Auditor Report of Artech Power & Trading Ltd.
Mar 31, 2016
Independent Auditor''s Report
To,
The Members,
Artech Power& Trading Limited
(Formerly known as Artech Power Products Limited) Report on Standalone Financial Statement:
We have audited the accompanying Standalone financial statements of "Artech Power& Trading Limited"(Formerly known as Artech Power Products Limited) which comprise the Balance Sheet as at 31st
March,2016, the Statement of Profit and Loss for the year then ended, Cash flow Statement for the year then ended and a summary of significant accounting policies and other explanatory information.
Managements'' Responsibility for Standalone Financial Statements:
The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation of these standalone 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 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 detecting 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 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 Standalone Financial Statements based on our audit.
We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing specified under Section143 (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 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 accounting policies used and the reasonableness of the accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Standalone financial statement.
Opinion:
In our opinion and to the best of our information and according to the explanations given to us, the financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:
a) In the case of the Balance Sheet, of the state of affairs of the Company as at 31st March,2016;
b) In the case of the Statement of Profit and Loss, of the profit/ loss for the year ended on that date; and
c) In the case of Cash Flow Statement for the year ended 31st March, 2016.
Report on Other Legal and Regulatory Requirement:
1. As required by the Companies (Auditor''s Report) Order, 2016 ("the Order"), as amended, issued by the Central Government of India in terms of sub-section (11)of section 143 of the Act, we give in the "Annexure A" statement on the matters specified in paragraphs 3 and 4 of the Order.
2. As required by section 143(3) of the Act, we report that:
a) We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit;
b) In our opinion proper books of account as required by law have been kept by the Company so far as appears from our examination of those books;
c) The Balance Sheet, the 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 aforesaid standalone 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 written representations received from the directors as on March 31, 2016 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2016, from being appointed as a director in terms of sub-section (2) of section 164 of the Companies Act, 2013.
f) With respect to the adequacy of the internal financial controls over financial reporting of the company and the operating effectiveness of such controls, refer to our separate Report in "Annexure B".
g) 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 does not have any pending litigations which would impact its financial position.
ii. The Company did not have any long-term contracts including derivative contracts for which they 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 A" to the Independent Auditors'' Report
Referred to in paragraph 1 under the heading ''Report on other Legal & Regulatory Requirement'' of our report of even date to the financial statements of the company for the year ended March 31, 2016:
i. In Respect of the Fixed Assets:
a) There is No Fixed Assets during the year;
ii. In respect of Inventories:
a) There is No Inventories during the Year;
iii. The Company has not granted loans, secured or unsecured to companies, firms, Limited Liability partnerships or other parties covered in the Register maintained under section 189 of the Act. Accordingly, the provisions of clause 3 (iii) (a) to (C) of the Order are not applicable to the Company and hence not commented upon.
iv. In our opinion and according to the information and explanations given to us, the company has complied with the provisions of section 185 and I86 of the Companies Act, 2013 In respect of loans, investments, guarantees, and security.
v. The Company has not accepted any deposits from the public and hence the directives issued by the Reserve Bank of India and the provisions of Sections 73 to 76 or any other relevant provisions of the Act and the Companies (Acceptance of Deposit) Rules, 2015 with regard to the deposits accepted from the public are not applicable.
vi. As informed to us, the maintenance of Cost Records has not been specified by the Central Government under sub-section (1) of Section 148 of the Act, in respect of the activities carried on by the company.
vii. In Respect of Statutory Dues:
a) According to information and explanations given to us and on the basis of our examination of the books of account, and records, the Company has been generally regular in depositing undisputed statutory dues including Provident Fund, Employees State Insurance, Income-Tax, Sales tax, Service Tax, Duty of Customs, Duty of Excise, Value added Tax, Cess and any other statutory dues with the appropriate authorities. According to the information and explanations given to us, no undisputed amounts payable in respect of the above were in arrears as at March 31, 2016 for a period of more than six months from the date on when they become payable.
b) According to the information and explanation given to us, there are no dues of income tax, sales tax, service tax, duty of customs, duty of excise, value added tax outstanding on account of any dispute.
viii. In our opinion and according to the information and explanations given to us, the Company has not defaulted in the repayment of dues to banks.
ix. Based upon the audit procedures performed and the information and explanations given by the management, the company has not raised moneys by way of initial public offer or further public offer including debt instruments and term Loans. Accordingly, the provisions of clause 3 (ix) of the Order are not applicable to the Company and hence not commented upon.
x. Based upon the audit procedures performed and the information and explanations given by the management, we report that no fraud by the Company or on the company by its officers or employees has been noticed or reported during the year.
xi. Based upon the audit procedures performed and the information and explanations given by the management, the managerial remuneration has been paid or provided in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Companies Act;
xii. In our opinion, the Company is not a NIDHI Company. Therefore, the provisions of clause 4 (xii) of the Order are not applicable to the Company.
xiii. In our opinion, No any transactions with the related parties are in compliance with section 177 and 188 of Companies Act, 2013 and the details have been disclosed in the Financial Statements as required by the applicable accounting standards.
xiv. Based upon the audit procedures performed and the information and explanations given by the management, the company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review. Accordingly, the provisions of clause 3 (xiv) of the Order are not applicable to the Company and hence not commented upon.
xv. Based upon the audit procedures performed and the information and explanations given by the management, the company has not entered into any non-cash transactions with directors or persons connected with him. Accordingly, the provisions of clause 3 (xv) of the Order are not applicable to the Company and hence not commented upon.
xvi. In our opinion, the company is not required to be registered under section 45 IA of the Reserve Bank of India Act, 1934 and accordingly, the provisions of clause 3 (xvi) of the Order are not applicable to the Company and hence not commented upon.
"Annexure B" to the Independent Auditor''s Report of even date on the Standalone Financial Statements of Artech Power& Trading Limited (Formerly Known as Artech Power Products Limited) Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 ("the Act")
We have audited the internal financial controls over financial reporting of "ARTECH POWER & TRADING LIMITED" (Formerly known as ARTECH POWER PRODUCTS LIMITED) ("the Company") as of March 31, 2016 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.
Management''s Responsibility for Internal Financial Controls:
The Company''s management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India. These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditors'' Responsibility:
Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the "Guidance Note") and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. 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.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company''s internal financial controls system over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting:
A company''s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company''s internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company''s assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting:
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2016, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
Date : 28/05/2016 For, Vishves A. Shah & Co.
Place : Mumbai Chartered Accountants
Firm No.121356w
(Vishves A. Shah)
Proprietor M. No. 109944
Mar 31, 2015
We have audited the accompanying Standalone financial statements of
"ARTECH POWER PRODUCTS LIMITED" which comprise the Balance Sheet as at
March 31, 2015, the Statement of Profit and Loss for the year then
ended, Cash flow Statement for the year then ended and a summary of
significant accounting policies and other explanatory information.
Managements' Responsibility for Standalone Financial Statements:
The Company's Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 ("the Act") with respect
to the preparation of these standalone 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 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 detecting 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 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 standalone
financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting
and auditing standards and matters which are required to be included in
the audit report under the provisions of the Act and the Rules made
there under.
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
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 accounting policies used and
the reasonableness of the accounting estimates made by management, as
well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2015;
b) in the case of the Statement of Profit and Loss, of the profit/ loss
for the year ended on that date; and
c) in case of Cash Flow Statement for the year ended 31st March 2015.
Emphasis of Matter:
There is no such matter came across to put emphasis on during the
course of our Audit.
Report on Other Legal and Regulatory Requirements.
1. As required by the Companies (Auditor's Report) Order, 2015 ("the
Order") issued by the Central Government of India in terms of
sub-section (11) of section 143 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 3 and 4 of the Order.
2. As required by section 143(3) of the Act, we report that:
a) we have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b) in our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books;
c) The Balance Sheet, the Statement of Profit and Loss 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
comply with the Accounting Standards referred to in section 133 of the
Act read with Rule 7 of the Companies (Accounts) Rules, 2014.
e) In our Opinion and Explanation provided to us, to the best of our
knowledge and belief there is not any financial transaction that affect
adversely on the functioning of the company.
f) On the basis of written representations received from the directors
as on March 31, 2015, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2015, from being
appointed as a director in terms of sub-section (2) of section 164 of
the Companies Act, 2013.
g) To the best of our knowledge and belief and explanation provided to
us Financial Control System in place are adequate and it is operating
effectively.
h) With respect to other matters to be included in auditor's report in
accordance with Rule 11 of Companies ( Audit and Auditors) Rule, 2014;
in our opinion and to the best of our information and according to the
explanation provided to us:
a. It may be noted that at present, no Rules relating to the amount of
cess for rehabilitation or revival or protection of assets of sick
industrial companies, payable by a company under section 269 of the Act
have been notified by the central Government. Thus, it would not be
possible for the auditor to comment on the regularity or otherwise
about the cess till the time relevant rules or regulations are issued.
b. The company does not have any pending litigations which would impact
on financial position
On the basis of such checks as we considered appropriate and according
to the information and explanation given to us during the course of our
audit, we report that:
(i) In Respect of the Fixed Assets:
a) There is No Fixed Assets during the year.
(ii) In respect of its Inventories:
a) There is No Inventories during the year.
(iii) In respect of Loan:
a) The company has taken any loans from Companies, Firms or other
parties and directors and relative of the Director; Register maintained
under section 189 of the Act.
b) In our opinion, the terms and conditions, on which loans have been
taken from companies, firms or other parties listed in the register
maintained under section 189 of the Companies Act 2013 and from the
companies under the same management, are not, prima facie, prejudicial
to the interest 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 regards to purchases of inventory, fixed assets and with
regards to the sale of goods and services. During the course of our
audit, we have not observed any continuing failure to correct major
weaknesses in internal controls.
(v) In respect of Contracts or arrangements referred to in Section 189
of the Companies Act, 2013:
According to the information and explanations given to us, we are of
the opinion that the transactions that need to be entered in into the
register maintained under section 189 of the Companies Act, 2013 have
been so entered.
In our opinion and according to the information and explanation given
to us, There is no any transaction more than Rs. 500000/- or more of
purchase of goods and materials and sale of goods, materials and
services, made in pursuance of contracts or arrangements entered in the
registers maintained under section 301 and aggregating during the year
in respect of each party, so this provision is not applicable.
(vi) In our opinion and according to the information and explanations
given to us, since the company has not accepted any deposits from the
public the compliance with the provisions of sections 73 or any other
relevant provisions of the Act and the rules frame there under with
regard to the deposits accepted from the public are not applicable to
the company. No order has been passed by the applicable authorities.
(vii) In respect of Statutory Dues:
a) According to the information and explanation given to us, the
company is generally regular in depositing with the appropriate
authorities, undisputed statutory dues including Provident Fund, ESIC,
Income Tax, Sales Tax, Excise Duty, Cess and any other material
statutory dues applicable to it.
b) According to the information and explanations given to us, no
disputed amounts payable in respect of income tax, wealth tax, sales
tax, custom duty, excise duty and cess were outstanding, as at 31st
March, 2015 for a period of more than six months from the date they
become payable.
(viii) The company have accumulated losses of Rs. 2,14,62,961/-, during
the year company has not incurred any cash losses.
(ix) According to the information and explanations given to us, the
company has not granted loans and advances on the basis of securities
by way of pledge of shares, debentures and other securities. Therefore
the provisions of clause 4(xii) of the Companies (Auditors Report)
order, 2015 are not applicable to the company
(x) In our opinion, the company is not a Chit Fund or a NIDHI Mutual
Benefit Fund/Society. Therefore the provisions of clause 4(xiii) of
the Companies (Auditors Report) order, 2015 are not applicable to the
company.
(xi) In our opinion the company is dealing in or trading in shares,
securities, debentures and other investments. Accordingly, the
provisions of the clause 4 (xiv) of CARO 2015 are applicable to the
company as regards dealing in or trading in shares, securities and
other investments. No records available for verification purpose.
(xii) As informed to us, the company has not given guarantees for loans
taken by others from banks or financial institutions.
(xiii) In our opinion, on the basis of information & explanations given
to us, the term loans were not applied for the purpose for which they
were raised.
(xiv) In our opinion, on the basis of information and explanations
given to us funds raised on Short term basis have not been used for
Long-term investment.
(xv) The company has not made any preferential allotment of shares to
parties and companies covered in the register maintained under section
189 of the Act.
(xvi) The company has not issued any debentures during the period
covered by our audit report.
(xvii) The company has not made any public issue of shares during the
period covered by our audit report.
(xviii) According to the information and explanations given to us, no
fraud on or by the company has been noticed or reported during the
year.
Date: May 29, 2015 For, Vishves A. Shah & Co.
Place: Mumbai Chartered Accountants
Firm No.121356W
(Vishves A. Shah)
Proprietor M. No. 109944
Mar 31, 2014
We have audited the accompanying financial statements of "ARTECH POWER
PRODUCT LIMITED", which comprise the Balance Sheet as at March 31,
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 is responsible for the preparation of these financial
statements that give a true and fair view of the financial position and
financial performance of the Company in accordance with the accounting
principles generally accepted in India including 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.
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 accounting policies used and
the reasonableness of the accounting estimates made by management, as
well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31,2014;
b) in the case of the Statement of Profit and Loss, of the profit/ loss
for the year ended on that date; and
c) In the case of the Cash Flow Statement, of the cash flow for the
year ended on that date.
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A)of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by 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 purpose of our
audit;
b) in our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books;
c) The Balance Sheet, the Statement of Profit and Loss and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account.
d) In our opinion, the Balance Sheet, the Statement of Profit and Loss
and the Cash Flow Statement comply with the Accounting Standards
referred to in subsection (3C) of section 211 of the Companies Act,
1956; except AS 22 relating to the Taxes on Income read with notes
forming part of accounts.
e) On the basis of written representations received from the directors
as on March 31, 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2014, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
f) It may be noted that at present, no Rules relating to the amount of
cess for rehabitation or revival or protection of assets of sick
industrial companies, payable by a company under section 441A of the
Act have been notified by the central Government. Thus, it would not be
possible for the auditor to comment on the regularity or otherwise
about the cess till the time relevant rules or regulations are issued.
ANNEXURE REFERRED TO IN PARAGRAPH 1 OF OUR REPORT EVEN DATE
On the basis of such checks as we considered appropriate and according
to the information and explanation given to us during the course of our
audit, we report that:
(i) In Respect of the Fixed Assets:
a) Proper records showing full particulars including quantitative
details and situation of Fixed Assets of the company are being updated
b) The management physically verifies the fixed assets of the Company.
