Mar 31, 2015
We have audited accompanying financial statements of MELSTAR
INFORMATION TECHNOLOGIES LIMITED ("the Company"), which comprise the
Balance Sheet as at March 31, 2015, the Statement of Profit and Loss,
Cash Flow Statement for the year then ended, and a summary of the
significant accounting policies and other explanatory information, in
which are incorporated the Returns for the year ended on that date
audited by the branch auditors of the Company's branch at USA.
Management' Responsibility for the 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 of 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 the 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 financial control relevant
to the Company's preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company's Directors, 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 statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid standalone 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, of the state of affairs of the Company as
at 31 March, 2015, and its loss and its cash flows for the year ended
on that date.
Other Matters
We did not audit the financial statements of one(1) branch included in
the standalone financial statements of the Company whose financial
statements reflect total assets of Rs.58,113 as at 31st March, 2015 and
total revenues of Rs. NIL for the year ended on that date, as
considered in the standalone financial statements. The financial
statements of this branch has been audited by the branch auditors whose
report has been furnished to us, and our opinion in so far as it
relates to the amounts and disclosures included in respect of this
branch, is based solely on the report of such branch auditors.
Our opinion is not modified in respect of this matter.
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 said
Order.
2. As required by section 143(3) of the Act, we report that:
a) We have sought and 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 it appears from our examination of those
books and proper returns adequate for the purposes of our audit have
been received from the USA branch not visited by us.
c) The reports on the accounts of the branch office of the Company
audited under Section 143 (8) of the Act by branch auditors have been
sent to us and have been properly dealt with by us in preparing this
report.
d) 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 and with the returns received from the branch not visited by
us.
e) 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.
f) On the basis of the written representations received from the
directors, as on March 31, 2015 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 Section 164(2) of the
Act.
(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 has disclosed the impact of pending litigations on its
financial position in its financial statements - Refer Note 20 to the
financial statements;
(ii) The Company did not have any long-term contracts including
derivative contracts for which there 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 TO THE AUDITOR'S REPORT
(Referred to in paragraph 1 under Report on Other Legal and Regulatory
Requirements section of our report of even date on the accounts of
MELSTAR INFORMATION TECHNOLOGIES LIMITED for the year ended March 31,
2015)
(i) (a) The Company has generally maintained proper records showing
full particulars including quantitative details and situation of fixed
assets.
(b) As informed and explained to us, all Fixed Assets have been
physically verified by the management during the year and no material
discrepancies were noticed on such verification.
(ii) The company does not have any inventories during the year.
Consequently, clause 3(ii) of the order is not applicable.
(iii) As informed to us, the Company has not granted any loans, secured
or unsecured to companies, firms or other parties covered in the
register maintained under section 189 of the Act.
(iv) In our opinion and according to the information and explanations
given to us, there exists an adequate internal control system
commensurate with the size of the Company and the nature of its
business for the purchase of inventory and fixed assets and for 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
control system of the Company.
(v) During the year, the Company has not accepted any deposits from the
public. As such, the compliance with directives issued by the Reserve
Bank of India and the provisions of section 73 to 76 of the Companies
Act, 2013 and the rules framed there under are not applicable.
(vi) According to the information and explanations given to us, the
Central Government has not prescribed maintenance of cost records under
sub-section (1) of section 148 of the Companies Act, 2013.
(vii) (a) According to the records of the Company, the Company is
generally regular in depositing undisputed statutory dues including
Provident Fund, Employees' State Insurance, Income-Tax, Sales-Tax,
Wealth Tax, Service Tax, Duty of Customs, Duty of Excise, value added
tax, cess and any other statutory dues with the appropriate authorities
during the year.
(b) There are no dues of sales tax/ income tax / duty of customs /
wealth tax / service tax/ duty of excise / value added tax/ cess, which
have not been deposited with the appropriate authorities on account of
any dispute.
(c) According to the records of the Company, there are no amounts
required to education and protection fund in accordance with the
relevant provisions of Section 125 of the Companies Act, 2013 and the
rules framed there under are not applicable.
(viii) The Company's accumulated losses at the end of the financial
year are more than fifty per cent of its net worth. The Company has
incurred cash loss in current year as well as in previous year.
(ix) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to a
financial institution, bank or debenture holders.
(x) According to the information and explanations given to us and the
record examined by 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
(xi) Based on information and explanations given to us by the
management, the Company has not taken any term loan hence clause 3 (xi)
of the Order is not applicable to the Company
(xii) During the course of our examination of the books and records of
the Company, carried out in accordance with the generally accepted
auditing practices in India, and according to the information and
explanations given to us, we have neither come across any instance of
fraud on or by the Company, noticed or reported during the year, nor
have we been informed of any such case by the management.
For Jai Prakash Upadhayay & Co.
