Mar 31, 2014
We have audited the accompanying financial statements of Bala Techno
Industries Limited ("the Company") which comprise the Balance Sheet as
at 31 March 2014, the Statement of Profit and Loss and the Cash Flow
Statement for the year then ended and a summary of significant
accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the accounting 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.
Auditors'' 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 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 aforesaid financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India:
i. in the case of the Balance Sheet, of the state of affairs of the
Company as at 31 March 2014;
ii. in the case of the Statement of Profit and Loss, of the loss for
the year ended on that date; and
iii. in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order"), as amended, issued by the Central Government of India in terms
of sub-section (4A) of section 227 of the Act, we give in the Annexure
a statement on the matters specified in paragraphs 4 and 5 of the
Order.
2. As required 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, Statement of Profit and Loss and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
d. in our opinion, the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement comply with the Accounting Standards referred to in
sub-section (3C) of Section 211 of the Act; and
e. on the basis of written representations received from the directors
as on 31 March 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on 31 March 2014, from being
appointed as a director in terms of clause (g) of sub-section (1) of
Section 274 of the Act.
ANNEXURE TO INDEPENDENT AUDITORS'' REPORT
(Referred to in paragraph 1 under the heading "Report on other Legal
and Regulatory requirements" of our report of even date)
(i) a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
b) All of the fixed assets have not been physically verified by the
management during the year but there is a regular programme of
verification which, in our opinion, is reasonable having regard to the
size of the company and the nature of its fixed assets. No material
discrepancies were noticed on such verification.
c) During the year, there is no substantial disposal of fixed assets
which would affect the going status of the company.
(ii) a) The inventory has been physically verified during the year by
the management. In our opinion, the frequency of verification is
reasonable.
b) The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the company and the nature of its business.
c) The company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stock and
the book records were not material.
(iii) a) The Company has not granted any loan, secured or unsecured to
companies, firms or other parties covered in the register maintained
under Section 301 of the Companies Act, 1956.
b) In view of clause (iii) (a) above, clause (iii)(b) is not
applicable.
c) In view of clause (iii) (a) above, clause (iii)(c) is not
applicable.
d) In view of clause (iii) (a) above, clause (iii)(d) is not
applicable.
e) The Company has taken unsecured loan from one party covered in the
register maintained under section 301 of the Companies Act, 1956. The
year end balance of the loan taken from such party was Rs. 44,00,000/-.
f) In our opinion, the rate of interest and other terms and conditions
of such loan are not prima-facie, prejudicial to the interest of the
company.
g) There are no stipulations as to the payment of principal amount and
interest thereon.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business with regard to purchase of inventory, fixed assets and with
regard to sale of goods and job work. During the course of our audit,
we have not observed any continuing failure to correct major weaknesses
in internal controls.
(v) According to the information and explanations given to us, we are
of the opinion that the transactions that need to be entered into the
register maintained under Section 301 of the Companies Act, 1956 have
been so entered.
a) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under Section 301 of
the Companies Act, 1956 and exceeding the value of rupees five lakhs in
respect of any party during the year have been made at prices which are
reasonable having regard to prevailing market prices at the relevant
time.
(vi) The Company has not accepted any deposits from the public.
(vii) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
(viii) According to information and explanations given to us, the
Company has not maintained cost records under Section 209 (1) (d) of
the Companies Act, 1956 as per the Companies (Cost Accounting Records)
Rules, 2011.
(ix) a) The Company has been generally regular in depositing with
appropriate authorities undisputed statutory dues including Provident
Fund, Employees'' State Insurance, Income Tax, Sales Tax, wealth tax,
Service tax, Custom Duty, Excise Duty, cess and other statutory dues
applicable to it excepting service tax on transport payments. There are
no arrears of outstanding statutory dues at 31st March 2014 for a
period of more than six months from the date they become payable.
b) According to information and explanations given to us, there are no
disputed amounts payable in respect of Income Tax, wealth tax, Service
tax, Sales Tax, Custom Duty and Excise Duty at the year end on 31st
March, 2014.
(x) In our opinion, the company does not have any accumulated losses at
the end of the financial period. The company has not incurred cash
losses during the financial period covered by our audit and also in the
immediately preceding financial period.
(xi) In our opinion and according to information and explanations given
to us, the company has not defaulted in repayment of dues to bank. We
have been informed that the company has no dues to any financial
institution nor has it issued any debentures.
