Mar 31, 2015
We have audited the accompanying financial statements of Venlon
Enterprises Limited ('the Company'), which comprise the balance sheet
as at 31 March 2015. the statement of profit and loss and the cash flow
statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
The Company's Board of Directors is responsible for the matters staled
in Section 134(5) of the Companies Act, 2013 (l'the Act") with respect
to the preparation and presentation of these financial statements that
give a true and lair view of the financial position, financial
performance and cash flows of the Company in accordance with the
accounting principles generally accepted in India, including the
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility
also includes maintenance of adequate accounting records in accordance
with the provisions of the Act for safeguarding the assets of the
Company and for preventing and delecting frauds and other
irregularities; selection and application of appropriate accounting
policies; making judgments and estimates that are reasonable and
prudent; and design, implementation and maintenance of adequate
internal financial controls, that were operating effectively for
ensuring the accuracy and completeness of the accounting records,
relevant ro the preparation and presentation of the financial
statements that give a true and fair view and are free from material
misstatement whether due io fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We have taken into account the
provisions of the Act. the accounting and auditing standards and
matters which arc required to be included in the audit report under the
provisions of the Act and the Rules made thereunder.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act Those Standards require that
we comply with ethical requirements and plan and perform the audit to
obtain reasonable assurance about whether the financial statements arc
free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial control relevant
to the Company's preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances, hut not for the purpose of expressing
an opinion on whether the Company has in place an adequate internal
financial controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of1 the accounting policies used and the reasonableness
of the accounting estimates made hy the Company's Directors, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the financial
statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us. the aforesaid financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India, of the state of affairs of the Company as
at 31 March. 2015 and its Loss and its Cash Flows for the year ended on
that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors Report) Order, 2015 ("the
Order) issued by the Centra! Government of India in terms of
sub-section (11) of section 143 of the Act, we give in the Annexurc a
statement on the matters Specified in the paragraph 3 and 4 of the
Order, to the extent applicable.
2. As required by Section 143 (3) of the Act, we report that;
(a) W'e have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purposes of our audit.
(b) In our opinion proper books of account as required by law have been
kept by the Company so far as it appears from our examination of those
books;
(c) The Balance Sheet, the Statement of Profit and Loss and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account;
(d) In our opinion, the aforesaid financial statements comply with the
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules. 2014:
(e) On the basis of the written representations received from the
directors as on 31 March 2015 taken on record by the Board of Directors,
none of the directors are disqualified as on 31 March 2015 from being
appointed as a director in terms of Section 164 (2) of the Act; and S
(f) With respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us:
i. The Company docs not have any pending litigations which would impact
its financial position, '
it. Thc Company did not have any long-term contracts including
derivative contracts for which there were any material foreseeable
losses,
iii. There were no amounts which were required to be transferred to the
Investor Education and Protection Fund by the Company,
Annexure to the Independent Auditofs Report
Referred to in paragraph under the heading "Report on Other Legal and
Regulatory Requirements" of our Independent Auditors' Report of even
date to the members of Venlon Enterprises Limited on the financial
statements for the year ended 131 March 2015.
We report that:
1. (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 program designed to cover all the items over a
period of three years, which in our opinion, is reasonable having
regard to the size of the Company and the nature of' its assets. No
material discrepancies were noticed on such verification.
2. (a) The inventory has been physically verified by the management
during the year. In our opinion, the frequency of verification is
reasonable.
(b) In our opinion, 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) On the basis of our examination of the inventory records, in our
opinion, the Company is maintaining proper records of inventory. The
discrepancies noticed on physical verification of inventory as compared
to book records which lias been properly dealt with in the books of
account were not material.
3. (a) The Company has not granted unsecured loans to Companies
covered in the register maintained under Section 189 of the Companies
Act. 2013 ('the Act').
(b) Accordingly, paragraph 3(iii)(b) and 3(iii)(c) of the Order are not
applicable to the Company.
4. In our opinion and according to the information and exp I actions
given to us, them are adequate internal control systems which
commensurate with the size of the company and the nature of its
business for the purchase of inventory and fixed assets and for the
sale of' goods. Further, on the basis of our examination of the books
and records of the company and according to the information and
explanations given to us. we have neither come across nor have been
informed of any continuing failure to correct major weaknesses in the
aforesaid internal control procedures.
