Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of Nivyah
Infrastructure & Telecom Services Limited ("the Company"), which
comprise the Balance Sheet as at 31st March, 2013 and the Statement of
Profit and Loss and Cash Flow Statement for the year ended, and a
summary of significant accounting policies and other explanatory
information.
ManagementÂs Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956 ("the Act"). This responsibility includes
the design, implementation and maintenance of internal control relevant
to the preparation and presentation of the financial statements that
give a true and fair view and are free from material misstatement,
whether due to fraud or error.
AuditorÂs Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement. An audit involves performing procedures to
obtain audit evidence about the amounts and disclosures in the
financial statements. The procedures selected depend on the auditorÂs
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 CompanyÂs 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.
We believe that the audit evidence we have obtained is sufficient and
appropriate subject to certain exceptions mentioned in the following
paragraph to provide a basis for our qualified audit opinion.
Basis for Qualified Opinion
The company''s trade receivables are carried at the balance sheet date
at 26,76,55,55. Management has not provided appropriate audit evidence
regarding the recoverability ofthe said amount. In the opinion of the
management there are remote chances of recoverability of certain
amounts, which they are unable to quantify. Further, in the absence of
sufficient details, we are unable to quantify the interest and penalty
that may arise on the long outstanding statutory dues payable by the
company. Hence the liabilities of the company are understated by an
amount due to non-provision of statutory liabilities which is not
ascertainable by the management as per note no 32. Further, as per note
no. 31 balances of Trade Payables, Trade Receivables, Loans & Advances
and Deposit are subject to Confirmation.
Qualified Opinion
In our opinion, except for the matters described in the Basis for
Qualified Opinion paragraph, and to the best of our information and
according to the explanations given to us, the financial statements
present fairly, in all material aspects :
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2013;
(b) in the case of the Statement of Profit and Loss, of the loss for
the 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.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (AuditorÂs 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.
2. As required by section 227(3) of the Act, we report that:
a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b) in our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books;
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 except for
Accounting Standard 15 " Employee Benefits" where Retirement benefits
and leave encashment are charged on the basis of valuation certified by
the management instead of the Actuarial Valuation;
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.
ANNEXURE TO AUDITORÂS REPORT
[Referred to in paragraph 3 of the AuditorÂs Report to the members of
Nivyah Infrastructure & Telecom Services Limited]
As required by the Companies (AuditorÂs Report) Order, 2003, issued by
the Company Law Board in terms of section 227(4A) of the Companies Act,
1956, and on the basis of such checks as we considered appropriate and
as per the information and explanations given to us during the course
of audit, we further state that:
(i) In respect of fixed assets:
a) The Company has maintained a fixed assets register including
quantitative details and situation of fixed assets.
b) As explained to us, the company has taken physical verification of
fixed assets at reasonable intervals. According to the information and
explanations given to us, no material discrepancies were noticed on
such verification.
c) The company has not disposed off any fixed assets during the year
which could affect the going concern status of the Company.
(ii) The company does not have any inventories, so requirement of the
clause 4(ii) of the order are not applicable to the Company.
(iii) a) The Company had granted unsecured demand loans to 18 Parties
covered in the register maintained under Section 301 of the Act. The
maximum amount involved during the year was Rs.1.08,39,677/- and the
year end balance of loan granted to said parties was Rs.98,74,053/-.
b) In our opinion, the rates of interest and other terms & conditions
of loans granted by the company are not prima facie prejudicial to the
interests of the company.
c) The stipulations regarding payment of Principal amount and interest
have not been specified.
d) The company has taken unsecured demand loans from 4 parties covered
in the register maintained under section 301 of the Act. The maximum
amount involved during the year was Rs.2, 53, 76,772/- and the yearend
balance of loan taken from the said parties was Rs.2,51,51,617/-.
e) The loans are interest free and there are no stipulations with
respect to the interest, which can prima facie be prejudicial to the
interest of the share holder.
f) In respect of loans taken, the principal amount is repayable on
demand.
(iv) 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 purchases of inventory and fixed assets and for the
sale of goods. During the course of our audit, no major weaknesses has
been noticed in the internal control system or continuing failure to
correct major weaknesses in internal control system of the company in
respect of these areas, except for the cash sales of services.
In our opinion and according to the information and explanations given
to us, there are no transactions that need to be entered into the
Register maintained under Section 301 of the Companies Act, 1956.
(vi) The company has not accepted any deposits from the public. Hence
the directives issued by the Reserve Bank of India and the provision
sections 58A & 58AA of the Act, & rules framed there under are not
applicable to the company.
(vii) In our opinion, the Company does not have an internal audit
system commensurate with its size and nature of its business.