No material discrepancies were noticed on verification.
c) No substantial parts of the fixed assets have been disposed off
during the year.
In respect of its Inventories: Company has no inventories.
(iii) In respect of Loan:
a) The company has not taken any loans from Companies, Firms or other
parties and directors and relative of the Director; Register maintained
under section 301 of the Act.
b) In our opinion, the terms and conditions, on which loans have been
taken from companies, firms or other parties listed in the register
maintained under section 301 of the Companies Act 1956 and from the
companies under the same management, are not, prima facie, prejudicial
to the interest 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 regards to purchases of inventory, fixed assets and with
regards to the sale of goods and services. During the course of our
audit, we have not observed any continuing failure to correct major
weaknesses in internal controls.
(v) In respect of Contracts or arrangements referred to in Section 301
of the Companies Act, 1956:
According to the information and explanations given to us, we are of
the opinion that the transactions that need to be entered in into the
register maintained under section 301 of the Companies Act, 1956 have
been so entered.
In our opinion and according to the information and explanation given
to us, There is no any transaction more than Rs. 500000/- or more of
purchase of goods and materials and sale of goods, materials and
services, made in pursuance of contracts or arrangements entered in the
registers maintained under section 301 and aggregating during the year
in respect of each party, so this provision is not applicable.
(vi) In our opinion and according to the information and explanations
given to us, since the company has not accepted , any deposits from the
public the compliance with the provisions of sections 58A, 58AA or any
other relevant j provisions of the Act and the rules frame there under
with regard to the deposits accepted from the public are not applicable
to the company. No order has been passed by the applicable authorities.
(vii) In our opinion, the company has no required any internal audit
system commensurate with the size and nature of its business.
(viii) The Central Government has not prescribed for maintenance of
cost records under section 209(1) (d) of the Companies Act, 1956 for
the products of the Company.
(ix) In respect of Statutory Dues:
a) According to the information and explanation given to us, the
company is generally regular in depositing with the appropriate
authorities, undisputed statutory dues including Provident Fund, ESIC,
Income Tax, Sales Tax, Excise Duty, Cess and any other material
statutory dues applicable to it.
b) According to the information and explanations given to us, no
undisputed amounts payable in respect of income tax, wealth tax, sales
tax, custom duty, excise duty and cess were outstanding, as at 31st
March, 2014 for a period of more than six months from the date they
become payable.
(x) The company have accumulated losses of Rs. 5,33,73,099/-. The
company has incurred cash losses during the financial year covered by
our audit and the immediately preceding financial year.
(xi) In our opinion and according to the information and explanation
given to us, the company has opted for One Time Settlement Scheme for
repayment of dues to financial institutions or banks in earlier year.
(xii) According to ttie information and explanations given to us, the
company has not granted loans and advances on the basis of securities
by way of pledge of shares, debentures and other securities. Therefore
the provisions of clause 4(xii) of the Companies (Auditors Report)
order, 2003 are not applicable to the company
(xiii) In our opinion, the company is not a Chit Fund or a NIDHI Mutual
Benefit Fund/Society. Therefore the provisions of clause 4(xiii) of the
Companies (Auditors Report) order, 2003 are not applicable to the
company.
(xiv) In our opinion the company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly, the
provisions of the clause 4 (xiv) of CARO 2003 are not applicable to the
company as regards dealing in or trading in snares, securities and
other investments.
(xv) As informed to us, the company has not given guarantees for loans
taken by others from banks or financial institutions.
(xvi) In our opinion, on the basis of information & explanations given
to us, the term loans were not applied for the purpose for which they
were raised.
(xvii) In our opinion, on the basis of information and explanations
given to us funds raised on Short term basis have not been used for
Long-term investment.
(xviii)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.
(xix) The company has not issued any debentures during the period
covered by our audit report.
(xx) The company has not made any public issue of shares during the
period covered by our audit report.
(xxi) According to the information and explanations given to us, no
fraud on or by the company has been noticed or reported during the
year.
Date : 30th May, 2014 For, Vishves A. Shah & Co.
Place : Ahmedabad Chartered Accountants
Firm No.121356w
(Vishves A. Shah)
Proprietor
M. No. 109944
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of M/s.Artech
Power Products Limited ("The company") which comprise the Balance Sheet
as at 31st March, 2013, the Statement of Profit & Loss for the year
then ended, the Cashflow Statements 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 Aecounting 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. 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 aecounting policies used and
the reasonableness of the accounting estimates made by management, as
well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
a) in the case of the Balance Sheet, of the state of affairs of the
company as at 31st March, 2013;
b) in the case of the Statement of Profit & Loss , of the Loss for the
year ended on that date; and
c) 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
("theOrder") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2 As required by 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 purpose of the
audit.
b) in our opinion, proper books of accounts as required by law have
been kept by the comDanv so far as appears from our examination of
those books.
c) the Balance Sheet,Statement of Profit & Loss and Cash Flow Statement
dealt with by this report are in agreement with the books of accounts.
d) in our opinion, the Balance Sheet, Statement of Profit and Loss, and
Cash Flow Statement comply with the Accounting Standards referred to in
subsection (3C) of section 211 of the Companies Act, 1956;.
e) On the basis of written representation received from directors and
taken on record by the Board of Directors, we report that none of the
Directors is disqualified as on31st March, 2013 from being appointed as
a director in terms of clause (g) of sub-section (1) of section 274 of
the Companies Act, 1956.
f) Since the Central Government has not issued any notification as to
the rate at which the cess is to be paid under section 441A of the
Companies Act, 1956 nor has it issued any Rules under the said section,
prescribing the manner in which such cess is to be paid, no cess is due
and payable by the Company.
The Annexure referred to in paragraph 1 of the Our Report of even date
to the members of Artech Power Products Limited on the accounts of the
company for the year ended 31st March, 2013.
On the basis of such checks as we considered appropriate and according
to the information and explanation given to us during the course of our
audit, we report that:
(i) The company does not have fixed assets. Therefore, the provisions
of clause (i)(a) to (i)(c) of paragraph 4 of the said Order are not
applicable to the company.
(ii) The company does not have any inventories. Therefore, the
provisions of clauses (ii)(a) to (ii)(c) of paragraph 4 of the said
Order are not applicable to the company.
(iii) According to the information and explanations given to us and on
the basis of our examination of the books of account, the company has
not granted any loans, secured or unsecured to companies, firms, or
other parties listed in the register maintained section 301 of the
Companies Act 1956. Consequently , the provisions of clauses
(iii)(b),(iii)(c) & (iii)(d) of the Order are not applicable to
e) The company has taken unsecured loans from 5 parties. At the year
end, the outstanding balance of such loans taken aggregated to Rs.
1,992,521 and the maximum amount involved during the year was Rs.
1,992,521.
f) The rate of interest and other terms and conditions of such loans
are, in our opinion, prima facie not prejudicial to the interest of the
company.
g) The terms of repayment for the above loans have not been stipulated,
but the same are stated to be reapayable on demand. Since the company
is stated to have received no demand for repayment of the above loans,
there has been no default on the part of the company.
(iv) In our opinion and according to the information and explanations
given to us, there is generally an adequate internal control procedure
commensurate with the size of the company and nature of its business,
for the purchase of inventories and fixed assets and payment for
expenses and for sale of goods. During the course of our audit, no
major instance of continuing failure to correct any weaknesses in the
internal controls have been noticed.
(v) In our opinion and according to the information and explanations
given to us, there are no contracts and arrangements referredtto in
section 301 of the Companies Act, 1956 during the year that need to be
entered in the register maintained under that section. Accordingly,
Clause (v) (b) of the paragraph i 4 of the Order is not aplicable to
the company for the current year.
(vi) The company has not accepted any deposit from the public eovered
under section 58A and 58AA of the Companies Act, 1956.
(vii As per information and explanations given by the management,the
company has an internal audit
(viii) The provisions regarding maintenance of cost records under
section 209(l)(d) of the Companies j
(ix) a) According to the records of the company, undisputed statutory
dues including Provident Fund, ¦ Investor education and protection
fund, Employees'' state insurance, Ineome tax, Sales tax, Wealth tax,
Service tax, Customs duty, Excise duty, cess to the extent applicable
and any other statutory dues have generally been regularly deposited
with the appropriate authorities. According to the informations and
explanations given to us there were no outstanding statutory dues as on
31st March, 2013 for a period of more than six months from the date
they became payable.
b) According to the information & explanations given to us.there is no
amounts payable in respect of income tax, wealth tax,Service tax, Sales
tax,Customs duty & Excise duty which have not been deposited on account
of any disputes. .
(x) The accumulated losses of the company at the end of the financial
year is more than fifty percent of the net worth and the company has
incurred cash losses during the current financial year and in the
immediately preceding financial year.
(xi) As per the information and
explanations given to us, the company has not availed any loans from
banks or financial institutions or through debentures.
(xii) According to the information and explanations given to us,the
company has not granted loans and advances on the basis of security by
way of pledge of shares, debentures and other securities.
(xiii) The company is not a Chit Fund or Nidhi/Mutual Benefit
Fund/Society.Therefore,the provisions of this clause of the companies
(Auditor''s Report) Order, 2003 (as amended) is not applicable to the
company.
(xiv) In our opinion and according to the explanations given to us, the
company is not a dealer or trader in securities.
(xv) According to the information & explanations given to us,the
eompany has, not given any guarantee for loans taken by others from a
bank or financial institution.
(xvi) Based on our audit procedures and on the information given by the
management,we report that the company has not raised any term loans
during the year.
(xvii) Based on the information & explanations given to us and on an
overall examination of the balance
sheet of the company as at 31st March,2013, we report that no funds
raised on short term basis have been used for long term investment by
the company.
(xviii) Based on the audit procedures performed and the information and
explanations given to us by the management, we report that the company
has not made any preferential allotment of shares during the year.
(xix) The company has no outstanding debentures during the period under
audit.
(xx) The company has not raised any money by public issue during the
year.
(xxi) Based on the audit procedures performed and the information and
explanation given to us, we report that no fraud on or by the company
has been noticed or reported during the year, nor have we been informed
of such case by the management.
For G Joseph & Associates
Chartered Accountants
Firm Reg. No. 00631 OS
Place: Cochin
Date : 30/05/2013 Umesh L Bhat
Partner
Membership No.211364
Mar 31, 2012
We have audited the attached Balance Sheet of M/s.Artech Power Products
Limited ("The company") as at 31st March, 2012 , Profit & Loss Account
and the Cash Flow statement of the company for the year ended 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 have conducted our audit in accordance with auditing standards
generally accepted in India. These standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free from material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements and also includes assessing
the accounting principles used and significant estimates made by
management, as well as evaluating the overall presentation of financial
statements. We believe that our audit provides a reasonable basis for
our opinion.
As required by the Statement on the Companies (Auditor''s Report) Order
2003, as amended by the Companies (Auditors Report) (Amendment) Order,
2004 (together the "Order"), issued by the Central Government of India
in terms of sub-section (4A) of section 227 of the Companies Act, 1956,
and on the basis of such checks of the books and records of the Company
as we considered appropriate and according to the information and
explanations given to us, we give in the Annexure a statement on the
matters specified in paragraphs 4 and 5 of the Order.
Further we report that:-
i. We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of the
audit.
ii. In our opinion, proper books of accounts as required by law have
been kept by the company so far as appears from our examination of
those books.
iii. The Balance Sheet, Profit & Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of accounts.
iv. In our opinion, The Balance Sheet, Profit & Loss Account and Cash
Flow Statement dealt with by this report comply with the Accounting
Standards referred to in sub-section (3C) of section 211 of the
Companies Act, 1956.
v. On the basis of written representation received from directors and
taken on record by the Board of Directors, we report that none of the
Directors is disqualified as on 31st March, 2012 from being appointed
as a director in terms of clause (g) of sub-section (1) of section 274
of the Companies Act, 1956.
vi. In our opinion and to the best of our information, and according to
the explanation given to us, the said 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:
a) in the case of the Balance Sheet, of the state of affairs of the
company as at 31st March, 2012;
b) in the case of the Profit & Loss Account, of the Loss for the year
ended on that date; and
c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
ANNEXURE TO THE AUDITORS REPORT
Statement referred to in our report of even date to the members of
Artech Power Products Limited on the accounts for the year ended 31st
March, 2012.
(i) The company does not have fixed assets. Therefore, the provisions
of clause (i)(a) to (i)(c) of paragraph 4 of the said Order are not
applicable to the company.
(ii) The company does not have any inventories. Therefore, the
provisions of clauses (ii)(a) to (ii)(c) of paragraph 4 of the said
Order are not applicable to the company.
(iii) The company has not granted any loans, secured or unsecured to
companies, firms, or other parties, covered in the register maintained
under section 301 of the Act. Clauses (iii)(b) to (iii)(d) of paragraph
4 of the said Order are not applicable to the company.
e) The company has taken unsecured loans from 3 parties. At the year
end, the outstanding balance of such loans taken aggregated to
Rs.1630,521 and the maximum amount involved during the year was
Rs.1630,521 .
f) The rate of interest and other terms and conditions of such loans
are, in our opinion, prima facie not prejudicial to the interest of the
company.
g) The terms of repayment for the above loans have not been stipulated,
but the same are stated to be reapayable on demand. Since the company
is stated to have received no demand for repayment of the above loans,
there has been no default on the part of the company.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control systems commensurate
with the size of the company and nature of its business for the
purchase of inventory and fixed assets and for sale of goods and
services. During the course of our audit, no major weaknesses have been
noticed in the internal controls.
(v) In our opinion and according to the information and explanations
given to us, there are no contracts and arrangements referred to in
section 301 of the Companies Act, 1956 during the year that need to be
entered in the register maintained under that section. Accordingly,
Clause (v) (b) of the paragraph 4 of the Order is not aplicable to the
company for the current year.
(vi) The company has not accepted any deposit from public within the
meaning of section 58A and 58AA or any other relevant provisions of the
Act and the Companies (Acceptance of Deposits) Rules, 1975 framed
thereunder. The appeal filed by the Registrar of Companies, Kerala
against the company with the Hon''ble Kerala High Court, as specified in
point no.4 of Notes to Accounts forming part of Schedule 11 to
financials statements, is yet to be disposed off.
(vii) In our opinion, the company''s internal audit system is
commensurate with its size and its nature of activities.
(viii) The provisions regarding maintenance of cost records under
section 209(1)(d) of the Companies Act, 1956 are not applicable to the
company.