(xii) According to 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) In our opinion, the company is not a chit fund or a nidhi/mutual
benefit fund/society. Therefore, clause 4(xiii) of the Companies
(Auditor''s 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 clause 4(xiv) of the Companies (Auditors Report) Order,
2003 are not applicable to the company.
(xv) According to the information and explanations given to us, the
company has not given any guarantees for loans taken by others from
banks or financial institutions.
(xvi) According to the information and explanations given to us, the
company has availed term loans during the year. In our opinion on
overall basis, the term loans 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
investment.
(xviii) According to the information and explanations given to us, the
company has not made any preferential allotment of shares to parties or
companies covered in the register maintained under Section 301 of the
Act.
(xix) The company does not have any outstanding debentures during the
year.
(xx) The company has not raised any money through a public issue during
the year.
(xxi) According to the information and explanations given to us, no
fraud on or by the company has been noticed or reported during the
course of our audit.
For U.NARAIN & CO.
Chartered Accountants
FRN:- 000935C
(J.P.Agarwal)
Partner
M. No - 054090
Place: Kolkata
Date : 17th May 2014
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of Bala Techno
Industries Limited ("the Company") which comprise the Balance Sheet as
at 31 March 2013, the Statement of Profit and Loss and the Cash Flow
Statement for the year then ended and a summary of significant
accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the accounting 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.
Auditors'' 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 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 aforesaid financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India:
i. in the case of the Balance Sheet, of the state of affairs of the
Company as at 31 March 2013; ii. in the case of the Statement of
Profit and Loss, of the profit for the year ended on that date; and
iii. in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Page 1 of 5
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order"), as amended, issued by the Central Government of India in terms
of sub-section (4A) of section 227 of the Act, we give in the Annexure
a statement on the matters specified in paragraphs 4 and 5 of the
Order.
2. As required 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, Statement of Profit and Loss and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
d. in our opinion, the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement comply with the Accounting Standards referred to in
sub-section (3C) of Section 211 of the Act; and
e. on the basis of written representations received from the directors
as on 31 March 2013, and taken on record by the Board of Directors,
none of the directors is disqualified as on 31 March 2013, from being
appointed as a director in terms of clause (g) of sub-section (1) of
Section 274 of the Act.
ANNEXURE TO INDEPENDENT AUDITORS'' REPORT
(Referred to in paragraph 1 under the heading "Report on other Legal
and Regulatory requirements" of our report of even date)
a) The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
b) All of the fixed assets have not been physically verified by the
management during the year but there is a regular programme of
verification which, in our opinion, is reasonable having regard to the
size of the company and the nature of its fixed assets. No material
discrepancies were noticed on such verification.
c) During the year, there is no substantial disposal of fixed assets
which would affect the going status of the company.
(ii)
a) The inventory has been physically verified during the year by the
management. In our opinion, the frequency of verification is
reasonable.
b) The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the company and the nature of its business.
c) The company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stock and
the book records were not material.
(iii)
a) The Company has not granted any loan, secured or unsecured to
companies, firms or other parties covered in the register maintained
under Section 301 of the Companies Act, 1956.
b) In view of clause (iii) (a) above, clause (iii)(b) is not
applicable.
c) In view of clause (iii) (a) above, clause (iii)(c) is not
applicable.
d) In view of clause (iii) (a) above, clause (iii)(d) is not
applicable.
e) The Company has not taken any Unsecured loan, secured or unsecured
from companies, firms or other parties covered in the register
maintained under section 301 of the Companies Act, 1956.
f) In view of clause (iii) (e) above, clause (iii)(f) is not
applicable.
g) In view of clause (iii) (e) above, clause (iii)(g) is not
applicable.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business with regard to purchase of inventory, fixed assets and with
regard to sale of goods and job work. During the course of our audit,
we have not observed any continuing failure to correct major weaknesses
in internal controls.
(v)
a) According to the information and explanations given to us, we are of
the opinion that the transactions that need to be entered into the
register maintained under Section 301 of the Companies Act, 1956 have
been so entered.
b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under Section 301 of
the Companies Act, 1956 and exceeding the value of rupees five lakhs in
respect of any party during the year have been made at prices which are
reasonable having regard to prevailing market prices at the relevant
time.
(vi) The Company has not accepted any deposits from the public.
