Mar 31, 2015
We have audited the accompanying standalone financial statements of
Nakoda Limited ('the company'), which comprise the balance sheet as at
31st March 2015, the statement of profit and loss and the cash flow
statement for the period of Fifteen month (i.e 01-01-2014 to the year
ended on 31st March 2015) (15 Months), and a summary if significant
accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements:
The company's Board of Directors is responsible for the maters stated
in Section 134(5) of the Companies Act 2013('the Act') with respect to
the preparation and presentation of these standalone financial
statements that give a true and fair view of the financial position,
financial performance and cash flow 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 Campanies(Accounts) Rule, 2014. This responsibility also
includes maintenance of adequate accounting records in accordance with
the provision of the Act for safeguarding the assets of the company and
for preventing and detecting frauds and other irregularities; selection
and application of appropriate accounting policies; making judgments
and estimates that are reasonable and prudent; and design,
implementation and maintenance of adequate internal financial controls,
that were operating effectively for ensuring the accuracy and
completeness of the accounting records, relevant to the preparation and
presentation of the financial statements that give a true and fair view
and are free from material misstatements, whether due to fraud or
error.
Auditor's Responsibility
Our responsibility is to express an opinion on theses 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 Standard on Auditing
specified under 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 disclosuresS in the financial statements. The
procedure selected depends on auditor's judgment, Including the
assessment of the risk of material misstatement of the financial
statements whether due to fraud or error. In making those risk
assessments, the auditor considers interna! financial control relevant
to the company's preparation of the financial statements that give true
and fair view in order to design audit procedures that are appropriate
in the circumstances, but not for the purpose of expressing an opinion
on whether the Company has in place an adequate internal financial
controls system over financial reporting and the operating
effectiveness of such controls. An audit also include 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.
Opinion
in our opinion and to the best of our information and accounting to the
explanation given to us, the aforesaid standalone financial statement
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 St March 2015 and its profit and its cash flows for the year
ended on that date except the company has not provided depreciation
provision on fixed assets in accordance with the rates specified in
schedule 11 of Companies Act 2013 but calculated on straight line
method at fate prescribed in Schedule XIV of Companies Act, 1956 and
hence the loss may be understated or overstated to that extent in the
financial statements.
Report on other Legal and Regulatory Requirements:-
As required by the Companies(Auditor's Report) order ,2015 ('the
order') issued by the Centra! 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 the paragraph 3 and 4 of the
order, to the extent possible.
As required by section 143(3) of the Act, we report that:
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.
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; we have received the print of all the statements and ledgers for
verification however access of accounting software was not done by us.
The balance sheet, the statement of profit and loss and the cash flow
statement dealt, with by this report are in agreement with the print of
the Books of account produced before us.
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) Rule 204;
On the basis of the written representation received from the directors
as on 31st March 2015 taken on record by the Board of Directors none of
the directors is disqualified as on 31st March 2015 from being
appointed as a director in terms of Section 164(2) of the Act; and
With respect to the other matters to be included in the Auditor's
Report in accordance with the Rule 11 of the Companies (Audit and
Auditors) Rule ,2014, in our opinion and to the best of our information
and according to the explanation given to us:
The company has disclosed the impact of pending litigation on its
financial position in its financial statements- Refer Note 2 of Notes
of Accounts.
The company has made provision, as required under the applicable law or
accounting standards, fdr material foreseeable losses, if any on long
term contracts including derivatives contract.
There has been delay in transferring amounts required to be
transferred, to the Investor Education and Protection Fund by the
Company.
Annexure to the Auditors' Report
The Annexure referred to in our Independent Auditors' Report to the
members of the Company on the standalone financial statements for the
15 month period ended 31st March 2015, we report that:
(a) The records of fixed assets showing particulars of quantitative
detail and situation thereof were not available for our verification.
(b) As per explanation given to us the company does not carry out the
physical verification of the fixed assets at regular intervals.
(c) on the basis of our verification of the record of the inventory we
are of the opinion that the company is maintaining proper records of
inventory other than the traded items. The management has conducted the
physical verification in respect of finished goods, stores and spares
and raw materials at reasonable intervals.
(d) The procedure of the physical verification of stock followed by the
management is reasonable and adequate to the size of the company and
the nature of its business.
