Mar 31, 2015
We have audited the accompanying financial statements of M/S.
INNOVATION TECHNOLOGIES LIMITED ("Company"), which comprise the Balance
Sheet as at 31.03.2015, the Statement of Profit and Loss account 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 the 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 section 133 of the Companies
Act, 2013("Act"), read with Rule 7 of the Companies (Accounts) Rules,
2014. 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 the 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 of 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 the material misstatement of the financial statements,
whether due to fraud or error. In making those risk assessments, the
auditors consider internal control relevant to the company's
preparation and fair presentation of the financial statements in order
to design audit procedures that are in appropriate in the
circumstances. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of the accounting
estimates made by the 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 reasonable 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 Balance Sheet, of the state of affairs of the company
as at March 31,2015;
b) In the case of Statement of Profit and Loss, of the profit of the
company for the year ended on that date; and
c) In the case of Cash Flow Statement, of the cash flows of the company
for the year ended on that date.
Report on other legal and regulatory requirements
1. As required by the Companies (Audit Report) Order, 2015 issued by
the Central Government of India in terms of sub-section 11 of section
143 of the Companies Act, 2013, we enclose in the Annexure a statement
on the matters specified in paragraphs 4 and 5 of the said Order.
2. As required by section 143(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 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, Statement of Profit and Loss Account and the Cash
Flow Statement dealt with by this report are in agreement with the
books of account;
d) In our opinion, the Balance Sheet and Statement of Profit and Loss
Account dealt with by this report comply with the Accounting Standards
referred to in section 133 of the Companies Act, 2013; read with Rule 7
of the Companies (Accounts) Rules, 2014.
e) On the basis of written representations received from the Directors,
as on 31st March, 2015 and taken on record by the Board of Directors,
we report that none of the Directors is disqualified as on 31st March,
2014 from being appointed as a Director in terms of section 164 (2) of
the Companies Act, 2013.
f) In our opinion, and according to the information and explanations
given to us, there are adequate internal control systems commensurate
with the size of the company and the nature of its business.
g) In our opinion, and according to the information and explanations
given to us, the company has disclosed the pending litigations of the
company which will have impact on the financial statements.
h) In our opinion, and according to the information and explanations
given to us, the company is not foreseeing any losses, and therefore
the provision of the same does not arise.
i) In our opinion, and according to the information and explanations
given to us, the company has not holding amounts such as unclaimed
dividends, share application money etc requiring the transfer of the
same to the Investor Education and Protection Fund.
ANNEXURE TO THE INDEPENDENT AUDITORS' REPORT
The Annexure referred to in the Auditor's Report to the Members of M/s.
INNOVATION TECHNOLOGIES LIMITED for the year ended 31st March, 2015.
1) a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
b) The fixed assets have been physically verified by the management
during the period and no serious discrepancies have been noticed on
such verification.
2) a) The stock of inventory have been physically verified during the
year by the management. In our opinion, the frequency of verification
is reasonable.
b) In our opinion, the procedures of physical verification of inventory
followed by the management reasonable and adequate considering the size
of the company and the nature of its business.
c) No material discrepancies have been noticed on physical verification
of stocks as compared to book records in so far as appears from our
examination of the books.
3) In our opinion and according to the information and explanations
given to us, the company has not granted any loans, secured or
unsecured to companies, firms or other parties covered in the register
maintained under section 189 of the Companies Act, and therefore, the
receipt of the principal amount and interest thereon and overdue
thereon does not arise.
4) In our opinion, and according to the information and explanations
given to us, there are adequate internal control systems commensurate
with the size of the company and the nature of its business with regard
to purchase of inventory and fixed assets and for the sale of goods and
services. Further during the course of our audit, we have not come
across any instances of major weaknesses in internal control that in
our opinion, requiring correction.
5) In our opinion and according to the information and explanations
given to us and as shown by the books of accounts, the company has not
accepted deposits within the meaning Section 73 to 76 of the Companies
Act, 1956 and hence compliance of provisions of Section 73 to 76 of the
companies Actl956 does not arise.