(ix) a) According to the information and explanations provided to us,
the company is generally regular in depositing with appropriate
authorities undisputed statutory dues including provident fund,
investor education and protection fund, employees'' state insurance,
income tax wealth tax, service tax, customs duty, excise duty, cess and
other material statutory dues, applicable to it. As explained to us, no
undisputed amounts payable were in arrears, as on 31st March, 2012 for
a period of more than six months from the date they became payable.
b) There is no amount payable in respect of the aforesaid statutory
dues that have not been deposited on account of any disputes.
(x) The accumulated losses of the company at the end of the financial
year is more than fifty percent of the net worth and the company has
incurred cash losses during the current financial year; however the
company has not incurred cash losses in the immediately preceeding
financial year.
(xi) As per the information and explanations given to us, the company
has not availed any loans from banks or financial institutions or
through debentures.
(xii) 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) The provisions of any special statute applicable to Chit Fund or
Nidhi or Mutual Fund Society are not applicable to the company.
(xiv) In our opinion and according to the explanations given to us, the
company is not a dealer or trader in securities.
(xv) As explained to us, the company has not given any guarantee for
loans taken by others from bank or financial institutions, the terms
and conditions whereof, are prejudicial to the interest of the company.
(xvi) According to the information and explanations given to us, the
term loans taken by the company have been applied for the purpose for
which they were obtained.
(xvii) According to the information and explanations given to us and on
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
investments.
(xviii) The company has not made any preferential allotment of shares
to parties covered in the register maintained under section 301 of the
Companies Act, 1956 during the year
(xix) In our opinion,the company has not issued any debentures during
the year.
(xx) The company has not raised any money by way of public issue during
the year.
(xxi) According to the information and explanations given to us, during
the year, no fraud on or by the company has been noticed or reported.
For G Joseph & Associates
Chartered Accountants
Firm Reg. No. 006310S
Sd/-
Place : Cochin
Date : 21/08/2012 Partner
Membership No.211364
Mar 31, 2011
We have audited the attached Balance Sheet of M's. Artech Power
Products Limited ("The company") as at 31st March, 2011 and the Profit
& Loss Account of the company for the year ended 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 have conducted our audit in accordance with auditing standards
generally accepted in India. These standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free from material misstatement. An audit
includes examining, on a test basis. evidence supporting the amounts
and disclosures in the financial statements and also includes assessing
the accounting principles used and significant estimates made by
management, as well as evaluating the overall presentation of financial
statements. We believe that our audit provides a reasonable basis for
our opinion.
As required by the Statement on the Companies (Auditor's Report) Order
2003, as amended by the Companies (Auditors Report) (Ameiidment) Order.
2004 (together the "Order"), issued by the Central Government of India
in terms of sub-section (4A) of section 227 of the Companies Act, 1956.
and on the basis of such checks of the books and records of the Company
as we considered appropriate and according to the information and
explanations given to us. we give in the Admixture a statement on the
matters specified in paragraphs 4 and 5 of the Order
Further we report :-
i. We have obtained all the information and explanations, which to the
best of our knowledge and belief
were necessary far the purpose of the audit
ii. In our opinion, proper books of accounts as required by law have
been kept by the company so far as appears from our examination of
those books.
in The Balance Sheet. Profit & Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of accounts.
iv. In our opinion. The Balance Sheet, Profit & Loss Account and Cash
Flow Statement dealt with by this report comply with the Accounting
Standards referred to in sub-section (3C) of section 211 of the
Companies Act, 1956.
v On the basis of written representation received from directors and
taken on record by the Board of Directors, we report that none of the
Directors is disqualified as ou31sr March. 2011 from being appointed as
a director in terms of clause (g) of sub-section (1) of section 274 of
the Companies Act. 1956.
vi. In our opinion and to the best of our information, and according to
the explanation given to us, the said 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:
a) in the- case of the Balance Sheet, of the state of affairs of the
company as at i1st March. 2011:
b) in the case of the Profit & Loss
Account of the Profit for the year ended on that date: and
c)in the case of the Cash Flow Statement, of the cash flows
for the year ended on Thai date.
ANNEXURE TO THE AUDITORS REPORT
Statement referred to in our report of even dale to the members of
Artech Power Products Limited on the accounts for the
(i) The company does not have fixed assets. Therefore, the provisions
of clause (i)(a) to (i)(c) of paragraph 4 of the said Order are not
applicable to the company.
(ii) The company does not have any inventories. Therefore, the
provisions of clauses (ii)(a) to (ii)(c) of paragraph 4 of the said
Order are not applicable to the company.
(iii) The company has not granted any loans, secured or unsecured to
companies, firms, or other parties, covered in the register maintained
under section 301 of the Act. Clauses (iu)(b) to (m)(d) of paragraph 4
of the said Order are not applicable to the company.
e) The company has taken unsecured loans from 2 parties. At the year
end. the outstanding balance of such loans taken aggregated to
Rs.630,521 and the maximum amount involved during the year was
Rs.917.521.
f) The rate of interest and other terms and conditions of such loans
are. in our opinion, prima facie not prejudicial to die interest of the
company.
g) The terms of repayment for the above loans have not been stipulated,
but the same are stated to be repayable on demand. Since the company
is stated to have received no demand for repayment of the above loans,
there has been no default on the part of the company.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control systems commensurate
with the size of the company and nature of its business for the
purchase of inventory and fixed assets and for sale of goods and
services. During the course of our audit, no major weaknesses have been
noticed in the internal controls.
(v) In our opinion and according to the information and explanations
given to us, there are no contracts and arrangements referred to in
section 301 of the Companies Act. 1956 during the year that need to be
entered in the register maintained under that section. Accordingly.
Clause (v) (b) of the paragraph 4 of the Order is not applicable to the
company for the current year.
(vi) The company has not accepted any deposit from public within the
meaning of section 58 A and 58 AA or any other relevant provisions of
the Act and the Companies (Acceptance of Deposits) Rules. 1975 framed
there under. The appeal filed by the Registrar of Companies. Kerala
against the company with the Honljle Kerala High Court, as specified in
point no.4 of Notes to Accounts forming part of Schedule 11 to
financials statements, is yet to be disposed off.
(vii) In our opinion, the company's internal audit system is
commensurate with its size and its nature of activities. yni) The
provisions regarding maintenance of cost records under section 209(1
(d) of the Companies Act. 1956 are not applicable to the company.
(ix) a) According to the information and explanations provided to us.
the company is generally regular in depositing with appropriate
authorities undisputed statutory dues including provident fund,
investor education and protection fund. employees' state insurance,
income tax wealth tax. service tax. customs duty, excise duty7, cess
and other material statutory dues, applicable to it. The following were
outstanding for a period of more than six months on the last day of the
financial year.
b) There is no amount payable in respect of the aforesaid statutory
dues that have not been deposited on account of any disputes.
(x) The accumulated losses of the company at the end of tire financial
Year is more than fifty percent of the net worth; but the company has not
incurred cash losses during the current financial year and in the
immediately proceeding financial year.
(xi i As per the information and explanations given to us. die company
has not availed any loans from banks or financial institutions or through debentures.
(xii) The company has not granted any loans and advances on die
basis of security by way of pledge of shares, debentures and other
securities.
xiii) The provisions of any special statute applicable to Chit Fund
or Xydis or Mutual Fund Society are not applicable
to the company.
(xiv) In our opinion and according to the explanations
given to us, the company is not a dealer or trader in securities.
(xv) As explained to us, the company leas not given any guarantee for
loans taken by others from bank or financial
institutions, the terms and conditions whereof, are prejudicial to the
interest of the company.
(xvi) According to tile information and explanations given to us, the
term loans taken by the company have been applied
for the purpose for which they were obtained.
(Xvii) According to file information and explanations given to us
and on 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 investments'.
(Xviii) Tile company has not made
any preferential allotment of shares to parties covered in the register
maintained under section 301 of the Companies Act. 1956 during the
year
(xix) In our opinion. the company has not issued any debentures during
the year.
(xx) The company has not raised any money by way of public issue
during the year. [xxi) According to tile information and explanations
given to us. during the year, no fraud on or by the company has
been noticed or reported.
For G Joseph & Associates
Charetered Accountants
FimiReg.No.006310S
Place : Cochin Umesh L Bhat
Date : 21/11/2011 Partner
Membership No .211364
Mar 31, 2010
1 We have audited the attached Balance Sheet of M/s ARTECH POWER
PRODUCTS LIMITED (The company") as at 31st March, 2010, the Profit &
Low Account and Cash Flow statement of the company for the year ended
that date annexed thereto. These financial statements are the
responsibility of the Company's management. Our responsibility is to
express an opinion on these financial statements based on our audit.
2 We have conducted our audit in accordance with auditing standards
generally accepted in India. These standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free from material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements and also includes assessing
the accounting principles used and significant estimates made by
management, as well as evaluating the over all presentation of financial
statements. We believe that our audit provides a reasonable basis for
our opinion.
3 As required by the Statement on the Companies (Auditor's Report)
Order 2003, as amended by the Companies (Auditors Report) (Amendment)
Order, 2004 (together the "Order"), issued by the Central Government of
India in terms of sub-section (4A) of section 227 of the Companies Act,
1956, and on the bass of such checks of the books and records of the
Company as we considered appropriate and according to the information
arid explanations given to us, we give in the Annexure a statement on
the matters specified in paragraphs 4 and 5 of the Order. .
4 The company had stopped its operations in the first week of April.
2000. The operations diet not recommence there after. During the year,
the company has sold/written off the entire fixed assets. In our
opinion and without qualifying our report, we draw attention to the tact
that the accounting assumption of going concern is impaired as (Mailed in
Note No.1 of Schedule No.11. Necessary adjustments have been made to
the values of the assets and liabilities of the company as at the year
end.
5 During the year the company has disposed off Its plant and machinery
and other factory assets. The company has not provided for the sales
tax liability, if any, on the above transaction. In the absence of
adequate records In support of the transactions, we are unable to
quantify the liability and its impact on the profit for the year and on
the assets/liabilities as at the year end. Subject to the above, we
report that -
i. We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of the
audit.
ii. In our opinion, proper books of accounts as required by law have
been kept by the company so far as it appears from our examination of
these books.
iii. The Balance Sheet, Profit & Loss Account and cash flow statement
dealt with by this report are in agreement with the books of accounts.
iv. In our opinion, the Balance Sheet, Profit & Loss Account and (ha
cash flow statement dealt with by this report comply with the
Accounting Standards referred to in sub-section (X) Of section 211 of
the Companies Act 1956.
v. At the directors have attracted disqualification as on 31 at March
2010 as the company has not /Had the Annual accounts and Returns for
last three years in terms of Section 274 (1) (g) of the Companies Act,
1956.
vi. Subject to Paragraph 5 above, we report that
a) in the case of the Balance Sheet, the state of affairs of the
company as at 31st March, 2010; and
b) in the case of the Profit &Loss Account, the Profit for the year
ended on that date; and
c) In the case of Cash Bow statement, the cash torn for the year ended
on that date, represent a true and Mr view.
Statement referred to in our report of even date to the member of
ARTECH POWER PROUCTS LIMITED on the accounts for the year ended 31st
March, 2010
(i)a The company has maintained records showing particulars Inducting
quantitative details and situation of fixed assets, but the same
requires to be updated.
b As per the information and explanations given to us, the fixed assets
ham not been physically verified by the management
c The company has disposed off all its fixed assets during the year and
hence the going concern status of the company has been affected.
(ii) a The stocks of finished goods, raw materials and work-in-process
have not been physically verified by the management during the year.
However, the company do not have any Inventory as at the year end.
b We are unable to comment on clauses (II) (b) & (c) of the Order,
since physical verification has not been carried out by the company
during the year.
(iii) The company has not granted any loans, secured or unsecured to
companies, firms, of other patties, covered in the register maintained
under section 301 of the Act. Clauses (iii)(b) to (iii)(d) of paragraph
4 of the said Order are not applicable to the company.
e) The company has taken unsecured loans from 3 parties. At the year
end, the outstanding balance of such loans taken aggregated to
Rs.917,527 and the maximum amount involved during the year was
Rs.85,67,364.
f) The rate of interest and other terms and conditions of such loans
are, in our opinion, prime fade not prejudicing the Interest of the
company.
g) The terms of repayment far the above loans have not been stipulated,
but the same are stated to be repayable on demand Since the company is
stated to have received no demand for repayment of the above loans,
there has been no default on the part of the company.
(iv) As the company did not carry on any business during the year,
clause no(iv) of the Order or internal control procedures relating to
the purchase of stores, raw material, including components, plant and
machinery, equipment and other assets, and for the sale of goods, is
not applicable.
(v) In our opinion and according to the information and explanations
given to us, there are no contracts and arrangement referred to in
section 301 of the Companies Act. 1956 during the year that need to be
entered to the register maintained under that section. Accordingly.
Clause (v) (b)of the paragraph 4 of the Order is not applicable to the
company for the current year.
(vi) During the year, the company has violated the provisions of
Section 58A of the Companies Act, 1956, to the extent that entire
Deposits and interests were repaid / settled after significant delay.
(vii) In our opinion, the company does not have an internal audit
system.
(viii) The provisions regarding maintenance of cost records under
section 209(1 ëd) of the Companies Act, 1956 are not applicable to the
company,
(ix) a) According in the information and explanations provided to us.
the company was generate regular in depositing with appropriate
authorities undisputed statutory dues Including provident fund,
investor education and protection fund, employees' state insurance.
Income tax, wealth tax, service tax, customs duty, excise duty, cess
and other material statutory dues, applicable to it.
b) As per the information given to us, there are no statutory dues
which have not been deposited on account of any disputes.
(x) The accumulated losses of the company at the end of the financial
year is more than fifty percent of the net worth and the company has
incurred cash losses during the current financial year and in the
immediately preceding financial year.
(xi) As per the information and explanations given to us, the company
has defaulted in repayment of dues to IDBI Bank Ltd amounting to
Rs.494.80 lakhs, to Stats Bank of Travancore amounting to Rs. 126.28
lakhs and to Kerala State Industrial Development Corporation Ltd
amounting to Rs 68.95 lakhs. However, as at the year end. all the dues
to the financial Institutions and banks were duty settled.
(xii) 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) The provisions of any special statute applicable to Chit Fund or
Nidhi or Mutual Fund Society are not applicable to the company.
(xiv) In our opinion and according to the explanations given to us. the
company is not a dealer or trader in securities.