(vii) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
(viii) According to information and explanations given to us, the
Company has not maintained cost records under Section 209 (1) (d) of
the Companies Act, 1956 as per the Companies (Cost Accounting Records)
Rules, 2011.
(ix)
a) The Company has been generally regular in depositing with
appropriate authorities undisputed statutory dues including Provident
Fund, Employees'' State Insurance, Income Tax, Sales Tax, wealth tax,
Service tax, Custom Duty, Excise Duty, cess and other statutory dues
applicable to it excepting service tax on transport payments. There are
no arrears of outstanding statutory dues at 31st March 2013 for a
period of more than six months from the date they become payable.
b) According to information and explanations given to us, there are no
disputed amounts payable in respect of Income Tax, wealth tax, Service
tax, Sales Tax, Custom Duty and Excise Duty at the year end on 31st
March, 2013.
(x) In our opinion, the company does not have any accumulated losses at
the end of the financial period. The company has not incurred cash
losses during the financial period covered by our audit and also in the
immediately preceding financial period.
(xi) In our opinion and according to information and explanations given
to us, the company has not defaulted in repayment of dues to bank. We
have been informed that the company has no dues to any financial
institution nor has it issued any debentures.
(xii) According to 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) In our opinion, the company is not a chit fund or a nidhi/mutual
benefit fund/society. Therefore, clause 4(xiii) of the Companies
(Auditor''s 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 clause 4(xiv) of the Companies (Auditors Report) Order,
2003 are not applicable to the company.
(xv) According to the information and explanations given to us, the
company has not given any guarantees for loans taken by others from
banks or financial institutions.
(xvi) According to the information and explanations given to us, the
company has availed term loans during the year. In our opinion on
overall basis, the term loans 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
investment.
(xviii) According to the information and explanations given to us, the
company has not made any preferential allotment of shares to parties or
companies covered in the register maintained under Section 301 of the
Act.
(xix) The company does not have any outstanding debentures during the
year.
(xx) The company has not raised any money through a public issue during
the year.
(xxi) According to the information and explanations given to us, no
fraud on or by the company has been noticed or reported during the
course of our audit.
For U.NARAIN & CO.
Chartered Accountants
FRN:- 000935C
(J.P.Agarwal)
Partner
M. No - 054090
Place: Kolkata
Date : 27th May 2013
Mar 31, 2012
1. We have audited the attached Balance Sheet of M/s. Bala Techno
Industries Ltd. as at 31st March, 2012, the annexed Statement of Profit
and Loss of the Company for the year ended on that date and also the
Cash Flow Statement for the year ended on that date. 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 conducted our audit in accordance with auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatements. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditors'' Report) Order, 2003 (as
amended) issued by the Central Government of India in terms of Section
227(4A) of the Companies Act, 1956 and on the basis of such checks as
we considered appropriate and according to information and explanations
given to us, we enclose in the Annexure a statement on the matters
specified in paragraphs 4 and 5 of the said Order.
4. Further to our comments in the Annexure referred 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 our
audit;
ii. 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;
iii. the Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
iv. in our opinion, the Balance Sheet, Statement of Profit and Loss
and Cash Flow Statement dealt with by this report comply with the
accounting standards referred to in Section 211 (3C) of the Companies
Act, 1956;
v. on the basis of the written representations received from the
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 Section 274(l)(g) of the Companies
Act, 1956.
vi. in our opinion and to the best of our information and according to
the explanations given to us, the said accounts give the information
required by the 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 Statement of Profit and Loss, of the Profit of the
Company 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 AUDITORS'' REPORT
(Referred to in Paragraph 3 of our Report of even date)
(I) a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
b) All of the fixed assets have not been physically verified by the
management during the year but there is a regular programme of
verification which, in our opinion, is reasonable having regard to the
size of the company and the nature of its fixed assets. No material
discrepancies were noticed on such verification.
c) During the year, there is no substantial disposal of fixed assets
which would affect the going status of the company.
(ii) a) The inventory has been physically verified during the year by
the management. In our opinion, the frequency of verification is
reasonable.
b) The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the company and the nature of its business.
c) The company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stock and
the book records were not material.