Chartered Accountants
Firm Registration No: 125073W
Jai Prakash Upadhayay
Place: Mumbai Partner
Date: May 29, 2015 Membership No.: 116778
Mar 31, 2014
We have audited accompanying financial statements of MELSTAR
INFORMATION TECHNOLOGIES LIMITED ("the Company"), which comprise the
Balance Sheet as at March 31,2014 and the Statement of Profit and Loss
and Cash Flow Statement for the period then ended, and a summary of
significant accounting policies and other explanatory information.
Management'' Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in sub section (3C) of section 211
of the Companies Act, 1956 ("the Act") read with the General Circular
15/2013 dated 13th September 2013 of the Ministry of Corporate Affairs
in respect of Section 133 of Companies Act, 2013. This responsibility
includes the design, implementation and maintenance of internal control
relevant to the preparation and presentation of the financial
statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the effectiveness of the entity''s
internal control. An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of the accounting
estimates made by the 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 31,2014;
b) in the case of the Statement of Profit and Loss, of the loss for the
period ended on that date; and
c) in the case of Cash Flow Statement, of the cash flows for the period
ended on that date.
Emphasis of Matters
The company has given inter corporate deposits to two parties (the
entities earlier were covered under related parties) amounting to
Rs.3,57,89,799 (including interest) which is due for repayment for more
than six months. The amount given is significant in relation to Net
worth of the Company and the aforementioned entities have incurred
continuous losses and their net worth has also declined. However, the
management is of the view that the above Inter Corporate Deposits are
good for recovery. Our report is not qualified in respect of same.
Other Matters
Trade receivables & Trade payables are subject to confirmation and
reconciliation, if any.
Report on other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003,("the
order") as amended by the Companies (Auditor''s Report) (Amendment)
Order, 2004, 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 said
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 and proper returns adequate for the purpose of our audit have
been received from the USA and UK branches audited by other auditors.
c) The Branch Auditors'' report of the UK and USA branches have been
forwarded to us and the same has been appropriately dealt with in the
preparation of this report.
d) 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 and the audited Branch returns.
e) In our opinion, the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement comply with the Accounting Standards referred to in
sub-section (3C) of Section 211 of the Companies Act, 1956 read with
the General Circular 15/2013 dated 13th September 2013 of the Ministry
of Corporate Affairs in respect of Section 133 of Companies Act, 2013.
f) On the basis of the written representations received from the
directors, as on March 31,2014 and taken on record by the Board of
Directors, we report that 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.
(Referred to in paragraph 3 of our Report of even date on the accounts
of MELSTAR INFORMATION TECHNOLOGIES LIMITED for the year ended
March 31,2014)
(i) (a) The Company has generally maintained proper records showing
full particulars including quantitative details and situation of fixed
assets.
(b) As informed and explained to us, all Fixed Assets have been
physically verified by the management during the year and no material
discrepancies were noticed on such verification.
(c) In our opinion and according to the information and explanations
given to us, a substantial part of fixed assets has not been disposed
off by the Company during the year.
(ii) The company does not have any inventories during the year.
Consequently, clause 4(ii) of the order is not applicable.
(iii) As informed to us, the Company has neither granted nor taken any
loans, secured or unsecured, to or from companies, firms or other
parties covered in the register maintained under section 301 of the
Companies Act, 1956. Hence clauses (iii) (a) to (iii) (g) of paragraph
4 of the order are not applicable to the Company.
(iv) In our opinion and according to the information and explanations
given to us, there exists an adequate internal control system
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 the sale of
goods. During the course of our audit, we have not observed any
continuing failure to correct major weaknesses in internal control
system of the Company.
(v) To the best of our knowledge and belief and according to the
information and explanations given to us, there are no transactions,
particulars of
contracts or arrangements required to be entered in the register
maintained in pursuance of section 301 of the Companies Act, 1956.
Accordingly
clause (v) (b) of the order is not applicable.
(vi) During the year, the Company has not accepted any deposits from
the public. As such, the compliance with directives issued by the
Reserve Bank of India and the provisions of section 58A, 58Aa of the
Companies Act, 1956 and the rules framed thereunder are not applicable.
(vii) In our opinion, the company has an internal audit system
commensurate with the size of the Company and nature of its business.
(viii) According to the information and explanations given to us, the
Central Government has not prescribed maintenance of cost records under
section 209 (1) (d) of the Companies Act, 1956 for any of the products
of the Company and hence clause 4 (viii) of the Order is not applicable
to the Company.
(ix) (a) According to the records of the Company, the Company is
generally regular in depositing undisputed statutory dues including
Provident Fund,
Investor Education and Protection Fund, Employees'' State Insurance,
Income-Tax, Sales-Tax, Wealth Tax, Service Tax, Customs Duty, Excise
Duty, cess and any other statutory dues with the appropriate
authorities during the year.