5. The Company has not accepted any deposits from the public within
the meaning of Section 73 to 76 or any other Relevant Provisions of the
Companies Act, 2013 and the rules framed there under. No order hasdbeen
passed by National Company Lawr Tribunal or Reserve Hank of India or
any Court or any other Tribunal.
6. We have broadly reviewed the books of account maintained by the
Company in respect of products where, pursuance to the Rules made by
the Central Government, the maintenance of cost records has been
prescribed under section 148(1) of the Companies Act, 2013 and are of
the opinion that prim a facie, the prescribed accounts and records have
been made and maintained in respect of the products manufactured by the
Company, We have not, however, made a detailed examination of the
records with a view to determine whether they are accurate or complete.
7. (a) According to the information and explanations given to us and
the records of the Company examined by us, no undisputed statutory dues
including provident fund, employees' state insurance, sales lax. wealth
lax, service tax, customs duty, value added tax, excise duty, cess and
other material statutory dues as applicable with the appropriate
authorities, except income tax ( I DS) where there has been a slight
delay. The Company has since remitted the income tax (TDS).
(b) According to the information and explanations given to us, there
arc no dues of Provident fund. Income tax, Sales tax. Wealth tax,
Service tax, Custom duty. Value added tax, Pxcise duty and Cess which
have not been deposited on account of any dispute,
(c) According to the information and explanations given to us, no amounts
were required to be transferred to the investor education and protection
fund in accordance with relevant provisions of the Companies Act, 1956
(1 of 1956) and rules there under. Accordingly, paragraph 7(c) of the
Order is not applicable to the Company in respect of amounts being
transferred to such fund within time.
8. In our opinion, the accumulated losses of the Company are more than
fifty percent of its net worth. The Company has incurred cash losses
during the financial year covered by our audit. However the company
had not incurred cash loss during the immediately preceding financial
year.
9. According to the records of the Company examined by us and die
information and explanations given to us. the Company has not defaulted
in repayment of dues to any financial institution or bank as at the
balance sheet date. The Company has not issued any debentures.
10. in our opinion and according to the information and explanations
given to us, the company has not given any guarantee for loans taken by
others from banks or financial institutions during the vear.
11, In our opinion, and according to the information and explanations
given to us, on an overall basis, the term loans have been applied for
the purposes for which they were obtained
12. During the eourse 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
explanations given to us, wre have neither come across any instance of
material fraud on or by the company, noticed or reported during the
year, nor we have been informed of any such case by the management.
FotjRAU & NATHAN
Chartered Accountants
Firm Registration # 003178S
N.VAfWANAmAygX
Partner
Membership# 022573
Place : MYSURU
Date : 30 May, 2015
Mar 31, 2014
We have audited the accompanying financial statements of Venlon
Enterprises Limited ("the Company") which comprise the Balance Sheet as
at 31 st 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 and the fair presentation
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-seel ion
(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.
Auditors'' Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We have 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 audit
procedures selected depend on the auditors'' 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 that the audit evidence we have obtained is sufficient
and appropriate to provide a reasonable basis for our audit opinion on
the financial statements.
Opinion
Reference is invited to the details in note number 30(E)(ii) of
additional notes / disclosures to the financial statements regarding
the changes in accounting practice as required by paragraph 46A of
Accounting Standard AS -11 issued by "The Institute of Chartered
Accountants of India" and the ''consequential impact on the financial
statements.
Further to the above, 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 lair 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 31st March, 2014;
ii) in the case of the Statement of Profit and Loss, of the loss for
the year ended on that date; and
iii) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1) As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of Section 227 of the Act. we enclose 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 purposes of our
audit.
b. in our opinion, proper books of account as required by the law have
been kept by the Company so far as appears from our examination of
those books.
c. The Balance Sheet, the State memt 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 dealt with by this report comply with the
Accounting Standards referred to in sub section (3C) of Section 211 of
the Act. except for treatment of inter-divisional transfers as referred
to note number 30(j) of additional notes / disclosures to the financial
statements.
c. On the basis of the written representation received from the
directors, as at March. 2014. and taken on record by the Board of
Directors, we report that none of the directors is disqualified as at
31st March, 2014 from being appointed as directorin terms of Clause (g)
of Sub Section (1) of Section 274 of the ACL
Annexure to the Independent Auditors'' Report
Referred to in paragraph I under the heading "Report on Other Legal and
Regulatory Requirements" of our Report of even date to the members of
Venlon Enterprises Limited for the year ended 31st March, 2014.