(e) The material discrepancies noticed on physical verification of the
inventories have been properly deait with in the books of accounts.
(f) The company has granted interest free loans/advances without any
stipulation of repayment thereof to Eleven bodies corporate listed in
the register maintained U/s 189 of the Companies Act, 2013 ('the Act)
In our opinion and according to the information and explanation given
to us, there is adequate internal control procedure commensurate with
the size of the Company and the nature of its business with regard to
the purchase of fixed assets, inventory and sale of goods. During the
course of our audit we have not observed any continuing failure to
correct the major weaknesses in internal controts.
The company has not accepted any deposit from public.
We have broadly review the books of accounts maintained by the company
pursuant to Rules made by the central government for maintainece of
cost records under section 148 (1) of the Companies Act 2013, and are
of the opinion that prima fade prescribed accounts have been made and
maintained.
(a) According to the information and explanation given to us and on the
basis of our examination of the records of the Company, amounts
deducted/accrued in the books of account in respect of undisputed
statutory dues including Provident Fund, income tax, sales tax, wealth
tax, service tax, custom duty value added tax, cess and other materia!
statutory dues have been deposited during the period by the company
with appropriate authorities,
According to the information and explanation given to us , no
undisputed amounts payable in respect of provident fund , sales tax,
income tax, wealth tax, service tax, custom duty, or other material
statutory dues were arrears as at 31st March 2015 for a period of more
than six months from the date they became payable.
(b) According to the information and explanations given to us, the
following dues of income tax, excise, and sales tax have not been
deposited by the Company on account of disputes:
Name of Statute Nature of dues Amount(Rs)
Income Tax. Penalty 271(1)(c) 2864146
Income tax 143(1)(a) 8046440
SalesTax Sales tax 144722786
Sales tax SalesTax 2189434
Excise Excise duty and 37317779
penalty
Name of Statute Period Forum where dispute pending
Income Tax. 2007-2008(A.Y.) ITAT Ahmedabad
Income tax 2013-2014 (A.Y) ACIT 1(1)(2) Surat
SalesTax 2009-2010 Joint Commissioner (Commercial
Taxes) Vadodara
Sales tax 2010-2011 Dy, Commissioner of Commercial
Tax Surat
Excise Various Years Appeal CESTAT, Surat
According the explanation and information given to. us there is a delay
in transfer of amount of unclaimed dividend to the Investor Education
and Protection Fund in accordance with the relevant provisions of
Companies Act 1956(1 of 1956) and rules there under.
The accumulated losses of the company have exceeded the fifty percent
of its net worth at the end of the financial year. The company has
incurred cash losses of Rs. 40077.80 Lacs in current financial year.
In arriving the accumulated losses and the net worth as above, we have
considered the qualifications which are quantifiable in the audit
reports of the year to which this loss is pertains.
The company has defaulted in repayment of principle amount and interest
accrued thereupon amounting to Rs 1784.11 Crores in respect of the loan
amount borrowed from
Canara Bank
Axis Bank
State bank of Patilala
Bank of India
Laxmi Vilas Bank
Corporation Bank
Central Bank of India
Syndicate Bank
Indian Overseas Bank
IFCI Venture Capital Fund UCO bank
Karuru Vaysaya Bank Union Bank of India
Andhra Bank
The defaults occur during the year were not cleared until the 31st
March 2015 and was, thus due for more than six months as on that date.
The company has given guarantee in connection with loans taken by
others from financial institution, in our opinion, the terms and
conditions of the guarantee given in connection with loan taken by
Koncept Infotement Pvt Ltd from Reliance Capital since guarantee given
to the institution the power to attach the assets of the company.
According to the records of the company, the company has not obtained
any term loans during the financial years. And hence, comments under
the clause are not called for.
According to the information and explanation given to us, no material
fraud on or by the Company has been noticed or reported during the
course of our audit.
Date: 25.05.2015 For N. M. Singapuri & Co.
Place: Surat Chartered Accountants
(N. M. Singapuri)
Partner
Membership No.11601
Firm Reg. No 110264W
Dec 31, 2012
1. We have audited the attached Balance Sheet of NAKODA LIMITED as at
31st December, 2012 and also the Profit and Loss account and Cash Flow
Statement of the Company for the year ended on that date annexed
thereto. These financial statements are the responsibilities 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 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 the management, as well as evaluating the overall financial
statement presentation. We believe that ouraudit provides a reasonable
basis forour opinion.