(b) There are no dues of sales tax/ income tax / custom duty / wealth
tax / service tax/ excise duty/ cess, which have not been deposited
with the appropriate authorities on account of any dispute.
(x) The Company''s accumulated losses at the end of the financial year
are less than fifty per cent of its net worth. The Company has incurred
cash loss in current year as well as in previous year.
(xi) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to a
financial institution, bank or debenture holders.
(xii) According to the information and explanations given to us, the
Company has not granted any loans or 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 (Auditor''s Report) Order, 2003 (as amended)
are not applicable to the Company.
(xiv) According to the information and explanations given to us, the
Company has maintained proper records of transactions and contracts in
respect of dealing and trading in shares, securities, debentures and
other investment and timely entries have generally been made therein.
All shares, securities, debentures and other investment have been held
by the Company in its own name.
(xv) According to the information and explanations given to us and the
record examined by us, the Company has not given any guarantee for
loans taken by others from banks or financial institutions.
(xvi) Based on information and explanations given to us by the
management, the Company has not taken any term hence clause 4 (xvi) of
the Order is not applicable to the Company.
(xvii) On the basis of an overall examination of the Balance Sheet of
the Company and according to the information and explanations given to
us, in our opinion there are no funds raised on short-term basis, which
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
and companies covered in the register maintained under Section 301 of
the Act.
(xix) The Company has not issued debentures during the financial year
and hence, the question of creating securities in respect thereof does
not arise.
(xx) The Company has not raised any money through public issue during
the year.
(xxi) During the course of our examination of the books and records of
the Company, carried out in accordance with the generally accepted
auditing practices in India, and according to the information and
explanations given to us, we have neither come across any instance of
fraud on or by the Company, noticed or reported during the year, nor
have we been informed of any such case by the management.
For Kanu Doshi Associates
Chartered Accountants
Firm Registration Number: 104746W
Ankit Parekh
Place: Mumbai Partner
Date: May 23, 2014 Membership No: 114622
Mar 31, 2013
Report on the Financial Statements
We have audited accompanying financial statements of MELSTAR
INFORMATION TECHNOLOGIES LIMITED ("the Company"), which comprise
the Balance Sheet as at March 31, 2013 and the Statement of Profit and
Loss and Cash Flow Statement for the period then ended, and a summary
of significant accounting policies and other explanatory information.
Management'' Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in sub section (3C) of section 211
of the Companies Act, 1956 ("the Act"). 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 accounting
policies used and the reasonableness of the accounting estimates made
by the 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, 2013;
b) in the case of the Statement of Profit and Loss, of the loss for the
period ended on that date; and
c) in the case of Cash Flow Statement, of the cash flows for the period
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 by the Companies (Auditor''s Report)
(Amendment) Order, 2004, 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 said 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 and proper returns adequate for the purpose of our audit have
been received from the USA and UK branches audited by other auditors.
c) The Branch Auditors'' report of the UK and USA branches have been
forwarded to us and the same has been appropriately dealt with in the
preparation of this report.
d) 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 and the audited Branch returns.
e) In our opinion, the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement comply with the Accounting Standards referred to in
sub-section (3C) of Section 211 of the Companies Act, 1956.
f) On the basis of the written representations received from the
directors, as on March 31, 2013 and taken on record by the Board of
Directors, we report that none of the directors is disqualified as on
March 31, 2013 from being appointed as a director in terms of clause
(g) of sub-section (1) of Section 274 of the Companies Act, 1956.
(Referred to in paragraph 1 of Report on other Legal and Regulatory
Requirements of our Report of even date on the accounts of MELSTAR
INFORMATION TECHNOLOGIES LIMITED for the year ended March 31, 2013)
(i) (a) The Company has generally maintained proper records showing
full particulars including quantitative details and situation of fixed
assets.
(b) As informed and explained to us, all Fixed Assets have been
physically verified by the management during the year and no material
discrepancies were noticed on such verification.
(c) In our opinion and according to the information and explanations
given to us, a substantial part of fixed assets has not been disposed
off by the Company during the year.
(ii) The company does not have any inventories during the year.
Consequently, clause 4(ii) of the order is not applicable.
(iii) According to information and explanations given to us, the
Company has neither granted nor taken 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. Accordingly,
the sub-clauses (b), (c), (d), (f) and (g) of clause (iii) are not
applicable to the Company.
(iv) In our opinion and according to the information and explanations
given to us, there exists an adequate internal control system
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 the sale of goods. During the course of our audit, we have
not observed any continuing failure to correct major weaknesses in
internal control system of the Company.
(v) To the best of our knowledge and belief and according to the
information and explanations given to us that there are no
transactions, particulars of contracts or arrangements required to be
entered in the register maintained in pursuance of section 301 of the
Companies Act, 1956. Accordingly, clause (v) (b) of the order is not
applicable.