We report that:
1. (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 program designed to cover all the items over a
period of three years, which in our opinion, is reasonable having
regard to the size of the Company and the nature of its assets. No
material discrepancies were noticed on such verification.
(c) In our opinion and according to the information and explanations
given to us, no substantial part of fixed assets has been disposed off
by the Company during the year. And therefore, do not affect the going
concern assumption.
2. (a) The inventory has been physically verified by the management
during the year. In our opinion, the frequency of verification is
reasonable.
(b) In our opinion, 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) On the basis of our examination of the inventory records, in our
opinion, the Company is maintaining proper records of inventory. The
discrepancies noticed on physical verification of inventory as compared
to book records which has been properly dealt with in the books of
account were not material.
3. (at The Company has not granted unsecured loans to Companies
covered in the register maintained under Section 301 of the Companies
Act, 1956.
(b) The Company has taken unsecured loans from thirteen Companies and
three other parties covered in the register maintained under Section
301 of the Act. The maximum amount outstanding during the year is Rs.
1,845.59 lacs and the year- end balances of such loan aggregates to Rs,
1,8,17.09 lacs respectively.
(c) In our opinion, the rate of interest and other terms and conditions
of such loans are not, prima Jade, prejudicial to the interest of the
Company.
(d) The company is regular in repaying the principal amounts as
stipulated and is also regular in payment of interest, where
applicable.
4. In our opinion and according to the information and explanations
given to us,there are adequate internal control systems which
commensurate with the size of the company and the nature of its
business for the purchase of inventory and fixed assets and for the
sale of goods and services. Further, on the basis of our examination of
the books and records of the company and according to the information
and explanations given to us. we have neither come across nor have been
informed of any continuing failure to correct major weaknesses in the
aforesaid internal control procedures.
5. (a) In our opinion and according to the information and
explanations given to us, the particulars of eon tracts or arrange
merits that need to be entered into the register in pursuance of
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 such contracts or
arrangements have been made at. prices which are reasonable having
regard to the prevailing market prices at the relevant time.
6. The Company has not accepted any deposits from the public within
the meaning of Section 58A and 58AA or any other Relevant Provisions of
the Companies Act, 1956 and the rules framed there under. No order has
been passed by National Company Law Tribunal or Reserve Bank of India
or any Court or any other Tribunal,
7. In our opinion, the company has an internal audit system
commensurate with the size arid nature of its business.
8. We have broadly reviewed the books of account maintained by the
Company in respect of products where, pursuance to the Rules made by
the Central Government, the maintenance of cost records has been
prescribed under clause (d) of Sub section (1) of Section 209 of the
Companies Act, 1956 and are of the opinion that prima facie, the
prescribed accounts and records have been made and maintained in
respect of the products manufactured by the Company, We have not,
however, made a detailed examination of the records with a view to
determine whether they are accurate or complete.
9. (a) According to the information and explanations given to us and
the records of the Company examined by us. in our opinion the Company
is generally regular in depositing the undisputed statutory dues
including provident fund, investor education and protection fund,
employees'' state insurance, sales tax. wealth tax. service tax.
customs duty, excise duty, cess and other material statutory dues as
applicable with the appropriate authorities, except income lax (TDS)
where there has been a slight delay. S he Company has since remitted
the income tax (TDS).
(b) According to the information and explanations given to us, there
arc no dues of Income tax, Sales tax, Wealth tax, Service tax, Custom
duty. Excise duty and Cess which have not been deposited on account of
any dispute.
10. in our opinion, the accumulated losses of the Company are not more
than fifty percent of its net worth. The Company has not incurred cash
losses during the financial year covered by our audit. However rite
company had Incurred cash loss during the immediately prceeding
finarcial year.
