Home  »  Company  »  Venmax Drugs & Pharm  »  Quotes  »  Auditor Report
Enter the first few characters of Company and click 'Go'

Auditor Report of Venmax Drugs & Pharmaceuticals Ltd.

Mar 31, 2014

We have audited the accompanying financial statements of M/s Venmax Drugs & Pharmaceuticals Limited which comprise the Balance sheet as at 31st March, 2014, the statement of Profit and loss and the Cash flow statement for the year then ended and a summary of significant accounting policies and other explanatory information.

Management''s Responsibility for the Financial Statements

Management is responsible for the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the Accounting Standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956 (the Act) read with the General Circular 15/2013 dated13th September 2013 of the Ministry of Corporate Affairs in respect of section 133 of the Companies,2013. This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Auditor''s Responsibility

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

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

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

Opinion

Subject to note No: 25 Item no - 9 Non receipt of confirmation of balances from parties and Non provision of liability in respect of employee retirement benefits which could not be quantified in the absence of information.

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 31.03.2014;

(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), as amended, issued by the Central Government of India in terms of sub-section (4A) of section 227 of the Act, we give in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the Order.

2. As required under provisions of 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, Statement of Profit and Loss and Cash flow statement dealt with by this report are in agreement with the books of account;

d. In our opinion, the Balance Sheet, Statement of Profit and Loss and Cash flow statement comply with the Accounting Standards referred to in sub section (3C) of Section 211 of the Companies Act, 1956 read with the GeneralCircular 15/2013 dated 13th September of the Ministry of Corporate Affairs in respect of section 133 of the Companies Act

e. On the basis of written representations received from the Directors as on 31.03.2014, and taken on record by the Board of Directors, none of the directors are disqualified as on 31st March, 2014 from being appointed as director in terms of section 274(1)(g) of the Companies Act, 1956.

ANNEXURE TO INDEPENDENT AUDITORS REPORT Referred to in paragraph 3 of our report of even date:

i. (a) The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets on the basis of available information.

(b) The fixed assets have been physically verified by the management during the year. No material discrepancies were noticed on such physical verification.

(c ) The Company has disposed off substantial part of its fixed assets during the year vide note no25 item no1 to the financial statements and this will affect the manufacturing capabilities of the company as a going concern.

ii. (a) As explained to us, inventories have been physically verified by the management at regular intervals during the year.

(b) In our opinion and according to the information and explanation given to us, the procedures of physical verification of inventories followed by the management are reasonable and adequate in relation to the size of the Company and the nature of its business.

(c) The Company has maintained proper records of inventories. As explained to us there were no material discrepancies noticed on physical verification of inventory as compared to the book records.

iii. (a) The Company has not granted any loans, secured or unsecured, from companies, firms or other parties listed in the register maintained under Section 301 of the Companies Act, 1956. (b)The Company has taken loans, unsecured, from companies, firms or other parties listed in the register maintained under Section 301 of the Companies Act, 1956 and the terms of such loans are not prejudicial to the interests of the company.

iv. In our opinion and according to the information and explanations given to us, there are adequate internal control procedures commensurate with the size of the Company and the nature of its business with regard to purchases of fixed assets and also with regard to the sale of goods. During the course of our audit, we have not observed any major weaknesses in internal controls.

v. (a) According to the information and explanations given to us, the transactions made in pursuance of contracts or arrangements that need to be entered into in the register maintained under Section 301 of the Companies Act, 1956 have been so entered.

(b) According to the information and explanations given to us, the 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 any party have been made at prices which are reasonable having regard to prevailing market price at the relevant time.

vi. According to the information and explanations given to us the Company has not accepted any deposits from the public within the meaning of section 58A & 58AA of the Companies Act, 1956.

vii. In our opinion, the Internal Audit functions carried out during the year have been commensurate with its size of the Company and the nature of its business.

viii. According to the information and explanations given to us the Company is not required to maintain cost records under section 209(1)(d) of the Companies Act, 1956 in respect of the activities carried out by the Company.

ix. (a) According to the information & explanations given to us and the records of the Company examined by us, in our opinion the Company is not regular in depositing the undisputed statutory dues including Provident Fund, Employees'' State Insurance, Sales Tax, Customs Duty, Excise Duty, Cess, Investor Education and Protection Fund and other material statutory dues with the appropriate authorities.