(vi) During the year, the Company has not accepted any deposits from
the public. As such, the compliance with directives issued by the
Reserve Bank of India and the provisions of section 58A, 58AA of the
Companies Act, 1956 and the rules framed there under are not applicable.
(vii) In our opinion, the internal audit functions carried out during
the year by a firm of Chartered Accountants appointed by the management
have been commensurate with the size of the Company and nature of its
business.
(viii) According to the information and explanations given to us, the
Central Government has not prescribed maintenance of cost records under
section 209 (1) (d) of the Companies Act, 1956 for any of the products
of the Company and hence clause 4 (viii) of the Order is not applicable
to the Company.
(ix) (a) According to the records of the Company, the Company is
generally regular in depositing undisputed statutory dues including
Provident Fund, Investor Education and Protection Fund, Employees''
State Insurance, Income-Tax, Sales-Tax, Wealth Tax, Service Tax,
Customs Duty, Excise Duty, cess and any other statutory dues with the
appropriate authorities during the year except for tax deducted as
source (Pay as You Earn - in respect of United Kingdom Branch). The
arrears of Pay as You Earn dues as at the last day of the financial
year, outstanding for a period of more than six months from the date
they became payable, are UKP 12,222 (Equivalent to Rs. 10,05,647/-).
(b) There are no dues of sales tax/ income tax / custom duty / wealth
tax / service tax/ excise duty/ cess, which have not been deposited
with the appropriate authorities on account of any dispute.
(x) The Company''s accumulated losses at the end of the financial year
are less than fifty per cent of its net worth. The Company has incurred
cash loss in current year but not in previous year.
(xi) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to a
financial institution, bank or debenture holders.
(xii) According to the information and explanations given to us, the
Company has not granted any loans or 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 (Auditor''s Report) Order, 2003 (as amended)
are not applicable to the Company.
(xiv) According to the information and explanations given to us, the
Company has maintained proper records of transactions and contracts in
respect of dealing and trading in shares, securities, debentures and
other investment and timely entries have generally been made therein.
All shares, securities, debentures and other investment have been held
by the Company in its own name.
(xv) According to the information and explanations given to us and the
record examined by us, the Company has not given any guarantee for
loans taken by others from banks or financial institutions.
(xvi) Based on information and explanations given to us by the
management, term loans were applied for the purpose for which the loans
were obtained.
(xvii) On the basis of an overall examination of the Balance Sheet of
the Company and according to the information and explanations given to
us, in our opinion there are no funds raised on short-term basis, which
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
and companies covered in the register maintained under Section 301 of
the Act.
(xix) The Company has not issued debentures during the financial year
and hence, the question of creating securities in respect thereof does
not arise.
(xx) The Company has not raised any money through public issue during
the year.
(xxi) During the course of our examination of the books and records of
the Company, carried out in accordance with the generally accepted
auditing practices in India, and according to the information and
explanations given to us, we have neither come across any instance of
fraud on or by the Company, noticed or reported during the year, nor
have we been informed of any such case by the management.
For Kanu Doshi Associates
Chartered Accountants
Firm Registration No: 104746W
Place: Mumbai Ankit Parekh
Date: May 23, 2013 Partner
Membership No.: 114622
Mar 31, 2012
1. We have audited the attached Balance Sheet of MELSTAR INFORMATION
TECHNOLOGIES LIMITED as at March 31, 2012, the Profit and Loss Account
and also the Cash Flow Statement for the year ended on that date
annexed thereto, in which are incorporated the Returns from the USA and
UK branches audited by other auditors. 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 the auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free 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.
3. As required by the Companies (Auditor's Report) Order, 2003, as
amended by the Companies (Auditor's Report) (Amendment) Order, 2004,
issued by the Central Government of India in terms of sub-section (4A)
of section 227 of the Companies Act, 1956, according to the information
and explanations given to us during the course of the audit and on the
basis of such checks as we considered appropriate, 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 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 and proper returns adequate for the purpose of our audit
have been received from the USA and UK branches audited by other
auditors;
(iii) The Branch Auditors' report of the UK and USA branches have been
forwarded to us and the same has been appropriately dealt with in the
preparation of this report;
(iv) The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account
and the audited Branch Returns;
(v) In our opinion, the Balance Sheet, Profit and Loss Account and Cash
Flow Statement dealt with by this report comply with the Companies
(Accounting Standards) Rules, 2006 and/ or the accounting standards
referred to in sub-section (3C) of section 211 of the Companies Act,
1956.
(vi) On the basis of written representations received from the
directors, as on March 31, 2012 and taken on record by the Board of
Directors, we report that none of the directors is disqualified as on
March 31, 2012 from being appointed as a director in terms of clause
(g) of sub-section (1) of Section 274 of the Companies Act, 1956;
(vii) In our opinion and to the best of our information and according
to the explanations given to us, they said accounts, read together with
the Significant Accounting Policies and the other notes thereon in
general, 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 March 31, 2012;
(b) in the case of the Profit and 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 that date.