11. According to the records of the Company examined by us and the
information and explanations given to us. the Company has not defaulted
in repayment of dues to any financial institution or bank as at the
balance sheet date. The Company has not issued any debentures.
12. 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- The provisions of any special statute applicable to chit
fund/nidhi/mutual benefit fund/societies are not applicable to the
company.
14. In our opinion, the Company is not a dealer or trader or trader in
shares, securities, debentures and other investments;
15. In our opinion, and according to the information and explanations
given to us, the Company has not given any guarantee for loans taken by
others from banks or financial institutions during the year.
16. In our opinion, and according to the information and explanations
given to us. on an overall basis, the term loans have been applied for
the purposes for which they were obtained,
17. On the basis of overall examination of the balance sheet of the
company, in our opinion and according to the information and
explanations given to us, there are no funds raised on a short-term
basis, which have been used for long-term investment.
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 Act during the year.
19. The company has not issued any debentures.
20. The company has not raised any money by public issues during the
year.
21. During the course off 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
explanations given to us. we have neither come across any instance of
material fraud on or by the company, noticed or reported during (the
year, nor we have been informed of any such case by the management.
For RAU & NATHAN
Chartered Accountant
Firm Registration # 0031 78S
N. VAIDYANATHAN
Partner,
Membership # 22573
Place: MYSORE
Date: 30th May, 2014
Mar 31, 2013
We have audited the accompanying financial statements of Venlon
Enterprises Limited ("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 and the fair presentation
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.
Auditors'' Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We have conductcd 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 audit
procedures selected depend on the auditors'' 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 that the audit evidence we have obtained is sufficient
and appropriate to provide a reasonable basis for our audit opinion on
the financial statements.
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:
i) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2013;
ii) in the case of the Statement of Profit and Loss, of the loss for
the year ended on that date; and
iii) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1) As required by the Companies (Auditor''s Report) Order, 2003
("the Order") issued by the Centra! Government of India in terms of
sub-section (4A) of Section 227 of the Act, we enclose in the Annexure
a statement on the matters specified in Paragraphs 4 and 5 of the
Order.
2) As required by Section 277 (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 the 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 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 dealt with by this report comply with the
Accounting Standards referred to in sub section (3C) of Section 211 of
the Act, except for treatment of inter-divisional transfers as referred
to note number 31 (j) of additional notes / disclosures to the
financial statements.
e. On the basis of the written representation received from the
directors, as at 31st March, 2013, and taken on record by the Board of
Directors, we report that none of the directors is disqualified as at
31st March, 2013 from being appointed as 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 "Report on Other Legal
and Regulatory Requirements" of our Report of even date to the
members of Venlon Enterprises Limited for the year ended 31st March,
2013.
We report that:
1. (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 program designed to cover all the items over a
period of three years, which in our opinion, is reasonable having
regard to the size of the Company and the nature of its assets. No
material discrepancies were noticed on such verification.
(c) Tn our opinion and according to the information and explanations
given to us. no substantial part of fixed assets has been disposed off
by the Company during the year. And therefore, do not affect the going
concern assumption,
2. (a) The inventory has been physically verified by the management
during the year. In our opinion, the frequency of verification is
reasonable.
(b) In our opinion, 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) On the basis of our examination of the inventory records, in our
opinion, the Company is maintaining proper records of inventory. The
discrepancies noticed on physical verification of inventory as compared
to book records which has been properly dealt with in the books of
account were not material.
3. (a) The Company has not granted unsecured loans to Companies
covered in the register maintained under Section 301 of the Companies
Act, 1956.
(b) The Company has taken unsecured loans from thirteen Companies and
three other parties covered in the register maintained under Section
301 of the Act. The maximum amount outstanding during the year is
Rs.1,288.88 lacs and the year- end balances of such loan aggregates to
Rs.1,175.07 lacs respectively.
(c) In our opinion, the rate of interest and other terms and conditions
of such loans are not, prima facie, prejudicial to the interest of the
Company.
(d) The company is regular in repaying the principal amounts as
stipulated and is also regular in payment of interest, where
applicable.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control systems which
commensurate with the size of the company and the nature of its
business for the purchase of inventory and fixed assets and for the
sale of goods and services. Further, on the basis of our examination of
the books and records of the company and according to the information
and explanations given to us, we have neither come across nor have been
informed of any continuing failure to correct major weaknesses in the
aforesaid interna) control procedures.
