Mar 31, 2015
We have audited the accompanying standalone financial statements of
NET4 INDIA LIMITED, ("the Company"), which comprise the Balance Sheet
as at March 31,2015, the Statement of Profit and Loss and Cash Flow
Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
MANAGEMENT'S RESPONSIBILITY FOR THE STANDALONE FINANCIAL STATEMENTS
The Company's Board of Directors isresponsible for the matters stated
in Section 134(5) of the Companies Act, 2013 ('the act') with respect
to the preparation of these standalone financial statements that give a
true and fair view of the financial position, financial performance and
cash flows of the Company in accordance with the accounting principles
generally accepted in India, including the Accounting Standards
specified under Section 133 of the Act, read with rule 7 of Companies
(Accounts) Rules, 2014. This responsibility also includes maintenance
of adequate accounting records in accordance with the provisions of the
Act for safeguarding of the assets of the Company and for preventing
and detecting frauds and other irregularities' selection and
application of appropriate accounting policies; makingudgements and
estimates that are reasonable and prudent; and design, implementation
and maintenance of adequate internal financial controls, that are
operating effectively for ensuring the accuracy and completeness of the
accounting records, relevant to the preparation and presentation of the
financial statements that give a true and fair view and are free from
material misstatement whether due to fraud or error. '
AUDITOR'S RESPONSIBILITY
Our responsibility is to express an opinion on these standalone
financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting
and auditing standards and matters which are required to be included in
the audit report under the provisions of the Act and the Rules made
thereunder.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor'sudgment, including the assessment of the
risks of material misstatement of the financial statements, whether due
to fraud or error. In making those risk assessments, the auditor
considers internal financial control relevant to the Company's
preparation of the financial statements that give a true and fair view,
in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on
whether the company has in place an adequate internal financial control
system over financial reporting and the operating effectiveness of such
controls. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of the accounting
estimates made by Company's Directors, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient
andappropriate to provide a basis for our audit opinion on the
standalone financial statements.
BASIS FOR QUALIFIED OPINION
j. ) During the financial year 2013-14 the Company had defaulted in
repayment of principle and interest thereon of Term Loan from State Bank
of India. Working Capital Loans taken from . State Bank of India. State
Bank of Travancore and Loan against FDR from Canara Bank. All the loans
had been classified as Non-Performing Assets(NPA) by these banks. The
status of these loans & credit facilities have remained the same during
the current financial year.
k. ) Income Tax demand of Rs.132.78Lacs (Approx.) from AY 2004-05 to AY
2011-12 not deposited and appeals have been filed or in the process of
filing.
l. ) Service Tax Amounting to Rs.8.33Crores (net) (Approx.) upto 31st
March 2015 not deposited.
m. ) Provident Fund and ESI amounting to Rs.59.13Lacs (Approx.) upto
31st March, 2015 not deposited.
n. ) TDS amounting to Rs.68.59 Lacs(Approx.) as on 31st March 2015 not
deposited.
o. ) VAT liability for certain branches still to be deposited.
p. ) Fixed Deposit amounting to Rs. 13.77 crore (approx.) were due for
repayment as on 31st March, 2015.
The company has written off bad debts amounting to Rs. 13.78Crores
(Approx.) The company has no security for these debts. On the basis
that no security has been obtained and no cash has been received on
these debts, the company has written off bad debts thereby reducing the
profit for the year (if any) and net assets at 31st March by that
amount.
QUALIFIED OPINION
In our opinion and to the best of our information and according to the
explanations given to us, except for the effects of the matter
described in the Basis for Qualified Opinion paragraph above, the
aforesaid standalone financial statements give the information required
by the Act in the manner so required and give a true and fair view in
conformity with the accounting principles generally accepted in India
of the state of affairs of the Company as at 31st March 2015, its
profit/loss and its cash flows for the year ended on that date.
OTHER MATTER
As per statutory records produced before us and explanations given to
us, our comment as follows:
(x) There were no Independent Directors in the company leading to
non-compliance of the provisions of the listing Agreement as well as
the Companies Act 2013.
(xi) There was no Woman Director in the Board of Directors of the
company, leading to non- compliance of the applicable provision.
(xii) There was no Audit Committee for the year.
(xiii) There was no Nomination and Remuneration Committee for the year.
(xiv) There was no Risk Management Committee for the year.
(xv) There was no Shareholder's & Investor Grievance Committee for the
year.
(xvi) There was no Internal Auditor for the year.
(xvii) Non-Compliance of provisions relating to public deposit i.e.as
per the requirements of Company (Acceptance of Deposit) Rules, 1975 a
company has to deposit or invest at least 15% of its deposits maturing
during the financial year latest by 30th April 2014. This requirement
has not been complied by the company.
(xviii) The company has not provided service tax liability under
reverse charge mechanism for the year.
(xix) The company has litigations filed against it under various counts
like under section 138 of Negotiable Instrument Act, Arbitration,
petition filed by ex-employee for recovery of dues, winding up
petition, etc. The number of cases is large although the exact number
of cases was not made available to us. As per available information &
explanation provided by the management, the quantum of amount on these
cases cannot be ascertained.
(xx) The company had received winding up order from the Court on the
basis of a petition filed by 2 companies due to non-repayment of loans.
However, the company has obtained stay order from the court on the
basis of repayment schedule submitted before it. The Court has stayed
this order subject to payment of Rs. 25 Lacs in 4 weeks out of which
Rs. 10 Lacs was paid immediately and for the balance, the company has
time till 17thune, 2015.
(xxi) The company has written off bad debts amounting to Rs. 13.78
Crore (Approx). Our Opinion is not qualified in respect of this matter.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
1. As required by the Companies (Auditor's Report) Order, 2015
("theOrder") issued by the Central Government of India in terms of
sub-section (11) of section 143 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 3 and 4 of the Order.
2. As required by section 143(3) of the Act, we report that:
a) We have sought and obtained all the information and explanations
which to the best ofour knowledge and belief were necessary for the
purpose of our audit;
b) Except for the effects of the matter described in the Basis for
Qualified Opinion paragraph above, in our opinion, proper books of
account as required by law have been keptby the Company so far as
appears from our examination of those books and proper returns adequate
for the purposes of our audit have been received from the branches not
visited by us.
c) The Balance Sheet, and Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
d) Except for the effects of the matter described in the Basis for
qualified Opinion paragraph above, in our opinion, the aforesaid
financial statements comply with the applicable Accounting Standards
specified under Section 133 of the Act, read with Rule 7 of the
Companies (Account) Rules 2014.
e) On the basis of written representations received from the directors
as on March 31, 2015, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2015, from being
appointed as a director in terms of Section 164(2) of the Act.
f) The qualification relating to the maintenance of accounts and other
matters connected therewith are as stated in the Basis for Qualified
Opinion paragraph above.
9) With respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the companies (Audit and Auditors)
Rules, 2014 in our opinion and to the best of our information and
according to the explanation given to us:
(i) The Company does have pending litigations which may have impact on
its financial position. Refer Note no.40 of the "Notes to Accounts" of
Balance Sheet.
(ii) The Company did not have any long term contracts including
derivative contracts: as such the question of commenting on any
material foreseeable losses thereon does not arise.
(iii) There has not been an occasion in case of the company during the
year under report to transfer any sums to the Investor Education and
Protection Fund. The question of delay in transferring such sums does
not arise.
The Annexure referred to in paragraph 1 of the Our Report of even date
to the members of NET4 INDIA LIMITED on the accounts of the company for
the year ended 31st March 2015.
On the basis of such checks as we considered appropriate and according
to the information and explanation given to us during the course of our
audit, we report that:
4. (a) The company has maintained proper records showing full
particulars quantitative details. However, situation of its fixed assets
have not been mentioned.
(b) As explained to us, fixed assets have been physically verified by
the management at reasonable intervals; no material discrepancies were
noticed on such verification.
(a) The physical verification of inventories was carried out by the
management from time to time.
(b) The procedures of physical verification of inventory followed by the
management are reasonable and adequate in relation to the size of the
company and the nature of its business.
(c) The company is maintaining proper records of inventory and no
material discrepancies were noticed on physical verification and the
same have been properly dealt with in the books of account.