(Referred to in paragraph 3 of our Report of even date on the accounts
of MELSTAR INFORMATION TECHNOLOGIES LIMITED for the year ended March
31, 2012)
(i) (a) The Company has generally maintained proper records showing
full particulars including quantitative details and situation of fixed
assets.
(b) As informed and explained to us, all Fixed Assets have been
physically verified by the management at reasonable intervals during
the year and no material discrepancies were noticed on such
verification.
(c) During the year, the Company has not disposed off a substantial
part of its fixed assets.
(ii) (a) As explained to us, the inventory has been physically verified
by the management during the year. In our opinion, the frequency of
verification is reasonable.
(b) 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) The Company is maintaining proper records of inventory and no
material discrepancies were noticed on physical verification carried
out at the end of the year.
(iii) According to information and explanations given to us, the
Company has neither granted nor taken any loans, secured or unsecured,
to or from companies, firms or other parties covered in the register
maintained under 301 of the Companies Act, 1956. Accordingly, the
sub-clauses (b),(c),(d),(f) and (g) of clause (iii) are not applicable
to the company.
(iv) In our opinion and according to the information and explanations
given to us, there exists an adequate internal control system
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 the sale of goods. During the course of our audit, we have
not observed any continuing failure to correct major weaknesses in
internal control system of the Company.
(v) In respect of contracts or arrangements entered in the register
maintained in pursuance of Section 301 of the Companies Act, 1956, to
the best of our knowledge and belief and according to the information
and explanations given to us,
(a) The particulars of contracts or arrangements referred in Section
301 that needed to be entered into the register maintained under the
said section have been so entered.
(b) Where each of such transaction is in excess of Rs. 5 lakhs in
respect of any party, the transactions have been made at prices which
are prima facie reasonable having regard to prevailing market price at
the relevant time.
(vi) During the year, the Company has not accepted any deposits from
the public. As such, the compliance with directives issued by the
Reserve Bank of India and the provisions of section 58A, 58AA of the
Companies Act, 1956 and the rules framed there under are not applicable.
(vii) In our opinion, the internal audit functions carried out during
the year by a firm of Chartered Accountants appointed by the management
have been commensurate with the size of the Company and nature of its
business.
(viii) According to the information and explanations given to us, the
Central Government has not prescribed maintenance of cost records under
section 209 (1) (d) of the Companies Act, 1956 for any of the products
of the Company and hence clause 4 (viiii) of the Order is not
applicable to the Company.
(ix) (a) According to the records of the Company, the Company is
generally regular in depositing undisputed statutory dues including
Provident Fund, Investor Education and Protection Fund, Employees
State Insurance, Income-Tax, Sales-Tax, Wealth Tax, Service Tax,
Customs Duty, Excise Duty, cess and any other statutory dues with the
appropriate authorities during the year except for tax deducted as
source (Pay as You Earn - in respect of United Kingdom Branch). The
arrears of Pay as You Earn dues as at the last day of the financial
year, outstanding for a period of more than six months from the date
they became payable, are UKP 12,222 (Equivalent to Rs. 9,95,258/-).
(b) There are no dues of sales tax/ income tax / custom duty / wealth
tax / service tax/ excise duty/ cess, which have not been deposited
with the appropriate authorities on account of any dispute.
(x) The Company's accumulated losses at the end of the financial year
are less than fifty per cent of its net worth. The Company has not
incurred cash loss in current year and previous year.
(xi) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to a
financial institution, bank or debenture holders.
(xii) According to the information and explanations given to us, the
Company has not granted any loans or advances on the basis of security
by way of pledge of shares, debentures and other securities.
(xiii) In our opinion, the provisions of any special statute applicable
to Chit Fund, Nidhi or Mutual Benefit Fund/Societies are not applicable
to the Company.
(xiv) According to the information and explanations given to us, the
Company has maintained proper records of transactions and contracts in
respect of dealing and trading in shares, securities, debentures and
other investment and timely entries have generally been made therein.
All shares, securities, debentures and other investment have been held
by the Company in its own name.
(xv) According to the information and explanations given to us and the
record examined by us, the Company has not given any guarantee for
loans taken by others from banks or financial institutions.
(xvi) Based on information and explanations given to us by the
management, term loans were applied for the purpose for which the loans
were obtained.
(xvii) On the basis of an overall examination of the Balance Sheet of
the Company and according to the information and explanations given to
us, in our opinion there are no funds raised on short-term basis, which
have 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 Companies Act, 1956 during the year.
(xix) The Company has not issued debentures during the financial year
and hence, the question of creating securities in respect thereof does
not arise.
