Mar 31, 2013
Report on the Financial Statements
1. We have audited the accompanying financial statements of M/s.
Ontrack Systems Ltd. which comprise the Balance Sheet as at 31st March
2013, the Statement of Profit and Loss and the Cash Flow Statement for
the year then ended, and a summary of significant accounting policies
and other explanatory information.
Management''s Responsibility for the Financial Statements
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 ("the Act"). This responsibility includes
the design, implementation and maintenance of internal control relevant
to the preparation and presentation of the financial statements that
give a true and fair view and are free from material misstatement,
whether due to fraud or error.
Auditor''s Responsibility
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.
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 Company Act, 1956 in the manner so required
and give a true and fair view in conformity with the accounting
principles generally accepted in India:
(i) In the case of the balance sheet, of the state of affairs of the
Company as at 31st March 2013;
(ii) In the case of the statement of profit and loss, of the profit for
the year ended on that date; and
(iii) In the case of the cash flow statement, of the cash flows for the
year ended on that date.
Matter of Emphasis
7. Without qualifying our report, we draw attention to :
(i) Note No. 7.05 and 18.01 of the Notes forming part of the financial
statements regarding the cheques worth of Rs. 1900.00 lacs issued to the
creditor''s, which have not been presented to the bank on the request of
the company, pending the realization of the cheques worth of Rs. 1992.57
lacs collected from customer and lying on hand. As per the management,
the amount collected from the customers will be realized and cheque
issued to the creditors will be honoured within the validity of the
respective instruments.
(ii) Note No. 14.01 regarding the advance of Rs. 10.00 lacs under
litigation, the recoverability thereof is uncertain upon the final
outcome of the judicial proceeding.
(iii) Note No.14.02 regarding the advance of Rs.187.48 lacs on account of
encashment of performance Bank guarantee, which was subsequently
acknowledged by the customer with a commitment to repay. The
recoverability thereof is uncertain till the fulfillment of the
commitment of the customer.
(iv) Note No.11.03 regarding non-recognition of the share of the
company on the asset constructed under joint development agreement,
which in opinion of the management is not ascertainable.
Report on Other Legal and Regulatory Requirements
8. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order"), as amended, 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.
9. As required by section 227(3) of the Act, we report that:
(a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
(b) In our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books and proper returns/statements adequate for the purposes of our
audit have been received from garden not visited by us;
(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
sub-section (3C) of Section 211 of the Companies Act, 1956; and
(e) On the basis of written representations received from the directors
as on 31st March 2013, and taken on record by the Board of Directors,
none of the directors of the company is disqualified as on 31st March
2013, from being appointed as a director in terms of clause (g) of
sub-section (1) of Section 274 of the Companies Act, 1956;
ANNEXURE TO THE AUDITORS'' REPORT
The Annexure referred to in our report to the members of M/s. ONTRACK
SYSTEMS LTD. for the year ended 31 March 2013. We report that:
i. (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of its fixed
assets.
(b) As informed, the fixed assets have been physically verified by the
management at the year end and no material discrepancies are reported
to have been noticed on such verification.
(c) During the year the company has not disposed off of substantial
part of it''s fixed assets. Therefore the provision of the clause (ic)
of paragraph 4 of the aforesaid Order in our opinion is not applicable
to the Company.
ii (a) The inventory has been physically verified by the management
during the year. In our opinion the frequency of verification is
reasonable.
(b) In our opinion and according to the information & explanations
given to us, the procedures of physical verification of inventories
followed by the Management are reasonable and adequate in relation to
the size of the Company and nature of its business.
(c) On the basis of our examination of records of inventory and in our
opinion, the Company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stocks and
the book records were not material in relation to the operation of the
company.
iii. (a) On the basis of our examination of the books of account and
according to the information and explanations given to us, the Company
has during the year accepted interest free unsecured loan from a
Company covered in the Register maintained under Section 301 of the
Companies Act, 1956. The maximum amount involved was Rs. 289.00 lacs and
the year end balance was Rs. 289.00 lacs.
(b) In our opinion and according to the information and explanations
given to us, the other terms and conditions of the loans taken by the
company are not prima facie prejudicial to the interest of the company.
(c) On the basis of our examination of the books of account and
according to the information and explanations given to us, the Company
has not granted any loans secured or unsecured to Companies, firms or
other parties covered in the Register maintained under Section 301 of
the Companies Act, 1956.
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 with regard to purchase of inventory and fixed assets and for
the sale of goods and services. Further during the course
of our audit, we have neither come across, nor have we been informed of
any continuing failure to correct major weaknesses in internal control
system.
v. (a) On the basis of our examination of the books of account and
according to the information and explanations given to us, the Company
has during the year entered into transaction that needs to be entered
into the Register maintained under Section 301 of the Companies Act,
1956.
(b) According to the information and explanations given to us, the
transaction made in pursuance of such contract or arrangement have been
made at prices, which are reasonable having regard to the prevailing
market prices as on the date of such transaction.
vi. In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposit from the public
within the meaning of section 58A and 58AA or any other relevant
provisions of the Companies Act, 1956 and the Companies (Acceptance of
Deposits) Rule 1975. To the best of our knowledge and according to the
information and explanations given to us, no order has been passed by
the Company Law Board or National Company Law Tribunal or Reserve Bank
of India or any other Tribunal against the company.
vii. The Company has an internal audit system commensurate with the
size and nature of its business during the year.
viii. On the basis of information & explanations made available to us,
we are of the opinion that, The Central Government has not prescribed
for the maintenance of any cost records under Section 209(1)(d) of the
Companies Act, 1956 for the Company.
ix. (a) On the basis of our examination of the books of account and
according to the information & explanations given to us, the Company is
regular in depositing with appropriate authorities undisputed statutory
dues, except Employee state insurance, Income Tax (T.D.S.), Fringe
Benefit Tax, Service Tax and Professional Tax.