6) The Central Government had not prescribed any cost records U/s.
148(1) of the Companies Act, 1956 and hence the maintenance of cost
records does not arise.
7) a) According to the books and records examined by us and the
information and explanations given to us, the company is regular in
depositing with appropriate authorities the undisputed statutory dues
in respect of provided fund, ESI, income-tax, wealth-tax, service tax,
sales-tax, customs duty and excise duty and there were no undisputed
statutory dues and arrears as at the date of the Balance Sheet under
report for the period exceeding six months from the date they became
payable.
b) According to the books and records examined by us and the
information and explanations given to us, there was no disputed
statutory dues in respect of provided fund, ESI, wealth-tax, service
tax, sales-tax, customs duty and excise duty etc., excepts the income
tax liability as mentioned below which is outstanding for more than six
months as at the date of the Balance Sheet under report.
S.No Particulars Situation Amount
1 Asst. Commissioner of Penalty order Rs.41,80,872/-
Income tax, circle-2(3) U.S 271 (i) (c)
08) According to the information and explanations furnished to us the
company has been incorporated for a period exceeding 5 years. The
accumulated losses at the end of the year as on 31.03.2015 Rs.139.95
lacs which accounts 56.55% of its net worth and the company has not
incurred cash losses during the financial years 2014-15 and whereas the
cash loss of Rs.7.60lacs was incurred for the financial year 2013-14.
09) According to the books and accounts examined by us and the
information and explanations given to us the company has not availed
any loans from any of the financing institutions, bank or debenture
holders and therefore the defaults thereof does not arise.
10) According to the information and explanations given to us, the
company has not given any guarantee for loans taken by others from bank
or financial institutions.
11) According to the books and accounts examined by us and the
information and explanations given to us the company has not taken any
term loans during the year
12) During the course of our examination of the accounts of the company
in accordance with generally accepted auditing practices, we have not
come across any instances of fraud on or by the company, nor has the
management, of any such instance being noticed or reported during the
year.
Place: Vijayawada Hanumaiah & Co
Date: 20.04.2015 Chartered Accountants
Mar 31, 2014
We have audited the accompanying financial Statements of M/s INDOVATION
TECHNOLOGIES LIMITED which comprise the Balance Sheet as at 31si March
2014, The statement of Profit & Loss Account and the cash flow
Statement for the year ended, and a summary of the significant
accounting policies and other explanatory information.
Managements Responsibility for the Financial Statements
The Companies management is responsible for the preparation of these
financial statements that give a true and fair view of the financial
position and financial performance of the company in accordance with
the accounting standards referred to in Sub-section (3C) of section 211
of the companies Act, 1956. 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 misstatements, whether
due to fraud orerror.
Auditors Responsibility
We have audited the attached Balance Sheet of M/s INDOVATION
TECHNOLOGIES LIMITED, Visakhapatnam as at 31st March 2014, the Profit &
Loss Account and also the Cash Flow statement for the year ended on
that date annexed thereto. These financial statements are the
responsibility of the company''s management. Our responsibility is to
express an opinion on these financial statements based on our audit.
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 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 statement
presentation.
We believe that our 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 said accounts read with other notes to
accounts and accounting policies give the information required by the
Companies Act 1956. in the manner so required and give a true and fair
view:-
i) In the case of Balance Sheet of the state of the affairs of the
Company as at 31st March 2014and
ii) In the case of Profit & Loss Account of the Loss of the Company for
the year ended on that date.
iii) In the Cash Flow statement of the Cash Flow for the year ended on
that date.
Report on Other Legal and Regulatory Requirements
As required by the Companies (Auditor''s Report) Order,2003 ("the
Order") issued by the Central Government in terms of Section 227(4A) of
the Act, we give in the Annexure a statement on the matters specified
in paragraphs 4 and 5 of the Order.
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 purposes of our
audit.
(b) In our opinion, proper books of account as required by law have
been kept by the Company so far as it appears from our examination of
those books.
(c) The Balance Sheet, the Statement of Profit and Loss, and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account.