6. (a) According to the information and explanations given to us and on
the basis of our exmination of the books of account, the Company has not
granted any loans, secured or unsecured, to companies, firms or other
parties listed in the register maintained under Section 189 of the
Companies Act. Consequently, the provisions of clauses iii (a) and iii
(b) of the order are not applicable to the Company.
In case of loans taken from other parties in earlier years, repayment
of principle as well as interest has been irregular.
7 In our opinion and according to the information and explanations
given to us, there is generally an adequate internal control procedure
commensurate with the size of the company and the nature of its
business, for the purchase of inventories & fixed assets and payment
for expenses & for sale of goods& services except mentioned in Other
Matter paragraph of Independent Auditor's Report. During the course of
our audit, no major instance of continuing failure to correct
anyweaknesses in the internal controls has been noticed.
8. The Company has not accepted any deposits from the public covered
under section 73to 76 of the Companies Act, 2013 during the year.
However, public deposits were accepted in earlier years. Earlier,
deposits were governed by the provisions of Sections 58A of the
Companies Act, 1956 and the rules framed thereunder relating to the
deposits accepted, same were, wherever applicable, have not been
complied with. The company has defaulted in repayment of principal and
interest thereon w.e.f. August 2013.
During the financial year 2014-15, the company has paid amount of
principle & interest of Rs. 25.34 Lac (approx.). Total amount payable
(due plus overdue amount) as on 31.03.2015 was Rs. 13.77 Crore
(approx.). During the year, the company had received 423 approx,
complaints, out of which 84 approx, complaints were resolved.
As per explanation and records produced, the reason for default has
been due to heavy losses resulting to cash crunch in the company
leading to bouncing of cheques issued towards repayment of deposits
(principal and interest). This has also lead to closure of the bank
account from where cheques had been issued.
It has also come to our notice that due to default in repayment of
deposits by the company some of the investors have issued notices to
the company in order to instigate proceedings against the company
before the Court or Company Law Board or National Company Law Tribunal
under relevant sections of The Companies Act and Negotiable Instruments
Act (against cheque bouncing) for repayment or winding up.
Further, as per the requirements of Company (Acceptance of Deposit)
Rules, 1975 a company has to deposit or invest at least 15% of its
deposits maturing during the financial year latest by 30th April 2014
i.e. in the beginning of the year in any of the specified assets which
could be utilised for repayment of deposits maturing during the year
but at no time the amount shall fall below 10% of the amount maturing
before 31st of that year. However, the company has not complied with
this provision of the clause.
As per further information & explanation provided to us, the company
has filed a repayment scheme with the Company Law Board for
rescheduling payments to FD Holders. In the interim, the company has
paid interest and principal to a number of FD holders who demonstrated
genuine hardship cases. The company has also forwarded their revival
plan, which include paying FD holders as per the scheme, settling all
statutory dues and also setting all overdue debts.
9 As per information & explanation given by the management, maintenance
of cost records has not been prescribed by the Central Government under
clause (d) of sub-section (1) of section 148 of the Act and hence this
clause is not applicable to the company.
10. (a) According to the records of the company, undisputed statutory
dues including Provident Fund, Investor Education and Protection Fund,
Employees' State Insurance, Income-tax, Sales-tax, Wealth Tax, Service
Tax, Custom Duty, Excise Duty, cess to the extent applicable and any
other statutory dues have not been regularly deposited with the
appropriate authorities. According to the information and explanations
given to us, there were outstanding statutory dues as on 31st of March,
2015 for a period of more than six months from the date they became
payable, which are as follows:
Particulars Amount (Rs. In lacs)
Tax Deducted at source 49.20
Service Tax 591 22
Professional Tax : o.05
PF and ESI 48.48
(b) According to the information and explanations given to us, there
were amount payable in respect of income tax, service tax, sales tax,
which have not been deposited on account ofdisputes.
INCOME TAX
Income Tax for the following years has not been deposited with the
appropriate authorities on account of dispute. The company has filed
the appeal before the Commissioner of Income Tax (Appeals)/ITAT/High
court/other forums/in the process of filing the appeal. The details are
as under:
Assessment Year Amount (Rs. In lacs)
2004-05 2.59*
2005-06 6.20*
2006-07 1.50*
2008-09 30.28*
2009-10 285.53*
2010-11 723.67*
2011-12 271.43
* Source - As per information available at Income Tax website and
appeals filed by the company at various forums.
SERVICE TAX
Matter relating to Amount Involved
Taxability on SSL Certificate - 91.84 (Approx.)
whether VAT applicable or Service (excluding Interest &
tax applicable Penalty)
Taxability of Domain prior touly 1141.64(Approx.)
2012. (period from 2008-09 to 2011- (excluding Interest &
12) penalty)
Matter relating to (Rs. In Forum Lacs)
Taxability on SSL Certificate - The company has filed an
whether VAT applicable or Service appeal before the Mumbai
tax applicable High Court and
Commissioner Appeals.
Taxability of Domain prior touly Service Tax Department,
2012. (period from 2008-09 to 2011- Indraprastha, New Delhi
12)
SALES TAX
Matter description Amount Involved (Rs. In Lacs)
Dispute regarding entitlement of 15.05 (Approx.)
Input Vat Credit (2010-11) (excluding Interest &
Penalty)
Liability created by Department 4.75 (Approx.) (excluding
Interest & penalty)Mumbai
Matter description Forum
Dispute regarding entitlement of MVAT Department,
Input Vat Credit (2010-11) Mumbai '
Liability created by Department MVAT Department,
Interest & penalty)Mumbai
(c) There was no amount required to be transferred to investor
education and protection fund in accordance with the relevant
provisions of the Companies Act, 1956 (1 of 1956) and rules made
thereunder.
11 The accumulated losses of the companyat the end of the financial
year are more than the net worth andalso it has incurred cash loss
during the financial year covered by our audit and in the immediately
preceding financial year.
12 Based on our audit procedures and on the information and
explanations given by the management, we are of the opinion that, the
Company has been in default in repayment of dues to a financial
institution, bank or other lenders.
13. According to the information and explanations given to us, the
Company has not given guarantee for loans taken by others from bank or
financial institutions. Terms loans, other credit limits and loan from
financial institutions were unpaid and the dues have been classified as
Non-Performing Assets (NPA) by the banks.
14. During the year, no fresh term loans taken by the company.
However, term loans taken in earlier years, were in unpaid and
classified as Non-Performing Assets (NPA) by the bank.
15. Based on the audit procedures performed and the information and
explanations given to us, we report that no fraud on or by the Company
has been noticed or reported during the year, nor have we been informed
of such case by the management.
For Sandy Associates
Chartered Accountants
FRN: 007337N
Sd /-
(FCA SANDEEP GUPTA)
Date: 02.06.2015 Proprietor
Membership No.: 086069
Mar 31, 2014
1. We have audited the accompanying financialstatements of Net 4
IndiaLimited, which comprise the Balance Sheet as at 31st March, 2014,
and the Statement of Profit and Loss and Cash Flow Statement for
theyear then ended, and a summary of sig- nificant accounting policies
and other explanatory information.
2. Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial posi- tion,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in sub-sec- tion (3C) of section
211 of the Companies Act, 1956("the Act") read with the General
Circular 15/2013 dated 13th September 2013 of the Ministry of Corporate
Affairs in respect of Section 133 of the Companies Act, 2013. This
responsibility includes the design, implementation and maintenance of
internal control relevant to the preparation and presentation of the
financialstate- ments that give a true and fair view and are free from
materialmisstatement, whether due to fraud or error.
AUDITOR''S RESPONSIBILITY
3. Our responsibility is to express an opinion on these financial
statements basedon our audit. We conducted our audit in ac- cordance
with the Standards onAuditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financialstatements are free
from material misstatement.
4. An audit involves performing procedures to obtain audit evidence
about the amounts and disclosures in the financial state- ments. The
procedures selected depend on the auditor''s judgment, including the
assessment of the risks of material misstate- ment of the financial
statements, whether due to fraud or error.In making those risk
assessments, the auditor considers internal control relevant to the
Company''s preparation and fair presentation of the financial statements
inorder to design audit proce- dures that are appropriate in the
circumstances. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of the accounting
estimates made by management, as well as evaluating the overall
presentation of the financial statements.
5. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our audit opinion.