3. As required by the Companies (Auditor''s Report) Order, 2003 (as
amended) issued by the Central Government of India in terms of sub-
section (4A) of section 227 of the CompaniesAct, 1956, we enclose in
theAnnexure a statement on the matters specified in paragraphs 4 and 5
of the said Order.
4. Furtherto ourcomments in theAnnexure 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 purpose of
ouraudit;
(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 reort comply with the accounting
standards referred to in Section 211 (3C) of the CompaniesAct, 1956;
(V) On the basis of written representations received from the Directors
of the Company as on 31st December, 2012 and taken on record by the
Board of Directors, we report that none of the Director of the Company
is disqualified as on 31st December, 2012 from being appointed as a
Director of the Company under clause (g) of sub section (1) of section
274 of the CompaniesAct, 1956;
(VI) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts together with 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
theAccounting Principles GenerallyAccepted in India;
(a) In the case of Balance Sheet, of the state of affairs of the
Company as at 31stDecember, 2012;
(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 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 evendate)
1. (a) The company has maintained proper records showing full
particulars including quantative details and situation of fixed assets
on the basis of available information.
(b) As explained to us, the fixed assets have been physically verified
by the management during the year in phased periodical manner, which in
our opinion is reasonable, having regard to the size of company and
nature of its assets. No material discrepancies were noticed on such
physical verification.
(c) In our opinion, the company has not disposed off a substantial part
of its fixed assets during the year and the going concern status of the
Company is not affected.
2. (a) As explained to us, inventories have been physically verified
during the year by the management at regular 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 are reasonable and adequate in relation to
the size of the company and nature of its business.
(c) The company has maintained proper records of inventories. As
explained to us there were no material discrepancies noticed on
physical verification of inventories as compared to the book records.
3. The company has neither granted nor taken any loans secured or
unsecured to/from the companies/firms or parties covered in the
register maintained Under Section 301 of the companies act 1956.
4. 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 for the purchase of inventory, fixed assets and also for the
sale of goods. During the course of our audit, we have not observed any
major weaknesses in internal controls.
5. (a) According to the information and explanations given to us, the
particulars of contracts or arrangements referred to in Section 301 of
the Companies Act, 1956 that needed to be entered in the Register
maintained under the said Section have been so entered.
(b) In our opinion and according to the information and explanations
made in pursuance of such contracts or arrangements 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 the
prevailing market prices at the relevant time
6. The company has not accepted any deposit from the public.
7. In ouropinion, the internal audit system of the company is
commensurate with the size and nature of its business.
8. We have broadly reviewed the books of account maintained by the
Company pursuant to the rules made by the Central Government for the
maintenance of cost records under Section 209 (1) (d) of the Companies
Act, 1956 and are of the opinion that prima facie, the prescribed
accounts and records have been made and maintained. We have not,
however, made a detailed examination of the said records with a view to
determine whether they are accurate orcomplete.
9. (a) According to the records of the company undisputed statutory
dues including Provident Fund, Investor Education and Protection Fund,
Income Tax, Sales Tax, Excise and Custom, Wealth Tax, Estate Duty have
been generally regularly deposited with the appropriate authorities.
(b) According to the information and explanation given to us, no
undisputed amounts payable in respect of the aforesaid dues were
outstanding as at 31st December 2012 for the period of more than six
months for the date of becoming payable.
(c) According to records of the company, following disputed statutory
dues have not been deposited with appropriate authorities.
(Rs. In Lacs)
Sr.
No Name of Statute Nature of
the dues Forum where dispute is pending Amount
1 Central Excise
Act 1944 Excise
Duty CEGATE and Commissioner of
Excise 24.18
10. The company has no accumulated losses at the end of the financial
year and it has not incurred cash losses in the current and immediately
preceding financial year.
11. Based on our audit procedures and as per the information and
explanations given by the management, we are of the opinion that the
Company has not defaulted in repayment of dues to a financial
institution, bankordebenture holders.
12. 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.
13. 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.
14. In respect of dealing/trading in securities, in our opinion and
according to the information and explanations given to us, proper
records have been maintained of the transactions and contracts and
timely entries have been made therein. The securities have been held by
the Company in its own name.