(viii) We have been informed that the maintenance of cost records,
prescribed by Central Government u/s 209(1) (d) of the Companies Act,
1956 are not applicable to the company.
(ix) According to information and explanations given to us and
according to the books and records as produced and examined by us, in
our opinion, the Company is not regular in depositing with appropriate
authorities undisputed statutory dues ncluding provident fund, investor
education and protection fund, employees'' state insurance, income-tax,
sales tax, wealth tax, customs duty, Service tax, excise duty and cess
as applicable to it. The total undisputed statutory liability is
Rs.4,36,37,625/-.
According to information and explanations given to us, there are no
dues of income tax, wealth tax, sales tax, customs duty, excise duty
and cess which have not been deposited on account of any dispute.
According to the information and explanation given to us, the Company
has not defaulted in repayment of dues to any financial institution or
bank as at the Balance Sheet date.
(xii) The Company has not given any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities,
therefore clause 4 (xii) of the order is not applicable to the company.
(xiii) The provision of any special statute applicable to chit
fund/mutual benefit fund/societies are not applicable to the Company,
therefore clause 4 (xiii) of the order is not applicable.
(xiv) The Company is not trading in shares & securities, so requirement
of clause 4 (xiv) does not applicable to the Company.
(xv) In our opinion and according to the information and explanation
given to us, the company has not given any guarantee for loans taken by
others from banks or financial institution during the year, so the
clause 4(xv) of the order is not applicable.
(xvi) The Company has not taken any term loan from bank. So,
requirement of clause 4(xvi) of the order is not applicable.
(xvii) In our opinion and according to the information and explanation
given to us, there are no funds raised on short  term basis which have
been used for long term investment or viceÂa- versa.
(xviii) The Company has not made preferential allotment of shares to
parties and companies covered in the register maintained under section
301 of the Companies Act, 1956.
(xix) The Company had no debentures, therefore the clause 4 (xix) of
the order is not applicable to the Company.
(xx) The Company has not raised money by public issues during the year
under audit, therefore clause 4 (xx) of the order is not applicable to
the Company.
(xxi) In our opinion and according to the information and explanation
given to us, no fraud on or by the Company has been noticed or reported
during the year, that causes the financial statements to be materially
misstated.
For Rustagi & Co.,
Chartered Accountants
Firm Registration No.301094E
Place - Mumbai Sd/-
Date - August 17, 2013 Ms. Meenakshi Gupta
Partner
Membership No. 108097
Mar 31, 2010
We have audited the attached Balance Sheet of S V. Electricals Ltd. as
at 31 st March 2010 and also the Profit & Loss account for the year
ended on that date annexed there to 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. 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. As required by the
Companies (Auditors Report) Order, 2003 issued by the Central
Government of India in terms of Section 227(4 A) of the Companies Act,
1956 (herein after referred to as The Act), we enclose In the Annexure
a statement on the matters specified in paragraphs 4 and 5 of the said
order. Further to our comments in the Annexure referred to above, we
report that
1. 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;
2. 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
these books;
3. The Balance Sheet and Profit & Loss Account dealt with by this
report are in agreement with the books of recounts.
4. In our opinion the Balance Sheet and Profit & Loss account dealt
with by this report comply with the accounting standards referred to in
sub section (3C) of section 211 of the Companies Act. 1956;
5. On the basis of written representations received from the
directors, as on 31st March 2010 and taken on record by the Board of
Directors, we report that none of the Directors is disqualified as on
31st March 2010 from being appointed as a director in terms of clause
(g) of section (1) of section 274 of the Companies Act. 1956.
6. 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 31 st March 2010,
b) In the case of the Profit & Loss Account, of the loss for the year
ended on that date.
c) In the case of Cash Flow Statement, of the cash flows for the year
ended on that date.
Annexure to the Auditors Report (Referred to in paragraph 3 of the
report of even date)
1. In terms of the Shareholders Resolution passed by ballot and a
Board Resolution to that effect the Company has sold whole of its fixed
assets in the previous year and hence the net block is appearing at
zero in the Balance Sheet.
2. There are no stocks of finished goods, stores, spare parts or raw
materials lying with third party.
3. The procedure of physical verification of stocks 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.
4. No material discrepancies have been noticed on physical
verification of stocks as compared to book records.
5. On the basis of examination of stock records, we are of the opinion
that 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.