(b) According to the information & explanations given to us there are undisputed statutory amounts payable as at 31st march 2014 to the extent of Rs5,11,350/- payable towards ESI, PF and VAT and disputed statutory amounts payable to ESI of Rs. 8,00,000/- and payable to PF of Rs. 8,16,000/-, for a period of more than six months from the date they became payable.

x. The Company has incurred cash loss of Rs.43,90,335/ during the financial year under audit before extra ordinary items and the accumulated losses as at the end of the financial year under audit are Rs. 5,64,54,147/- and the loss incurred was Rs. 12,25,176/- in the immediately preceding financial year.

xi. According to the information and explanations given to us and the records of the Company examined by us, we are of the opinion that the Company has not defaulted in repayment of dues to banks and financial institutions.

xii. In our opinion and according to the information and explanations given to us, the Company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

xiii. In our opinion and according to the information and explanations given to us, the provisions of any special statute applicable to a chit fund or a nidhi/ mutual benefit fund/ societies are not applicable to the Company.

xiv. In our opinion and according to the information and explanations given to us the Company is not dealing or trading in shares, securities, debentures and other investments.

xv. In our opinion and according to the information and explanations given to us, the Company has not given any guarantees for loans taken by others from Banks or Financial I nstitutions.

xvi. According to the information and explanations given to us, in our opinion term loans availed by the Company were, prima facie, applied for the purpose for which they were raised.

xvii. According to the information and explanations given to us, and on an overall examination of the Balance Sheet of the Company, funds raised on a short term basis have prima facie not been used during the year for long term investment, and vice versa.

xviii. According to the information and explanations given to us, the Company has not made any preferential allotment of shares during the year to parties and Companies covered in the Register maintained under section 301 of the Companies Act, 1956.

xix. The Company has not issued any Debentures & hence the creation of securities in respect of the same does not arise.

xx. The Company has not raised any money by public issues during the year.

xxi. In our opinion and according to the information and explanations given to us, considering the

size and nature of the Company''s operations, no fraud of material significance on or by the Company has been noticed or reported during the course of the audit.

For Durgaprasad Associates Chartered Accountants (Firm''s Registration No.005361S)

Sd./-

Place : Hyderabad

Date : 3rd September 2014 M.No.025729


Mar 31, 2012

We have audited the attached Balance Sheet of M/s VENMAX DRUGS AND PHARMACEUTICALS LIMITED. as at 31 st March' 2012' the Profit and Loss Account and also the Cash Flow Statement of the company for the year ended on that date annexed thereto. These financial statements are the responsibility of the company's management. Our responsibility is to express an opinion on these financial statements based on our audit.

We 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 from 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 management' as well as evaluating the overall financial statement presentation. We believe that ouraudit provides a reasonable basis forouropinion. As required by the Companies (Auditor's Report) Order' 2003 (as amended) issued by the Government of India in terms of sub-section (4A) of section 227 of the Companies Act' 1956. we enclose in the annexure a statement on the matters specified in paragraphs 4 and 5 of the said Order. Further to our comments in annexure referred to in Para 3 above' we report that: Subject to:

None of the balances of sundry debtors' sundry creditors' loans and advances have been confirmed during the year.

The company has a policy of paying the retirement benefits to employee as and when due which is against the requirement of AS - 15. Further other employee benefits as required by AS - 15 have also not been provided for. In the absence of data we are unable to comment on its impact on the financial statements. We have not been able to verify the records of physical verification of inventories and fixed assets. We have therefore relied on the certificate of the management with regard to the quantities and values of the same.

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) In our opinion' the said Balance Sheet and Profit and Loss Account referred to in this report comply with the accounting standards referred to in sub-section (3c) of section 211 of the CompaniesAct' 1956.

d) The Balance Sheet and The Profit and Loss Account dealt with by this report are in agreement with the books of account.

e) On the basis of written representation received from the directors and taken on records by the board of directors' we report that none of the directors is disqualified as on 31.3.2012 from being appointed as a director in terms of clause (g) of sub section (1) of section 274 of the companies act' 1956.

f) In our opinion' and according to the best of our information and according to the explanations given to us' the said accounts read with the Accounting Policies and Notes thereon in schedules XV and XVI respectively' give the information required by the CompaniesAct' 1956 in the manner so required and gives 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' 2012' ii. in the 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 forthe year ended on that date.