(xx) The Company has not raised any money through public issue during
the year.
(xxi) On the basis of our examination and according to the information
and explanation given to us, no fraud, on or by the Company, has been
noticed or reported during the course of our audit.
For Kanu Doshi Associates
Chartered Accountants
Firm Registration No.: 104746W
Ankit Parekh
Place: Mumbai Partner
Date: May 25, 2012 Membership No.: 114622
Mar 31, 2011
1. We have audited the attached Balance Sheet of MELSTAR INFORMATION
TECHNOLOGIES LIMITED ("the Company") as at March 31, 2011, the Profit
and Loss Account and also the Cash Flow Statement of the Company for
the year ended on that date annexed thereto, in which are incorporated
the Returns from the USA and UK branches audited by other auditors.
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. The financial statements for
the year ended March 31, 2010 have been audited by another firm of
Chartered Accountants. We have relied on the same for the purpose of
this report.
2. We conducted our audit in accordance with the auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free 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 (Auditor's Report) Order, 2003, as
amended by the Companies (Auditor's Report) (Amendment) Order, 2004,
issued by the Central Government of India in terms of sub-Section (4A)
of Section 227 of the Companies Act, 1956, according to the information
and explanations given to us during the course of the audit and on the
basis of such checks as we considered appropriate, 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 in paragraph 3
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 it appears from our examination of
those books and proper returns adequate for the purpose of our audit
have been received from the USA and UK branches audited by other
auditors;
(iii) The reports on the accounts of the USA and UK branches audited by
other auditors have been forwarded to us and have been dealt with by us
in preparing this report;
(iv) The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account
and the audited Branch Returns;
(v) In our opinion, the Balance Sheet, the Profit and Loss Account and
the Cash Flow Statement dealt with by this report are in compliance
with the Accounting Standards referred to in sub-Section (3C) of
Section 211 of the Companies Act, 1956.
(vi) On the basis of written representations received from the
directors, as on March 31, 2011 and taken on record by the Board of
Directors, we report that none of the directors is disqualified as on
March 31, 2011 from being appointed as a director in terms of clause
(g) of sub-Section (1) of Section 274 of the Companies Act, 1956;
(vii) In our opinion and to the best of our information and according
to the explanations given to us, the said accounts, read together with
the Significant Accounting Policies and the notes thereon, 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 March 31, 2011;
(b) in the case of the Profit and 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 that date.
ANNEXURE TO THE AUDITOR'S REPORT
(Referred to in paragraph 3 of our Report of even date on the accounts
of MELSTAR INFORMATION TECHNOLOGIES LIMITED for the year ended March
31, 2011)
(i) (a) The Company has generally maintained proper records showing
full particulars including quantitative details and situation of fixed
assets.
(b) As informed and explained to us, all Fixed Assets have been
physically verified by the management at reasonable intervals during
the year and no material discrepancies were noticed on such
verification.
(c) During the year, the Company has not disposed off a substantial
part of its fixed assets.
(ii) The Company's nature of operations does not require it to hold
inventories. Consequently, clause 4(ii) of the order is not applicable.
(iii) According to information and explanations given to us, the
Company has neither granted nor taken any loans, secured or unsecured,
to or from companies, firms or other parties covered in the register
maintained under 301 of the Companies Act, 1956. Accordingly, the
sub-clauses (b),(c),(d),(f) and (g) of clause (iii) are not applicable
to the Company.
(iv) In our opinion and according to the information and explanations
given to us, having regard to the explanations that some of the items
purchased and sold and services rendered are of special nature and
suitable alternative sources are not readily available for obtaining
comparable quotations, there is an adequate internal control system
commensurate with the size of the Company and the nature of its
business with regard to purchases of inventory and fixed assets and 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
control system.
(v) In respect of contracts or arrangements entered in the register
maintained in pursuance of Section 301 of the Companies Act, 1956, to
the best of our knowledge and belief and according to the information
and explanations given to us and having regard to the comment in clause
(iv) above
(a) The particulars of contracts or arrangements referred in Section
301 that needed to be entered into the register maintained under the
said Section have been so entered.
(b) Where each of such transaction is in excess of Rs. 5 lakhs in
respect of any party, the transactions have been made at prices which
are prima facie reasonable having regard to prevailing market price at
the relevant time.
(vi) During the year, the Company has not accepted any deposits from
the public. As such, the compliance with directives issued by the
Reserve Bank of India and the provisions of Section 58A, 58AA of the
Companies Act, 1956 and the rules framed thereunder are not applicable.
(vii) In our opinion, the internal audit functions carried out during
the year by a firm of Chartered Accountants appointed by the management
have been commensurate with the size of the Company and nature of its
business.
(viii) According to the information and explanations given to us, the
Central Government has not prescribed maintenance of cost records under
Section 209 (1) (d) of the Companies Act, 1956 for any of the products
of the Company and hence clause 4 (viii) of the Order is not applicable
to the Company.