15. According to the information and explanations given to us, the
company has given guarantees for loans taken by others from bank or
financial institutions and we are of the opinion that the terms and
conditions thereof are not prima facie prejudicial to the interest of
the Company.
16. According to information and explanations given to us and based on
the documents and records produced to us, the company has applied the
term loans forthe purpose for which the loan were obtained.
17. According to the information and explanations given to us and an
overall examination of the Balance Sheet and Cash Flow Statement of the
company, we report that no funds raised on short-term basis have been
used for long-term investment.
18. The company has not made preferential allotment of shares during
the year to parties or companies covered in the register maintained
undersection 301 of the CompaniesAct, 1956
19. The company has not issued any debenture.
20. The company has raised Rs.26.40 Crore through promoter''s Group of
Company''s and strategic investors.
21. Based upon the audit procedures performed forthe purpose of
reporting the true and fair view of the financial statements and as per
the information and explanations given by the management, we report
that no material fraud on or by the Company has been noticed or
reported during the course of ouraudit.
FOR N. M. SINGAPURI & CO.
Chartered Accountants
N. M. SINGAPURI
Partner
Place : Surat Membership No. 11601
Date :27.02.2013 Registration No. 110264W
Dec 31, 2011
1. We have audited the attached Balance Sheet of NAKODA LIMITED as at
31st December, 2011 and also the Profit and Loss account and Cash Flow
Statement of the Company for the year ended on that date annexed
thereto. These financial statements are the responsibilities 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 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 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 (Auditor's Report) Order, 2003 (as
amended) issued by the Central Government of India in terms of sub-
section (4A) of section 227oftheCompaniesAct, 1956, 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 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 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 reort comply with the accounting
standards referred to in Section 211 (3C) of the Companies Act, 1956;
(V) On the basis of written representations received from the Directors
of the Company as on 31st December, 2011 and taken on record by the
Board of Directors, we report that none of the Director of the Company
is disqualified as on 31st December, 2011 from being appointed as a
Director of the Company under 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 explanations given to us, the said accounts together with 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 Balance Sheet, of the state of affairs of the
Company as at 31st December, 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 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)
1. (a) The company has maintained proper records showing full
particulars including quantative details and situation of fixed assets
on the basis of available information.
(b) As explained to us, the fixed assets have been physically verified
by the management during the year in phased periodical manner, which in
our opinion is reasonable, having regard to the size of company and
nature of its assets. No material discrepancies were noticed on such
physical verification.
(c) In our opinion, the company has not disposed off a substantial part
of its fixed assets during the year and the going concern status of the
Company is not affected.
2. (a) As explained to us, inventories have been physically verified
during the year by the management at regular 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 are reasonable and adequate in relation to
the size of the company and nature of its business.
(c) The company has maintained proper records of inventories. As
explained to us there were no material discrepancies noticed on
physical verification of inventories as compared to the book records.
3. The company has neither granted nor taken any loans secured or
unsecured to/from the companies/firms or parties covered in the
register maintained UnderSection301 of the companies act 1956.
4. 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 for the purchase of inventory, fixed assets and also for the
sale of goods. During the course of our audit, we have not observed any
major weaknesses in internal controls.
5. (a) According to the information and explanations given to us, the
particulars of contracts or arrangements referred to in Section 301 of
the Companies Act, 1956 that needed to be entered in the
Register maintained under the said Section have been so entered.
(b) In our opinion and according to the information and explanations
made in pursuance of such contracts or arrangements 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 the
prevailing market prices at the relevant time.
6. The company has not accepted any deposit from the public.
7. In our opinion, the internal audit system of the company is
commensurate with the size and nature of its business.
8. We have broadly reviewed the books of account maintained by the
Company pursuant to the rules made by the Central Government for the
maintenance of cost records under Section 209 (1) (d) of the Companies
Act, 1956 and are of the opinion that prima facie, the prescribed
accounts and records have been made and maintained. We have not,
however, made a detailed examination of the said records with a view to
determine whether they are accurate or complete.
9. (a) According to the records of the company undisputed statutory
dues including Provident Fund, Investor Education and Protection Fund,
Income Tax, Sales Tax, Excise and Custom, Wealth Tax, Estate Duty have
been generally regularly deposited with the appropriate authorities.