ANNEXURE TO AUDITOR'S REPORT

1. As required by the Companies (Auditor's Report) Order' 2003 issued by the Central Govt' under section 227 (4A) of the Companies Act 1956' we report that:

a) The company has maintained proper records showing full particulars including quantitative details and situation of Fixed Assets.

b) According to the information and explanations given to us the fixed assets have been physically verified by the management during the year and no discrepancies were noticed on such verification. We were informed that though the physical verification has been conducted during the year' the management was unable to produce the required documents for our verification as the same have been misplaced by the accountant who has left the company.

c) No substantial part of fixed assets has been disposed off during the year' which has bearing on the going concern assumption.

2. a) The inventory has been physically verified by the Management during the year. In our opinion frequency of verification is reasonable and adequate. The management was unable to produce the working papers of the physical verification for our scrutiny as the same have been misplaced by the accountant who has left the company.

b) The procedure of physical verification of inventory followed by the management is reasonable and adequate having regard to the size of the company' the nature and volume of its business.

c) The Company is maintaining proper records of inventory. The discrepancies noticed on physical verification of inventories' wherever material' have been properly dealt with in the books of accounts.

3. a) The company has not granted any loans secured or unsecured to any company' firm or other party covered in register maintained under Section 301 of the Companies Act' 1956.

In view of 3 (a) above' the clauses 3 (b)' 3(c) and 3 (d) are not applicable. e) The company has not taken any loans secured or unsecured from any company' firm or other party covered in register maintained under Section 301 of the Companies Act' 1956.

In view of 3 (e) above' the clauses 3 (f) and 3(g) are not applicable.

4. In our opinion' according to the information and explanation given to us there is adequate internal control system commensurate with the size of the company and the nature of its business for purchase of inventory and fixed assets and for sale of goods. During the course of our audit' no major weaknesses have been observed in the internal control systems.

5. a) According to the information and explanation given to us' there are no contracts or arrangements which need to be entered in the register maintained under section 301 of the Companies Act' 1956.

b) In view of clause 5 (a) above' the clause 5 (b) is not applicable.

6. In our opinion and according to the information and explanations given to us' the Company has not accepted any deposits from the public. Consequently the directives issued by the Reserve Bank of India' the provisions of Sections 58A and 58AA of the Companies Act' 1956 or any other provisions of the Act and Companies (Acceptance of Deposits) Rules' 1975 are not applicable.

7. In our opinion' the company has an internal audit system commensurate with the size and nature of its business. However' it needs to be further strengthened.

8. We have broadly reviewed the books of account maintained by the Company pursuant to the rules made by the Central Government for the maintenance of cost records under Section 209(1 )(d) of the Companies Act' 1956 and we are of the opinion that prima facie' the prescribed accounts and records have been made and maintained. We have not' however' made detailed examination of the records with a view to determine whether they are accurate and complete.

9. The company is not regular in depositing undisputed statutory dues.

Particulars Amount (Rs)

ESI 4'24'044

PF 9'76'940

PT 1'39'674

TDS payable 2'87'610

Customs Duty 47'875

Sales Tax Deferment 51'73'750

Service Tax Payable 7'725

VAT Payabl 3'37'701

b) The company has no statutory dues pending due to any dispute.

10. The company has incurred cash loss of Rs. 52'14'808/- during the year. The company had incurred cash losses in the immediately preceding year The accumulated loss as at the end of31stMarch2012is Rs.3'22'41'882/-

11. Based on our audit and the information and explanations given by the management' the company has defaulted in repayment of dues to financial institutions and banks.

12. In our opinion and according to the information and explanation given to us' no loans and advances have been granted by the Company on the basis of security by way of pledge of share' debentures and other securities.

13. The Company is not a Chit Fund or a Nidhi / Mutual Fund /Society. Therefore' clause 4(xiii) of the Companies (Auditor's Report) order is not applicable to the company.

14. The company is not dealing in or trading in shares' securities and debentures and other investments. Accordingly the provisions of clause 4(xiv) of the Companies (Auditor's Report) order' 2003 are not applicable to the company.

15. The company has not given guarantee for loans taken by others from banks or financial institutions during the year.

16. The company has not raised any new term loans during the year.

17. According to the information and explanations given to us and an overall examination of the Balance Sheet of the Company' we report that no funds raised on short term basis have been used for long term investment by the Company.

18. According to the information and explanation given to us' the Company has not made any preferential allotment of shares during the year.

19. During the period covered by our audit report' the company has not issued any debentures. Accordingly' the provisions of Clause 4(xix) of the Order are not applicable.

20. The company has not revised any fund through Public issue during the year.

21. According to the information and explanation given to us' no fraud on or by the company has been noticed or reported during the year.