(d) In our opinion, the Balance Sheet, the Statement of Profit and
Loss, and the Cash Flow Statement comply with the Accounting Standards
referred to in Section 211(3C) of the Act.
(e) On the basis of the written representations received from the
directors as on 31st March. 2014 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 Section 274( 1 )(g) of
the Act.
ANNEXURE REFERRED TO IN PARAGRAPH 1 OF OUR REPORT OF EVEN DATE
(Annexure to the Auditors''Report (referred to in paragraph 3 of our
Report of even date to the Members of IWs. Indovation Technologies
Limited (Formerly Known as Priyadarshini Thread Limited for the year
ended March 31,2014)
1. (a). The company is maintaining proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b). According to the information and explanations given to us, fixed
assets were physically verified by the management during the year and
no material discrepancies were noticed on such verification.
(c). ln our opinion and according to the information and explanations
given to us, a substantial part of fixed assets has not been disposed
of by the company during the year.
2. In our opinion and according to the information and explanations
given to us, the Company is not having any inventory. Accordingly, the
provisions of clause 4(ii) of the Order are not applicable to the
Company.
3. (a) The Company has taken unsecured loans amounting to Rs.3,51,118/-
from companies, firms or other parties covered in the register
maintained under Section 301 of the Companies Act, 1956.
(b) The Company has not granted any loans to companies, firms or other
parties listed in the register maintained under section 301 of the
Companies Act. 1956 and the terms and conditions of the loans are
reasonable.
4. On the basis of checks carried out during the course of audit and as
per explanations given to as, we are of the opinion tnat there are
adequate internal control procedures commensurate with the size of the
company and the nature of its business; for the purchases of inventory
and fixed assets and for the sale of goods. During the course of our
audit, no major weakness has been noticed in the internal controls.
5. a) In our opinion and according to the information and explanations
given to us, we are of the opinion that the transactions that need to
entered into the register maintained under Section 301 of the Companies
Act, 1956 have been so entered.
b) In our opinion and according to the information and explanations
given to us, transactions made in pursuance of contracts or
arrangements entered in the register maintained under Section 301 of
the Companies Act, 1956 and exceeding the value of Rupees five lakhs in
respect of each party during the year have been made at prices which
are reasonable having regard to the prevailing market prices at the
relevant time.
6. In our opinion and according to the information and explanations
given to us, the company has not accepted any deposits within the
meaning of Sections 58A and 58AA of the Companies Act, 1956 and the
Companies (Acceptance of Deposits) Rules, 1975 with regard to the
deposits accepted from the public.
7. In our opinion, the company has an internal audit system
commensurate with the size and nature of its business.
8. To the best our knowledge and as explained, the Central Government
has not prescribed maintenance of cost records under Section 209 (i)
(d) of the of the Companies Act, 1956 in respect of the Company''s
nature of business.
9. (a) According to the records of the company, the company is regular
in depositing undisputed statutory dues including provident fund,
employees'' state insurance, Income Tax, Wealth Tax, Customs Duty,
Excise duty, cess and other material statutory dues applicable at the
end of the 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 some disputes and pending tax payments with Income tax department.
Except the given below there were no dues on account of cess under 441A
of the Companies Act 1956, since the date from which the aforesaid
section comes into force has not yet been notified by the Central
Government.
16. Members holding shares in single name and physical form are advised
S.No. Particulars Situation Amount
1 Asst. Commissioner of Penalty order Rs.41, 80,872
Income Tax, Circle - 2(3) U/S.271(1)(c)
10. The company has accumulated losses of Rs. 1,72,21,874/- as at the
end of the financial year 2013-14 and it has incurred cash losses of
Rs. 14,67,3251- during the current financial year and has not incurred
any cash losses in the immediately preceding financial year.
11. Based on our audit procedures and on the information and
explanations given by the management, we are of the opinion that the
company did not have any outstanding dues to financial Institutions,
Banks or Debenture holders.
12. According to the information and expiations given to us, the
Company has not granted loans and advances on the basis of security by
way of pledge of shares, debentures and other securities.
