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
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