For Durga Prasad Associates

Chartered Accountants

(J.S.R. DURGA PRASAD)

Place: Hyderabad PROPRIETOR

Date :31st May' 2012


Mar 31, 2011

We have audited the attached Balance Sheet of M/s VENMAX DRUGS AND PHARMACEUTICALS LIMITED, as at 31st March, 2011, the Profit and Loss Account and also the Cash Flow Statement of the company for the year ended on that date annexed thereto. These financial statements are the responsibility of the company's management. Our responsibility is to express an opinion on these financial statements based on our audit.

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

As required by the Companies (Auditor's Report) Order, 2003 (as amended) issued by the Government of India in terms of sub-section (4A) of section 227 o the Companies Act, 1956. We enclose in the annexure a statement on the matters specified in paragraphs 4 and 5 of the said Order.

Further to our comments in annexure referred to in Para 3 above, we report that:

Subject to:

Note No. 18 of the notes forming part of accounts w.r.t the fraud committed by one of its directors. Transactions to the tune of Rs.7.10 crores have not been accounted in the books of the company. The management has informed us that these transactions have no connection with the company in any way. None of the balances of sundry debtors, sundry creditors, loans and advances have been confirmed during the year.

The company has a policy of paying the retirement benefits to employee as and when due which is against the requirement of AS- 15. Further other employee benefits as required by AS- 15 have also not been provided for. In the absence of data we are unable to comment on its impact on the financial statements.

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) In our opinion, the said Balance Sheet and Profit and Loss Account referred to in this report comply with the accounting standards referred to in sub-section (3c) of section 211 of the Companies Act, 1956.

d) The Balance Sheet and The Profit and Loss Account dealt with by this report are in agreement with the books of account.

e) On the basis of written representation received from the directors and taken on records by the board of directors, we report that none of the directors is disqualified as on 31.3.2011 from being appointed as a director in terms of clause (g) of sub section (1) of section 274 of the companies act, 1956.

f) In our opinion, and according to the best of our information and according to the explanations given to us, the said accounts read with the Accounting Policies and Notes thereon in schedules XV and XVI respectively, give the information required by the Companies Act, 1956 in the manner so required and gives 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, 2011,

II. in the case of Profit and Loss Account, of the profit 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 AUDITOR'S REPORT

1. As required by the Companies (Auditor's Report) Order, 2003 issued by the Central Govt. under section 227 (4A) of the Companies Act 1956, we report that:

a) The company has maintained proper records showing full particulars including quantitative details and situation of Fixed Assets.

b) According to the information and explanations given to us the fixed assets have been physically verified by the management during the year and no discrepancies were noticed on such verification.

c) No substantial part of fixed assets has been disposed off during the year, which has bearing on the going concern assumption.

2. a) The inventory has been physically verified by the Management during the year. In our opinion frequency of verification is reasonable and adequate.

b) The procedure of physical verification of inventory followed by the management is reasonable and adequate having regard to the size of the company, the nature and volume of its business.

c) The Company is maintaining proper records of inventory. The discrepancies noticed on physical verification of inventories, wherever material, have been properly dealt with in the books of accounts.

3. a) The company has not granted any loans secured or unsecured to any company, firm or other party covered in register maintained under Section 301 of the Companies Act, 1956.

In view of 3 (a) above, the clauses 3 (b), 3(c) and 3 (d) are not applicable.

e) The company has not taken any loans secured or unsecured from any company, firm or other party covered in register maintained under Section 301 of the Companies Act, 1956. In view of 3 (e) above, the clauses 3 (f) and 3(g) are not applicable.

4. In our opinion, according to the information and explanation given to us there is adequate internal control system commensurate with the size of the company and the nature of its business for purchase of inventory and fixed assets and for sale of goods. During the course of our audit, no major weaknesses have been observed in the internal control systems

5. a) According to the information and explanation given to us, there are no contracts or arrangements which need to be entered in the register maintained under section 301 of the Companies Act, 1956.

b) In view of clause 5 (a) above, the clause 5 (b) is not applicable.

6. In our opinion and according to the information and explanations given to us, the Company has not accepted any deposits from the public. Consequently the directives issued by the Reserve Bank of India, the provisions of Sections 58A and 58AA of the Companies Act, 1956 or any other provisions of the Act and Companies (Acceptance of Deposits) Rules, 1975 are not applicable.

7. In our opinion, the company has an internal audit system commensurate with the size and nature of its business. However, it needs to be further strengthened.