(xv) As explained to us. the company has not given any guarantee tor
loans taken by others from bank or financial Institutions, the terms
and conditions whereof, are prejudicial to the interest of the company.
(xvi) According to the Information and explanations given to us. the
term loans taken by the company were applied for the purpose for which
they were obtained.
(xvii) According to the information and explanations given to us and on
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
investments.
(xviii) The company has not made any preferential allotment of shares
to parties covered in the register maintained under section 301 of the
Companies Act, 1956 during the year.
(xix) In our opinion the company has not issued any debentures during
the year.
(xx) The company has not raised any money by way of public issue during
the yaw.
(xxi) According to the information and explanations given to us, during
the year, no fraud on or by the company has been noticed or reported.
For G Joseph & Associates
Chartered Accountants
(Firm Reg.No. 006310S)
Umesh L.Bhat
Place: Cochin Partner
Date: 13.09.2010 Membership No.211364
Mar 31, 2009
1 We have audited the attached Balance Sheet of M/s ARTECH POWER
PROOUCTS LIMITED (The company") as at 31st March, 2009; the Profit &
loss Account and Cash Flow statement of the company for the year ended
that date annexed thereto. These financial statements are the
responsibility of the Company's management. Our responsibility Is to
express an opinion on these financial statements based on our audit.
2 We have conducted our audit In accordance with auditing standards
generally accepted in India. These standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free from material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial Statements and also includes assessing
the accounting principles used and significant estimates made by
management, as well as evaluating the overall presentation of financial
statements. We believe that our audit provides a reasonable basis for
our opinion.
3 As required by the Statement on the Companies (Auditor's Report)
Order 2003, as amended by the Companies (Auditors Report) (Amendment)
Order, 2004 (together the 'Order'), issued by the Central Government
of India in terms of sub-section (4A) of section 227 of the Companies
Act, 1956, and on the basis of such checks of the books and records of
the Company as we considered appropriate and according to the
information and explanations given to us, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
4 The company had stopped Its operations in the first week of April,
2000. The operations did not recommence there after. The ability of the
company to continue as a going concern is severely impaired. The
company has prepared the financial statements without making any
adjustments in the value of fixed assets (hat have been necessary, as
the company Is unable to continue as going concern. '
5 Subject to Point 5 In the Notes to Accounts In Schedule 11 regarding
the non availability of certain books and records, information on dues
to Small Scale Units in Note No. 19 of Notes to Accounts In Schedule 11
and non-reconciliation and non-conformation of balances of sundry
debtors, sundry Creditors,Loans and advances bank accounts, Loans from
Kerala State Industrial Development Corporation Limited (KSIDC),
Industrial Development Bank of India(IOBI} and State Bank Travancore
(SBT) and fixed deposits accepted, we report that:-
i. We have obtained all the Information and explanations, which to the
test of our knowledge and belief were necessary for the purpose of the
audit '
ii. In our opinion, proper books of accounts as required by law have
been kept by the company so far as appears from our examination of these
books, subject to those mentioned In para(S) above
iii. The Balance Sheet, Profit & Loss Account and cash flow statement
dealt with by this report are in agreement with the books of accounts.
iv. In our opinion, the Balance Sheet, Profit & Loss Account and the
cash flow statement dealt with by this report comply with the
Accounting Standards referred to in. sub-section (X) of section 211 of
the Companies Act. 1958 subject to
(I) non compliance of Accounting Standard 2 on Valuation of
Inventories 'by stating the value of inventory as at the year end at
cost, without considering the realizable value. We are unable to quantify
the impact of the above, on the toss for the year and on the value of
inventories In the absence of adequate' Information.
(II) non compliance of Accounting Standards 10 on 'Accounting for, Fixed
Assets' by stating fixed assets at historical cost rather then net
realizable value. The diminution In the value of asset baa not bean
ascertained and we are unable to quantify Its impact on the value of
assets and on the loss for the year. '
(iii)non compliance with the requirements of Accounting Standard 6 on
"Depredation Accounting' by not providing adequate depredation based on
the expected useful life end residual Me of the asset In view of the non
utilization Of the asset since April 2000. We are unable to quantify
the additional depreciation that was required to be provided and its
impact on the losses for the year and on the depredation reserve. 1"
for) non compliance with the requirements of Accounting Standard 15 on
'Accounting for Retirement Benefits In the Financial Statements of
Employers' by not providing for gratuity and leave encashment, the
Impact of which on the loss tor the year and on the provision for
gratuity and leave encashment could not be quantified.
v. AH the directors have attracted disqualification as on 31atManh 2009
as the company has not filed the Annual accounts and Returns for last
three years in terms of Section 274 (1) (g) of the Companies Act, 1956.
vi. Due to the significance of the matters discussed in Paragraph 4 & 5
above, report that
a) In the case of the Balance Sheet, the state of affairs of the
company as at 31st March, 2009; and
b) in the case of the Profit & Loss Account, the Loss for the year
ended on that date; and
c) In the case of Cash Row statement, the cash flows for the year ended
on that date. do not represent a true and fair view.
ANNEXURE TO THE AUDITORS REPORT .
Statement referred to In our report of even date to the members of
ARTECH POWER PROOUCTS LIMITED on the accounts (or the year ended 31st
March, 2009 . .
(i) a The company has maintained records showing particulars including
quantitative details and situation at fixed assets, but the same
requires to be updated.
b As per the information and explanations given to us, the fixed
assets have net been physically verified by the management.
c The company has not disposed off substantial pert of its fixed assets
during the year,
(ii) a The stocks of finished goods, raw materials and work-in-process
have not been physically verified by the management during the year/at
year end.
b we are unable to comment on clauses (M) (b) 4 ('c)of the Order,
since physical verification has not been carried Out by the Company
during the year.
(iii) The company has not granted any loans, secured or unsecured to
compentoe, firms, or other parties, covered in the register maintained
wider section 301 of the Act Clauses (l)(b) to (WXd) of paragraph 4 of
*the said Order are not applicable to the company.
e) The company has taken unsecured loans from 3 parties. At the year
end, the outstanding balance of such loans taken aggregated to
Rs.85,67,364 and the maximum amount involved during the year was
Rs.5.67.364.
f) The rate of interest and other terms and conditions of such loans
are, In our opinion, prima fade not prejudcial to the interest of the
company.
g) The terms of repayment for the above loans have not been stipulated,
but the same are altered to be repayable On demand. Since the company
is stated to have received no demand for repayment of the above loans,
there has been no default on the part of the company.
(Iv) As the company did not carry on any business during the year, eta
use no.(iv) of the Order on internal control procedures relating to the
purchase of stores, raw material, including components, plant and
machinery, equipment and other assets, and for the sale of goods, is
not applicable. ' 1 '
(v) In our opinion and according to the information and explanations
given to us, there are no contracts and arrangements referred to In
section 301 of the Companies Act 1956 during the year that need to be
entered In the register maintained under that section. Accordingly,
Clause (v) (b) of the paragraph 4 of the Order is not applicable to this
company for this current year,
(vi) The company has violated the provisions of Section S6A of the
Companies Act, 19M. to the extant that certain deposits and Interest
were not paid even after the claim was raised.
(vii) In our opinion, the company does not have an internal audit
system.
(viii) the provisions regarding maintenance of cost records under
section 209(1 Kd) of the Companies Act, 1956 are not applicable to the
company.
(ix) a) According to the information and explanations provided to us,
the company was not regular In depositing with appropriate authorities
undisputed statutory dues Including provident fund. Investor education
and protection fund, employees' state Insurance, Income tax wealth tax,
service tax, customs duty, excise duty, cess end other malarial
statutory dues, applicable to It. The following were outstanding for a
period of more then six months on the lest day of (he finance/ year-
Amount Period to which
Name of statute Nature of dues (Rs.) the amount relates
Income Tax Act.
1981 Tax Deducted
at source 48,475 1938-1999
Employer
& employee
Provident Fund dues contribution 177,014 1998-1999
b) At per the information given to us, there are no statutory dues
which have not been deposited on account of any disputes
(x) The accumulated losses of the company at the end of the financial
year Is more than fifth percent of the net worth and me company has
Incurred cash losses during the currant financial year and in the
Immediately preceding financial year.
(xi) As par the Information and explanations given to us. the company
has defaulted In repayment of dues to IDBI amounting to Rs.492.80lakhs,
to-SBT amounting to Rs.106.93 lakhs and to KSIDC amounting to Rs.62.88
lakhs
(xii) The company has not granted any advances on the basis of
security by way of pledge of shares, debentures and other securities.
(xiii) The provisions of any special statute applicable to Chit Fund or
Nidhi or Mutual Fund Society am not applicable to the company.
(xiv) In our opinion and according to the explanations given to us, the
company is not a dealer or trader In securities
(xv) As explained to us, me company has not given any guarantee for
loans taken by others from bank or financial institutions .the terms and
conditions whereof, are prejudicial to the Interest of the company.
(xvi) According to the information and explanations given to us, the
term loans taken by the company wire applied for the purpose tor which
they were obtained.
(xvii) According to the Information and explanations given to us and on
an overall examination of the balance sheet ofthe comply, we report
that no funds raised on short term basis have been used for long term
Investments.
(xviii) . The has not made any preferential allotment of shares to
parties covered in the register maintained under section 301 ofthe
Companies Act 1B66 during the year
(xix) In our opinion, me company has not issued any debentures during
the year.
(xx) The company has not raised any money by way of public issue during
the year.
(xxi) According to the Information and explanations given to us, during
the year, no fraud on or by the company has been noticed or reported.
For G Joesph & Associates
Chartered Accountants
(Firm Reg.No.006310S)
Umesh L Bhat
Place Cochin Partner
Date : 13.09.2010 Membership No.211364
Mar 31, 2008
1 we have audited the attached Balance of M/s ARTECH POWER PRODUCTS
LIMITED (-The company-) as at 31st March 2006, the Profit & Loss Account
and Cash Flow statement of the company for the year ended that data
annexed thereto These financial statements based on our audit.
2.We have conducted our audit in accordance with auditing standards
generally accepted in India. These standards require that we reasonable
assurance about whether the financial statements are free from
material examining, on a test basis, evidence supporting the amounts and
disclosures In the financial statements and also Includes assessing the
accounting principles used and significant estimates made by
management as wall as evaluating the overall presentation of
financial statements. We believe that our audit provides a reasonable
basis for our opinion.
3 As required by the statement on the Companies (Auditor's Report)
Order 2003, as amended by the Companies (Auditors Report) Amendment)
Order, 2004 (together the 'Order-), Issued by the Central Government of
India in in terms of subsection (4A)of section 277 of the companies act
the Companies Act, 1956, and on the basis of such checks of the books
and records of the Company as we considered appropriate and according
to the information and explanation given to us we given in the annexure
a statement on the matters specified in paragraphs 4 and 5 of the order.
4.The company had stopped its operation in the first week of April
2000. the operations did not recommence there after . the ability of
The company to continue as a going concern is several impaired .
the company has prepared the financial statements with out making any
adjustments in the value of fixed assets that have been necessary as the
company is unable to continue as going concern
5.Subject to point 2 & 6 in the notes to accounts in schedule 11
regarding the non availability of certain books and records information
on dues to small scale units in more no.20 of accounts in schedule 17
and non reconciliation and non conformation of balance of sundry
debtors sundry creditors loan and advances banks accounts loans from
Kerala state industrial development corporatizing Limited (KSIDC)
Industrial Development Banks of India (IDBI)and state Bank Travancore
(SBT) and Fixed deposits accepted we report that ;-
i. we have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of the
audit
li. In our opinion, proper books of accounts as required by law have
been kept by the company so fares appear? from our examination of these
books, subject to those mentioned in pan,(5) above examination
iii. Sheet, Profit & Loss Account and cash flow statement dealt with by
this report are in agreement with the books of
iv. In our opinion the Balance Sheet, Profit & Loss Account and the
cash flow statement dealt with by this report comply with the
Accounting Standards referred to in subjection (3C) of section 211 of
the Companies Act, 1956,subject to , (i)Non compliance of accounting
standard 2 on valuation of inventories by stating the value of
inventory as at the year end at cost with out considering the
realizable value . We are unable to quantify the impact of the above,
on the loss for the year and on the value of inventories in the absence
of adequate information.
(u) non compliance of Accounting Standard 10 on 'Accounting for Fixed
Assets' by stating fixed assets at historical cost rather than net
realizable . The diminution in the value of asset has not been
ascertained and we are unable to quantify its impact on the value of
assets and on the loss for the year
(iii)non compliance with the requirements of accounting standard 6 on
Depreciation Accounting by not providing adequate depreciation based on
the expected use full life and residual life of the assets in view of
the non utilization of the asset since April 2000 . We are unable to
quantify the additional deprecation that was required to be provided
and its impact on the losses for the year and on the depreciation
reserve.
(rv) non compliance with the requirements of Accounting Standard 15 on
Accounting for Retirement Benefits in the Financial Statements of
Employers' by not providing for gratuity and leave encashment, the
impact of which on the toss for the year and on the provision for
gratuity and leave encashment could not be quantified.
v. All the directors have attracted disqualification as on 31st March
2008 as the company has not filed the Annual accounts and Returns for
last three years in terms of Section 274 (1) (g) of the Companies Act,
195$.
vi. Due to the significance of the matters discussed in Paragraph 4 & 5
above, we report that
a) In the case of the Balance Sheet, the state of affairs of the
company as at 31st March, 2008; and
b) In the case of the Profit & Loss Account, the Loss for the year
ended on that date; and
c) In the case of Cash Row statement, the cash flows for the year ended
on that date. do not represent a true and fair view.
ANNEXURE TO THE AUDITORS REPORT
Statement referred to in our report of even date to the members of
ARTECH POWER PRODUCTS LIMITED on the accounts for the year ended 31st
March, 2008.
(I) a The company has maintained records showing particulars including
quantitative details and situation of Axed assets, but/he same requires
to be updated.
b As per the Information and explanations given to us. the fixed assets
have not been physically verified by the management.
c The company has not disposed oil substantial part of its fixed assets
during the year.