BASIS FOR QUALIFIED OPINION
a. The company has defaulted in repayment of Principle and Interest
thereon of Term Loan from State Bank of India, Working Capital Loans
taken from State Bank of India, State Bank of Travancore and Loan
against FDR from Canara Bank on various dates. All these loans have
been classified as Non Performing Assets (NPA) by these banks.
b. Income Tax demand of Rs. 13.50 Crores(Approx.) upto the Financial
Year 2010-11 not deposited. Appeals have been filed/in the process of
filing.
c. Service Tax amounting to Rs. 7.75 Crores (Net)(Approx.) upto 31st
March, 2014 not deposited.
d. Provident Fund and ESI amounting to Rs. 0.56 Crores (Approx.) upto
31st March, 2014 not deposited.
e. TDS amounting to Rs. 1.08 Crores(Approx.) for the year 2013-14 not
deposited. TDS for the year 2012-13 has been deposited but the TDS
returns have not been filed.
f. VAT liability for certain branches still pending to be deposited.
g. Fixed deposit repayments during the year partially not done.
The company has written off bad debts amounting to Rs. 115.40 Crores
(Approx.) and made a provision for bad debts amounting to Rs. 20.45
Crores (Approx.). The company has no security for these debts. On the
basis that no security has been obtained and no cash has been received
on these debts, the company has written off and provided for bad debts
thereby reducing profit before taxation for the year (if any) and net
assets at 31st March by that amount.
QUALIFIED OPINION
In our opinion and to the best of our information and according to the
explanations given to us, except for the effects of the matter
described in the Basis for Qualified Opinion paragraph, the financial
statements give the information required by the Act in the man- ner so
required and give a true and fair view in conformity with the
accounting principles generally accepted in India:
a. in the case of the Balance Sheet, of the state of affairs of the
Company asat31st March 2014;
b. in the case of the Statement of Profit and Loss, of the loss for
the year ended on that date; and
c. in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
MATTER OF EMPHASIS
We draw your attention to :
i. The company was unable to repay the Term Loan availed from State
Bank of India and Working Capital Loans taken from State Bank of India,
State Bank of Travancore, Loan against FDR from Canara Bank. Due to the
non-compliances of terms & con- dition and non-payment of amount due,
all these loans have been classified as Non Performing Assets (NPA) by
these banks.
ii. Income Tax demand of Rs. 13.50 Crores (Approx.) is pending for
various years upto the Financial Year 2010-11 and has not been
deposited. The company has filed appeals/under process for filing the
same.
iii. Service Tax amounting to Rs. 7.75 Crores (Net) (Approx.) upto 31st
March, 2014 has not been deposited. Notices have been received from the
Service Tax Department in this regard and the company has started
depositing some amount every month as per their directions.
iv. TDS amounting to Rs. 1.08 Crores (Approx.) for the year 2013-14
has not been deposited.
v. The company has not filed statutory returns under various acts,
namely, Service Tax Returns (from October 2011 onwards), Income Tax
Return (FY 2011-12 & 2012-13), TDS Returns for the years 2012-13 and
2013-14, Sales Tax Return and ESI & PF Returns (for major part of the
year).
vi. The company has partially repaid public deposits matured during
the year. The unpaid amount for the year 2013-14 is amount- ing to Rs.
4.04 Crores.
vii. Regarding provision for bad debts amounting to Rs. 20.45 Cr and
writing off bad debts amounting to Rs. 115.40 Cr.
viii. There has been no deposit on account of gratuity fund during the
year.
ix. Balance confirmations from the vendors have not been obtained.
OTHER MATTERS
As per the statutory records produced before us and explanations given
to us, our comment as follows:
i. There were no Independent Directors in the company leading to
non-compliance of the provisions of the Listing Agreement as well as
The Companies Act, 2013.
ii. There was no Audit Committee for a major part of the year.
iii. There was no Shareholder''s & Investor Grievance Committee for a
major part of the year.
6. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A)of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
7. As required by section 227(3) of the Act, we report that:
a. We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b. In our opinion proper books of account as required by law have been
kept by the Company so far as appears from our exam- ination of those
books. However some of the relevant records required for the purposes
of our audit have not been received from all the branches not visited
by us.
c. The Balance Sheet, Statement of Profit and Loss, and Cash
FlowStatement dealt with by this Report are in agreement with the books
of account.
d. Except for the matter described in the Basis for Qualified Opinion
paragraph, in our opinion, the Balance Sheet, Statement of Profit and
Loss, and CashFlow Statement comply with the Accounting Standards
referred to in sub-section(3C) of section 211 of the Companies Act,
1956 read with the General Circular 15/2013 dated 13th September 2013
of the Ministry of Corporate Affairs in respect of Section 133 of the
Companies Act, 2013; and
e. On the basis of written representations received from the directors
as on March 31,2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2014, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
Annexure referred to in paragraph 7 of the Our Report of even date to
the members of Net 4 India Limited on the ac- counts of the company for
the year ended 31st March, 2014.
On the basis of such checks as we considered appropriate and according
to the information and explanation given to us during the course of our
audit, we report that:
1. The Company has not maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
As explained to us, physical verification of fixed assets was conducted
by the management during the year. We have however not conducted
physical verifica- tion of the assets. In our opinion, the frequency of
physical verification is reasonable having regard to the size and
operations of the Company and the nature of its assets. As informed to
us, no material discrepancies were noticed on such verification.
The company sold off some Fixed Assets (vehicles) during the year.
Fixed Assets disposed off during the year were not substantial, and
therefore, do not affect the going concern assumption.
2. As explained to us, inventory has been physically verified by the
management at regular intervals during the year. In our opin- ion, the
frequency of verification is reasonable having regard to size of the
company and the nature of its business.
In our opinion and according to the information and explanation 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 the nature of its business.
The company is maintaining proper records of inventory. No material
discrepancies have been noticed by the management on verification
between the physi- cal stocks and the book records.
3. The Company has taken interest free unsecured loan from 2 parties
listed in the register maintained under section 301 of the Companies
Act, 1956, (maximum amount Rs. 1105 lakhs) the terms and conditions of
which are prima facie not prejudicial to the interests of the Company.
The Company has not granted any loan, secured or unsecured, to
companies, firms or other parties covered in the register maintained
under section 301 of the Companies Act, 1956.
The company has not given any advances in the nature of loans to its
employees.
In case of loans taken from other parties (other than listed in the
register maintained under section 301 of the Companies Act, 1956)
repayment of principle as well as interest has been irregular. The
interest wherever provided are without deduction of tax at source.
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 finished goods, fixed assets and for the
sale of goods or rendering of services. During the course of our audit,
no major weakness has been noticed in the internal controls system in
respect of these areas.
5. a. In our opinion, and according to the information and
explanations given to us, the transactions that need to be entered in
the register in pursuance of section 301 of the Act have been complied
with.
b. The transactions made in pursuance of contracts and arrangements
referred to in 5(a) above and exceeding the value of Rs. 5 lac with 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 accepted deposits from the public upto July
2013.The provisions of Sections 58A of the Companies Act, 1956 and the
rules framed there under relating to the deposits accepted, wherever
applicable, have not been complied with. The company has defaulted in
repayment of principal and interest thereon w.e.f. August 2013.The
outstanding amount as on 31st March, 2014 amounted to Rs. 1269.03 Lacs
excluding interest due but not paid. This includes unpaid liability Rs.
404.44 Lacs for the current year i.e. 2013-14.
As per explanation and records produced, the reason for default has
been due to heavy losses resulting to cash crunch in the company
leading to bouncing of cheques issued towards repayment of deposits
(principal and interest). This also lead to closure of the bank account
from where cheques had been issued.The company is, however, making some
payments towards the unpaid liability from the year 13-14, as per fund
availability
It has also come to our notice that due to default in repayment of
deposits by the company some of the investors have issued notices to
the company in order to instigate proceedings against the company
before the Court or Company Law Board or National Company Law Tribunal
under relevant sections of The Companies Act and Negotiable Instruments
Act (against cheque bouncing) for repayment or winding up.
Further, as per the requirements of Company (Acceptance of Deposit)
Rules, 1975 a company has to deposit or invest at least 15% of its
deposits matur- ing during the financial year latest by 30th April 2013
i.e. in the beginning of the year in any of the specified assets which
could be utilised for repayment of deposits maturing during the year
but at no time the amount shall fall below 10% of the amount maturing
before 31st of that year. Though the company had investments towards
the liquid assets more than 10% of the amount maturing during the year
2013-14 but the same was not in consonance with the require- ment of
maintaining the level of 15%.