6. The Company has not taken any secured/ unsecured loans, from
Companies and firms or other parties listed in the Register maintained
under section 301 of the Companies Act, 1956, from the Companies under
the same Management or others in terms of the Companies Act, 1956. The
Company has repaid the Commercial Tax deferment (Unsecured loan) to the
extent of Rs. Nil during the year. (Previous year Rs. NIL)
7. The Company has not granted any loans, secured or unsecured to
Companies, firms or other parties listed in the register maintained
under section 301 of the Companies Act 1956, under the same management.
8. In respect of loans and advances in the nature of loans given by
the Company, parties have repaid the principal amount as stipulated and
have also been regular in the payment of interest. The Company has
given interest free loans or advances in the nature of loans to
employees, who are repaying the principal amount as stipulated. In our
opinion and according to the information and explanations given to us,
there are no transactions of purchase of goods and materials and of
sale of goods, materials and services made in pursuance of contract or
agreement entered In the register maintained u/s 301 of the Companies
Act, 1956, and aggregating during the year to Rs. 50,000/- (Fifty
thousand only) or more in respect of any party.
9. 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 with regard td purchases of stores, raw materials including
components, plant and machinery, equipments and other assets and with
regard to the sale ol goods. During the course of audit, no major
weakness has been noticed in these internal controls.
10. The Company has a regular procedure for the determination of
unserviceable or damaged stores, raw materials and finished goods.
Adequate provision has been made in the accounts for the loss arising
on the items so determined.
11. The Company has not accepted any deposit from the public during
the year. Hence the provisions of Section 58-Aof the Companies Act,
1956 and the Companies (Acceptance of Deposit) Rules 1975 are not
applicable.
12. Reasonable records have been maintained by the Company for the
sale or disposal of realizable scrap. The Company has no bye-product.
13. The Company has an internal audit system commensurate with the
size and nature of its business
14. According to explanations and information given to us by the
Company, the Central Government has not prescribed for the Maintenance
of Cost Records Rules under Section 209(1) (d) of the Companies Act,
1956 for the products of the Company.
15. The Company is generally regular in depositing with the
appropriate authorities undisputed statutory à dues including Provident
Fund, Employees State Insurance. Income Tax, Sales Tax, Customs,
Central Excise Duty, Cess and other Statutory dues, applicable to it.
There were no arrears as at 31st March2010 for a period of more than
six months from the date they became payable in respect of such does.
16. According to the information and explanations given to us no
personal expenses of employees or Directors have been charged to
revenue account other than those payable under contractual obligations
or in accordance with generally accepted business practice.
17. The Company, has accumulated losses to the extent of Rs.
67803249/- as at the end of 31 st March 2009 and Rs. 69912652/- as at
the end of 31st March 2010. The Company had incurred cash loss of Rs.
NIL during the financial year 2008-2009 and Rs. 2109403/- during the
financial year ended 31st March2010. However the provisions of Sick
Industrial Companies (Special Provisions) Act, 1985, do not apply to
the Company in view of sec. 3 (1) (f) (ii) thereof as the Company is a
Small Scale industrial Unit fn terms of Micro. Small & Medium
Enterprises Development Act, 2006 (MSMED Act, 2006)
18. There were no damaged items in the class of goods traded in by the
Company.
21. Based on our audit procedures and according to the information and
explanations given to us, the Company has not defaulted in repayment of
dues to financial institutions. Bank or Debenture holders.
22. According to the information and explanations given to us. the
Company has not granted any loans and advances on the basis of security
by way of pledge of shares, debentures and other securities.
23. The Company is not a chit fund or a nidhi mutual benefit
fund/Society. Therefore, the provisions of clause 4(xiii) of the
Companies (Auditors Report) order 2003 are not applicable to the
Company.
24. According to the information and explanations given to us, the
Company is not dealing or trading in shares. securities, debentures
and other investments. Accordingly, the provisions of clause
24 (xiv) of the Companies (Auditors Report) Order 2003 are not
applicable to the Company.
25. According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the Company, we report
that no funds raised on short term basis have been used for long-term
investment. No long term funds have been used to finance short-term
assets except working capital.
26. According to the information given and explanations offered to us
the Company, has not given any guarantee for the loans taken by others
from Bank or Financial Institutions.
27. The Company has not raised any new term loan during the year.
28. The Company has not made preferential allotment of shares to
parties and Companies covered in the register maintained under section
301 of the Act.
29. The Company has not raised any money through a public issue of
shares or debentures during the year.
30. Based on the audit procedures performed and information and
explanations given to us, we report that no fraud on or by the Company
has been noticed or reported during the course of our audit that causes
the financial statements to be materially misstated.
For, JAIN ANIL & ASSOCIATES
CHARTERED ACCOUNTANTS
ANIL JAIN
Place :Mumbai PROPRIETOR
Date : 29/05/2010 M.NO. 39803