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Auditor Report of Nakoda Ltd.

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

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