7. In our opinion, the company has Internal Audit System commensurate
with its size and nature of its business. However, during the major
part of the year there was no Audit Committee. So, we are unable to
comment fully on the basis of Internal Audit Reports.
8. The Central Government has not prescribed maintenance of Cost
records under section 209(1) (d) of the Companies Act, 1956 in respect
to the company.
9. According to the information and explanations given to us, the
company is not regular in depositing undisputed statutory dues
including Provident Fund, ESI, Income Tax, Sales Tax, Service Tax and
any other statutory dues. The following are undisputed dues outstanding
as on March 31, 2014 for a period of more than six months from the date
they become payable.
Particular Amount (Rs. In lakh)
Income Tax (As per the tax provision made
subject to the credit of TDS) 1043.40
Tax Deducted at source 53.31
Service Tax 655.03
Professional Tax 0.18
PF and ESI 36.21
INCOME TAX
Income Tax for the following years has not been deposited with the
appropriate authorities on account of dispute. The company has filed
the appeal before the Commissioner of Income Tax (Appeals)/in the
process of filing the appeal. The details are as under:
Assessment Year Amount (Rs. In lakh) (including interest)
2008-09 40.28
2009-10 265.61
2010-11 773.67
2011-12 271.43
SERVICE TAX
Matter relating to Amount Involved
(Rs. In Lakh)
Taxability on SSL Certificate - whether 91.84 (Approx.) (excluding
VAT applicable or Service tax applicable Interest & Penalty)
High Court
Taxability of Domain prior to July 2012. (pe- 1141.64(Approx.)
riod from 2008-09 to 2011-12) penalty) (excluding Interest &
Matter relating to Forum
Taxability on SSL Certificate - whether High Court
VAT applicable or Service tax applicable
Taxability of Domain prior to July 2012. Service Tax Department,
riod from 2008-09 to 2011-12) penalty) Indraprastha, New Delhi
SALES TAX
Matter description Amount Involved (Rs. In Lakh)
Dispute regarding entitlement 15.05 (Approx.) (excluding
of Input Vat Credit (2010-11) Interest & Penalty)
Liability created by Department 4.75 (Approx.) penalty (excluding
Interest & penalty)
Matter description Forum
Dispute regarding entitlement
of Input Vat Credit (2010-11) MVAT Department, Mumbai
Liability created by Department MVAT Department, Mumbai
10. The Company has accumulated losses at the end of the financial
year. It has also incurred cash losses in the current financial year.
However it had not incurred cash losses in the financial year
immediately preceding such financial year.
11. In our opinion and according to the information and explanations
given to us and records produced before us, the Company has defaulted
in repayment of the term loans and working capital loans due to the
banks who have classified than as Non Performing Assets (NPA). Further,
other loans due to the financial institutions have been in default
status. The Company has not issued any debentures. The outstanding as
at the end of the year as per banks are as under :
Name of the bank Type of Loan Default since
State Bank of India Term Loan June 2013
State Bank of Travancore Term Loan June 2013
Canara Bank Term Loan April 2013
Canara Bank Term Loan April 2013
State Bank of India Working Capital February 2014
State Bank of Travancore Working Capital October 2013
Name of the bank Outstanding as Outstanding as
on 01.04.2013 on 31.03.2014
State Bank of India 1968.06 2334.16
State Bank of Travancore - 498.91
Canara Bank 24.49 25.84
Canara Bank 74.35 77.73
State Bank of India 5640.09 9449.51
State Bank of Travancore 1498.27 1517.14
12. The Company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
Accordingly, clause 4(xii) of the order is not applicable.
13. The Company is not a chit fund, mutual benefit fund or a society.
Accordingly, clause 4(xiii) of the order is not applicable.
14. According to the information and explanations given to us, the
Company is not dealing or trading in shares, securities, deben- tures
and other investments. Accordingly, clause 4(xiv) of the order is not
applicable.
15. In our opinion and according to the information and explanations
given to us, the terms and conditions on which the Company has given
guarantee for loans taken by others from banks or financial
institutions are not prima-facie prejudicial to the interests of the
Company.
16. In our opinion, the term loans have been applied for the purpose
for which they were raised.
17. According to the Cash Flow Statement and records examined by us
and according to the information and explanations given to us, on
overall basis, funds raised on short-term basis have not been used
during the year for long term investment and vice versa.
18. The Company has not made any preferential allotment to parties and
companies covered in the register maintained under section 301 of the
Act. Accordingly, clause 4(xviii) of the order is not applicable.
19. The Company has not issued any debentures. Accordingly, clause
4(xix) of the order is not applicable.
20. The Company has not raised any money by public issues during the
year. Accordingly, clause 4(xx) of the order is not applicable.
21. To the best of our knowledge and belief and according to the
information and explanations given to us, no fraud on or by the Company
was noticed or reported during the year.
For Sandy Associates
Chartered Accountants
Firm Registration No.: 007337N
Sd /-
Sandeep Gupta
(Proprietor)
Membership No. : 86069
Place: Noida
Date: June 12, 2014
Mar 31, 2013
1. We have audited the accompanying financial statements of Net 4
India Limited, which comprise the Balance Sheet as at 31st March 2013,
and the Statement of Profit and Loss, and Cash Flow Statement for the
year then ended, and a summary of significant accounting policies and
other explanatory information.
2. Management is responsible for the preparation of these financial
statements that give a true, and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956. This responsibility includes the design,
implementation and maintenance of internal control relevant to the
preparation and presentation of the financial statements that give a
true and fair view and are free from material misstatement, whether due
to fraud or error.
3,. Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants. of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
4. An audit involves performing procedures to obtain audit- evidence
about the amounts and disclosures in the financial statements. The
procedures selected depend on the auditor''s judgment, including the
assessment of the risks of. material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the
Company''s preparation and fair presentation of the financial statements
in order to design , audit procedures that are appropriate in the
circumstances. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of the accounting
estimates made by management, as well as evaluating the overall
presentation of the financial .statements.
5. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our audit opinion.
6. In our opinion and to the best of our information and according to
the explanations given to us, the financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India:
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March 2013;
b) in the case of the Profit and Loss Account, of the profit/ loss for
the year ended on that date; and . .
c) in the case of the Cash Flow Statement, of the cash flows for the
year ended if-Â, on that date.
7. As required by the Companies (Auditor''s Report) Order, 2003
("the Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
8. As required by section 227(3) of the Act, we report that:
a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b) In our opinion proper books of account as required by law have
been kept by - the Company so far as appears from our examination of
those books
c). The Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
d) In our opinion, the Balance Sheet, Statement of Profit and Loss, and
Cash Flow Statement comply with the Accounting Standards referred to in
subsection (3C) of section 211 of the Companies Act, 1956;
e) On the basis of written representations received from the directors
as on March 31, 2013, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2013, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
f) Since the Central Government has not issued any notification as to
the rate at which the cess is to be paid under section 441A of the
Companies Act, 1956 nor has it issued any Rules under the said section,
prescribing the manner in which such cess is to be paid, no cess is due
and payable by the Company.
On the basis of such checks as we considered appropriate and according
to the information and explanation given to us during the course of our
audit, we report that:
1. The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets. :
All the assets have been physically verified by the management at the
close of the financial year which, in our opinion, is reasonable having
regard to the size of the Company and the nature of its assets. No
material discrepancies were noticed on such verification.
Fixed assets disposed off during the year were not substantial, and
therefore, do not affect the going concern assumption.
2. As explained to us, inventory has been physically verified by the
management at regular *''*'' intervals during the year. In our opinion,
the frequency of verification is reasonable having regard to size of
the company and the nature of its business.
In our opinion and according to the information and explanation 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 the nature of its business.
The company is maintaining proper records of inventory. No material
discrepancies have been noticed by the management on verification
between the physical stocks and the book records.
3. The Company has taken interest free unsecured loan from a party
listed in the register maintained under section 301 of the Companies
Act, 1956, (maximum amount Rs. 205 lakhs) the terms and conditions of
which are prima facie not prejudicial to the interests of the Company.
The Company has not granted any loan, secured or unsecured, to
companies, firms or other parties covered in the register maintained
under section 301 of the Companies Act, 1956.