(b) According to the information and explanation given to us, no
undisputed amounts payable in respect of the aforesaid dues were
outstanding as at 31st December2011 for the period of more than six
months for the date of becoming payable.
(c) According to records of the company, following disputed statutory
dues have not been deposited with appropriate authorities.
(Rs. In Lacs)
Sr.
No Name of Statute Nature of
the dues Forum where dispute is
pending Amount
1 Central
Excise Act 1944 Excise Duty CEGATE and
Commissioner of Excise 26.39
10. The company has no accumulated losses at the end of the financial
year and it has not incurred cash losses in the current and immediately
preceding financial year.
11. Based on our audit procedures and as per the information and
explanations given by the management, we are of the opinion that the
Company has not defaulted in repayment of dues to a financial
institution, bank or debenture holders.
12. 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.
13. 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.
14. In respect of dealing/trading in securities, in our opinion and
according to the information and explanations given to us, proper
records have been maintained of the transactions and contracts and
timely entries have been made therein. The securities have been held by
the Company in its own name.
15. According to the information and explanations given to us, the
company has given guarantees for loans taken by others from bank or
financial institutions and we are of the opinion that the terms and
conditions thereof are not prima facie prejudicial to the interest of
the Company.
16. According to information and explanations given to us and based on
the documents and records produced to us, the company has applied the
term loans for the purpose for which the loan were obtained.
17. According to the information and explanations given to us and an
overall examination of the Balance Sheet and Cash Flow Statement of the
company, we report that no funds raised on short-term basis have been
used for long-term investment.
18. The company has made preferential allotment of shares during the
year to parties or companies covered in the register maintained under
section 301 of the Companies Act, 1956 of Rs. 81.00 Crore.
19. The company has not issued any debenture.
20. The company has raised Rs.108.00 Crore through promoter's Group of
Company's and strategic investors.
21. Based upon the audit procedures performed for the purpose of
reporting the true and fair view of the financial statements and as per
the information and explanations given by the management, we report
that no material fraud on or by the Company has been noticed or
reported during the course of our audit.
FOR N. M. SINGAPURI & CO.
Chartered Accountants
N. M. SINGAPURI
Partner
Place : Surat Membership No. 11601
Date : 12.05.2012 Registration No. 110264W
Dec 31, 2010
1. We have audited the attached Balance Sheet of NAKODA LIMITED as at
31st December, 2010 and also the Profit and Loss account and Cash Flow
Statement of the Company for the year ended on that date annexed
thereto. These financial statements are the responsibilities 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 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 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 (as
amended) issued by the Central Government of India in terms of sub-
section (4A) of section 227 of the Companies Act, 1956, we enclose in
the Annexure a statement on the matters specified in paragraphs 4 and 5
of the said Order.
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 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 reort comply with the accounting
standards referred to in Section 211 (3C) of the Companies Act, 1956;
(V) On the basis of written representations received from the Directors
of the Company as on 31st December, 2010 and taken on record by the
Board of Directors, we report that none of the Director of the Company
is disqualified as on 31st December, 2010 from being appointed as a
Director of the Company underclause(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 explanations given to us, the said accounts together with 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 Balance Sheet, of the state of affairs of the
Company as at 31st December, 2010;
(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 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)
1. (a) The company has maintained proper records showing full
particulars including quantative details and situation of fixed assets
on the basis of available information.
(b) As explained to us, the fixed assets have been physically verified
by the management during the year in phased periodical manner, which in
our opinion is reasonable, having regard to the size of company and
nature of its assets. No material discrepancies were noticed on such
physical verification.
(c) In our opinion, the company has not disposed off a substantial part
of its fixed assets during the year and the going concern status of the
Company is not affected.
2. (a) As explained to us, inventories have been physically verified
during the year by the management at regular 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 are reasonable and adequate in relation to
the size of the company and nature of its business.
(c) The company has maintained proper records of inventories. As
explained to us there were no material discrepancies noticed on
physical verification of inventories as compared to the book records.
3. The company has neither granted nor taken any loans secured or
unsecured to/from the companies/firms or parties covered in the
register maintained Under Section 301 of the companies act 1956.