8. We have broadly reviewed the books of account maintained by the Company pursuant to the rules made by the Central Government for the maintenance of cost records under Section 209(1 )(d) of the Companies Act, 1956 and we are of the opinion that prima facie, the prescribed accounts and records have been made and maintained. We have not, however, made detailed examination of the records with a view to determine whether they are accurate and complete.

9. The company is not regular in depositing undisputed statutory dues.

a)The total outstanding dues as on 31st March 2011 are.

Particulars Amount (Rs)

ESI 4,01,965.00

PF 9,06,432.00

PT 1,35,474.00

TDS payable 2,87,610.00

Customs Duty 47,875.00

Sales Tax Deferment 51,73,750.00

Service Tax Payable _7,725.00

VAT Payable 3,14,509.00

b) The company has no statutory dues pending due to any dispute.

10. The company has incurred cash losses during the year to a tune of Rs. 12,38,298. The accumulated loss as at the end of 31 st March 2011 is Rs.2, 59,85,182/-.

11. Based on our audit and the information and explanations given by the management, the company has not defaulted in repayment of dues to financial institutions and banks.

12. The Company is not a Chit Fund or a Nidhi/Mutual Fund/Society. Therefore, clause 4(xiii) of the Companies (Auditor's Report) order is not applicable to the company.

13. In our opinion and according to the information and explanation given to us, no loans and advances have been granted by the Company on the basis of security by way of pledge of share, debentures and other securities.

14. The company is not dealing in or trading in shares, securities and debentures and other investments. Accordingly the provisions of clause 4(xiv) of the Companies (Auditor's Report) order, 2003 are not applicable to the company.

15. The company has not given guarantee for loans taken by others from banks or financial institutions during the year.

16. The company has not raised any new term loans during the year.

17. According to the information and explanations given to us and an overall examination of the Balance Sheet of the Company, we report that no funds raised on short term basis have been used for long term investment by the Company.

18. According to the information and explanation given to us, the Company has not made any preferential allotment of shares during the year.

19. During the period covered by our audit report, the company has not issued any debentures. Accordingly, the provisions of Clause 4(xix) of the Order are not applicable.

20. The company has not revised any fund through Public issue during the year.

21. According to the information and explanation given to us, one of the directors has commited a fraud on the company by misutilising the bank account of the company, for her own transactions in YES Bank Mumbai. The company has initiated criminal proceedings against the director.

For JAWAHAR AND ASSOCIATES

CHARTERED ACCOUNTANTS Firm Registration

No.001281S

V. JAWAHAR

Place: Hyderabad Partner

Date: 5/Dec/2011 M.No: 23489


Mar 31, 2009

We have audited the attached Balance Sheet of M/s.VENMAX DRUGS AND PHARMACEUTICALS LIMITED formerly M/s YENKEY DRUGS AND PHARMACEUTICALS LIMITED, as at 31st March. 2009, the Profit and Loss Account and also the cash flow 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.

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

As required by the Companies (Auditors Report) Order, 2003 (as amended) issued by the Government of India in terms of sub-section (4A) of section 227 o the Companies Act, 1956. We enclose in the annexure a statement on the matters specified in paragraphs 4 and 5 of the said Order.

Further to our comments in annexure referred to in Para 3 above, we report that

a) We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of ouraudit

b) In our opinion, proper books of account as required by law have been kept by the company so far as it appears from ourexamination of those books.

c) In our opinion, the said Balance Sheet and Profit and Loss Account referred to in this report comply with the accounting standards referred to in sub-section (3c) of section 211 of the Companies Act, 1956.

d) The Balance Sheet and The Profit and Loss Account dealt with by this report are in agreement with the books of account.

E) Subject to the following:

None of the balances of sundry debtors, sundry creditors, loans and advances have been confirmed during the year. -

The company has a policy of not providing for employee benefits for the year which is against the requirement ofAS-15.

In case of traded goods, Value Added Tax has not been disclosed separately.

f) In our opinion, and according to the best of our information and according to the explanations given to us, the said accounts read with the Accounting Policies and Notes thereon in schedules XV and XVI respectively, give the information required by the Companies Act 1956 in the manner so required and gives 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, 2009,

ii) InthecaseofProfitandLossAccounloftheprofitfortheyearendedonthatdate.and

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

ANNEXURE TO AUDITORS REPORT

1. As required by the Companies (Auditors Report) Order, 2003 issued by the Central Govt, under section 227 (4A) of the Companies Act 1956, we report that:

a)The company has maintained proper records showing full particulars including quantitative details and situation of Fixed Assets.

b) According to the information and explanations given to us the fixed assets have been physically verified by the management during the year and no discrepancies were noticed on such verification.

c) No substantial parts of fixed assets have been disposed off during the year, which has bearing on the going concern assumption.