The company has given interest free advances in the nature of loans to
the employees of the company, the repayment in respect of which is
regular and as stipulated, where such stipulations exist.
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 finished gods, fixed assets and for the
sale of goods. During the course of our audit, no major weakness has
been noticed in the internal controls system in respect of these areas.
5. In our opinion, and according to the information and explanations
given to us, the transactions that need to be entered in the register
in pursuance of section 301 of the
5. In our opinion, and according to the information and explanations
given to us, the transactions that need to be entered in the register
in pursuance of section 301 of the Act have been entered, and the
transactions have been made at prices which are reasonable with regard
to the prevailing market prices at the relevant time.
6. The Company has accepted deposits from the public and the
provisions of Sections 58A of the Companies Act, 1956 and the rules
framed there under, wherever applicable, have been complied with.
7. In our opinion, the Company has an internal audit system
commensurate with its size and nature of its business.
8. The Central Government has not prescribed maintenance of Cost
records under section 209(1) (d) of the Companies Act, 1956 in respect
to the company.
9. According to the information and explanations given to us,
following are undisputed dues outstanding as on March 31, 2013 for a
period of more than six months from the date they become payable.
Particulars Amount (Rs. In lakh)
income Tax 416.20
Tax Deducted at source 18.95
Service Tax 352.65
Income Tax for the following years has not been deposited with the
appropriate authorities on account of dispute. The company has filed
the appeal before the Commissioner of Income Tax (Appeals). However
based on past experience, there is a highly fair chance of liability
being quashed. *
Assessment Year Amount (Rs. In lakh)
(including interest)
2008-09 40.28
2009-10 265.61
2010-11 773.67
10. The Company does not have any accumulated losses at the end of the
financial year and has not incurred cash losses in the financial year
and in the financial year immediately preceding such financial year
11. In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to any
bank or financial institution.
The Company has not issued any debentures.
12. The Company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
Accordingly, clause 4(xii) of the order is not applicable.
13. The Company is not a chit fund, mutual benefit fund or a society.
Accordingly, clause 4(xiii) of the order is not applicable.
14. According to the information and explanations given to us, the
Company is not dealing or trading in shares, securities, debentures and
other investments. Accordingly, clause 4(xiv) of the order is not
applicable.
15. In our opinion and according to the information and explanations
given to us, the terms and conditions on which the Company has given
guarantee for loans taken by others from banks or financial
institutions are not prima-facie prejudicial to the interests of the
Company.
16. In our opinion, the term loans have been applied for the purpose
for which they were raised. .
17. According to the Cash Flow Statement and records examined by us
and according to the information and explanations given to us, on
overall basis, funds raised on short-term basis have not been used
during the year for long term investment and vice versa.
18. The Company has not made any preferential allotment to parties and
companies covered in the register maintained under section 301 of the
Act. Accordingly, clause 4(xviii) of the order is not applicable
19. The Company has not issued any debentures. Accordingly, clause
4(xjx) of the order is not applicable.
20. The Company has not raised any money by public issues during the
year. Accordingly, clause 4(xx) of the order is not applicable.
21. To the best of our knowledge and belief and according to the
information and explanations given to us, no fraud on or by the Company
was noticed or reported during the year.
For Sandy Associates.
Chartered Accountants
A FRN:007337N
(Sandeep Gupta)
Place: Noida (Proprietor)
Date: May 28,2013 Membership No.: 86069
Mar 31, 2012
1. We have audited the attached Balance Sheet of M/s. NET 4 INDIA LTD.
as at March 31, 2012, the Profit and Loss Account and also the Cash
Flow Statement for the period ended on that date, annexed thereto.
These financial statements are the responsibility of the Company''s
management. Our responsibility is to express an opinion on these
financial statements based on our audit. presentation. We believe
that our audit provides a reasonable basis for our opinion.
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 management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditor''s Report) Order, 2003, as
amended by the Companies
(Auditor''s Report) (Amendment) Order,2004, issued by the Central
Government of India in terms of sub-section (4A) of section 227 of the
Companies Act, 1956, 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 purposes of our
audit;
(ii) In our opinion, proper books of account as required by law have
been kept by the company so far as appears from our examination of
those books and proper returns adequate for the purposes of our audit
have been received from the branches not visited by us;
(iii) The Balance Sheet and 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 and Profit and Loss Account and
Cash Flow Statement dealt with by this report comply with the
accounting standards referred to in sub-section (3C) of section 211 of
the Companies Act, 1956;
(v) On the basis of written representations received from the
directors, as on March 31, 2012 and taken on record by the Board of
Directors, we report that none of the directors of the Company is
disqualified as on March 31, 2012 from being appointed as a director in
terms of clause (g) of sub-section (1) of section 274 of the Companies
Act, 1956;
(i) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts give the information
required by the Companies Act, 1956, in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2012; and
(b) In the case of the Profit and Loss Account, of the profit for the
year ended on that date; and
(c) In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
ANNEXURE REFERRED TO IN PARAGRAPH 3 OF THE AUDITORS'' REPORT TO THE
MEMBERS OF M/S NET 4 INDIA LIMITED ON THEIR ACCOUNTS FOR THE YEAR ENDED
MARCH 31, 2011.
1. The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets.
All the assets have not been physically verified by the management
during the year but there is a regular programme of verification which,
in our opinion, is reasonable having regard to the size of the Company
and the nature of its assets. No material discrepancies were noticed on
such verification.
Fixed assets disposed off during the year were not substantial, and
therefore, do not affect the going concern assumption.
2. As explained to us, inventory (excluding stock with third parties)
has been physically verified by the management at regular intervals
during the year. In our opinion, the frequency of verification is
reasonable having regard to size of the company and the nature of its
business.
In our opinion and according to the information and explanation 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 the nature of its business.
The company is maintaining proper records of inventory. No material
discrepancies have been noticed by the management on verification
between the physical stocks and the book records.
3. The Company has taken interest free unsecured loan from a party
listed in the register maintained under section 301 of the Companies
Act, 1956, (maximum amount Rs. 205 lakhs) the terms and conditions of
which are prima facie not prejudicial to the interests of the Company.
The Company has not granted any loan, secured or unsecured, to
companies, firms or other parties covered in the register maintained
under section 301 of the Companies Act, 1956.
The company has given interest free advances in the nature of loans to
the employees of the company, the repayment in respect of which is
regular and as stipulated, where such stipulations exist.
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 finished goods, fixed assets and for the
sale of goods. During the course of our audit, no major weakness has
been noticed in the internal controls system in respect of these areas.
5. In our opinion, and according to the information and explanations
given to us, the transactions that need to be entered in the register
in pursuance of section 301 of the Act have been entered, and the
transactions have been made at prices which are reasonable with regard
to the prevailing market prices at the relevant time.
6. The Company has accepted deposits from the public and the
provisions of Sections 58A of the Companies Act, 1956 and the rules
framed there under, wherever applicable, have been complied with.
7. In our opinion, the Company has an internal audit system
commensurate with its size and nature of its business.
8. The Central Government has not prescribed maintenance of Cost
records under section 209(1) (d) of the Companies Act, 1956 in respect
to the company.
9. According to the information and explanations given to us, and on
the basis of our examination of the books of account, the Company has
generally been regular in depositing with appropriate authorities
undisputed statutory dues including Provident Fund, Income Tax, Wealth
Tax, Sales- Tax, Customs Duty, investor education and protection fund
and any other material statutory dues applicable to it. Interest has
been deposited wherever applicable.
According to the information and explanations given to us, no
undisputed dues payable in respect of Provident Fund, Investor
Education and Protection Fund, Income tax, Wealth tax, Sales tax,
Customs duty, Cess and other material statutory dues were outstanding
at March 31, 2012 for a period of more than six months from the date
they become payable.
According to the information and explanations given to us, Income Tax
for the AY 2008-09 of Rs. 40.28 lakhs (including interest) and for AY
2009-10 of Rs. 265.61 lakhs (including interest) has not been deposited
with the appropriate authorities on account of dispute. The company has
filed the appeal before the Commissioner of Income Tax (Appeals).
However based on past experience, there is a highly fair chance of
liability being quashed.
10. The Company does not have any accumulated losses at the end of the
financial year and has not incurred cash losses in the financial year
and in the financial year immediately proceeding such financial year.
