 2010 and also the profit and loss account and
cash flow statement for the year ended on that date annexed thereto.
These financial statements are the responsibility of the Companys
management. Our responsibility is to express an opinion on the
financial statements based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on test basis, evidences 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 by the Companies (Auditors Report) (Amendment) Order, 2004
(hereinafter referred to as the Order) issued by Central Government
of India in terms of section 227(4A) of the Companies Act, 1956, on the
basis of such checks of the books and records of the Company, as we
considered appropriate and according to information and explanations
given to us, we annex hereto a statement on the matters specified in
paragraphs 4 and 5 of the Order.
4. Further to our comments in the annexure referred to in paragraph 3
above, we report that:
a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the 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 appears from our examination of those
books;
c) The balance sheet, profit and loss account and cash flow statement
dealt with by this report are in agreement with the books of account;
d) In our opinion, the balance sheet, the profit and loss account and
cash flow statement dealt with by this report comply with the
accounting standards referred to in sub-section (3C) of Section 211 of
the Companies Act, 1956 to the extent applicable except Accounting
Standard (AS)-2 Valuation of Inventories for reason mentioned in Note
2 of Schedule 19, impact of which on the profit for the year and
inventories and accumulated losses as at 31/03/20 Wis not
ascertainable;
e) On the basis of written representations received from the directors
of the Company as on 31 March 2010 and taken on record by the Board of
Directors, we report that none of the directors is disqualified as on
31 March 2010 from being appointed as a director in terms of clause (g)
of sub-section (1) of Section 274 of the Companies Act, 1956;
f) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts, subject to our
comments in paragraph 4(d) above and read together with other notes
thereon in Schedule 19, give the information required by the
Companies Act, 1956 in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
a) in the case of the balance sheet, of the state of affairs of the
Company as at 31 March 2010;
b) in the case of the profit and loss account, of the profit for the
year ended on that date; and
c) in the case of cash flow statement of the cash flows for the year
ended on the date.
ANNEXURE TO THE AUDITORS REPORT
REFERRED TO IN PARAGRAPH 3 OF OUR REPORT OF EVEN DATE
1. In respect of its fixed assets:
a) The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
b) The fixed assets are physically verified by the Management according
to a phased programme designed to cover all items over a period of
three financial years, which in our opinion, is reasonable having
regard to the size of the Company and the nature of its assets.
Pursuant to the programme, a portion of the fixed assets has been
physically verified by the Management during the year and no material
discrepancies between the book records and the physical verification of
fixed assets have been noticed.
c) During the year, the Company has not disposed off substantial part
of its fixed assets.
2. In respect of its inventories:
a) In our opinion and according to information and explanations given
to us, physical verification of inventory has been conducted by the
management at reasonable intervals.
b) In our opinion and according to information and explanations given
to us, the procedures of physical verification of inventory followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
c) According to the information and explanations given to us, the
discrepancies noticed on physical verification of inventory as compared
to book records were not material and the same have been properly dealt
with by the Company in the books of account.
3. In respect of loans, secured or unsecured, granted or taken by the
Company to / from companies, firms or other parties covered in the
register maintained under Section 301 of the Companies Act, 1956:
a) The Company has not granted any loans to companies, firms or other
parties during the year. Accordingly, the provisions of clause
4(iii)(b), 4(iii)(c) and 4(iii)(d) of the Order are not applicable to
the Company.
b) The Company had taken unsecured loans from two companies. The
Maximum amount involved during the year was Rs. 2,273,200 and year end
balance was Rs. 1,883,712. At year end, these parties are not covered
under section 301 of the Companies Act, 1956.
c) In our opinion and according to information and explanations given
to us, in respect of such loans taken by the Company, the rate of
interest and other terms and conditions are not prima facie prejudicial
to the interest of the Company.
d) According to information and explanations given to us, the Company
is regular in repaying the principal amount and interest thereon.
4. 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 the nature of its business for the
purchase of inventory, fixed assets and for the sale of goods and
services. During the course of our audit, we have not observed any
continuing failure to correct major weaknesses in such internal control
system.
5. a) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of
contracts or arrangements, that need to be entered into the register
maintained under Section 301 of the Companies Act, 1956 have been
recorded in register.
b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements entered in the register maintained under Section 301 of
the Companies Act, 1956 have been made at prices which are reasonable
having regard to prevailing market prices at the relevant time.
6. The Company has not accepted any deposits from public during the
year.
7. In our opinion, the Company has an adequate internal audit system
commensurate with its size and nature of its business.
8. As explained to us, the maintenance of cost records under Section
209(1) (d) of the Act is not applicable to the Company.
9. a) According to the information and the explanations given to us,
the Company has been generally regular in depositing
undisputed statutory dues including Provident Fund, Investor Education
and Protection Fund, Employees State Insurance, Sales-tax, Wealth tax,
Service tax, Custom duty, Excise duty, Cess and other statutory dues,
with the appropriate authorities wherever applicable. There are no
undisputed amounts payable in respect of such statutory dues which have
remained outstanding as at 31 March 2010 for a period of more than six
months from the date they became payable.
b) According to information and explanations given to us, there are no
dues on account of income tax / sales tax / wealth tax / service tax /
custom duty / excise duty / cess that has not been deposited on account
of any dispute.
10. The accumulated losses of the Company at the end of the financial
year are not more than fifty percent of its net worth and the Company
has not incurred cash losses during the current financial year. The
Company had incurred cash losses in the immediately preceding financial
year.
11. According to information and explanations given to us, the Company
has not defaulted in repayment of dues to the banks. The Company does
not have any borrowing from financial institution and by way of
debentures.
12. According to the information and explanations given to us, the
Company has not granted any loans or advances on the basis of security
by way of pledge of shares, debentures, and other securities.
13. According to the information and explanations given to us, the
Company is not a chit fund or a nidhi / mutual benefit fund / society,
provisions of clause (xiii) of paragraph4 bf thsMOrder is not
applicable to the Company.
14. In our opinion and according to information and explanations given
to us, the Company is not dealing or trading in shares, securities,
debentures and other investments. Accordingly, provision of clause 4
(xiv) of the Order is not applicable to the Company.
15. According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks and financial institutions.
16. According to information and explanations given to us, the Company
has not taken any term loan during the year. As at year end, there are
no term loans outstanding.
17. According to information and explanations given to us and on an
overall examination of the balance sheet of the Company, we report that
as at 31 March 2010, no funds raised on short-term basis have been used
for long-term investment.
18. During the year, the Company has not made any preferential
allotment of shares to parties and companies covered in the register
maintained under section 301 of the Companies Act, 1956.
19. The Company has not issued any debentures.
20. The Company has not raised any money by way of public issue during
the year.
21. According to the information and explanations given to us, no
fraud on or by the Company has been noticed or reported during the
year.
FOR SURESH SURANA & ASSOCIATES
Chartered Accountants
(Nirmal Jain)
PARTNER
Membership No. 34709 Firm Reg. No.: 121750W
Mumbai, Dated : 28th May, 2010