5. (a) In our opinion 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 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 such contracts or
arrangements have been made at prices which are reasonable having
regard to the prevailing market prices at the relevant time.
6. The Company has not accepted any deposits from the public within
the meaning of Section 58A and 58AA or any other Relevant Provisions of
the Companies Act, 1956 and the rules framed there under. No order has
been passed by National Company Law Tribunal or Reserve Bank of India
or any Court or any other Tribunal.
7. In our opinion, the company has an internal audit system
commensurate with the size and nature of its business.
8. We have broadly reviewed the books of account maintained by the
Company in respect of products where, pursuance to the Rules made by
the Central Government, the maintenance of cost records has been
prescribed under clause (d) of Sub section (1) of Section 209 of the
Companies Act, 1956 and are of the opinion that prima facie, the
prescribed accounts and records have been made and maintained in
respect of the products manufactured by the Company. We have not,
however, made a detailed examination of the records with a view to
determine whether they are accurate or complete.
9. (a) According to the information and explanations given to us and
the records of the Company examined by us, in our opinion the Company
is generally regular in depositing the undisputed statutory dues
including provident fund, investor education and protection fund,
employees'' state insurance, sales tax, wealth tax, service tax,
customs duty, excise duty, cess and other material statutory dues as
applicable with the appropriate authorities, except income tax (TDS)
where there has been a slight delay. The Company has since remitted the
income tax (TDS).
(b) According to the information and explanations given to us. there
are no dues of Income tax. Sales tax, Wealth tax, Service tax, Custom
duty, Excise duty and Cess which have not been deposited on account of
any dispute.
10. In our opinion, the accumulated losses of the Company are not more
than fifty percent of its net worth. Further, the Company has incurred
cash losses during the financial year covered by our audit and during
the immediately preceding financial year.
11. According to the records of the Company examined by us and the
information and explanations given to us, the Company has not defaulted
in repayment of dues to any financial institution or bank as at the
balance sheet date. The Company has not issued any debentures.
12. 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. The provisions of any special statute applicable to chit
fund/nidhi/mutual benefit fund/societies are not applicable to the
company. .
14. In our opinion, the Company is not a dealer or trader or trader in
shares, securities, debentures and other investments.
15. In our opinion, and according to the information and explanations
given to us. the Company has not given any guarantee for loans taken by
others from banks or financial institutions during the year,
16. In our opinion, and according to the information and explanations
given to us, on an overall basis, the term loans have been applied for
the purposes for which they were obtained.
17. On the basis of overall examination of the balance sheet of the
company, in our opinion and according to the information and
explanations given to us, there are no funds raised on a short-term
basis, which have been used for long-term investment.
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 Act during the year.
19. The company has not issued any debentures.
20. The company has not raised any money by public issues during the
year.
21. During the coursc 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
explanations given to us, we have neither come across any instance of
material fraud on or by the company, noticed or reported during the
year, nor we have been informed of any such case by the management.
For RAU & NATHAN
Chartered Accountants
Firm Registration # 003178S
N. VAIDYANATHAN
Partner
Membership # 22573
Place : MYSORE
Date : 30th May, 2013
Mar 31, 2012
1) We have audited the attached Balance Sheet of VENLON ENTERPRISES
LIMITED (Ãthe CompanyÃ) as at 31st March 2012, the Profit and Loss
Statement and the Cash Flow Statement of the Company for the year ended
on that date, annexed thereto. These financial statements are the
responsibility of the CompanyÃs management. Our responsibility is to
express an opinion on these financial statements based on our audit.
2) We have conducted our audit in accordance with the 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 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 (AuditorÃs Report) Order, 2003 issued
by the Central Government in terms of sub-section (4A) of Section 227
of the Companies Act, 1956 (Ãthe Act), we enclose in the Annexure a
statement on the matter specified in Paragraphs 4 and 5 of the said
Order.