(II} a The stocks of finished goods, raw materials and work-in-process
haw not been physically verified by the management during the year/at
year end. .
b We are unable to comment on clauses (ii) (b) & (c) of the Order,
since physical verification has not been carried out by the company
during the year,
(iii) The company has not granted any loans, secured or unsecured to
companies, firms, or other parties, coveted in the register maintained
under section 301 of the Act Clauses (iii(b) to (iii(d) of paragraph 4
of the said Order are not applicable to the company.
e) The company has taken unsecured loans from 3 parties. At the year
end, the outstanding balance of such loans taken aggregated to
Rs.70,31,876 and the maximum amount Involved during the year was
Rs.70,31,876
f) The rate of Interest and other terms Mid conditions of such loans
are, In our opinion, prima fade not prejudicial to the interest of the
company.
g) The terms of repayment for the above loans have not been stipulated,
but the same are stated to be repayable or demand. Since the company is
stated to have received no demand for repayment of the above loans,
there has been no default on the part of the company.
(iv) As the company did not carry on any business during the year,
clause no.(iv) of the Order on Internal control procedures relating
to the purchase of stores, raw material. Including components, plant
and machinery, equipment and other assets, and for the sale of goods,
is not applicable. -
(v) In our opinion end according to the Information and explanations
given to us. there are no contracts and arrangements referred to in
section 301 of the Companies Act, 1956 during the year that need to be
entered m the register maintained under that section. Accordingly,
Clause (v)
(b) of the paragraph 4 of the Order Is not applicable to the company
for the current year, '
(vi) The company has Rotated the provisions of Section 58A of the
Companies Act, 1956, to the extent that certain deposits and interest
were not paid even alter the claim was raised. '
(vii) In our opinion, the company do not have an Internal audit system
(vi) The provisions regarding maintenance of cost records under
section 209(1)(d) of the Companies Act. 1956 are not applicable to the
company.
(x)The accumulated loses of the company at the end of the financial
year is more than fifty percent of the not worth and the company has
incurred cash losses during the current financial year and in the
immediately proceeding financial year.
(xi)As per the information and explanation given to us the company has
defaulted in repayment of dues to IDBI amounting to Rs 492.00 lakhs to
SB amounting to Rs 126.27 lakhs and to KSIDC amounting to rs 88.94 lakhs
(xii) the company has not granted any loans and advanced on the basis
of security by way of pledge of shares debentures and other securities
(xiii) The provisions of any special statute applicable to Chit Fund or
Nidhi or Mutual Fund Society are not applicable to the company.
(xiv) In our opinion and according to the explanations given to us.
the company is not a dealer or trader in securities.
(xv)As explained to us the company has not given any guarantee for
loans taken by other from bank or financial institutions the terms and
condition were of are prejudicial to the interest of the company
(Xvi)According to the information and explanations given to us the term
leans taken by the company were applied for the purpose for which they
Were obtained
(xvii)According to the information and explanations given to us and on
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
investments
(xviii) The company has not made any preferential allotment of share s
to partied covered in the register maintained under section 301 of the
Companies Act 1956 during the year
(xix) in our opinion ,the company has not issued any debentures during
the year. "
(XX) The company has not raised any money by way of public Issue during
the year.
(xxi) According to the information and explanations given tons, during
the year. no fraud on or by the company has been noticed or reported.
For G Joseph & Associates
Chartered Accountants
(Firm RegNo,006310S)
Place: Cochin Umesh L Bhat
Date : 13/09/2010 Partner
Membership No 211384
Mar 31, 2007
1 We have audited the attached Balance Sheet of M/s. ARTECH POWER
PRODUCTS LIMITED ("The company") as at 31st March, 2007, the Profit &
Loss Account and Cash Flow statement of the company for the year ended
that date annexed thereto. These financial statements are the
responsibility of the Company's management. Our responsibility is to
express an opinion on these financial statements based on our audit.
2 We have conducted our audit in accordance with auditing standards
generally accepted in India. These standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free from material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements and also includes assessing
the accounting principles used and significant estimates made by
management, as well as evaluating the overall presentation of financial
statements. We believe that our audit provides a reasonable basis for
our opinion.
3 As required by the Statement on the Companies (Auditor's Report)
Order 2003, as amended by the Companies (Auditors Report) (Amendment)
Order, 2004 (together the "Order"), issued by the Central Government of
India in terms of sub-section (4A) of section 227 of the Companies Act,
1956, and on the basis of such checks of the books and records of the
Company as we considered appropriate and according to the information
and explanations given to us, we give in the Annexure a statement on
the matters specified in paragraphs 4 and 5 of the Order.
4 The company had stopped its operations in the first week of April,
2000. The operations did not recommence thereafter. The ability of the
company to continue as a going concern is severely impaired. The
company has prepared the financial statements without making any
adjustments in the value of fixed assets that have been necessary, as
the company is unable to continue as going concern.
5 Subject to Point 2 & 5 in the Notes to Accounts in Schedule 17
regarding the non availability of certain books . and records,
information on dues to Small Scale Units in Note No.21 of Notes to
Accounts in Schedule 17 and non-reconciliation and non-conformation of
balances of sundry debtors, sundry creditors, loans and advances, bank
accounts, Loans from Kerala State Industrial Development Corporation
Limited (KSIDC), Industrial Development Bank of India(IDBI) and State
Bank Travancore (SBT) and fixed deposits accepted, we report that:-
i. We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of the
audit
ii. In our opinion, proper books of accounts as required by law have
been kept by the company so far as appears from our examination of
these books subject to those mentioned in Para(5) above
iii. The Balance Sheet, Profit & Loss Account and cash flow statement
dealt with by this report are in agreement with the books of accounts.
iv. In our opinion, the Balance Sheet, Profit & Loss Account 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 Companies Act, 1956, subject to
(i) non compliance of Accounting Standard 2 on 'Valuation of
Inventories' by stating the value of inventory as at the year end at
cost, without considering the realizable value. We are unable to
quantify the impact of the above, on the loss for the year and on the
value of inventories in the absence of adequate information.
(ii) non compliance of Accounting Standard 10 on 'Accounting for Fixed
Assets' by stating the fixed assets on historical cost at rather than
the net realizable value. The diminution in the value of asset has not
been ascertained and we are unable to quantify its impact on the value
of assets and on the loss for the year.
(iii)non compliance with the requirements of Accounting Standard 6 on
'Depreciation Accounting' by not providing adequate depreciation based
on the expected useful life and residual life of the asset in view of
the non utilization of the asset since April 2000. We are unable to
quantify the additional depreciation that was required to be provided
and its impact on the losses for the year and on the depreciation
reserve.
(iv) non compliance with the requirements of Accounting Standard 15 on
'Accounting for Retirement Benefits in the Financial Statements of
Employers' by not providing for gratuity and leave encashment, the
impact of which on the loss for the year and on the provision for
gratuity and leave encashment could not be quantified.
v. All the Directors have attracted disqualification as on 31st March
2007 as the Company has not filed the Annual Accounts and Returns for
last 3 years and non repayment of FDs in terms of Section 274(1)(g) of
the Companies Act 1956.
vi. Due to the significance of the matters discussed in Paragraphs & 5
above, we report that
a) in the case of the Balance Sheet, the state of affairs of the
company as at 31st March, 2007; and
b) in the case of the Profit & Loss Account, the Loss for the year
ended on that date; and
c) In the case of Cash Flow statement, the cash flows for the year
ended on that date. do not represent a true and fair view.
ANNEXURE TO THE AUDITORS REPORT
Statement referred to in our report of even date to the members of
ARTECH POWER PRODUCTS LIMITED on the accounts for the year ended 31st
March, 2007.
(i) a The company has maintained records showing particulars including
quantitative details and situation of fixed assets put the same
requires to be updated. '
b As per the information and explanations given to us, the fixed assets
have not been physically verified by the management.
c The company has not disposed off substantial part of its fixed assets
during the year.
(ii) a The stocks of finished goods, raw materials and work-in-process
have not been physically verified by the management during the year/at
year end.
b We are unable to comment on clauses (ii) (b) & ('c) of the Order,
since physical verification has not been carried out by the company
during the year.
(iii) The company has not granted any loans, secured or unsecured to
companies, firms, or other parties, covered in the register maintained
under section 301 of the Act. Clauses (iii)(b) to (iii)(d) of paragraph
4 of the said Order are not applicable to the company.
e) The company has taken unsecured loans from 3 parties. At the year
end, the outstanding balance of such loans taken aggregated to
Rs.60,30,476 and the maximum amount involved during the year was
Rs.60,30,476.00.
f) The rate of interest and other terms and conditions of such loans
are, in our opinion, prima facie not prejudicial to the interest of the
company.
g) The terms of repayment for the above loans have not been stipulated,
but the same are stated to be re payable on demand. Since the company
is stated to have received no demand for repayment of the above loans,
there has been no default on the part of the company.
(iv) As the company did not carry on any business during the year,
clause no.(iv) of the Order on internal control procedures relating to
the purchase of stores, raw material, including components, plant and
machinery, equipment and other assets, and for the sale of goods, is
not applicable.
(v) In our opinion and according to the information and Explanations
given to us, there are no contracts and arrangements referred to in
section 301 of the Companies Act, 1956 during the year that need to be
entered in the register maintained under that section. Accordingly,
Clause (v) (b) of the paragraph 4 of the Order is not applicable to the
company for the current year.
(vi) The company has violated the provisions of Section 58A of the
Companies Act, 1956, to the extent that certain deposits and interest
were not paid even after the claim was raised.
(vii) In our opinion, the company's internal audit system is not
commensurate with the size and nature of its activities
(viii) The provisions regarding maintenance of cost records under
section 209(1 )(d) of the Companies Act, 1956 are not applicable to the
company.
(ix) a) According to the information and explanations provided to us,
the company was not regular in depositing with appropriate authorities
undisputed statutory dues including provident fund, investor education
and protection fund, employees' state insurance, income tax wealth tax,
service tax, customs duty, excise duty, cuss and other material
statutory dues, applicable to it. The following were outstanding for a
period of more than six months on the last day of the financial year
Amount Period to which
Name of statute Nature of dues (Rs.) the amount relates
Income Tax Act
,1961 Tax Deducted at
source 48,475 1998-1999
Kerala General Sal
es Tax Act Sales Tax 172,179 1999-2000
b) As per the information given to us, the following statutory dues
have not been deposited on account of any disputes:-
Amount Period to
which Forum where
Nature of statute Nature of dues (Rs.) the amount
relates dispute is
pending
Sales Tax Dept Sales Tax 20,880
,000 1999-2000 High Court
of Kerala
(x) The accumulated losses of the company at the end of the financial
year is more than fifty percent of the net worth and the company has
incurred cash losses during the current financial year and in the
immediately preceding financial year.
(xi) As per the information and explanations given to us, the company
has defaulted in repayment of dues to IDBI amounting to Rs.494,80
lakhs, to SBT amounting to Rs.126.28 lakhs and to KSIDC amounting to
Rs.68.95 lakhs '
(xii) 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) The provisions of any special statute applicable to Chit Fund or
Nidhi or Mutual Fund Society are not applicable to the company.
(xiv) In our opinion and according to the explanations given to us, the
company is not a dealer or trader in securities.
(xv) As explained to us, the company has not given any guarantee for
loans taken by others from bank or financial institutions, the terms
and conditions whereof, are prejudicial to the interest of the company.
(xvi) According to the information and explanations given to us, the
term loans taken by the company were applied for the purpose for which
they were obtained.
(xvii) According to the information and explanations given to us and on
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
investments.
(xviii) The company has not made any preferential allotment of shares
to parties covered in the register maintained under section 301 of the
Companies Act, 1956 during the year
(xix) In our opinion, the company has not issued any debentures during
the year.
(xx) The company has not raised any money by way of public issue during
the year.
(xxi) According to the information and explanations given to us, during
the year, no fraud on or by the company has been noticed or reported.
For G Joseph & Associates
Chartered Accountants
(Firm Reg. No. 00631 OS)
Umesh L Bhat
Place: Cochin
Partner
Date : 10.07.2010
Membership No.211364
Mar 31, 2006
1 We have audited the attached Balance Sheet of M/S.ARTECH POWER
PRODUCTS LIMITED ("The company") as at 31 St March, 2006, the Profit &
Loss Account and Cash Flow statement of the company for the year ended
that date annexed thereto. These financial statements are the
responsibility of the Company's management. Our responsibility is to
express an opinion on these financial statements based on our audit.
2 We have conducted our audit in accordance with auditing standards
generally accepted in India. These standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free from material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements and also includes assessing
the accounting principles used and significant estimates made by
management, as well as evaluating the overall presentation of financial
statements. We believe that our audit provides a reasonable basis for
our opinion.
3 As required by the Statement on the Companies (Auditor's Report)
Order 2003, as amended by the Companies (Auditors Report) (Amendment)
Order, 2004 (together the "Order"), issued by the Central Government of
India in terms of sub-section (4A) of section 227 of the Companies Act,
1956, and on the basis of such checks of the books and records of the
Company as we considered appropriate and according to the information
and explanations given to us, we give in the Annexure a statement on
the matters specified in paragraphs 4 and 5 of the Order.
4 The company had stopped its operations in the first week of April,
2000. The operations did not recommence thereafter. The ability of the
company to continue as a going concern is severely impaired. The
company has prepared the financial statements without making any
adjustments in the value of fixed assets that have been necessary, as
the company is unable to continue as going concern.
5 Subject to Point 2 & 5 in the Notes to Accounts in Schedule 17
regarding the non availability of certain books and records,
information on dues to Small Scale Units in Note No. 21 of Notes to
Accounts in Schedule 17 and non-reconciliation and non-conformation of
balances of sundry debtors, sundry creditors, loans and advances, bank
accounts, Loans from Kerala State Industrial Development Corporation
Limited (KSIDC), Industrial Development Bank of India(IDBI) and State
Bank Travancore (SBT) and fixed deposits accepted, we report that:-
i. We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of the
audit
ii. In our opinion, proper books of accounts as required by law have
been kept by the company so far as appears from our examination of
these books subject to those mentioned in Para(5) above
iii. The Balance Sheet, Profit & Loss Account and cash flow statement
dealt with by this report are in agreement with the books of accounts.
iv. In our opinion, the Balance Sheet, Profit & Loss Account 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 Companies Act, 1956, subject to
(i) non compliance of Accounting Standard 2 on 'Valuation of
Inventories' by stating the value of inventory as at the year end at
cost, without considering the realizable value. We are unable to
quantify the impact of the above, on the loss for the year and on the
value of inventories in the absence of adequate information.
(ii) non compliance of Accounting Standard 10 on 'Accounting for Fixed
Assets' by stating the fixed assets on historical cost at rather than
the net realizable value. The diminution in the value of asset has not
been ascertained and we are unable to quantify its impact on the value
of assets and on the loss for the year.