11. In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to any
bank or financial institution. The Company has not issued any
debentures.
12. The Company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
Accordingly, clause 4(xii) of the order is not applicable.
13. The Company is not a chit fund, mutual benefit fund or a society.
Accordingly, clause 4(xiii) of the order is not applicable.
14. According to the information and explanations given to us, the
Company is not dealing or trading in shares, securities, debentures and
other investments. Accordingly, clause 4(xiv) of the order is not
applicable.
15. In our opinion and according to the information and explanations
given to us, the terms and conditions on which the Company has given
guarantee for loans taken by others from banks or financial
institutions are not prima-facie prejudicial to the interests of the
Company.
16. In our opinion, the term loans have been applied for the purpose
for which they were raised.
17. According to the Cash Flow Statement and records examined by us
and according to the information and explanations given to us, on
overall basis, funds raised on short-term basis have not been used
during the year for long term investment and vice versa.
18. The Company has not made any preferential allotment to parties and
companies covered in the register maintained under section 301 of the
Act. Accordingly, clause 4(xviii) of the order is not applicable.
19. The Company has not issued any debentures. Accordingly, clause
4(xix) of the order is not applicable.
20. The Company has not raised any money by public issues during the
year. Accordingly, clause 4(xx) of the order is not applicable.
21. To the best of our knowledge and belief and according to the
information and explanations given to us, no fraud on or by the Company
was noticed or reported during the year.
For Sandy Associates
Chartered Accountants
Sd/-
(Sandeep Gupta)
Proprietor
Place: Noida Membership No: 86069
Dated: May 28, 2012 FRN No: 007337N
Mar 31, 2011
1. We have audited the attached Balance Sheet of M/s. NET 4 INDIA LTD.
as at March 31, 2011, the Profit and Loss Account and also the Cash
Flow Statement for the period ended on that date, annexed thereto.
These financial statements are the responsibility of the Company's
management. Our responsibility is to express an opinion on these
financial statements based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditor's Report) Order, 2003, as
amended by the Companies (Auditor's Report) (Amendment) Order,2004,
issued by the Central Government of India in terms of sub-section (4A)
of section 227 of the Companies Act, 1956, 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 purposes of our
audit;
(ii) In our opinion, proper books of account as required by law have
been kept by the company so far as appears from our examination of
those books and proper returns adequate for the purposes of our audit
have been received from the branches not visited by us;
(iii) The Balance Sheet and 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 and Profit and Loss Account and
Cash Flow Statement dealt with by this report comply with the
accounting standards referred to in sub-section (3C) of section 211 of
the Companies Act, 1956;
(v) On the basis of written representations received from the
directors, as on March 31, 2011 and taken on record by the Board of
Directors, we report that none of the directors of the Company is
disqualified as on March 31, 2011 from being appointed as a director in
terms of clause (g) of sub- section (1) of section 274 of the Companies
Act, 1956;
(vi) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts give the information
required by the Companies Act, 1956, in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India:
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2011; and
b) In the case of the Profit and Loss Account, of the profit for the
year ended on that date.
c) In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
NET 4 INDIA LTD. ANNEXURE TO AUDITOR'S REPORT
ANNEXURE REFERRED TO IN PARAGRAPH 3 OF THE AUDITORS' REPORT TO THE
MEMBERS OF M/S NET 4 INDIA LIMITED ON THEIR ACCOUNTS FOR THE YEAR ENDED
MARCH 31, 2011.
1. The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets.
All the assets have not been physically verified by the management
during the year but there is a regular programme of verification which,
in our opinion, is reasonable having regard to the size of the Company
and the nature of its assets. No material discrepancies were noticed on
such verification.
Fixed assets disposed off during the year were not substantial, and
therefore, do not affect the going concern assumption.
2. As explained to us, inventory (excluding stock with third parties)
has been physically verified by the management at regular intervals
during the year. In our opinion, the frequency of verification is
reasonable having regard to size of the company and the nature of its
business.
In our opinion and according to the information and explanation 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 the nature of its business.
The company is maintaining proper records of inventory. No material
discrepancies have been noticed by the management on verification
between the physical stocks and the book records.
3. The Company has taken interest free unsecured loan from a party
listed in the register maintained under section 301 of the Companies
Act, 1956, (maximum amount Rs. 205 lakhs) the terms and conditions of
which are prima facie not prejudicial to the interests of the Company.
The Company has not granted any loan, secured or unsecured, to
companies, firms or other parties covered in the register maintained
under section 301 of the Companies Act, 1956.
The company has given interest free advances in the nature of loans to
the employees of the company, the repayment in respect of which is
regular and as stipulated, where such stipulations exist.
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 finished goods, fixed assets and for the
sale of goods. During the course of our audit, no major weakness has
been noticed in the internal controls system in respect of these areas.
5. In our opinion, and according to the information and explanations
given to us, the transactions that need to be entered in the register
in pursuance of section 301 of the Act have been entered, and the
transactions have been made at prices which are reasonable with regard
to the prevailing market prices at the relevant time.
6. The Company has accepted deposits from the public and the
provisions of Sections 58A of the Companies Act, 1956 and the rules
framed there under, wherever applicable, have been complied with.
7. In our opinion, the Company has an internal audit system
commensurate with its size and nature of its business.
8. The Central Government has not prescribed maintenance of Cost
records under section 209(1) (d) of the Companies Act, 1956 in respect
to the company.
9. According to the information and explanations given to us, and on
the basis of our examination of the books of account, the Company has
generally been regular in depositing with appropriate authorities
undisputed statutory dues including Provident Fund, Income Tax, Wealth
Tax, Sales- Tax, Customs Duty, investor education and protection fund
and any other material statutory dues applicable to it. Interest has
been deposited wherever applicable.
According to the information and explanations given to us, no
undisputed dues payable in respect of Provident Fund, Investor
Education and Protection Fund, Income tax, Wealth tax, Sales tax,
Customs duty, Cess and other material statutory dues were outstanding
at March 31, 2011 for a period of more than six months from the date
they become payable.
According to the information and explanations given to us, Income Tax
for the AY 08-09 of Rs. 40.28 lakhs (including interest) has not been
deposited with the appropriate authorities on account of dispute. The
company has filed the appeal before the Commissioner of Income Tax
(Appeals). However based on past experience, there is a highly fair
chance of liability being quashed.
10. The Company does not have any accumulated losses at the end of the
financial year and has not incurred cash losses in the financial year
and in the financial year immediately proceeding such financial year.
11. In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to any
bank or financial institution. The Company has not issued any
debentures.
12. The Company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
Accordingly, clause 4(xii) of the order is not applicable.
13. The Company is not a chit fund, mutual benefit fund or a society.
Accordingly, clause 4(xiii) of the order is not applicable.
14. According to the information and explanations given to us, the
Company is not dealing or trading in shares, securities, debentures and
other investments. Accordingly, clause 4(xiv) of the order is not
applicable.
15. In our opinion and according to the information and explanations
given to us, the terms and conditions on which the Company has given
guarantee for loans taken by others from banks or financial
institutions are not prima-facie prejudicial to the interests of the
Company.
16. In our opinion, the term loans have been applied for the purpose
for which they were raised.
17. According to the Cash Flow Statement and records examined by us
and according to the information and explanations given to us, on
overall basis, funds raised on short-term basis have not been used
during the year for long term investment and vice versa.
18. The Company has not made any preferential allotment to parties and
companies covered in the register maintained under section 301 of the
Act. Accordingly, clause 4(xviii) of the order is not applicable.
19. The Company has not issued any debentures. Accordingly, clause
4(xix) of the order is not applicable.
20. The Company has not raised any money by public issues during the
year. Accordingly, clause 4(xx) of the order is not applicable.
21. To the best of our knowledge and belief and according to the
information and explanations given to us, no fraud on or by the Company
was noticed or reported during the year.
For Sandy Associates
Chartered Accountants
Sd/-
(Sandeep Gupta)
Proprietor
Place: New Delhi Membership No: 86069
Dated: May 23, 2011 FRN No: 007337N
Mar 31, 2010
1 We have audited the attached Balance Sheet of M/s. NET 4 INDIA LTD.
as at March 31, 2010, the Profit and Loss Account and also the Cash Flow
Statement for the year ended on that date, annexed thereto. These
financial statements are the responsibility of the Companys management.