13. In our opinion, the Company is not a chit or a nidhi / mutual
benefit fund / society. Therefore, the provisions of clause 4(xiii) of
the Order are not applicable to the Company.
14. The company is not in the business of dealing ortrading in shares,
securities, debenture and other instruments. Accordingly, the
provisions of clause 4(xiv) of the Order are not applicable to the
Company.
15. The company has not given any guarantee for loans taken by others
from banks orfinancial institutions.
16. The company has not taken term loans from banks.
17. Based on our examination of the balance sheet of the company as at
31.03.2014, since there is no loans availed by the company, the
utilization of funds does not arise.
18. 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. During the year covered by our audit report, the Company does not
have any outstanding debentures during the year.
20. During the year the company has not raised money through the Public
Issue, the utilization of funds does not arise.
21. Based upon the audit procedures performed and information and
explanations given by the management, we report that no fraud on or by
the company has been noticed or reported during the course of our
audit.
For CHANAMOLU & CO.,
Chartered Accountants
Place: Hyderabad G. Murali
Date : May 27th, 2014 Partner
Membership No.234971
Mar 31, 2013
We have audited the attached Balance Sheet of Indovation Technologies
Limited (Formerly Known as Priyadarshini Thread Limited) as at March
31, 2013, 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 Company''s management. Our responsibility
is to express an opinion on these financial statements based our audit.
We conducted our audit in accordance with auditing standards generally
accepted in India. Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statements
presentation. We believe that our audit provides a reasonable basis for
our opinion.
1. As required by the Companies Auditors'' Report order (CARO) 2003 as
amended by the Companies (Auditors report) (Amendment) Order,2004,
issued by the Central Government of India in terms of section 227 (4A)
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.
2. Further to our comments in the Annexure referred to above, We
report that:
a) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of our
audit.
b) In our opinion, 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 Profit and Loss Account and the 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
the Cash Flow Statement dealt with by this report comply with the
Accounting Standards referred to in Section 211(3C) of the Companies
Act, 1956.
e) On the basis of information and explanations given to us and
representations received from the Directors of the company as on 31st
March, 2013 and taken on record by the Board of Directors, We report
that none of the Directors are disqualified as on 31st March, 2013 from
being appointed as Director of the company under Section 274 (1) (g) 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 read together with the
notes thereto, give the information required by the Companies Act, 1956
in the manner so required and give a true and fair view in conformity
with the Accounting Principles generally accepted in India.
(i) in the case of Balance Sheet, of the state of affairs of the
Company as at 31st March, 2013,
(ii) in the case of the Profit and Loss Account, of the Profit of the
Company for the year ended on that date, and
(iii) In the case of Cash Flow Statement, of the cash flows for the
year ended on that date.
(Annexure to the Auditors'' Report (referred to in paragraph 3 of our
Report of even date to the Members of M/s. Indovation Technologies
Limited (Formerly Known as Priyadarshini Thread Limited for the year
ended March 31, 2013)
1. (a) The company is maintaining proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) According to the information and explanations given to us, fixed
assets were physically verified by the management during the year and
no material discrepancies were noticed on such verification.
(c) In our opinion and according to the information and explanations
given to us, a substantial part of fixed assets has not been disposed
of by the company during the year.
2. In our opinion and according to the information and explanations
given to us, the Company is not having any inventory. Accordingly, the
provisions of clause 4(ii) of the Order are not applicable to the
Company.
3. (a) The Company has taken unsecured loans amounting to
Rs.3,51,118/- from companies, firms or other parties covered in the
register maintained under Section 301 of the Companies Act, 1956. (b)
The Company has not granted any loans to companies, firms or other
parties listed in the register maintained under section 301 of the
Companies Act, 1956 and the terms and conditions of the loans are
reasonable.
4. On the basis of checks carried out during the course of audit and
as per explanations given to us, we are of the opinion that there are
adequate internal control procedures commensurate with the size of the
company and the nature of its business; for the purchases of inventory
and fixed assets and for the sale of goods. During the course of our
audit, no major weakness has been noticed in the internal controls.
