Mar 31, 2010
We have audited the attached Balance Sheet of COVENTRY COIL-O-MATIC
(HARYANA) LTD. as at 31st March 2010 and also the Profit and Loss
account and the Cash How Statement for the year ended on that date
annexed thereto. These financial statements are the responsibility of
the Companys manage- ment. Our responsibility is to express an opinion
on these financial statements based on our audit.
We conducted our audit in accordance with auditing standards (now known
as standard on auditing) generally accepted in India. Those Standards
require that we plan and perform the audit to obtain reason- able
assurance about whether the financial statements are free of material
misstatement. 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.
As required by the Companies (Auditors Report) Order, 2003 (as
amended) issued by the Central Gov- ernment of India in terms of
sub-section (4A) of Section 227 of the Companies Act, 1956, we enclose
in the Annexure a statement on the matters specified in paragraphs 4
and 5 of the said Order. Further to our comments in the Annexure
referred to 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 purposes 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 and 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 except as stated in Para vi below.
v. On the basis of written representations received from the directors
as on 31st March, 2010 and taken on record by the Board of Directors, we
report that none of the directors is disqualified as on 31st March 2010,
from being appointed as directors 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, and subject to non provisions of interest &
Other Charges (not ascertained as the matter is subjudice ) on Secured
Loans taken from Financial Institutions/Banks, refer to Note No. 3
(A, B, C, D&E) and payment made to the whole time directors without
permission of the central government, refer to Note No. 5 (A) - in
Schedule N of notes, we are unable to express our opinion as regards
to 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 31a March, 2010
(b) In the case of the Profit & Loss account, of the Profit of the
Company for the year ended on that date and
(c) In the case of Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
Annexure referred to in paragraph 3 of our report of even date Re:
Coventry Coil-O-Matic (Haryana) Ltd.
(i) a. The Company has maintained proper records showing full
particulars, including quantitative details and situation of its fixed
assets and the same has riot been reconciled with the books of
accounts.
b. The physical verification of fixed assets (except office
equipments) has not been carried out duringyear.
c. There was no substantial disposal of fixed assets during the year.
(ii) a. As explained to us inventories were physically verified during
the year by the management at reasonable intervals.
b. In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventory
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
c. In our opinion and according to the information and explanation
given to us, the Company is maintaining proper records of inventory
except work in process and no material discrepancies were noticed on
sucfr physical verification.
(iii) a. According to the information and explanations given to us,
during the year the Company has not granted any loan secured or
unsecured to/or from companines, firms or other parties covered in the
register maintained under section 301 of the Companies Act, 1956.
b. According to the information and explanations given to us, during
the year the Company has not taken any loan secured or unsecured to/or
from companies, firms or other parties covered in the register
maintained under section 301 of the Companies Act, 1956.
(iv) In our opinion and according to the information and explanations
given to us, there is an inad- equate internal control system
commensurate with the size of the Company and the nature of its
business, for the purchase of goods.
(v) a. In our opinion and according to the information and explanations
provided by the management, we are of the opinion that the particulars
of contract or arrangements that need to be entered into the register
maintained undersection 301 of the Companies Act1956 have been so
entered.
b. In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements have been made at .prices, which are, prima facie,
reasonable having regard to the prevailing market prices at the
relevant time.
(vi) In our opinion and according to the information and explanations
given to qs, the Company has not accepted any deposited from the public
under section 58A and section 58AA of the Compa- nies Act1956 (as
amended) and the rules framed there under.
(vii) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
(viii) We have broadly reviewed the books of accounts maintained by the
Company pursuant to the rules made by the Central Government for the
maintenance of cost records under section 209(1 )(d) Of the Companies
Act, 1956 and are of the opinion that prima facie the prescribed
accounts and records have been made and maintained.
(ix) a. According to the records of the Company, the Company is
irregular in depositing undisputed statutory dues including provident
fund, employeesstate insurance, sales-tax, excise duty, cess and other
statutory dues applicable to it with the appropriate authorities. There
is no undisputed outstanding statutory dues as at the year end for a
period of more than six months from the date they became payable.
b. According to the records of the Company and as per information and
explanation given to us, there are no dues outstanding of sales tax,
income tax, service tax, custom duty, wealth tax, excise duty and cess
on account of any dispute.
(x) Without considering the impact of para VI of our audit report, the
Company does have accumu-* lated loss at the end of the financial year
and has exceeded 50% of the Companys Net Worth.
(xi) Based on our audit procedures and on the information and
explanations given by the management, the Company has defaulted in
repayment of dues, aggregating Rs.8,93,59,656/-(including interest
thereon)- and liquidated damages Rs 5,14,138/-. No provision has been
made for liquidated damages from 01:04.2003 and interest from
01.04.2005, as amounts remained as unascertained by the Management as
referred to in note no. 3 (A, B,C,D& E) of Schedule TV of notes.
(xii) According to the information and explanations given to us and
based on the documents and records produced 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, the provisions of clause 4
(xiii) of the Companies (Auditors Report) Order, 2003 (as amended),
are not applicable to the Company.
(xiv) The Company does not deal or trade in shares, securities,
debentures and other securities.
(xv) According to the information and explanations given to us, the
Company has not given any corporate guarantees in favour of financial
institution/bank for loans taken by others.
(xvi) To the best of our knowledge and belief and according to the
information and explanations given to us, the Company has not obtained
any term loan during the year.
(xvii) According to the information and explanation given to us, the
company has not raised term loan during the year.
(xviii) The Company has not made any preferential allotment of shares
to parties or companies covered in the register maintained under
Section 301 of the Companies Act, 1956.
(xix) The Company did not have any outstanding debentures during the
year. Hence, question of creation of security or charge does not arise.
(xx) The Company has not raised any money through a public issue during
the year.
(xxi) Based on our examination of the books and records of the Company,
carried out in accordance with the generally accepted auditing practice
in India and according to the information and explanations given to us,
no fraud on or by the Company, noticed or reported during the year.
For SINGHI & CO.
Chartered Accountants
Firm Reg. No. 302049E
B.L Choraria
Camp: Rewari Partner
Dated: 25th August 2010 Membership No. 22973