2. a) The inventory has been physically verified by the Management during the year. In our opinion frequency of verification is reasonable and adequate.

b) The procedure of physical verification of inventory followed by the management is reasonable and adequate having regard to the size of the company, the nature and volume of its business.

c) The Company is maintaining proper records of inventory. The discrepancies noticed on physical verification of inventories, wherever material, have been properly dealt with in the books of accounts.

3. (a) The company has not granted any loans secured or unsecured to any company, firm or other party covered in register maintained under Section 301 of the Companies Act, 1956.

In view of 3 (a) above, the clauses 3 (b), 3(c) and 3 (d) are not applicable.

(e) The company has not taken any loans secured or unsecured from any company, firm or other party covered in register maintained under Section 301 of the Companies Act, 1956.

In view of 3 (e) above, the clauses 3 (f) and 3(g) are not applicable.

4. In our opinion, according to the information and explanation given to us there is adequate internal control system commensurate with the size of the company and the nature of its business for purchase of inventory and fixed assets and for sale of goods. During the course of our audit, no major weaknesses have been observed in the internal control systems.

5. (a)According to the information and explanation given to us, there are no contracts or arrangements which need to be entered in the register maintained under section 301 of the CompaniesAd, 1956.

(b) In view of clause 5 (a) above, the clause 5 (b) is not applicable.

6. In our opinion and according to the information and explanations given to us, the Company has not accepted any deposits from the public. Consequently the directives issued by the Reserve Bank of India, the provisions of Sections 58A and 58AA of the Companies Act, 1956 or any other provisions of the Act and Companies (Acceptance of Deposits) Rules, 1975 are not applicable.

7. In our opinion, the company has an internal audit system commensurate with the size and nature of its business. However, it needs to be further strengthened.

8. We have broadly reviewed the books of account maintained by the Company pursuant to the rules made by the Central Government for the maintenance of cost records under Section 209(1 )(d) of the Companies Act, 1956 and we are of the opinion that prima facie, the prescribed accounts and records have been made and maintained. We have not, however, made detailed examination of the records with a view to determine whether they are accurate and complete.

a) The company is not regular in depositing undisputed statutory dues statutory dues applicable to it. The outstanding dues as on 31st March 2009 are professional tax Rs. 108426/-, ESI - Rs.265916/-, FBT - Rs.36325/- and PF - Rs.996540/- of which the outstanding for the current year are ESI- Rs. 89912 /-, P.T- Rs. 20919/-, FBT- Rs. 17696/-, and PF- Rs. 138985

b. The company has no statutory dues pending due to any dispute.

10. The company has not incurred cash losses during the year and in the immediately preceding year. The accumulated loss as at the end of 31st March 2008 is Rs.14615362/- after considering the Deferred Tax Income of Rs. 13546281/-.

11. Based on our audit and the information and explanations given by the management, the company has not defaulted in repayment of dues to financial institutions and banks.

12. The Company is not a Chit Fund or a-Nidhi / Mutual Fund /Society. Therefore, clause 4(xiii) of the Companies (Auditors Report) order is not applicable to the company.

13. In our opinion and according to the information and explanation given to us, no loans and advances have been granted by the Company on the basis of security by way of pledge of share, debentures and other securities.

14. The company is not dealing in or trading in shares, securities and debentures and other investments. Accordingly the provisions of clause 4(xiv) of the Companies (Auditors Report) order, 2003 are not applicable to the company.

15. The company has not given guarantee for loans taken by others from banks or financial institutions during the year.

16. The company has not raised any new term loans during the year.

17. According to the information and explanations given to us and an overall examination of the Balance Sheet of the Company, we report that no funds raised on short term basis have been used for long term investment by the Company.

18. According to the information and explanation given to us, the Company has not made any preferential allotment of shares during the year.

19. During the period covered by our audit report, the company has not issued any debentures. Accordingly, the provisions of Clause 4(xix) of the Order are not applicable.

20. The company has not revised any fund through Public issue during the year.

21. According to the information and explanation given to us, no fraud on or by the Company has been noticed or reported during the year.



For JAWAHAR AND ASSOCIATES CHARTERED ACCOUNTANTS Place: Hyderabad V. JAWAHAR Date: 05.09.2009 Partner M.NO. 23489

 
Subscribe now to get personal finance updates in your inbox!