(iii)a) The Company has not granted any loan, secured or unsecured to
companies, firms or other parties covered in the register maintained
under Section 301 of the Companies Act, 1956.
b) In view of clause (iii) (a) above, clause (iii) (b) is not
applicable.
c) In view of clause (iii) (a) above, clause (iii)© is not applicable.
d) In view of clause (iii) (a) above, clause (iii)(d) is not
applicable.
e) The Company has not taken any Unsecured loan, secured or unsecured
from companies, firms or other parties covered in the register
maintained under section 301 of the Companies Act, 1956.
f) In view of clause (iii) (e) above, clause (iii) (f) is not
applicable.
g) In view of clause (iii) (e) above, clause (iii) (g) is not
applicable.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business with regard to purchase of inventory, fixed assets and with
regard to sale of goods and job work. During the course of our audit,
we have not observed any continuing failure to correct major weaknesses
in internal controls.
(v) a) According to the information and explanations given to us, we
are of the opinion that the transactions that need to be entered into
the register maintained under Section 301 of the Companies Act, 1956
have been so entered.
b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under Section 301 of
the Companies Act, 1956 and exceeding the value of rupees five lakhs in
respect of any party during the year have been made at prices which are
reasonable having regard to prevailing market prices at the relevant
time.
(vi) The Company has not accepted any deposits from the public.
(vii) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
(viii) As explained to us, no cost records are required to be
maintained by the Company.
(ix)a) The Company has been generally regular in depositing with
appropriate authorities undisputed statutory dues including Provident
Fund, Employees'' State Insurance, Income Tax, Sales Tax, wealth tax,
Service tax, Custom Duty, Excise Duty, cess and other statutory dues
applicable to it excepting service tax on transport payments. There
are no arrears of outstanding statutory dues at 31st March 2012 for a
period of more than six months from the date they become payable.
b) According to information and explanations given to us, there are no
disputed amounts payable in respect of Income Tax, wealth tax, Service
tax, Sales Tax, Custom Duty and Excise Duty at the year end on 31st
March, 2012.
(x) In our opinion, the company does not have any accumulated losses at
the end of the financial period. The company has not incurred cash
losses during the financial period covered by our audit and also in the
immediately preceding financial period.
(xi) In our opinion and according to information and explanations given
to us, the company has not defaulted in repayment of dues to bank. We
have been informed that the company has no dues to any financial
institution nor has it issued any debentures.
(xii) According to 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) In our opinion, the company is not a chit fund or a nidhi/mutual
benefit fund/society. Therefore, clause 4(xiii) of the Companies
(Auditor''s 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 clause 4(xiv) of the Companies (Auditors Report) Order,
2003 are not applicable to the company.
(xv) According to the information and explanations given to us, the
company has not given any guarantees for loans taken by others from
banks or financial institutions.
(xvi) According to the information and explanations given to us, the
company has availed term loans during the year. In our opinion on
overall basis, the term loans 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
investment.
(xviii) According to the information and explanations given to us, the
company has not made any preferential allotment of shares to parties or
companies covered in the register maintained under Section 301 of the
Act.
(xix)The company does not have any outstanding debentures during the
year.
(xx) The company has not raised any money through a public issue during
the year.
(xxi)According to the information and explanations given to us, no
fraud on or by the company has been noticed or reported during the
course of our audit.
For U.NARAIN & CO. (J.P.Agarwal)
Chartered Accountants Partner
FRN:-000935C M. No-054090
Place: Kolkata
Date: 30th August 2012.
Mar 31, 2011
1. We have audited the attached Balance Sheet of M/s. Bala Techno
Industries Ltd. as at 31st March, 2011, the annexed Profit and Loss
Account of the Company for the year ended on that date and also the
Cash Flow Statement for the year ended on that date. 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 conducted our audit in accordance with auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance -J;out whether the
financial statements are free of material misstatements. An audit
includes examining on a test basis, evidence Supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditors' Report) Order, 2003 (as
amended) issued by the Central Government of India in terms of Section
227(4A) of the Companies Act, 1956 and on the basis of such checks as
we considered appropriate and according to information and explanations
given to us, we enclose in the Annexure a statement on the matters
specified in paragraphs 4 and 5 of the said Order.