5. a) In our opinion and according to the information and explanations
given to us, we are of the opinion that the transactions that need to
entered into the register maintained under Section 301 of the Companies
Act, 1956 have been so entered. b) In our opinion and according to the
information and explanations given to us, transactions made in
pursuance of contracts or arrangements entered in the register
maintained under Section 301 of the Companies Act, 1956 and exceeding
the value of Rupees five lakhs in respect of each party during the year
have been made at prices which are reasonable having regard to the
prevailing market prices at the relevant time.
6. In our opinion and according to the information and explanations
given to us, the company has not accepted any deposits within the
meaning of Sections 58A and 58AA of the Companies Act, 1956 and the
Companies (Acceptance of Deposits) Rules, 1975 with regard to the
deposits accepted from the public.
7. In our opinion, the company has an internal audit system
commensurate with the size and nature of its business.
8. To the best our knowledge and as explained, the Central Government
has not prescribed maintenance of cost records under Section 209 (i)
(d) of the of the Companies Act, 1956 in respect of the Company''s
nature of business.
9. (a) According to the records of the company, the company is regular
in depositing undisputed statutory dues including provident fund,
employees'' state insurance, Income Tax, Wealth Tax, Customs Duty,
Excise duty, cess and other material statutory dues applicable at the
end of the 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 some disputes and pending tax payments with
Income tax department. Except the given below there were no dues on
account of cess under 441A of the Companies Act 1956, since the date
from which the aforesaid section comes into force has not yet been
notified by the Central Government.
S.
No.Particulars Situation Amount
1 Asst. Commissioner
of Penalty order
U/S.271(1)(c) Rs.41,80,872
Income Tax, Circle - 2(3)
10. The company has incurred accumulated losses of Rs. 1,56,40,303 /-
as at the end of the financial year 2012-13 and it has not incurred any
cash losses during the current financial year covered by our audit and
has not incurred any cash losses in the immediately preceding financial
year.
11. Based on our audit procedures and on the information and
explanations given by the management, we are of the opinion that the
company did not have any outstanding dues to financial Institutions,
Banks or Debenture holders.
12. According to the information and expiations given to us, the
Company has not granted loans and advances on the basis of security by
way of pledge of shares, debentures and other securities.
13. In our opinion, the Company is not a chit or a nidhi / mutual
benefit fund / society. Therefore, the provisions of clause 4(xiii) of
the Order are not applicable to the Company.
14. The company is not in the business of dealing or trading in
shares, securities, debenture and other instruments. Accordingly, the
provisions of clause 4(xiv) of the Order are not applicable to the
Company.
15. The company has not given any guarantee for loans taken by others
from banks or financial institutions.
16. The company has not taken term loans from banks.
17. Based on our examination of the balance sheet of the company as at
31.03.2013, since there is no loans availed by the company, the
utilization of funds does not arise.
18. 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. During the year covered by our audit report, the Company does not
have any outstanding debentures during the year.
20. During the year the company has not raised money through the
Public Issue, the utilization of funds does not arise.
21. Based upon the audit procedures performed and information and
explanations given by the management, we report that no fraud on or by
the company has been noticed or reported during the course of our
audit.
For CHANAMOLU & CO.,
Chartered Accountants
Firm Registration No.010000S
Sd/-
P. Sriram
Partner
Place: Hyderabad Membership No. 227395
Date : 30.05.2013
Mar 31, 2011
We have audited the attached Balance Sheet of Phyadarshini Thread
Limited as at March 31,2011, 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 Company's
management. Our responsibly is to express an opinion on these financial
statements based our audit,
We conducted our audit In accordance with auditing standards generally
accepted in India. Those standards require that we plan and perform
the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as welt as evaluating the overall financial statements
presentation. We believe that our audit provides a reasonable basis for
our opinion.
1. As required by the Companies Auditors" Report order (CARO) ã003 as
amended by the Companies {Auditors report) (Amendment) Order,2004.
issued by the Central Government of India in terms of section 227 (4A)
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.