4) Further to our comments in the Annexure referred to in Paragraph 3,
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 the law have
been kept by the Company so far as appears from our examination of
those books.
c. The attached Balance Sheet, the Profit and Loss Statement 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, Profit and Loss Statement and
the Cash Flow Statement dealt with by this report comply with the
Accounting Standards referred to in sub section 3(c) of Section 211 of
the Act, except treatment of inter Divisional transfers as referred to
note number 31(j) of additional notes / disclosures to the financial
statements.
e. On the basis of the written representation received from the
directors, as at 31st March 2012, and taken on record by the Board of
Directors, we report that none of the directors is disqualified as at
31st March 2012 from being appointed as directors in terms of Clause
(g) of Sub Section (1) of Section 274 of the Act.
Further to the above, in our opinion and to the best of our information
and according to the explanations given to us, the said accounts give
the information required by the 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 31st March 2012;
ii) in the case of the Profit and Loss Statement, of the loss for the
year ended on that date; and
iii) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Referred to in paragraph 3 of the Auditorsà Report of even date to the
members of Venlon Enterprises Limited for the year ended 31st March
2012.
We report that:
1. (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 program designed to cover all the items over a
period of three years, which in our opinion, is reasonable having
regard to the size of the Company and the nature of its assets. No
material discrepancies were noticed on such verification.
(c) In our opinion and according to the information and explanations
given to us, no substantial part of fixed assets has been disposed off
by the Company during the year. And therefore, do not affect the going
concern assumption.
2. (a) The inventory has been physically verified by the management
during the year. In our opinion, the frequency of verification is
reasonable.
(b) In our opinion, 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) On the basis of our examination of the inventory records, in our
opinion, the Company is maintaining proper records of inventory. The
discrepancies noticed on physical verification of inventory as compared
to book records which has been properly dealt with in the books of
account were not material.
3. (a) The Company has not granted unsecured loans to Companies
covered in the register maintained under Section 301 of the Companies
Act, 1956.
(b) The Company has taken unsecured loans from two Companies/other
parties covered in the register maintained under Section 301 of the
Act. The maximum amount outstanding during the year is Rs.473.96 lacs
and the vear-end balances of such loan aggregates to Rs.441.83 lacs
respectively.
(c) In our opinion, the rate of interest and other terms and conditions
of such loans are not, prima facie, prejudicial to the interest of the
Company.
(d) The company is regular in repaying the principal amounts as
stipulated and is also regular in payment of interest, where
applicable.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control systems which
commensurate with the size of the company and the nature of its
business for the purchase of inventory and fixed assets and for the
sale of goods and services. Further, on the basis of our examination of
the books and records of the company and according to the information
and explanations given to us, we have neither come across nor have been
informed of any continuing failure to correct major weaknesses in the
aforesaid internal control procedures.
5. (a) In our opinion 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 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 such contracts or
arrangements have been made at prices which are reasonable having
regard to the prevailing market prices at the relevant time.
6. The Company has not accepted any deposits from the public within
the meaning of Section 58A and 58AA or any other Relevant Provisions of
the Companies Act, 1956 and the rules framed there under. No order has
been passed by National Company Law Tribunal or Reserve Bank of India
or any Court or any other Tribunal.
7. In our opinion, the company has an internal audit system
commensurate with the size and nature of its business.
8. We have broadly reviewed the books of account maintained by the
Company in respect of products where, pursuance to the Rules made by
the Central Government, the maintenance of cost records has been
prescribed under clause (d) of Sub section (1) of Section 209 of the
Companies Act, 1956 and are of the opinion that prima facie, the
prescribed accounts and records have been made and maintained in
respect of Formaldehyde & Polyester Chips. We have not, however, made a
detailed examination of the records with a view to determine whether
they are accurate or complete.
9. (a) According to the information and explanations given to us and
the records of the Company examined by us. in our opinion the Company
is generally regular in depositing the undisputed statutory dues
including provident fund, investor education and protection fund,
employeesà state insurance, sales tax, wealth tax. service tax,
customs duty, excise duty, cess and other material statutory dues as
applicable with the appropriate authorities, except income tax (TDS)
where there has been a slight delay. The Company has since remitted the
income tax (TDS).
(b) According to the information and explanations given to us, there
are no dues of Income tax, Sales tax, Wealth tax, Service tax, Custom
duty, Excise duty and Cess which have not been deposited on account of
any dispute.