Our responsibility is to express an opinion on these financial
statements based on our audit.
2 We conducted our audit in accordance with auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial state- ments 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 signifcant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3 As required by the Companies (Auditors Report) Order, 2003, as
amended by the Companies (Auditors Report) (Amendment) Order,2004,
issued by the Central Government of India in terms of sub-section (4A)
of section 227 of the Companies Act, 1956, we enclose in the Annexure a
statement on the matters specifed in paragraphs 4 and 5 of the said
Order.
4 Further to our comments in the Annexure referred to in paragraph 3
above, we report that:
(i) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
(ii) In our opinion, proper books of account as required by law have
been kept by the company so far as appears from our examination of
those books and proper returns adequate for the purposes of our audit
have been received from the branches not visited by us;
(iii) The Balance Sheet and 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 and Profit and Loss Account and
Cash Flow Statement dealt with by this report comply with the
accounting standards referred to in sub-section (3C) of section 211 of
the Companies Act, 1956;
(v) On the basis of written representations received from the
directors, as on March 31, 2010 and taken on record by the Board of
Directors, we report that none of the directors of the Company is
disquali- fed as on March 31, 2010 from being appointed as a director
in terms of clause (g) of sub-section (1) of section 274 of the
Companies Act, 1956;
(vi) In our opinion and to the best of our information and according to
the explanations given to us, the said ac- counts give the information
required by the Companies Act, 1956, in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2010; and
(b) in the case of the Profit and Loss Account, of the Profit for the
year ended on that date.
(c) In the case of the Cash Flow Statement, of the cash fows for the
year ended on that date.
Annexture Refferred to Auditors Reports
ANNEXURE REFERRED TO IN PARAGRAPH 3 OF THE AUDITORS REPORT TO THE
MEMBERS OF M/S NET 4 INDIA LTD. ON THEIR ACCOUNTS FOR THE YEAR ENDED
MARCH 31, 2010.
1. The Company has maintained proper records showing full particulars,
including quantitative details and situation of fxed assets.
All the assets have not been physically verifed by the management
during the year but there is a regular programme of verifcation which,
in our opinion, is reasonable having regard to the size of the company
and the nature of its assets. No material discrepancies were noticed on
such verifcation.
Fixed assets disposed off during the year were not substantial, and
therefore, do not affect the going con- cern assumption.
2. As explained to us, inventory (excluding stock with third parties)
have been physically verifed by the management at regular intervals
during the year. In our opinion, the frequency of verifcation is
reasonable having regard to the size of the Company and the nature of
its business.
In our opinion and according to the information and explanation given
to us, the procedures of physical verifcation of inventories followed
by the management are reasonable and adequate in relation to the size
of the Company and the nature of its business.
The company is maintaining proper records of inventory. No material
discrepancies have been noticed by the management on verifcation
between the physical stocks and the book records.
3. The Company has taken interest free unsecured loan from a party
listed in the register maintained under section 301 of the Companies
Act, 1956, (maximum amount Rs. 205 lakhs) the terms and conditions of
which are prima facie not prejudicial to the interests of the Company.
The Company has neither granted nor taken any loan, secured or
unsecured, to companies, frms or other parties covered in the register
maintained under section 301 of the Companies Act, 1956.
The company has given interest free advances in the nature of loans to
the employees of the company, the repayment in respect of which is
regular and as stipulated, where such stipulations exist.
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 pur- chase of fnished goods, fxed assets and for the
sale of goods. During the course of our audit, no major weakness has
been noticed in the internal controls system in respect of these areas.
5. In our opinion, and according to the information and explanations
given to us, the transactions that need to be entered in the register
in pursuance of section 301 of the Act have been entered, and the
transactions have been made at prices which are reasonable with regard
to the prevailing market prices at the relevant time.
6. The Company has accepted deposits from the public and the
provisions of Sections 58A of the Companies Act, 1956 and the rules
framed there under, wherever applicable, have been complied with.
7. In our opinion, the Company has an internal audit system
commensurate with its size and nature of its business.
8. The Central Government has not prescribed maintenance of Cost
records under section 209(1) (d) of the Companies Act, 1956 in respect
to the company.
9. According to the information and explanations given to us, and on
the basis of our examination of the books of account, the Company has
generally been regular in depositing with appropriate authorities
undisputed statutory dues including Provident Fund, Income Tax, Wealth
tax, Sales-tax, Customs duty, Investor Edu- cation and Protection Fund
and any other material statutory dues applicable to it. Interest has
been depos- ited wherever applicable.
According to the information and explanations given to us, no
undisputed dues payable in respect of Provi- dent Fund, Investor
Education and Protection Fund, Income tax, Wealth tax, Sales tax,
Customs duty, Cess and other material statutory dues were outstanding
at March 31, 2010 for a period of more than six months from the date
they become payable.
According to the information and explanations given to us, there are no
dues in respect of Sales tax, In- come tax, Wealth tax, Customs duty
and Cess which have not been deposited with the appropriate authori-
ties on account of any dispute.
10. The Company does not have any accumulated losses at the end of the
financial year and has not incurred cash losses in the financial year and
in the financial year immediately proceeding such financial year. Ac-
cordingly, clause 4(x) of the order is not applicable.
11. In our opinion and according to the information and explanations
given to us, the Company has not de- faulted in repayment of dues to
any bank or financial institution. The Company has not issued any deben-
tures.
12. The Company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
Accordingly, clause 4(xii) of the order is not applicable.
13. The Company is not a chit fund, mutual beneft fund or a society.
Accordingly, clause 4(xiii) of the order is not applicable.
14. According to the information and explanations given to us, the
Company is not dealing or trading in shares, securities, debentures and
other investments. Accordingly, clause 4(xiv) of the order is not
applicable.
15. In our opinion and according to the information and explanations
given to us, the terms and conditions on which the Company has given
guarantee for loans taken by others from banks or financial institutions
are not prima-facie prejudicial to the interests of the Company.
16. In our opinion, the term loans have been applied for the purpose
for which they were raised.
17. According to the Cash Flow Statement and records examined by us
and according to the information and explanations given to us, on
overall basis, funds raised on short term basis have not been used
during the year for long term investment and vice versa.
18. The Company has not made any preferential allotment to parties and
companies covered in the register maintained under section 301 of the
Act. Accordingly, clause 4(xviii) of the order is not applicable.
19. The Company has not issued any debentures. Accordingly, clause
4(xix) of the order is not applicable.
20. The Company has not raised any money by public issues during the
year. Accordingly, clause 4(xx) of the order is not applicable.
21. To the best of our knowledge and belief and according to the
information and explanations given to us, no fraud on or by the Company
was noticed or reported during the year.
For Sandy Associates
Chartered Accountants
Sd/-
Place: New Delhi (Sandeep Gupta)
Dated: May 25, 2010 Proprietor
Membership No: 86069
FRN No: 007337N
Mar 31, 2009
1. We have audited the attached Balance Sheet of M/s. NET 4 INDIA LTD.
as at March 31, 2009, the Profit and Loss Account and also the Cash
Flow Statement for the year ended on that date, annexed thereto. These
financial statements are the responsibility of the CompanyÃs
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 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 (AuditorÃs Report) Order, 2003, as
amended by the Companies (AuditorÃs Report) (Amendment) Order,2004,
issued by the Central Government of India in terms of sub-section (4A)
of section 227 of the Companies Act, 1956, 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 purposes of our
audit;
(ii) In our opinion, proper books of account as required by law have
been kept by the company so far as appears from our examination of
those books and proper returns adequate for the purposes of our audit
have been received from the branches not visited by us;
(iii) The Balance Sheet and 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 and Profit and Loss Account and
Cash Flow Statement dealt with by this report comply with the
accounting standards referred to in sub-section (3C) of section 211 of
the Companies Act, 1956;
(v) On the basis of written representations received from the
directors, as on March 31, 2009 and taken on record by the Board of
Directors, we report that none of the directors of the
(vi) Company is disqualified as on March 31, 2009 from being appointed
as a director in terms of clause (g) of sub-section (1) of section 274
of the Companies Act, 1956; In our opinion and to the best of our
information and according to the explanations given to us, the said
accounts give the information required by the Companies Act, 1956, in
the manner so required and give a true and fair view in conformity with
the accounting principles generally accepted in India:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2009; and
(b) in the case of the Profit and Loss Account, of the profit for the
year ended on that date.