2. Further to our comments in the Annexure referred to above, We
report that:
a) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary tor 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, the Profit and Loss Account and the 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
the Cash Flow Statement dealt with by this report comply with the
Accounting Standards referred to in Section 211 (3C) of the Companies
Ad, 1956.
e) On the basis of information and explanations given to us and
representations received from the Directors of the company as on 31st
March, ã011 and taken on record by the Board of Directors, We report
that none of the Directors are disqualified as on 31st March, 2011 from
being appointed as Director of the Company under Section 274 (1) (g) 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 read together with the
notes thereto, give the information required by the Companies Act, 1956
in the manner so required and give a true and fair view in conformity
with the Accounting Principles generally accepted in India.
i) In the cage of Balance Sheet, of the state of affairs of the Company
as at 31st March, 2011,
ii) In the case of the Profit and Loss Account, of the Profit of the
Company for the year ended on that date, and
iii) in the case of Cash Flow Statement, of the cash flows for the year
ended on that date.
ANNEXURE REFERRED TO IN PARAGRAPH 1 OF OUR REPORT Of EVEN DATE
{Annexure to the Auditors" Report (referred to in paragraph 3 of our
Report of even date to the Members of Priyadarshini Thread Limited for
the year ended March 31, 2011)
1. (a). The company is maintaining proper records showing full
particulars including quantitative details and situation of fixed
assets,
[b)h According to the information and explanations given Jo us, fixeo1
assets were physically verified by the management during the year and
no material discrepancies were noticed on such verification.
(c). In our opinion and according to the information and emanations
given to us, a substantial part of fixed assets has not been disposed
of by the company during the year,
2. In our opinion and according g to the information and explanations
given to us, the Company is not having any inventory, Accordingly, the
provisions of clause 4(ii) of the Order are not applicable to the
Company,
3. (a) The Company has taken unsecured loans amounting to
Rs.7,21,31,018/- from companies, firms or other parties covered in the
register maintained under Section 301 of the Companies Act, 1958.
(b) The Company has not granted any bans to companies, firms or other
parties listed in the register maintained under section 301 of the
Companies Act, 1956 and the terms and conditions of the Joans are
Reasonable.
4. On the basis of checks carried out during the course of audit and
as per explanations given to us we are of the opinion that there are
adequate internal control procedures commensurate with the size of the
company and the nature of its business; for the purchases of inventory
and fixed assets and for the sale of goods. During the course of cur
audit, no major weakness has been noticed in the internal controls.
5. a) In our opinion and according to the information and explanations
given to us we are of the opinion that the transactions that need to
entered into the register maintained under Section 301 of the Companies
Act, 1956 have been so entered.
b) In our opinion and according to the Information and explanations
given to us, transactions made in pursuance of contracts or
arrangements entered in the register maintained under Section 301 of the
Companies Acts 1956 and exceeding the value of Rupees five lakhs in
respect of each party during the year have been made at prices which
are reasonable having regard to the prevailing market prices at the
relevant time.
6. In our opinion and according to the information and explanations
given to us, the company has not accepted any deposits within the
meaning of Sections 58A and 58AA of the Companies Act, 1956 and the
Companies (Acceptance of Deposits) Rules, 1975 with regard to the Jr
deposits accepted from the public.
7. In our opinion, the company has an internal audit system
commensurate with the size and nature of its business,
8. To the best our knowledge and as explained, the Central Government
has not prescribed maintenance of cost records under Section 209 (i)
{d) of the of the Companies Act, 195S in respect of the Company's
nature of business.
9. (a) According to the records of the company, the company is regular
in depositing undisputed statutory dues including provident fund,
employees' state insurance. Income Tax, Wealth Tax, Customs Duty,
Excise duty, cess and other material statutory dues applicable at the
end of the 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 some disputes and pending tax payments with Income tax department.
Except the given below there were no dues on account of cess under 441A
off the Companies Act 1956, since the date from which the aforesaid
section comes into force has not yet been notified by the Central
Government.