10. In our opinion, the accumulated losses of the Company are not more
than fifty percent of its net worth. Further, the Company incurred cash
losses during the financial year covered by our audit. It has not
incurred cash loss during the immediately preceding financial year.
11. According to the records of the Company examined by us and the
information and explanations given to us, the Company has not defaulted
in repayment of dues to any financial institution or bank as at the
balance sheet date. The Company has not issued any debentures.
12. 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. The provisions of any special statute applicable to chit
fund/nidhi/mutual benefit fund/societies are not applicable to the
company.
14. In our opinion, the Company is not a dealer or trader or trader in
shares, securities, debentures and other investments.
15. In our opinion, and according to the information and explanations
given to us, the Company has not given any guarantee for loans taken by
others from banks or financial institutions during the year.
16. In our opinion, and according to the information and explanations
given to us, on an overall basis, the term loans have been applied for
the purposes for which they were obtained.
17. On the basis of overall examination of the balance sheet of the
company, in our opinion and according to the information and
explanations given to us, there are no funds raised on a short-term
basis, which have been used for long-term investment.
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 Act during the year.
19. The company has not issued any debentures.
20. The company has not raised any money by public issues 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
explanations given to us, we have neither come across any instance of
material fraud on or by the company, noticed or reported during the
year, nor we have been informed of any such case by the management.
For RAU & NATHAN
Chartered Accountants
Firm Registration # 003178S
PLACE: MYSORE N.VAIDYANATHAN
DATE: 30th May 2012 Partner.
Membership #2573
Mar 31, 2010
1) We have audited the attached Balance Sheet of VENLON ENTERPRISES
LIMITED as at list March 2010, the Profit and Loss Account and the Cash
I low Statement of the Company for the year ended on that date annexed
thereto. These financial statements are the responsibility of the
companys management. Our responsibility is to express an opinion on
these financial statements based on our audit.
2) We have conducted our audit in accordance with lhe 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 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 issued
by the Central Government in terms of Sec. 227 (4A) of the Companies
Act, 1956, we give in the Annexure a statement on die matter specified
in Paragraphs 4 and 5 of the said Order.
4) Further to our comments in the Annexure referred to in Paragraph 3
above:
a. We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for die purposes of our
audit.
b. In our opinion, proper books of account as required by the law have
been kept by the company so far as appears from our examination of
those books.
c. The attached Balance Sheet, the Profit and Loss account and the
Cash Flow Statement dealt widi by this report are in agreement wiUi die
books of account.
d. In our opinion, the Balance Sheet. Profit and loss account and the
(ash Flow Statement comply widi the requirement of Accounting Standards
referred to in sub section 3(c) of Sec. 211 of the Companies Act 1956
except Treatment of inter divisional transfers as referred to in serial
number 5 Schedule 20 - Notes on Accounts.
e. On the basis of (he written representation received from the
directors, anil taken on the record by the Board of Directors, we
report that none of the directors is disqualified as on 31 si March
2010 from being appointed as directors in terms of Clause (g) of Sub
Sec. (1) of Sec. 274 of the Companies Act, 1956.
Further to the above, in our opinion and to the best of our information
and according to the explanations given to us, the accounts 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 31 st March 2010;
ii) in die case of Profit and Loss account, of the loss 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.
ANNRXURE Referred to in paragraph 3 of the Auditors Report of even
date to the members of Venlon Enterprises Limited on the financial
statements for the year ended 31st March 2010.
1. (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 Ihe management
according to a phased program designed to cover all the items over a
period of three years, which in our opinion, is reasonable having
regard 1o tbe si/e ol the Company and the nature of its assets. No
material discrepancies were noticed on such verification.
(c) In our opinion and according to the information and explanations
given to us. no substantial part of fixed assets has been disposed off
by the Company during the year.
2. (a) The inventory has been physically verified by the management
during the year. In our opinion, the frequency of verification is
reasonable.
(b) In our opinion, 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) On the basis of our examination of the inventory records, in our
opinion, the Company is maintaining proper records of inventory. The
discrepancies noticed on physical verification of inventory as compared
to hook records which has been properly dealt with in the books of
account were not material.
3. (a) The Company has not granted unsecured loans to Companies
covered in the register maintained under Section 301 of the Companies
Act, 1956.