(c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
ANNEXURE REFERRED TO IN PARAGRAPH 3 OF THE AUDITORS REPORT TO THE
MEMBERS OF M/S NET 4 INDIA LTD. ON THEIR ACCOUNTS FOR THE YEAR ENDED
MARCH 31, 2009
1. The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets.
All the assets have not been physically verified by the management
during the year but there is a regular programme of verification which,
in our opinion, is reasonable having regard to the size of the company
and the nature of its assets. No material discrepancies were noticed on
such verification.
Fixed assets disposed off during the year were not substantial, and
therefore, do not affect the going concern assumption.
2. As explained to us, inventory (excluding stock with third parties)
have been physically verified by the management at regular intervals
during the year. In our opinion, the frequency of verification is
reasonable having regard to the size of the Company and the nature of
its business.
In our opinion and according to the information and explanation 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 the nature of its business.
The company is maintaining proper records of inventory. No material
discrepancies have been noticed by the management on verification
between the physical stocks and the book records.
In our opinion, the valuation of stocks is fair and proper in
accordance with the normally accepted accounting principles and is on
the same basis as in the preceding year.
3. The Company has taken interest free unsecured loan from director
listed in the register maintained under section 301 of the Companies
Act, 1956, (maximum amount Rs. 285 lakhs) the terms and conditions of
which are prima facie not prejudicial to the interests of the Company.
The Company has neither granted nor taken any loan, secured or
unsecured, to companies, firms or other parties covered in the register
maintained under section 301 of the Companies Act, 1956.
The company has given interest free advances in the nature of loans to
the employees of the company, the repayment in respect of which is
regular and as stipulated, where such stipulations exist.
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 finished goods, fixed assets and for the
sale of goods. During the course of our audit, no major weakness has
been noticed in the internal controls system in respect of these areas.
5. In our opinion, and according to the information and explanations
given to us, the transactions that need to be entered in the register
in pursuance of section 301 of the Act have been entered, and the
transactions have been made at prices which are reasonable with regard
to the prevailing market prices at the relevant time.
6. The Company has not accepted any deposits from the public and
consequently, the directives issued by the Reserve Bank of India, the
provisions of Sections 58A and 58AA of the Companies Act, 1956 and the
rules framed there under are not applicable.
7. In our opinion, the Company has an internal audit system
commensurate with its size and nature of its business.
8. The Central Government has not prescribed maintenance of Cost
records under section 209(1) (d) of the Companies Act, 1956 in respect
to the company.
9. According to the information and explanations given to us, and on
the basis of our examination of the books of account, the Company has
generally been regular in depositing with appropriate authorities
undisputed statutory dues including Provident Fund, Income Tax, Wealth
tax, Sales-tax, Customs duty, Investor Education and Protection Fund
and any other material statutory dues applicable to it. Interest has
been deposited wherever applicable.
According to the information and explanations given to us, no
undisputed dues payable in respect of Provident Fund, Investor
Education and Protection Fund, Income tax, Wealth tax, Sales tax,
Customs duty, Cess and other material statutory dues were outstanding
at March 31, 2009 for a period of more than six months from the date
they become payable.
According to the information and explanations given to us, there are no
dues in respect of Sales tax, Income tax, Wealth tax, Customs duty and
Cess which have not been deposited with the appropriate authorities on
account of any dispute.
10. The Company does not have any accumulated losses at the end of the
financial year and has not incurred cash losses in the financial year
and in the financial year immediately proceeding such financial year.
Accordingly, clause 4(x) of the order is not applicable.
11. In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to any
bank or financial institution. The Company has not issued any
debentures.
12. The Company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
Accordingly, clause 4(xii) of the order is not applicable.
13. The Company is not a chit fund, mutual benefit fund or a society.
Accordingly, clause 4(xiii) of the order is not applicable.
14. According to the information and explanations given to us, the
Company is not dealing or trading in shares, securities, debentures and
other investments. Accordingly, clause 4(xiv) of the order is not
applicable.
15. In our opinion and according to the information and explanations
given to us, the terms and conditions on which the Company has given
guarantee for loans taken by others from banks or financial
institutions are not prima-facie prejudicial to the interests of the
Company.
16. In our opinion, the term loans have been applied for the purpose
for which they were raised.
17. According to the Cash Flow Statement and records examined by us
and according to the information and explanations given to us, on
overall basis, funds raised on short term basis have not been used
during the year for long term investment and vice versa.
18. The Company has not made any preferential allotment to parties and
companies covered in the register maintained under section 301 of the
Act. Accordingly, clause 4(xviii) of the order is not applicable.
19. The Company has not issued any debentures. Accordingly, clause
4(xix) of the order is not applicable.
20. The Company has not raised any money by public issues during the
year. Accordingly, clause 4(xx) of the order is not applicable.
21. To the best of our knowledge and belief and according to the
information and explanations given to us, no fraud on or by the Company
was noticed or reported during the year.
For Sandy Associates
Chartered Accountants
Sd/-
(Sandeep Gupta)
Place: New Delhi Proprietor
Date: June 30th, 2009 Membership No: 86069
Mar 31, 2000
We have audited the attached Balance Sheet of M/S AMULET DEVELOPERS
LIMITED as at 31st March, 2000 and also the statement of Profit & Loss
Account of the Company for the year ended on that date annexed there to
and reports as under-
1. As required by the Manufacturing and other Companies (Auditors
Report) Order, 1988 issued by the Company Law Board in terms of Section
227(4-A), of the Companies Act, 1956, and on the basis of such checks
of the Books and the Records of the Company as we considered
appropriate and on the basis of the information and explanation given
to us during the course of audit, we enclose in the annexure, a
statement on the matters specified in paragraphs 4 & 5 of the said
order.
2. Further to our comments in the Annexure referred in paragraph 1
above,
(a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purposes of our
Audit,
(b) In our opinion, proper books of accounts as required by law have
been kept by the Company so far as appears from our examination of
those books.
(c) The Balance Sheet and Statement of Profit & Loss Account dealt with
by this report are in compliance with the accounting standards referred
to in Section 211 (3C) of the Companies Act, 1956 and are in agreement
with the books of accounts.
(d) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts, read together with the
Notes thereon, give the information required by the Companies Act, 1956
in the manner so required and give a true and fair vies:-
(i) In the case of the Balance Sheet, of the state of the affairs of
the company as at 31st March, 2000.
AND
(ii) In the case of the Statement of Account of the Profit & Loss
Account for the year ended on that date.
ANNEXURE TO AUDITORS REPORT REFERRED TO IN PARAGRAPH 1 OF OUR REPORT
OF EVEN DATE
1. The company has not taken any loans during the year..
2. In our opinion and according to information and explanations given
to us, there are adequate internal control procedures commensurate with
the size of the Company and nature of its business with regard to
purchase of stores, raw materials, including components, plant and
machinery, equipment and other assets and with regard to the sale of
goods.
3. The Company has not entered into any transactions of purchase of
goods and materials and sale of goods, materials and services, made in
pursuance of contracts or arrangements entered in the register
maintained under Section 301 and aggregating during the year to Rs.
50,000/- or more in respect of each party and accordingly, we have no
comment on the same.
4. The company has not accepted any deposits from the public and
consequently the provisions of Section 58-A of the Companies Act, 1956
and the Companies (Acceptance of Deposits) Rules, 1975 are not
applicable.
5. The Central Government has not prescribed maintenance of cost
records under Section 209 (1) (d) of the Companies Act, 1956 in respect
of the products dealt with by the Company.
6. According to the information and explanation given to us, no
undisputed amounts payable in respect of Income Tax, Wealth Tax, Sales
Tax, Customs Duty & Excise Duty were outstanding for more than six
months as at 31st March, 2000.
7. According to the information and explanations given to us, no
personal expenses of employees or Directors have been charged to
revenue account.
8. The Company is not a sick industrial Company within the meaning of
Section 3 (1) (o) of the sick Industrial Companies (Special Provisions)
Act, 1985.
9. All other provision of the said order do not apply to the company.
SANDY ASSOCIATES,
Chartered Accountants
Place : New Delhi
Dated : 05.06.2000 SANDEEP GUPTA
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