S.No. Particulars Situation Amount
1. Asst.Commissioner of Penalty order Rs.41.60,872
Income Tax. Circle -2(3) U/S,271(1)(c)
10. The company having amount Rs. 103,604,654/- accumulated losses as
at the end of the financial year and it has not incurred any cash
losses during the current financial year covered by our audit and has
not incurred any cash losses- in the immediately preceding financial
year
11. Based on our audit procedures and on the information and
explanations given by the management, we are or the opinion that the
company did not have any outstanding dues to financial Institutions,
Banks or Debenture holders.
12. According to the information and expiations given to us, the
Company has not granted loans and advances on the basis of security by
way of pledge of shares, debentures and other securities.
13. In our opinion, the Company is not a chit or a nidhi/ mutual
Benefits fund/ society. Therefore. the provisions of clause 4(xiii) of
the Order are not applicable to the Company.
14. The company is not in the business of dealing or trading in
shares securities, debenture and other instruments. Accordingly, the
provision of clause 4(xiv) of the Order are not applicable to the
Company,
15. The company has not given any guarantee for loans taken by other
from banks or financial institutions,
16. The company has not taken term loans from banks.
17. Based on our examination of the balance sheet of the company as a
31.03.2011, since there is no loans availed by the company, the
utilization of funds does not arise,
18. 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. During the year covered by our audit report, the Company does not
have any outstanding debentures during the year.
20. During the year the company has not raised money through the
Publics Issue, the utilization of funds does not arise.
21. Based upon the audit procedures performed and information and
explanations given by the management, we report that no fraud on by
the company has been noticed or reported during the course of our
audit,
For M M REDDY & CO.,
Chartered Accountants
Firm Reg. No. 010371S
Sd/-
CA M. Madhusudhana Reddy
Place: Hyderabad Partner
Date: 15.07.2017 Membership No.213077
Mar 31, 2010
We have audited the attached Balance Sheet of Priyadarshini Thread
Limited as at March 31, 2010, the Profit and Loss Account abd Cash Flow
Statement for the year ended on that date, annexed thereto. These
financial statements are the responsibility of the Companys
managemennt. Our responsibility is to express an opinion on these
financial statements based our audit.
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 included
examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statements
presentation. We believe that out audit provides a reasonable basis
for our opinion.
1. As required by the Companies Auditors Report order (CARO) 2003 as
amended by the Companies (Auditors report) (Amendment) Order,2004,
issued by the Central Government of India in terms of section 227 (4A)
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.
2. Further to our comments in the Annexure referred to above, We report
that:
a) we have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of our
audit.
b) In our opinion, proper books of account as required by laww have
been kept by the Company so far as appears form our examination of
those books.
c) The Balance Sheet, the Profit and Loss Account and the 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
the Cash Flow Statement delat with by this report comply with the
Accounting Standards referred to in Section 211(3c) of the Companies
Act, 1956.
e) On the basis of information and explanations given to us and
representations received from the Directors of the company as on 31st
March, 2010 and taken on record by the Board of Directors, We report
that none of the Directors are disqualified as on 31st March, 2010 form
being appointed as Director of the company under Section 274(1) (g) 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 read together with the
notes thereto, give the information required by the Companies Act, 1956
in the manner so required and give a true and fair view in conformity
with the Accounting Principles generally accepted in India.
(i) in the case of Balance Sheet, of the state of affairs of the
Company as at 31st March, 2010
(ii) in the case of the Profit and Loss Account, of the Profit of the
Company for the year ended on that date, and
(iii) in the case of Cash Flow Statement, of the cash flows for the
year ended on that date.
ANNEXURE REFERRED TO IN PARAGARH 1 OF OUR REPORT OF EVEN DATE
(Annexure to the Auditors Report (referred to in paragraph 3 of our
Report of even date to the Members of Priyadarshini Thread Limited for
the year ended March 31, 2010)
1. The company does not have any fixed assets during the year under
review.
2. In our opinion and according to the information and explanations
given to us, the Company is not having any inventory. Accordingly, the
provisions of clause 4(ii) of the Order are not applicable to the
Company.
3. (a) The Company has taken unsecured loans from companies, firms or
other parties amounting to Rs. 7,21,31,018/- covered in the register
maintained under Section 301 of the Companies Act, 1956.