4. Further to our comments in the Annexure referred 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 our
audit;
ii. 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;
iii. the Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account;
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 Section 211 (3C) of the Companies Act, 1956;
v. on the basis of the written representations received from the
Directors and taken on record by the Board of Directors, we report that
none of the Directors is disqualified as on 31st March, 2011 from being
appointed as a Director in terms of Section 274(1) (g) of the Companies
Act, 1956.
vi. in our opinion and to the best of our information and according to
the explanations given to us, the said accounts read together with
significant accounting policy and notes thereon in of Schedule 18, 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, 2011;
b) in the case of the Profit and Loss Account, of the Profit of the
Company 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 AUDITORS' REPORT
(Referred to in Paragraph 3 of our Report of even date)
(I) a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
b) All of the fixed assets have not been physically verified by the
management during the year but there is a regular programme of
verification which in our opinion, is reasonable having regard to the
size of the company and the nature of its fixed assets. No material
discrepancies were noticed on such verification.
c) During the year, there is no substantial disposal of fixed assets
which would affect the going status of the company.
(ii) a) The inventory has been physically verified during the year by
the management. In our opinion, the frequency of verification is
reasonable.
b) The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the company and the nature of its business.
c) The company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stock and
the book records were not material.
(iii)a) The Company has not granted any loan, secured or unsecured to
companies, firms or other parties covered in the register maintained
under Section 301 of the Companies Act, 1956.
b) In view of clause (iii) (a) above, clause (iii) (b) is not
applicable.
c) In view of clause (iii) (a) above, clause (iii)é is not applicable.
d) In view of clause (iii) (a) above, clause (iii) (d) is not
applicable.
e) The Company has not taken any Unsecured loan, secured or unsecured
from companies, firms or other parties covered in the register
maintained under section 301 of the Companies Act, 1956.
f) In view of clause (iii) (e) above, clause (iii) (f) is not
applicable.
g) In view of clause (iii) (e) above, clause (iii) (g) is not
applicable.
(iv)In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business with regard to purchase of inventory, fixed assets and with
regard to sale of goods and job work. During the course of our audit,
we have not observed any continuing failure to correct major weaknesses
in internal controls.
(v) a) According to the information and explanations given to us, we
are of the opinion that the transactions that need to be entered into
the register maintained under Section 301 of the Companies Act, 1956
have been so entered.
b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under Section 301 of
the Companies Act, 1956 and exceeding the value of rupees five lakhs in
respect of any party during the year have been made at prices which are
reasonable having regard to prevailing market prices at the relevant
time.
(vi) The Company has not accepted any deposits from the public.
(vii) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
(viii) As explained to us, no cost records are required to be
maintained by the Company.
(ix) a) The Company has been generally regular in depositing with
appropriate authorities undisputed statutory dues including Provident
Fund, Employees' State Insurance, Income Tax, Sales Tax, wealth tax,
Service tax, Custom Duty, Excise Duty, cess and other statutory dues
applicable to it excepting service tax on transport payments. There are
no arrears of outstanding statutory dues at 31st March 2011 for a
period of more than six months from the date they become payable.
b) According to information and explanations given to us, there are no
disputed amounts payable in respect of Income Tax, wealth tax, Service
tax, Sales Tax, Custom Duty and Excise Duty at the year end on 31st
March, 2011.
(x) In our opinion, the company does not have any accumulated losses at
the end of the financial period. The company has not incurred cash
losses during the financial period covered by our audit and also in the
immediately preceding financial period.
(xi) In our opinion and according to information and explanations given
to us, the company has not defaulted in repayment of dues to bank. We
have been informed that the company has no dues to any financial
institution nor has it issued any debentures.
(xii) According to 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)In our opinion, the company is not a chit fund or a nidhi/mutual
benefit fund/society. Therefore, clause 4(xiii) of the Companies
(Auditor's 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 clause 4(xiv) of the Companies (Auditors Report) Order,
2003 are not applicable to the company.
(xv) According to the information and explanations given to us, the
company has not given any guarantees for loans taken by others from
banks or financial institutions.
(xvi) According to the information and explanations given to us, the
company has not availed any term loan during the year.
(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
investment.
(xviii) According to the information and explanations given to us, the
company has not made any preferential allotment of shares to parties or
companies covered in the register maintained under Section 301 of the
Act.
(xix) The company does not have any outstanding debentures during the
year.
(xx) The company has not raised any money through a public issue during
the year.
(xxi) According to the information and explanations given to us, no
fraud on or by the company has beennoticed or reported during the
course of our audit.
For U.NARAIN & CO. (J.P.Agarwal)
Chartered Accountants Partner
FRN:-000935C M. No-054090
Place: Kolkata
Date: 30th August 2011.
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