(ix) (a) According to the records of the Company, the Company is
generally regular in depositing undisputed statutory dues including
Provident Fund, Investor Education and Protection Fund, Employees'
State Insurance, Income-Tax, Sales-Tax, Wealth Tax, Service Tax,
Customs Duty, Excise Duty, cess and any other statutory dues with the
appropriate authorities during the year except for tax deducted as
source (Pay as You Earn à in respect of United Kingdom Branch). The
arrears of Pay as You Earn dues as at the last day of the financial
year, outstanding for a period of more than six months from the date
they became payable, are UKP 12,222 (Equivalent to Rs. 8,78,291/-).
Further, since the Central Government has till date not prescribed the
amount of cess payable under Section 441 A of the Companies Act, 1956,
we are not in a position to comment upon the regularity or otherwise of
the Company in depositing the same.
(b) There are no dues of sales tax / income tax / custom duty / wealth
tax / service tax/ excise duty/ cess, which have not been deposited
with the appropriate authorities on account of any dispute.
(x) The Company's accumulated losses at the end of the financial year
are less than fifty per cent of its net worth. The Company has not
incurred cash losses during the current year. However, it has incurred
cash losses in the immediately preceding financial year.
(xi) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to a
financial institution, bank or debenture holders.
(xii) According to the information and explanations given to us, the
Company has not granted any loans or advances on the basis of security
by way of pledge of shares, debentures and other securities.
(xiii) In our opinion, the provisions of any special statute applicable
to Chit Fund, Nidhi or Mutual Benefit Fund/Societies are not applicable
to the Company.
(xiv) According to the information and explanations given to us, the
Company has maintained proper records of transactions and contracts in
respect of dealing and trading in shares, securities, debentures and
other investment and timely entries have generally been made therein.
All shares, securities, debentures and other investment have been held
by the Company in its own name.
(xv) According to the information and explanations given to us and the
record examined by us, the Company has not given any guarantee for
loans taken by others from banks or financial institutions.
(xvi) Based on information and explanations given to us by the
management, term loans were applied for the purpose for which the loans
were obtained.
(xvii) On the basis of an overall examination of the Balance Sheet of
the Company and according to the information and explanations given to
us, in our opinion there are no funds raised on short-term basis, which
have 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 Companies Act, 1956 during the year.
(xix) The Company has not issued debentures during the financial year
and hence, the question of creating securities in respect thereof does
not arise.
(xx) The Company has not raised any money through public issue during
the year.
(xxi) On the basis of our examination and according to the information
and explanation given to us, no fraud, on or by the Company, has been
noticed or reported during the course of our audit.
For Kanu Doshi Associates
Chartered Accountants
Firm Registration No.: 104746W
Place : Mumbai Arati Parmar
Date : May 19, 2011 Partner
Membership No.: 102888
Mar 31, 2010
1. We have audited the attached Balance Sheet of Melstar Information
Technologies Limited ("the Company") as at 31st March, 2010, the Profit
and Loss Account and the Cash Flow Statement of the Company for the
year ended on that date, both annexed thereto, in which are
incorporated the Returns from the USA and UK branches audited by other
auditors. These financial statements are the responsibility of the
Companys Management. Our responsibility is to express an opinion on
these financial statements based on our audit.
2. We conducted our audit in accordance with the auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatements. An audit
includes examining, on a test basis, evidence supporting the amounts
and the disclosures in the financial statements. An audit also includes
assessing the accounting principles used and the significant estimates
made by the 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 (CARO)
issued by the Central Government in terms of Section 227(4A) of the
Companies Act, 1956, we give 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 to in paragraph 3
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 it appears from our examination of
those books and proper returns adequate for the purposes of our audit
have been received from the USA and UK branches audited by other
auditors;
(iii) the reports on the accounts of the USA and UK branches audited by
other auditors have been forwarded to us and have been dealt with by us
in preparing this report;
(iv) the Balance Sheet, the Profit and Loss Account and the Cash Flow
Statement dealt with by this report are in agreement with the books of
account and the audited Branch Returns;
(v) in our opinion, the Balance Sheet, the Profit and Loss Account and
the Cash Flow Statement dealt with by this report are in compliance
with the Accounting Standards referred to in Section 211(3C) 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, 2010;
(b) in the case of the Profit and Loss Account, of the loss of the
Company for the year ended on that date; and
(c) in the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
5. On the basis of the 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 a director in terms of Section
274(1)(g) of the Companies Act, 1956.