(iii)non compliance with the requirements of Accounting Standard 6 on
'Depreciation Accounting' by not providing adequate depreciation based
on the expected useful life and residual life of the asset in view of
the non utilization of the asset since April 2000. We are unable to
quantify the additional depredation that was required to be provided
and its impact on the losses for the year and on the depreciation
reserve.
(iv) non compliance with the requirements of Accounting Standard 15 on
'Accounting for Retirement Benefits in the Financial Statements of
Employers' by not providing for gratuity and leave encashment, the
impact of which on the loss for the year and on the provision for
gratuity and leave encashment could not be quantified.
v. All the Directors have attracted disqualification as on 31st March
2006 as the Company has not filed the Annual Accounts and Returns for
last 3 years and non repayment of FDs in terms of Section 274(1)(g) of
the Companies Act 1956.
vi. Dub to the significance of the matters discussed in Paragraph 4&5
above, we report that
a) in the case of the Balance Sheet, the state of affairs of the
company as at 31st March, 2006; and
b) in the case of the Profit & Loss Account, the Loss for the year
ended on that date; and
c) In the case of Cash Flow statement, the cash flows for the year
ended on that date. do not represent a true and fair view. .
ANNEXURE TO THE AUDITORS REPORT
Statement referred to in our report of even date to the members of
ARTECH POWER PRODUCTS LIMITED on the accounts for the year ended 31st
March, 2006.
(i) a The company has maintained records showing particulars including
quantitative details and situation of fixed assets put the same
requires to be updated.
b As per the information and explanations given to us, the fixed assets
have not been physically verified by the management.
c The company has not disposed off substantial part of its fixed assets
during the year,
(ii) a The stocks of finished goods, raw materials and work-in-process
have not been physically verified by the management during the year/at
year end.
b We are unable to comment on clauses (ii) (b) & ('c) of the Order,
since physical verification has not been carried out by the company
during the year.
(iii) The company has not granted any loans, secured or unsecured to
companies, firms, or other parties, covered in the register maintained
under section 301 of the Act. Clauses (iii)(b) to (iii)(d) of paragraph
4 of the said Order are not applicable to the company.
e) The company has taken unsecured loans from 3 parties. At the year
end, the outstanding balance of such loans taken aggregated to
Rs.16,93,576.00 and the maximum amount involved during the year was
Rs.16,93,576.00.
f) The rate of interest and other terms and conditions of such loans
are, in our opinion, prima facie not prejudicial to the interest of the
company.
g) The terms of repayment for the above loans have not been stipulated,
but the same are stated to be repayable on demand. Since the company is
stated to have received no demand for repayment of the above loans,
there has been no default on the part of the company.
(iv) As the company did not carry on any business during the year,
clause no.(iv) of the Order on internal control procedures relating to
the purchase of stores, raw material, including components, plant and
machinery, equipment and other assets, and for the sale of goods, is
not applicable.
(v) In our opinion and according to the information and explanations
given to us, there are no contracts and arrangements referred to in
section 301 of the Companies Act, 1956 during the year that need to be
entered in the register maintained under that section. Accordingly,
Clause (v) (b) of the paragraph 4 of the Order is not applicable to the
company for the current year.
(vi) The company has violated the provisions of Section 58A of the
Companies Act, f956, to the extent that certain deposits and interest
were not paid even after the claim was raised.
(vii) In our opinion, the company's internal audit system is not
commensurate with the size and nature of its activities
(viii) The provisions regarding maintenance of cost records under
section 209(1 )(d) of the Companies Act, 1956 are not applicable to the
company.
(ix) a) According to the information and explanations provided to us,
the company was not regular in depositing with appropriate authorities
undisputed statutory dues including provident fund, investor education
and protection fund, employees' state insurance, income tax wealth tax,
service tax, customs duty, excise duty, cuss and other material
statutory dues, applicable to it. The following were outstanding for a
period of more than six months on the last day of the financial year:-
Amount Period to which
Name of statute Nature of dues (Rs.) the amount relates
Income Tax
Act,1961 Tax Deducted at
source 48,475 1998-1999
Kerala Genera
sales Tax Act Sales Tax 172,179 1999-2000
b) As per the information given to us, the following statutory dues
have not been deposited on account of any disputes:- .
Amount Period to
which Forum where
Nature of statute Nature of dues (Rs.) the amount
relates dispute is
pending
Sales Tax Dept Sales Tax 20,880
,000 1999-2000 High Court
of Kerala_
(x) The accumulated losses of the company at the end of the financial
year is more than fifty percent of the net worth and the company has
incurred cash losses during the current financial year and in the
immediately preceding financial year.
(xi) As per the information and explanations given to us, the company
has defaulted in repayment of dues to IDBI amounting to Rs.494.80
lakhs, to SBT amounting to Rs.168.93 lakhs and to KSIDC amounting to
Rs.68.95 lakhs
(xii) 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) The provisions of any special statute applicable to Chit Fund or
Nidhi or Mutual Fund Society are not applicable to the company.
(xiv) In our opinion and according to the explanations given to us, the
company is not a dealer or trader in securities.
(xv) As explained to us, the company has not given any guarantee for
loans taken by others from bank or financial institutions, the terms
and conditions whereof, are prejudicial to the interest of the company.
(xvi) According truth information and explanations given to us, the
term loans taken by the company were applied for the purpose for which
they were obtained.
(xvii) According to the information and explanations given to us and on
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
investments.
(xviii) The company has not made any preferential allotment of shares
to parties covered in the register maintained under section 301 of the
Companies Act, 1956 during the year
(xix) In our opinion, the company has not issued any debentures during
the year.
(xx) The company has not raised any money by way of public issue during
the year.
(xxi) According to the information and explanations given to us, during
the year, no fraud on or by the company has been noticed or reported.
For G Joseph & Associates
Chartered Accountants
(Firm Reg.No.00631OS)
Umesh L Bhat
Place: Cochin Partner
Date : 10.07.2010 Membership
No.211364
Mar 31, 2005
1 We have audited the attached Balance Sheet of M/s.ARTECH POWER
PRODUCTS LIMITED ("The company") as at 31st March, 2005, the Profit &
Loss Account and Cash Flow statement of the company for the year ended
that date annexed thereto. These financial statements are the
responsibility of-the Company's management. Our responsibility is to
express an opinion on these financial statements based on our audit.
2 We have conducted our audit in accordance with auditing standards
generally accepted in India. These standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free from material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements and also includes assessing
the accounting principles used and significant estimates made by
management, as well as evaluating the overall presentation of financial
statements. We believe that our audit provides a reasonable basis for
our opinion.
3 As required by the Statement on the Companies (Auditor's Report)
Order 2003, as amended by the Companies (Auditors Report) (Amendment)
Order, 2004 (together the "Order"), issued by the Central Government of
India in terms of sub-section (4A) of section 227 of the Companies Act,
1956, and on the basis of such checks of the books and records of the
Company as we considered appropriate and according to the information
and explanations given to us, we give in the Annexure a statement on
the matters specified in paragraphs 4 and 5 of the Order.
4 The company had stopped its operations in the first week of April,
2000. The operations did not recommence thereafter. The ability of the
company to continue as a going concern is severely impaired. The
company has prepared the financial statements without making any
adjustments in the value of fixed assets that have been necessary, as
the company is unable to continue as going concern.
5 Subject to Point 2 & 5 in the Notes to Accounts in Schedule 17
regarding the non availability of certain books and records,
information on dues to Small Scale Units in Note No.21 of Notes to
Accounts in Schedule 17 and non-reconciliation and non-conformation of
balances of sundry debtors, sundry creditors, loans and advances, bank
accounts, Loans from Kerala State Industrial Development Corporation
Limited (KSIDC), Industrial Development Bank of India(IDBI) and State
Bank Travancore (SBT) and fixed deposits accepted, we report that:-
i. We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of the
audit
ii. In our opinion, proper books of accounts as required by law have
been kept by the company so far as appears from our examination of
these books, subject to those mentioned in Para(5) above
iii. The Balance Sheet, Profit & Loss Account and cash flow statement
dealt with by this report are in agreement with the books of accounts.
iv. In our opinion, the Balance Sheet, Profit & Loss Account 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 Companies Act, 1956, subject to
(i) non compliance of Accounting Standard 2 on 'Valuation of
Inventories' by stating the value of inventory as at the year end at
cost, without considering the realizable value. We are unable to
quantify the impact of the above, on the loss for the year and on the
value of inventories in the absence of adequate information.
(ii) non compliance of Accounting Standard 10 on 'Accounting for Fixed
Assets' by stating the fixed assets on historical cost at rather than
the net realizable value. The diminution in the value of asset has not
been ascertained and we are unable to quantify its impact on the value
of assets and on the loss for the year.
(iii)non compliance with the requirements of Accounting Standard 6 on
'Depreciation Accounting' by not providing adequate depreciation based
on the expected useful life and residual life of the asset in view of
the non utilization of the asset since April 2000. We are unable to
quantify the additional depreciation that was required to be provided
and its impact on the losses for the year and on the depreciation
reserve.
(iv) non compliance with the requirements of Accounting Standard 15 on
'Accounting for Retirement Benefits in the Financial Statements of
Employers' by not providing for gratuity and leave encashment, the
impact of which on the loss for the year and on the provision for
gratuity and leave encashment could not be quantified.
v. All the Directors have attracted disqualification as on 31st March
2005 as the Company has not filed the Annual Accounts and Returns for
last 3 years and non repayment of FDs in terms of Section 274(1)(g) of
the Companies Act 1956.
vi. Due to the significance of the matters discussed in Paragraph 4&5
above, we report that
a) in the case of the Balance Sheet, the state of affairs of the
company as at 31st March, 2005; and
b) in the case of the Profit & Loss Account, the Loss for the year
ended on that date; and
c) In the case of Cash Flow statement, the cash flows for the year
ended on that date. do not represent a true and fair view.
ANNEXURE TO THE AUDITORS REPORT
Statement referred to in our report of even date to the members of
ARTECH POWER PRODUCTS LIMITED on the accounts for the year ended 31st
March, 2005.
(i) a The company has maintained records showing particulars including
quantitative details and situation of fixed assets the same requires
to be updated.
b As per the information and explanations given to use fixed assets
have not been physically verified by the management.
C)The company has not disposed off substantial part of its fixed assets
during the year.
(ii) a The stocks of finished goods, raw materials and work-in-process
have not been physically verified by the management during the year/at
year end.
b We are unable to comment on clauses (ii) (b) & ('c) of the Order,
since physical verification has not been carried out by the company
during the year.
(iii) The company has not granted any loans, secured or unsecured to
companies, firms, or other parties, covered in the register maintained
under section 301 of the Act. Clauses (iii)(b) to (iii)(d) of paragraph
4 of the said Order are not applicable to the company.
e) The company has taken unsecured loans from 3 parties. At the year
end, the outstanding balance of such loans taken aggregated to
Rs.16,01,576.00 and the maximum amount involved during the year was
Rs.16,01,576.00.
f) The rate of interest and other terms and conditions of such loans
are, in our opinion, prima facie not prejudicial to the interest of the
company.
g) The terms of repayment for the above loans have not been stipulated,
but the same are stated to be repayable demand. Since the company is
stated to have received no demand for repayment of the above loans,
there has been no default on the part of the company.
iv) As the company did not carry on any business during the year,
clause no.(iv) of the Order on internal control procedures relating to
the purchase of stores, raw material, including components, plant and
machinery, equipment and other assets, and for the sale of goods, is
not applicable.
(v) In our opinion and according to the information and explanations
given to us, there are no contracts and arrangements referred to in
section 301 of the Companies Act, 1956 during the year that need to be
entered in the register maintained under that section. Accordingly,
Clause (v) (b) of the paragraph 4 of the Order is not applicable to the
company for the current year.
(vi) The company has violated the provisions of Section 5BA of the
Companies Act, 1956, to the extent that certain deposits and interest
were not paid even after the claim was raised.
(vii) In our opinion, the company's internal audit system is not
commensurate with the size and nature of its activities
(viii) The provisions regarding maintenance of cost records under
section 209(1 )(d) of the Companies Act, 1956 are not applicable to the
company.
(ix) a) According to the information and explanations provided to us,
the company was not regular in depositing with
appropriate authorities undisputed statutory dues including provident
fund, investor education and protection fund, employees' state
insurance, income tax wealth tax, service tax, customs duty, excise
duty, cess and other material statutory dues, applicable to it. The
following were outstanding for a period of more than six months on the
last day of the financial year:-
Amount Period to which
Name of statute Nature of dues (Rs.) the amount relate;
Tax Deducted at
Income Tax
Act,1961 source 48,475 1998-99
Kerala General
Sales Tax
Act Sales Tax 172,179 1999-2000
b) As per the information given to us, the following statutory dues
have not been deposited on account of any disputes:-
Amount Period to which Forum where
Nature of
statute Nature of dues (Rs.) the amount relate: dispute is
pending
Sales Tax
Pep Sales Tax 20,880,000 1999-2000 High Court
of Kerala
(x) The accumulated losses of the company at the end of the financial
year is more than fifty percent of the net worth and the company has
incurred cash losses during the current financial year and in the
immediately preceding financial year.
(xi) As per the information and explanations given to usuries company
has defaulted in repayment of dues to IDBI amounting to Rs.494.80
lakhs, to S8Tamounting to Rs. 168.93 lakhs and to KSIDC amounting to
Rs.68.95 lakhs
(xii) 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) The provisions of any special statute applicable to Chit Fund or
Nidhi or Mutual Fund Society are not applicable to the company.
(xiv) In our opinion and according to the explanations given to us, the
company is not a dealer or trader in securities.
(xv) As explained to us, the company has not given any guarantee for
loans taken by others from bank or financial institutions, the terms
and conditions whereof, are prejudicial to the interest of the company.
(xvi) According to the information and explanations given to us, the
term loans taken by the company were applied for the purpose for which
they were obtained.
(xvii) According to the information and explanations given to us and on
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
investments.
xviii) The company has not made any preferential allotment of shares to
parties covered in the register maintained under section 301 of the
Companies Act, 1956 during the year.
(xix) In our opinion. the company has not issued any debentures during
the year.
(xx) The company has not raised any money by way of public issue during
the year.
(xxi) According to the information and explanations given to us, during
the year, no fraud on or by the company has been noticed or reported.