4. 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 for the purchase of inventory, fixed assets and also for the
sale of goods. During the course of our audit, we have not observed any
major weaknesses in internal controls.
5. The company has not entered in to transactions exceeding the value
of Rs. 5 Lacs with any party need to be entered in to register in
pursuance of the section 301 of the Companies Act.
6. The company has not accepted any deposit from the public.
7. In our opinion, the internal audit system of the company is
commensurate with the size and nature of its business.
8. We have broadly reviewed the books of account maintained by the
Company pursuant to the rules made by the Central Government for the
maintenance of cost records under Section 209 (1) (d) of the Companies
Act, 1956 and are of the opinion that prima facie, the prescribed
accounts and records have been made and maintained. We have not,
however, made a detailed examination of the said records with a view to
determine whether they are accurate or complete.
9. (a) According to the records of the company undisputed statutory
dues including Provident Fund, Investor Education and Protection Fund,
Income Tax, Sales Tax, Excise and Custom, Wealth Tax, Estate Duty have
been generally regularly deposited with the appropriate authorities.
(b) According to the information and explanation given to us, no
undisputed amounts payable in respect of the aforesaid dues were
outstanding as at 31st December 2010 for the period of more than six
months for the date of becoming payable.
(c) According to records of the company, following disputed statutory
dues have not been deposited with appropriate authorities.
(Rs. In Lacs)
Sr.
No Name of
Statute Nature of the
dues Forum where dispute is
pending Amount
1 Central
Excise
Act
1944 Excise Duty CEGATE and Commissioner of
Excise 26.39
10. The company has no accumulated losses at the end of the financial
year and it has not incurred cash losses in the current and immediately
preceding financial year.
11. Based on our audit procedures and as per the information and
explanations given by the management, we are of the opinion that the
Company has not defaulted in repayment of dues to a financial
institution, bank or debenture holders.
12. 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 waynof pledgeof
shares, debentures and other securities.
13. 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 (asamended) are not
applicable to the Company.
14. In respect of dealing/trading in securities, in our opinion and
according to the information and explanations given to us, proper
records have been maintained of the transactions and contracts and
timely entries have been made therein. The securities have been held by
the Company in its own name.
15. According to the information and explanations given to us, the
company has not given any guarantee for loans taken by others from bank
or financial institutions.
16. According to information and explanations given to us and based on
the documents and records produced to us, the company has applied the
term loans for the purpose for which the loan were obtained.
17. According to the information and explanations given to us and an
overall examination of the Balance Sheet and Cash Flow Statement of the
company, we report that no funds raised on short-term basis have been
used for long-term investment.
18. The company has not made any preferential allotment of shares
during the year to parties or companies covered in the register
maintained under section 301 of the Companies Act, 1956.
19. The company has not issued any debenture.
20. The company has raised Rs.108.00 crore through a GDR issue.
21. Based upon the audit procedures performed for the purpose of
reporting the true and fair view of the financial statements and as per
the information and explanations given by the management, we report
that no material fraud on or by the Company has been noticed or
reported during the course of our audit.
FOR N. M. SINGAPURI & CO.
Chartered Accountants
N. M. SINGAPURI
Partner
Membership No. 11601
Registration No. 110264W
Place : Surat
Date : 12.05.2011
Dec 31, 2009
1. We have audited the attached Balance Sheet of NAKODA LIMITED as at
31st December, 2009 and also the Profit and Loss account and Cash Flow
Statement of the Company for the year ended on that date annexed
thereto. These financial statements are the responsibilities 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 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 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 (as
amended) issued by the Central Government of India in terms of sub-
section (4A) of section 227 of the Companies Act, 1956, we enclose in
the Annexure a statement on the matters specified in paragraphs 4 and 5
of the said Order.
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 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 reort comply with the accounting
standards referred to in Section 211 (3C) of the Companies Act, 1956;
(V) On the basis of written representations received from the Directors
of the Company as on 31s" December, 2009 and taken on record by the
Board of Directors, we report that none of the Director of the Company
is disqualified as on 31 st December, 2009 from being appointed as a
Director of the Company under clause (g) of subsection (1) of section
274 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 together with 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 Balance Sheet, of the state of affairs of the
Company as at 31 "December, 2009;
(b) In the case of the Profit and Loss account, of the Profit of the
company forthe year ended on that date;
And (C) In the case of Cash Flow Statement, of the cash flows forthe
year ended on that date.