ANNEXURE TO THE AUDITORS REPORT
(Referred to in Paragraph 3 of Auditors Report of even date to
the members of MELSTAR INFORMATION TECHNOLOGIES LIMITED.)
i) Having regard to the nature of the Companys business, clauses
(xiii) and (xiv) of CARO are not applicable.
ii) a) The Company is maintaining proper records showing full
particulars, including quantitative details and situation of fixed
assets.
b) The fixed assets were physically verified during the year by the
Management in accordance with a regular programme of verification
which, in our opinion, provides for physical verification of all the
fixed assets at reasonable intervals. According to the information and
explanation given to us, no material discrepancies were noticed on such
verification.
c) The fixed assets disposed off during the year, in our opinion, do
not constitute a substantial part of the fixed assets of the Company.
iii) a) As explained to us, the 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 inventories
followed by the management were 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 explanations
given to us, the Company has maintained proper records of its
inventories and no material discrepancies were noticed on physical
verification.
iv) The Company has neither granted nor taken any loans, secured or
unsecured, to or from companies, firms or other parties covered in the
register maintained under Section 301 of the Companies Act, 1956 and
accordingly paragraphs 4 (iii) (b), (c), (d), (f) and (g) of the Order
are not applicable to the Company.
v) In our opinion and according to the information and explanations
given to us, having regard to the explanations that some of the items
purchased and sold and services rendered are of special nature and
suitable alternative sources are not readily available for obtaining
comparable quotations, there is an adequate internal control system
commensurate with the size of the Company and the nature of its
business with regard to purchases of inventory and fixed assets and the
sale of goods and services. During the course of our audit, we have not
observed any major weakness in such internal control system.
vi) In respect of contracts or arrangements entered in the Register
maintained in pursuance of Section 301 of the Companies Act, 1956, to
the best of our knowledge and belief and according to the information
and explanations given to us and having regard to the comment in clause
(v) above.
(a) The particulars of contracts or arrangements referred to in Section
301 that needed to be entered in the Register maintained under the said
Section have been so entered.
(b) Where each of such transaction is in excess of Rs.5 lakhs in
respect of any party, the transactions have been made at prices which
are prima facie reasonable having regard to the prevailing market
prices at the relevant time.
vii) According to the information and explanations given to us, the
Company has not accepted any deposits from the public during the year.
viii) In our opinion, the internal audit function carried out during
the year, by a firm of Chartered Accountants appointed by the
management has been commensurate with the size of the Company and
nature of its business.
ix) According to the information and explanations given to us, the
Central Government has not prescribed maintenance of cost records under
section 209(1)(d) of the Companies Act,1956 for any of the products of
the Company and hence clause 4(viii) of the Order is not applicable to
the Company.
x) a) According to the information and explanations given to us and
according to the books and records as produced and examined by us, in
our opinion, the undisputed statutory dues including Provident Fund,
Investor Education and Protection Fund, Employees State Insurance,
Excise duty, Custom duty, Income-tax, Sales-tax, Wealth Tax, Service
Tax, Cess and any other material statutory dues as applicable to the
Company have generally been regularly deposited with the appropriate
authorities during the year except for tax deducted at source (Pay As
You Earn--in respect of UK Branch). The arrears of Pay as You Earn dues
as at the last day of the financial year, outstanding for a period of
more than six months from the date they became payable, are UKP 12,222
(Equivalent to Rs.831,724/-).
b) There are no dues of sales tax/income tax/custom duty/wealth
tax/service tax/excise duty/cess, which have not been deposited with
the appropriate authorities on account of any dispute.
xi) The accumulated losses of the Company at the year end are not in
excess of fifty percent of its net worth. The Company has incurred cash
losses during the current year and in the immediately preceding
financial year.
xii) In our opinion and according to the information and explanations
given to us , the Company has not defaulted in the repayment of dues to
a financial institution or banks or to debenture holders.
xiii) In our opinion and according to the information and explanations
given to us, the Company has not granted any loans and advances on the
basis of security by way of pledge of shares, debentures and any other
securities.
xiv) According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks or financial institutions.
xv) In our opinion and according to the information and explanations
given to us, the term loans have been applied for the purposes for
which they were obtained.
xvi) In our opinion and according to the information and explanations
given to us and on an overall examination of the Balance Sheet, we
report that funds raised on short-term basis have not been used during
the year for long- term investment.
xvii) The Company has not made preferential allotment of shares to
parties and companies, covered in the register maintained under Section
301 of the Companies Act, 1956 during the year.
xviii) The Company has not issued any debentures during the year.
xix) The Company has not raised funds by way of public issue during the
year.
xx) During the course of our examination of the books and records of
the Company, carried out in accordance with the generally accepted
auditing practices in India, and according to information and
explanations given to us, we have neither come across any instance of
material fraud on or by the Company, noticed or reported during the
year nor have we been informed of such case by the management.
For Deloitte Haskins & Sells
Chartered Accountants
(Registration No 117366W)
R. A. Banga
Partner Mumbai, dated: 9th August, 2010 Membership No. 37915
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