(b) The Company has taken unsecured loans from Companies/other parties
covered in the register maintained under Section 301 of the Act. The
number of such companies/other parties is 3. Ihe maximum amount
involved during the year is Rs.2167.86 lacs and the year-end balances
of such loan aggregates to Rs.2066.68 lacs respectively.
(c) In our opinion, the rate of interest and other terms and conditions
of such loans are not prima facie prejudicial to the interest of the
Company.
(d) The company is regular in repaying the principal amounts as
stipulated ami is also regular in payment of interest, where
applicable.
4. In our opinion and according to the information and explanations
given lO us, ihere are adequate internal control system commensurate
with the size of the company and the nature of its business for the
purchase of inventory and fixed assets and tor the sale of goods and
services, further, on the basis of our examination of the books and
records of the company ami according to the information and
explanations given to us, we have neither come across nor have been
informed of any continuing failure to correct major weaknesses in the
aforesaid internal control procedures.
5. (a) In our opinion 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 the Companies Act, 1956 have been so entered.
(b) In our opinion ami according to the information and explanations
given to us, transactions made in pursuance of such contracts or
arrangements have been made at prices are reasonable having regard to
the prevailing market prices at the relevant time.
6. The Company has not accepted any deposits from the public within
the meaning of Section 58A and 58AA or any other Relevant Provisions of
the Companies Act, 1956 and the rules framed there under. No order has
been passed by National Company l.aw Tribunal or Reserve Bank of India
or any Court or any other Tribunal.
7. In our opinion, the company has an internal audit system
commensurate with the size and nature of its business.
8. We have broadly reviewed the books of account maintained by the
Company in respect of products where, pursuance to the Rules made by
the Central Government, the maintenance of cost records has been
prescribed under clause (d) of Sub section (1) of Section 209 of the
Companies Act, 1956 and are of the opinion that prima facie, the
prescribed accounts and records have been made ami maintained in
respect of Formaldehyde & Polyester Chips. We have not, however, made a
detailed examination of the records with a view to determine whether
they are accurate or complete.
9. (a) According to the information and explanations given to us and
the records of the Company examined by us, in our opinion the Company
is generally regular in depositing the undisputed statutory dues
including provident fund, investor education and protection fund,
employees state insurance, sales lax. wealth tax, service tax, customs
duty, excise duty, cess and other material statutory dues as applicable
with the appropriate auuiorities, except income tax (TDS) where there
has been a slight delay. The Company has since remitted the income tax
(TDS).
(b) According to the information and explanations given to us. Ihere
are no dues of Income tax. Sales tax. Wealth tax. Service tax. Custom
duty, Excise duty and Cess which have not been deposited on account of
any dispute.
10. The Company has accumulated losses ;is al March 31,2010 and it has
not incurred cash losses in the financial year ended on that date. ITte
company has incurred cash losses in the immediately preceding financial
year.
11. According to the records of the (ompany examined by us and the
information and explanations given to us, the Company has not defaulted
in repayment of dues to any financial institution or bank as al the
balance sheet date. The Company has not issued any debentures.
12. 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. The provisions of any special statute applicable to chit
fund/nidhi/mutual benefit fund/societies are not applicable to the
company.
14. In our opinion, the Company is not a dealer or trader or trader in
shares, securities, debentures and other investments.
15. In our opinion, and according to the information and explanations
given to us, the Company has not given any guarantee for loans taken by
others from banks or financial institutions during the year.
16. In our opinion, and according to the information and explanations
given to us, on an overall basis, the term loans have been applied for
the purposes for which they were obtained.
17. Cm the basis of overall examination of the balance sheet of the
company, in our opinion and according to the information and
explanations given to us. there are no funds raised on a short-term
basis, which have been used for long-term investment.
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 Act during the year.
19. The company has not issued any debentures.
20. The company has not raised any money by public issues 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
explanations given to us, we have neither come across any instance of
material fraud on or by the company, noticed or reported during the
year, nor we have been informed of any such case by the management.
For RAU & NATHAN
Chartered Accountants
Form Registration # 003178S
N.VADYANATHAN
Partner
Mrmbership # 22573
PLACE: MYSORE
DATE: 29th May 2010