For G Joseph & Associates
Chartered Accountants
Umesh L Bhat
Place: Cochin Partner
Date : 10.07.2010 Membership No.211364
Mar 31, 2004
1 We have audited the attached Balance Sheet of M/s. ARTECH POWER
PRODUCTS LIMITED ("The company") as at 31st March, 2004, the Profit &
Loss Account and Cash Flow statement of the company for the year ended
that date annexed thereto. These financial statements are the
responsibility of the Company's management. Our responsibility is to
express an opinion on these financial statements based on our audit.
2 We have conducted our audit in accordance with auditing standards
generally accepted in India. These standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free from material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements and also includes assessing
the accounting principles used and significant estimates made by
management, as well as evaluating the overall presentation of financial
statements. We believe that our audit provides a reasonable basis for
our opinion.
3 As required by the Statement on the Companies (Auditor's Report)
Order 2003, as amended by the Companies (Auditors Report) (Amendment)
Order, 2004 (together the "Order"), issued by the Central Government of
India in terms of sub-section (4A) of section 227 of the Companies Act,
1956, and on the basis of such checks of the books and records of the
Company as we considered appropriate and according to the information
and explanations given to us, we give in the Annexure a statement on
the matters specified in paragraphs 4 and 5 of the Order.
4 The company had stopped its operations in the first week of April,
2000. The operations did not recommence thereafter. The ability of the
company to continue as a going concern is severely impaired. The
company has prepared the financial statements without making any
adjustments in the value of fixed assets that have been necessary, as
the company is unable to continue as going concern.
5 Subject to Point 2 & 5 in the Notes to Accounts in Schedule 17
regarding the non availability of certain books and records,
information on dues to Small Scale Units in Note No. 20 of Notes to
Accounts in Schedule 17 and non-reconciliation and non-conformation of
balances of sundry debtors, sundry creditors, loans and advances, bank
accounts, Loans from Kerala State Industrial Development Corporation
Limited (KSIDC), Industrial Development Bank of India(IDBI) and State
Bank Travancore (SBT) and fixed deposits accepted, we report that:-
i. We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of the
audit.
ii. In our opinion, proper books of accounts as required by law have
been kept by the company so far as appears from our examination of
these books, subject to those mentioned in Para(5) above
iii. The Balance Sheet, Profit & Loss Account and cash flow statement
dealt with by this report are in agreement with the books of accounts.
iv. In our opinion, the Balance Sheet, Profit & Loss Account 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 Companies Act, 1956, subject to
(i) non compliance of Accounting Standard 2 on 'Valuation of
Inventories' by stating the value of inventory as at the year end at
cost, without considering the realizable value. We are unable to
quantify the impact of the above, on the loss for the year and on the
value of inventories in the absence of adequate information.
(ii) non compliance of Accounting Standard 10 on 'Accounting for Fixed
Assets' by stating the fixed assets on historical cost at rather than
the net realizable value. The diminution in the value of asset has not
been ascertained and we are unable to quantify its impact on the value
of assets and on the loss for the year.
(iii)non compliance with the requirements of Accounting Standard 6 on
'Depreciation Accounting' by not providing adequate depreciation based
on the expected useful life and residual life of the asset in view of
the non utilization of the asset since April 2000. We are unable to
quantify the additional depreciation that was required to be provided
and its impact on the losses for the year and on the depreciation
reserve.
(iv) non compliance with the requirements of Accounting Standard 15 on
'Accounting for Retirement Benefits in the Financial Statements of
Employers' by not providing for gratuity and leave encashment, the
impact of which on the loss for the year and on the provision for
gratuity and leave encashment could not be quantified.
v. All the Directors have attracted disqualification as on 31st March
2004 as the Company has not filed the Annual Accounts and Returns for
last 3 years and non repayment of Fads in terms of Section 274(1 )(g)
of the Companies Act 1956.
vi. Due to the significance of the matters discussed in Paragraph 4 &5
above, we report that;
a) in the case of the Balance Sheet, the state of affairs of the
company as at 31st March, 2004; and
b) In the case of the Profit & Loss Account, the Loss for the year
ended on that date.
c) In the case of Cash Flow statement, the cash flows for the year
ended on that date. do not represent a true and fair view.
ANNEXURE TO THE AUDITORS REPORT
Statement referred to in our report of even date to the members of
ARTECH POWER PRODUCTS LIMITED on the accounts for the year ended 31st
March, 2005.
(i) a The company has maintained records showing particulars including
quantitative details and situation of fixed assets, but the same
requires to be updated.
b As per the information and explanations given to suite fixed assets
have not been physically verified by the management.
c The company has not disposed off substantial part of its fixed assets
during the year.
(ii) a The stocks of finished goods, raw materials and work-in-process
have not been physically verified by the management during the year/at
year end.
b We are unable to comment on clauses (ii) (b) & ('c) of the Order,
since physical verification has not been carried out by the company
during the year.
(iii) The company has not granted any loans, secured or unsecured to
companies, firms, or other parties, covered in the register maintained
under section 301 of the Act. Clauses (iiiXb) to (iii)(d) of paragraph
4 of the said Order are not applicable to the company.
e) The company has taken unsecured loans from 3 parties. At the year
end, the outstanding balance of such loans taken aggregated to
Rs.14,72,878 and the maximum amount involved during the year was
Rs.14,72,878.00.
f) The rate of interest and other terms and conditions of such loans
are, in our opinion, prima facie not prejudicial to the interest of the
company.
g) The terms of repayment for the above loans have not been stipulated,
but the same are stated to be repayable demand. Since the company is
stated to have received no demand for repayment of the above loans,
there has been no default on the part of the company.
(iv) As the company did not carry on any business during the year,
clause no.(iv) of the Order on internal control procedures relating to
the purchase of stores, raw material, including components, plant and
machinery, equipment and other assets, and for the sale of goods, is
not applicable.
(v) In our opinion and according to the information and explanations
given to us, there are no contracts and arrangements referred to in
section 301 of the Companies Act, 1956 during the year that need to be
entered in the register maintained under that section. Accordingly,
Clause (v) (b) of the paragraph 4 of the Order is not applicable to the
company for the current year.
(vi) The company has violated the provisions of Section 58A of the
Companies Act, 1956, to the extent that certain deposits and interest
were not paid even after the claim was raised.
(vii) In our opinion, the company's internal audit system is not
commensurate with the size and nature of its activities
(viii) The provisions regarding maintenance of cost records under
section 209(1 )(d) of the Companies Act, 1956 are not applicable to the
company
(ix) a) According to the information and explanations provided to us,
the company was not regular in depositing with appropriate authorities
undisputed statutory dues including provident fund, investor education
and protection fund, employees' state insurance, income tax wealth tax,
service tax, customs duty, excise duty, cess and other material
statutory dues, applicable to it. The following were outstanding for a
period of more than six months on the last day of the financial year:-
Amount Period to which
Name of statute Nature of dues (Rs.) the amount relate:
Tax Deducted at
Income Tax Act,
1961 source 48,475 1998-99
Kerala General Sales
Tax Act sales Tax 172,179 1999-2000
b) As per the information given to us, the following statutory dues
have not been deposited on account of any disputes:-
Amount Period to which Forum where
Nature of
statute Nature of dues (Rs.) the amount
relate dispute is
pending
Sales Tax
Pep Sales Tax 20,880,000 1999-2000 High Court
of Kerala
(x) The accumulated losses of the company at the end of the financial
year is more than fifty percent of the net worth and the company has
incurred cash losses during the current financial year and in the
immediately preceding financial year.
(xi) As per the information and explanations given to suffer company
has defaulted in repayment of dues to IDBI amounting to Rs. 494.80
lakhs, to SB T amounting to Rs168.93 lakhs and to KSIDC amounting to
Rs. 68.95 lakhs
(xii) 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) The provisions of any special statute applicable to Chit Fund or
Nidhi or Mutual Fund Society are not applicable to the company.
(xiv) In our opinion and according to the explanations given to us, the
company is not a dealer or trader in securities.
(xv) As explained to us, the company has not given any guarantee for
loans taken by others from bank or financial institutions, the terms
and conditions whereof, are prejudicial to the interest of the company.
(xvi) According to the information and explanations given to us, the
term loans taken by the company were applied for the purpose for which
they were obtained. (xvii) According to the information and
explanations given to us and on 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 investments.
xviii) The company has not made any preferential allotment of shares to
parties covered in the register maintained under section 301 of the
Companies Act, 1956 during the year
(xix) In our opinion. the company has not issued any debentures during
the year.
(xx) The company has not raised any money by way of public issue during
the' year. (xxi) According to the information and explanations given
to us, during the year, no fraud on or by the company has been noticed
or reported.
For G Joseph & Associates
Chartered Accountants
(Firm Reg.No.006310S)
Umesh L Bhat
Place: Cochin Partner
Date : 10.07.2010 Membership No.211364
Mar 31, 2003
We have examined the attached Balance Sheet of M/s. Artech Power
Products Limited as at 31st March, 2003 and also the Profit and Loss
Account for the year ended on that date annexed thereto.
We report that,
1. The company had stopped its operations in the first week of April,
2000. The operations did not recommence thereafter. The ability of
the company to continue as a going concern is severely impaired. The
company has prepared the financial statements without making any
adjustments in the value of fixed assets that have been necessary, as
the company is unable to continue as going concern.
2. Subject to Point 2&5in the Notes to Accounts in Schedule 17
regarding the non availability of certain books and records,
information on dues to Small Scale Units in Note No.20 of Notes to
Accounts in Schedule 17 and non-reconciliation and non-conformation of
balances of sundry debtors, sundry creditors, loans and advances, bank
accounts, Loans from Kerala State Industrial Development Corporation
Limited (KSIDC), Industrial Development Bank of India(IDBI) and State
Bank Travancore (SBT) and fixed deposits accepted, we report that-
i) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit.
ii) 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 the
books.
iii) the Balance Sheet and the Profit & Loss Account dealt with by this
report are in agreement with the books of account.
3. The Profit & Loss Account and the Balance Sheet dealt with by this
report comply with the Accounting Standards referred to in Sub-section
(3C) of Section 211 of the Companies Act, 1956, subject to;
(i) non compliance of Accounting Standard 2 on 'Valuation of
Inventories' by stating the value of inventory as at the year end at
cost, without considering the realizable value. We are unable to
quantify the impact of the above, on the loss for the year and on the
value of inventories in the absence of stock records.
(ii) non compliance of Accounting Standard 10 on 'Accounting for Fixed
Assets' by stating the fixed assets on historical cost rather than at
the net realizable value. The diminution in the value of asset has not
been ascertained and we are unable to quantify its impact on the value
of assets and on the loss for the year.
(ii) non compliance with the requirements of Accounting Standard 6 on
'Depreciation Accounting' by not providing adequate depreciation based
on the expected useful life and residual life of the asset in view of
the non utilization of the asset since April 2000. We are unable to
quantify the additional depreciation that was required to be provided
and its impact on the losses for the year and on the depreciation
reserve.
(iv) non compliance with the requirements of Accounting Standard 15 on
'Accounting for Retirement Benefits in the Financial Statements of
Employers' by not providing for gratuity and leave encashment, the
impact of which on the loss for the year and on the provision for
gratuity and leave encashment could not be quantified.
4. All the Directors have attracted disqualification as on 31st March
2003 as the Company has not filed the Annual Accounts and Returns for
last 3 years and non repayment of FDs in terms of Section 274(1)(g) of
the Companies Act 1956.
5. Due to the significance of the matters discussed in Paragraph 1,2 &
3 above,
i. in the case of Balance Sheet, the state of affairs of the company
as at 31st March, 2003, and,
ii. in the case of Profit and Loss Account, the Profit for the year
ended on that date. do not represent a true and fair view.
6. In terms of Manufacturing and Other Companies (Auditor's Report)
Order 1988, issued by the Company Law Board, Government of India, under
section 227 (4A) of the Companies Act, 1956, we further report, on the
matters specified in paragraphs 4 and 5 of the said Order, that:-
i.a). The company is having a fixed asset register, which however
needs to be updated.
b). The company had not carried out any physical verification during
the year.
ii) None of the fixed assets have been revalued during the year.
iii). The stocks of finished goods, raw materials and work-in-process
have not been physically verified by the management during the year/at
year end.
iv) We are unable to comment on clauses (iv) & (v) to the Order since
physical verification has not been carried out by the company during
the year.
(vi) In the absence of inventory records, we are unable to comment
whether the valuation of inventory is fair and proper. The inventory is
valued at cost, without considering the realizable value which is not
hi accordance with the basis of valuation followed in the preceding
year. The impact of the deviation in the basis of valuation could not
be quantified in the absence of proper records.
vii. The Company has taken certain unsecured loans from directors. The
terms and conditions of such loans are not prima facie prejudicial to
the interests of the Company. As explained to us, there are no other
companies under the same management.
viii. The Company has not granted any loans to companies, firms or
other parties listed in the register maintained under Section 301 and /
or to companies under the same management as defined from section 370
(1B) of the Companies Act, 1956, which are prejudicial to the interests
of the company.
ix. Loans or advances in the nature of" loan have not been given by
the Company.
x. As the company did not carry on any business during the year,
clause no.(x) of the Order on internal control procedures relating to
the purchase of stores, raw material, including components, plant and
machinery, equipment and other assets, and for the sale of goods, is
not applicable.
xi. As per the information and explanations given to us, there are no
transactions of purchase of goods and materials and sale of goods,
materials and services have been made in pursuance of contracts or
arrangements which are to be entered in the registers maintained u/s
Section 301 of the Companies Act, 1956, and aggregating during the year
to Rs.50,000/- or more in respect of each party.
xii. In the absence of adequate inventory records, we are unable to
comment on whether there were any unserviceable or damaged stores, raw
materials and finished goods in the inventory of the company as on
31.03.2003 which were required to be written off.
xiii. The company has violated the provisions of Section 58A of the
Companies Act, 1956, to the extent that certain deposits and interest
were not paid even after the claim were raised.
xiv. In our opinion, reasonable records have not been maintained for
recording the generation and sale of scrap during the year.
xv. The Company does not have an internal audit system.
xvi. To the best of our knowledge the Central Government has not
prescribed maintenance of cost records under Section 209 (1) (d) of the
Companies Act, 1956 for the products of the company.
xvii. There were no dues of Provident Fund and Employees' State
Insurance during the year and consequently clause no. (xvii) of the
order is not applicable.
xviii. According to the information and explanations given to us, there
are no undisputed amounts payable in respect of Income Tax, Wealth Tax,
Customs Duty and Excise Duty which are outstanding as on 31st March,
2003, for a period of more than six month from the date they became
payable, other than Tax Deducted at Source relating to the year 98-99,
not remitted, amounting to Rs.48.475/- and Sales Tax Payable Rs.