(b) The Company has not granted any loans to companies, firms or other
parties listed in the register maintained under section 301 of the
Companies Act, 1956 and the terms and conditions of the loans are
reasonable
4. On the basis of checks carried out during the course of audit and as
per explanations given to us, we are of the opinion that there are
adequate internal control procedures commensurate with the size of the
company and the nature of its business; for the purchases of inventory
and fixed assets and for the sale of goods. During the course of our
audit, no major weakness has been noticed in the internal controls.
5. a) In our opinion and according to the information and explanations
given to us, we are of the opinion that the transactions that need to
entered into the register maintained under section 301 of the Companies
Act, 1956 have been so entered.
b) In our opinion and according to the information and explanations
given to us, transactions made in pursuance of contacts or arrangements
entered in the register maintained under Section 301 of the Companies
Act, 1956 and exceeding the value of Rupees five lakhs in respect of
each party during the year have been made at prices which are
reasonable having regard to the prevailing market prices at the
relevant time.
6. In our opinion and according to the information and explanations
given to us, the company has not accepted any deposits within the
meaning of Sections 58A and 58AA of the Companies Act, 1956 and the
Companies (Acceptance of Deposits) Rules, 1975 with regard to the
deposits accepted form the public.
7. In our opinion, the company has an internal audit system
commensurate with the size and nature of its business.
8. To the best our knowledge and as explaines, the Central Government
has not prescribed maintenance of cost records under Section 209 (i)
(d) of the Companies Act, 1956 in respect of the Companys nature of
business.
9. (a) According to the records of the company, the company is regular
in depositing undisputed statutory dues including provident fund,
employees state insurance, Income Tax, Wealth Tax, Customs Duty,
Excise duty, cess and other material statutory dues applicable at the
end of the year for a period of more than six months from the date they
became payable.
(b) According to the information and explanatins given to us, there are
some disputes and pending tax payments with Income tax department.
Except the given below there were no dues on account of cess under 441A
of the Companies Act 1956, since the date from which the aforesaid
section comes into force has not yet been notified by the Central
Government.
Sl. Particulars Situation Amount (Rs.)
No.
1. Asst. Commissioner of Penalty order U/S.271(1)(c) 41,80,872
Income Tax, Circle-2(3)
10. The company having Rs. 10,41,96,621/- accumulated losses as at the
end of the financial year.
11. Based on our audit procedures and on the information and
explanations given by the management, we are of the opinion that the
company did not have any outstanding dues to financial Institutions,
Banks or Debenture holders.
12. According to the information and expiations given to us, the
Company has not granted loans and advances on the basis of security by
way of pledge of shares, deventures and other securities.
13. In our opinion, the Company is not a chit or a nidhi / mutual
benefit fund / society. Therefore, the provisions of clause 4(xiii) of
the Order are not applicable to the Company.
14. The Company is not in the business of dealing or trading in shares,
securities, debenture and other instruments. Accordingly, the
provisions of clause 4(xiv) of the Order are not applicable to the
Company.
15. The company has not given any guarantee for loans taken by others
from banks or financial institutions.
16. The company has not taken term loans from banks.
17. Based on our examination of the balance sheet of the company as at
31.03.2010, since there is no loans availed by the company, the
utilization of funds does not arise.
18. 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. During the year covered by our audit report, the Company does not
have any outstanding debentures during the year.
20. During the year the company has not raised money through the public
Issue, the utilization of funds does not arise.
21. Based upon the audit procedures performed and information and
explanations given by the management, we report that no fraud on or by
the company has been noticed or reported during the course of our
audit.
FOR M M REDDY & CO.,
Chartered Accountants
Firm Reg. No. 010371S
Sd/-
M. Madhu sudhana Reddy
Proprietor
Membership No.213077
Place: Hyderabad
Date : September 3, 2010
Disclaimer: This is 3rd Party content/feed, viewers are requested to use their discretion and conduct proper diligence before investing, GoodReturns does not take any liability on the genuineness and correctness of the information in this article