ANNEXURE TO AUDITORS REPORT (Referred to in Paragraph 3 of our report
of even date)
1. (a) The company has maintained proper records showing full
particulars including quantative details and situation of fixed
assets on the basis of available information.
(b) As explained to us, the fixed assets have been physically verified
by the management during the year in phased periodical manner, which in
our opinion is reasonable, having regard to the size of company and
nature of its assets. No material discrepancies were noticed on such
physical verification.
(c) In our opinion, the company has not disposed off a substantial part
of its fixed assets during the year and the going concern status of the
Company is not affected.
2. (a) As explained to us, inventories have been physically verified
during the year by the management at regular 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 are reasonable and adequate in relation to
the size of the company and nature of its business.
(c) The company has maintained proper records of inventories. As
explained to us there were no material discrepancies noticed on
physical verification of inventories as compared to the book records.
3. The company has neither granted nor taken any loans secured or
unsecured to/from the companies/firms or parties covered in the
register maintained Under Section 301 of the companies act 1956.
4. 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 for the purchase of inventory, fixed assets and also for the
sale of goods. During the course of our audit, we have not observed any
major weaknesses in internal controls.
5. The company has not entered in to transactions exceeding the value
of Rs. 5 Lacs with any party need to be entered in to register in
pursuance of the section 301 of the CompaniesAct.
6. The company has not accepted any deposit from the public.
7. In our opinion, the internal audit system of the company is
commensurate with the size and nature of its business.
8. We have broadly reviewed the books of account maintained by the
Company pursuant to the rules made by the Central Government for the
maintenance of cost records under Section 209 (1) (d) of the
CompaniesAct, 1956 and are of the opinion that prima facie, the
prescribed accounts and records have been made and maintained. We have
not, however, made a detailed examination of the said records with a
view to determine whether they are accurate or complete.
9. (a) According to the records of the company undisputed statutory
dues including Provident Fund, Investor Education and
Protection Fund, Income Tax, Sales Tax, Excise and Custom, Wealth Tax,
Estate Duty have been generally regularly deposited with the
appropriate authorities.
(b) According to the information and explanation given to us, no
undisputed amounts payable in respect of the aforesaid dues were
outstanding as at 31" December 2009 for the period of more than six
months for the date of becoming payable.
(c) According to records of the company, following disputed statutory
dues have not been deposited with appropriate authorities.
(Rs. In Lacs)
Sr.Name of Status Nature of the dues Forum where Amount
No, disputes is pending
1 Central Excise
Act 1944 Excise Duty CEGATE and Commissioner
of Excise 26.39
10. The company has no accumulated losses at the end of the financial
year and it has not incurred cash losses in the current and immediately
preceding financial year.
11. Based on our audit procedures and as per the information and
explanations given by the management, we are of the opinion that the
Company has not defaulted in repayment of dues to a financial
institution, bank or debenture holders.
12. 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.
13. 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.
14. In respect of dealing/trading in securities, in our opinion and
according to the information and explanations given to us, proper
records have been maintained of the transactions and contracts and
timely entries have been made therein. The securities have been held by
the Company in its own name.
15. According to the information and explanations given to us, the
company has not given any guarantee for loans taken by others from bank
or financial institutions.
16. According to information and explanations given to us and based on
the documents and records produced to us, the company has applied the
term loans forthe purpose for which the loan were obtained.
17. According to the information and explanations given to us and an
overall examination of the Balance Sheet and Cash Flow Statement of the
company, we report that no funds raised on short-term basis have been
used for long-term investment.
18. The company has not made any preferential allotment of shares
during the year to parties or companies covered in the register
maintained under section 301 of the CompaniesAct, 1956.
19. The company has not issued any debenture.
20. The company has not raised any money through a public issue.
21. Based upon the audit procedures performed forthe purpose of
reporting the true and fair view of the financial statements and as per
the information and explanations given by the management, we report
that no material fraud on or by the Company has been noticed or
reported during the course of our audit.
FOR N. M. SINGAPURI & CO.
Chartered Accountants
Place : Surat N. M. SINGAPURI
Date : 10.05.2010 Partner
Membership No. 11601