172,179.
xix. According to the records of the company and as per the information
and explanations given to us, no personal expenses have been charged to
the Revenue Accounts other than those payable under contractual
obligations or in accordance with the generally accepted business
practice.
xx. As explained to us and according to the records of the Company, the
company is a registered SSI unit and hence the provisions of clause (o)
of sub-section (1) of Section 3 of the Sick Industrial Companies
(Special Provisions) Act, 1985 are not applicable to the company.
xxi. In the absence of adequate records, we are unable to comment
whether the company has any damaged goods relating to the trading
activities of the company, which requires provisioning, in the absence
of adequate records.
For G JOSEPH & ASSOCIATES
CHARTERED ACCOUNTANTS
(Firm Reg.No.006310S)
UMESHLBHAT
PLACE : COCHIN - 20 PARTNER
DATE : 10.07.2010 M.No.211364
Mar 31, 2002
1. The company had stopped its operations in the first week of April,
2000. The operations did not recommence thereafter. The ability of
the company to continue as a going concern is severely impaired. The
company has prepared the financial statements without making any
adjustments in the value of fixed assets that have been necessary, as
the company is unable to continue as going concern.
2. Subject to Point 2 & 5 in the Notes to Accounts in Schedule 17
regarding the non availability of certain books and records,
information on dues to Small Scale Units in Note No. 18 of Notes to
Accounts in Schedule 17 and non-reconciliation and non-conformation of
balances of sundry debtors, sundry creditors, loans and advances, bank
accounts, Loans from Kerala State Industrial Development Corporation
Limited (KSIDC), Industrial Development Bank of India(IDBI) and State
Bank Travancore (SBT) and fixed deposits accepted, we report that:-
i) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit.
ii) 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 the
books.
iii) the Balance Sheet and the Profit & Loss Account dealt with by this
report are in agreement with the books of account.
3. The Profit & Loss Account and the Balance Sheet dealt with by this
report comply with the Accounting Standards referred to in Sub-section
(3C) of Section 211 of the Companies Act, 1956, subject to;
(i) non compliance of Accounting Standard 2 on 'Valuation of
Inventories' by stating the value of inventory as at the year end at
cost, without considering the realizable value. We are unable to
quantify the impact of the above, on the loss for the year and on the
value of inventories in the absence of stock records.
(ii) non compliance of Accounting Standard 10 on 'Accounting for Fixed
Assets' by stating the fixed assets on historical cost rather than at
the net realizable value. The diminution in the value of asset has not
been ascertained and we are unable to quantify its impact on the value
of assets and on the loss for the year.
(ii) non compliance with the requirements of Accounting Standard 6 on
'Depreciation Accounting' by not providing adequate depreciation based
on the expected useful life and residual life of the asset in view of
the non utilization of the asset since April 2000. We are unable to
quantify the additional depreciation that was required to be provided
and its impact on the losses for the year and on the depreciation
reserve.
(iv) non compliance with the requirements of Accounting Standard 15 on
'Accounting for Retirement Benefits in the Financial Statements of
Employers' by not providing for gratuity and leave encashment, the
impact of which on the loss for the year and on the provision for
gratuity and leave encashment could not be quantified.
4. On the basis of written representation received from Directors and
taken on record by the Board, we report that none of the Directors are
disqualified as on 31.03.2002 from being appointed as a Director in
terms of Clause (g) of sub section (1) of section 274 of the Companies
Act 1956.
5. Due to the significance of the matters discussed in Paragraph 1,2 &
3 above,
i. in the case of Balance Sheet, the state of affairs of the company
as at 31st March, 2002, and,
ii. in the case of Profit and Loss Account, the Loss for the year ended
on that date. do not represent a true and fair view.
6. In terms of Manufacturing and Other Companies (Auditor's Report)
Order 1988, issued by the Company Law Board, Government of India, under
section 227 (4A) of the Companies Act, 1956, we further report, on the
matters specified in paragraphs 4 and 5 of the said Order, that:-
i.a) The company is having a fixed asset register, which however needs
to be updated.
b) The company had not carried out any physical verification during the
year.
ii) None of the fixed assets have been revalued during the year.
iii)The stocks of finished goods, raw materials and work-in-process
have not been physically verified by the management during the year/at
year end.
iv) We are unable to comment on clauses (iv) & (v) to the Order since
physical verification has not been carried out by the company during
the year.
vi) In the absence of inventory records, we are unable to comment
whether the valuation of inventory is fair and proper. The inventory
is valued at cost, without considering the realizable value which is
not in accordance with the basis of valuation followed in the preceding
year. The impact of the deviation in the basis of valuation could not
be quantified in the absence of proper records.
vii) The Company has taken certain unsecured loans from directors. The
terms and conditions of such loans are not prima facie prejudicial to
the interests of the Company. As explained to us, there are no other
companies under the same management.
viii) The Company has not granted any loans to companies, firms or
other parties listed in the register maintained under Section 301 and /
or to companies under the same management as defined from section 370
(1B) of the Companies Act, 1956, which are prejudicial to the interests
of the company.
ix) Loans or advances in the nature of loan have not been given by the
Company.
x) As the company did not carry on any business during the year, clause
no.(x) of the Order on internal control procedures relating to the
purchase of stores, raw material, including components, plant and
machinery, equipment and other assets, and for the sale of goods, is
not applicable.
xi) As per the information and explanations given to us, there are no
transactions of purchase of goods and materials and sale of goods,
materials and services have been made in pursuance of contracts or
arrangements which are to be entered in the registers maintained u/s
Section 301 of the Companies Act, 1956, and aggregating during the year
to Rs.50,000/- or more in respect of each party.
xii) In the absence of adequate inventory records, we are unable to
comment on whether there were any unserviceable or damaged stores, raw
materials and finished goods in the inventory of the company as on
31.03.2001 which were required to be written off.
xiii) Tire company has violated the provisions of Section 58A of the
Companies Act, 1956, to the extent that certain deposits and interest
were not paid even after the claims were raised.
xiv) In our opinion, reasonable records have not been maintained for
recording the generation and sale of scrap during the year.
xv) The Company does not have an internal audit system.
xvi) To the best of our knowledge the Central Government has not
prescribed maintenance of cost records under Section 209 (1) (d) of the
Companies Act, 1956 for the products of the company.
xvii) There were no dues of Provident Fund and Employees' State
Insurance during the year and consequently clause no. (xvii) of the
order is not applicable.
xviii) According to the information and explanations given to us, there
are no undisputed amounts payable in respect of Income Tax, Wealth Tax,
Customs Duty and Excise Duty which are outstanding as on 31st March,
2001, for a period of more than six month from the date they became
payable, other than Tax Deducted at Source relating to the year 98-99,
not remitted, amounting to Rs.48,475/-and Sales Tax Payable Rs.172,179.
xix) According to the records of the company and as per the information
and explanations given to us, no personal expenses have been charged to
the Revenue Accounts other than those payable under contractual
obligations or in accordance with the generally accepted business
practice.
xx) As explained to us and according to the records of the Company, the
company is a registered SSI unit and hence the provisions of clause (o)
of sub-section (1) of Section 3 of the Sick Industrial Companies
(Special Provisions) Act, 1985 are not applicable to the company.
xxi) In the absence of adequate records, we are unable to comment
whether the company has any damaged goods relating to the trading
activities of the company, which requires provisioning, in the absence
of adequate records.
For G JOSEPH & ASSOCIATES
CHARTERED ACCOUNTANTS
(Firm Reg.No.006310S)
UMESH L BHAT
PLACE : COCHIN - 20 PARTNER
DATE : 10.07.2010 M.No.211364
Mar 31, 2001
We have examined the attached Balance Sheet of M/s. Artech Power
Products Limited as at 31st March, 2001 and also the Profit and Loss
Account for the year ended on that date annexed thereto.
We report that,
1. The company had stopped its operations in the first week of April,
2000. The operations did not recommence thereafter. The ability of
the company to continue as a going concern is severely impaired. The
company has prepared the financial statements without making any
adjustments in the value of fixed assets that have been necessary, as
the company is unable to continue as going concern.
2. Subject to Point 2&5in the Notes to Accounts in Schedule 17
regarding the non availability of certain books and records,
information on dues to Small Scale Units in Note No. 18 of Notes to
Accounts in Schedule 17 and non-reconciliation and non-conformation of
balances of sundry debtors, sundry creditors, loans and advances, bank
accounts, Loans from Kerala State Industrial Development Corporation
Limited (KSIDC), Industrial Development Bank of India(IDBI) and State
Bank Travancore (SBT) and fixed deposits accepted, we report that:-
i) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit.
ii) 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 the
books.
iii) the Balance Sheet and the Profit & Loss Account dealt with by this
report are in agreement with the books of account.
3. The Profit & Loss Account and the Balance Sheet dealt with by this
report comply with the Accounting Standards referred to in Sub-section
(3C) of Section 211 of the Companies Act, 1956, subject to;
(i) non compliance of Accounting Standard 2 on Valuation of
Inventories' by stating the value of inventory as at the year end at
cost, without considering the realizable value. We are unable to
quantify the impact of the above, on the loss for the year and on the
value of inventories in the absence of stock records.
(ii) non compliance of Accounting Standard 10 on 'Accounting for Fixed
Assets' by stating the fixed assets on historical cost rather than at
the net realizable value. The diminution in the value of asset has not
been ascertained and we are unable to quantify its impact on the value
of assets and on the loss for the year.
(ii) non compliance with the requirements of Accounting Standard 6 on
'Depreciation Accounting' by not providing adequate depreciation based
on the expected useful life and residual life of the asset in view of
the non utilization of the asset since April 2000. We are unable to
quantify the additional depreciation that was required to be provided
and its impact on the losses for the year and on the depreciation
reserve.
(iv) non compliance with the requirements of Accounting Standard 15 on
'Accounting for Retirement Benefits in the Financial Statements of
Employers' by not providing for gratuity and leave encashment, the
impact of which on the loss for the year and on the provision for
gratuity and leave encashment could not be quantified.
4. On the basis of written representation received from Directors and
taken on record by the Board, we report that none of the Directors are
disqualified as on 31.03.2001 from being appointed as a Director in
terms of Clause (g) of sub section (1) of section 274 of the Companies
Act 1956.
5. Due to the significance of the matters discussed in Paragraph 1,2 &
3 above,
i. in the case of Balance Sheet, the state of affairs of the company
as at 31st March, 2001, and, ii. in the case of Profit and Loss
Account, the Loss for the year ended on that date. do not represent a
true and fair view.
6. In terms of Manufacturing and Other Companies (Auditor's Report)
Order 1988, issued by the Company Law Board, Government of India, under
section 227 (4A) of the Companies Act, 1956, we further report, on the
matters specified in paragraphs 4 and 5 of the said Order, that:-
i.a) The company is having a fixed asset register, which however needs
to be updated.
b) The company had not carried out any physical verification during the
year.
ii) None of the fixed assets have been revalued during the year.
iii). The stocks of finished goods, raw materials and work-in-process
have not been physically verified by the management during the year/at
year end.
iv) We are unable to comment on clauses (iv) & (v) to the Order since
physical verification has not been carried out by the company during
the year.
vi) In the absence of inventory records, we are unable to comment
whether the valuation of inventory is fair and proper. The inventory
is valued at cost, without considering the realizable value which is
not in accordance with the basis of valuation followed in the preceding
year. The impact of the deviation in the basis of valuation could not
be quantified in the absence of proper records.
vii) The Company has taken certain unsecured loans from directors. The
terms and conditions of such loans are not prima facie prejudicial to
the interests of the Company. As explained to us, there are no other
companies under the same management.
viii) The Company has not granted any loans to companies, firms or
other parties listed in the register maintained under Section 301 and /
or to companies under the same management as defined from section 370
(1B) of the Companies Act, 1956, which are prejudicial to the interests
of the company.
ix) Loans or advances in the nature of loan have not been given by the
Company.
x) As the company did not carry on any business during the year, clause
no.(x) of the Order on internal control procedures relating to the
purchase of stores, raw material, including components, plant and
machinery, equipment and other assets, and for the sale of goods, is
not applicable.
xi) As per the information and explanations given to us, there are no
transactions of purchase of goods and materials and sale of goods,
materials and services have been made in pursuance of contracts or
arrangements which are to be entered in the registers maintained u/s
Section 301 of the Companies Act, 1956, and aggregating during tie
year to Rs.50,000/- or more in respect of each party.
xii) In the absence of adequate inventory records, we are unable to
comment on whether there were any unserviceable or damaged stores, raw
materials and finished goods in the inventory of the company as on
31.03.2001 which were required to be written off.
xiii) The company has violated the provisions of Section 58A of the
Companies Act, 1956, to the extent that certain deposits and interest
were not paid even after the claims were raised.
xiv) In our opinion, reasonable records have not been maintained for
recording the generation and sale of scrap during the year.
xv) The Company does not have an internal audit system.
xvi) To the best of our knowledge the Central Government has not
prescribed maintenance of cost records under Section 209 (1) (d) of the
Companies Act, 1956 for the products of the company.
xvii) There were no dues of Provident Fund and Employees' State
Insurance during the year and consequently clause no. (xvii) of the
order is not applicable.
xviii) According to the information and explanations given to us, there
are no undisputed amounts payable in respect of Income Tax, Wealth Tax,
Customs Duty and Excise Duty which are outstanding as on 31st March,
2001, for a period of more than six month from the date they became
payable, other than Tax Deducted at Source relating to the year 98-99,
not remitted, amounting to Rs.48,475/- and Sales Tax Payable Rs.
172,179.
xix) According to the records of the company and as per the information
and explanations given to us, no personal expenses have been charged to
the Revenue Accounts other than those payable under contractual
obligations or in accordance with the generally accepted business
practice.
xx) As explained to us and according to the records of the Company, the
company is a registered SSI unit and hence the provisions of clause (o)
of sub-section (1) of Section 3 of the Sick Industrial Companies
(Special Provisions) Act, 1985 are not applicable to the company.
xxi) In the absence of adequate records, we are unable to comment
whether the company has any damaged goods relating to the trading
activities of the company, which requires provisioning, in the absence
of adequate records.
For G JOSEPH & ASSOCIATES
CHARTERED ACCOUNTANTS
(Firm Reg.No.006310S)
UMESH L BHAT
PLACE : COCHIN - 20 PARTNER
DATE : 10.07.2010 M.No.211364
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