According to the information and explanations given to us, the
undisputed amounts payable are Employees state insurance of Rs. 21.89
lacs, Income Tax (T.D.S.) of Rs. 36.71 lacs, Fringe benefit tax of Rs.
12.63 lacs, and Professional Tax of Rs. 8.38 lacs and Service tax of Rs.
0.47 lacs, which were outstanding as at 31st March 2013 for a period of
more than six months from the date they became payable.
(b) According to the information and explanations given to us, there
are no dues of sales tax, customs duty, excise duty, service tax,
wealth tax and cess which have not been deposited on account of any
dispute, except the disputed tax demand. The amounts involved and the
forum where the dispute is pending are detailed in the statement given
below:
Sl. Name of the
statue Nature of
Dues Rs. in
lacs Forum where dispute
is pending
01 Income Tax Assessed demand 8.36 ITAT, Chennai
for A.Y: 2003-04
02 Income Tax Assessed demand 2.95 CIT (A), Chennai
for A.Y: 2004-05
03 Income Tax Assessed demand 17.57 CIT (A), Chennai
for A.Y: 2005-06
04 Income Tax Assessed demand 4.81 CIT (A), Chennai
for A.Y: 2006-07
05 Income Tax Assessed demand 460.47 CIT (A), Chennai
for A.Y: 2007-08
06 Income Tax Assessed demand 306.43 CIT (A), Chennai
for A.Y: 2008-09
07 Central Sales
Tax Demand for 1.80 JCCT, W.B.
the Yr. 2006-07
08 Central
Sales Tax Demand for 46.31 JCCT, W.B.
the Yr. 2009-10
09 Value Added
Tax Demand for 11.96 JCCT, W.B.
the Yr. 2006-07
10 Value Added
Tax Demand for 464.98 JCCT, W.B.
the Yr. 2009-10
x. The Company has no accumulated losses during the year. It has
incurred no cash loss during the financial year covered by our report
and also in the immediately preceding financial year.
xi. Based on our audit procedures and according to the information and
explanations given to us, we are of the opinion that the Company has
not defaulted in repayment of dues to financial institution, banks or
debenture holders during the year.
xii. The company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other similar
securities.
xiii. In our opinion the Company is not a chit fund or a nidhi / mutual
benefit fund / society, therefore the provision of clause (xiii) of
paragraph 4 of the aforesaid Order is not applicable to the Company.
xiv. As per records of the Company and the information & explanations
given to us by the management, the Company is dealing in or trading in
shares, securities, debenture and other investments and in our opinion,
proper records have been maintained of the transactions and contracts,
and timely entries have been made therein, also the shares, securities,
debentures and the other investments have been held by the Company in
its own name.
xv. According to the information & explanations given to us, the
Company has not given any guarantee for loans taken by others, from
banks or financial institutions, the terms & conditions whereof are
prejudicial to the interest of the Company.
xvi. On the basis of our examinations and according to the information
and explanations given to us, the company has during the year not
raised any term loan.
xvii. 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 fund raised during the year on short-term basis have been used
for long-term investment.
xviii. The Company has during the year not made any preferential
allotment of shares to a party covered in the register maintained
U/s.301 of the Companies Act, 1956.
xix The Company has not issued any debentures during the year under
audit. Accordingly, the provision of clause (xix) of paragraph 4 of the
aforesaid Order is not applicable to the Company.
xx The Company has not raised any money by way of public issue during
the year. Therefore the provisions of clause (xx) of the paragraph 4 of
the aforesaid Order are not applicable to the Company.
xxi During the course of our examination of the books of accounts
carried out in accordance with Generally Accepted Auditing Practices,
we have neither come across any instance of fraud on or by the Company
nor have we been informed of any such case by the Management.
For GOENKA SHAW & CO.
Chartered Accountants
FR No. 319075E
Sd/-
Kolkata, India (CA Saroj Kumar Swain)
30th May, 2013 Partner
Membership No. 061912
Mar 31, 2011
1. We have audited the attached Balance Sheet of ONTRACK SYSTEMS
LIMITED as at 31st March 2011, the Profit & Loss Account and also the
Cash Flow Statement for the year ended on that date. These financial
statements are the responsibility of the Company's Management. Our
responsibility is to express an opinion on these financial statements
based on our audit.
2. We conducted our audit in accordance with the Auditing Standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by Management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditor's Report) Order, 2003, as
amended by the Companies (Auditor's Report) (Amendment) Order, 2004
issued by the Central Government of India in terms of sub- section (4A)
of Section 227 of the Companies Act 1956 and on the basis of such
checks as we considered appropriate and according to the information
and explanations given to us, we enclose in the Annexure a statement on
the matters specified in paragraphs 4 & 5 of the said Order.
4. Further to our comments in Annexure referred to in paragraphs 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;
(iii) The Balance Sheet , Profit & Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account;
(iv) In our opinion the Balance Sheet, Profit and Loss Account and Cash
Flow Statement dealt with by this report comply with the Accounting
Standards(AS) referred to in sub-section (3C) of section 211 of the
Companies Act 1956;
(v) We have no such observations, which have an adverse effect on the
functioning of the company.
(vi) On the basis of written representations received from the
Directors of the company, and taken on record by the Board of
Directors, we report that none of the Directors is disqualified as at
31st March'2011 from being appointed as a Director of the company in
terms of clause(g) of sub-section (1) of section 274 of the companies
Act,1956.
(vii) In our opinion and to the best of our information and according
to the explanations given to us the said accounts read in conjunction
with Significant accounting policies and Notes to the accounts as
referred to in Schedule "24", subject to the attention invited to note
No. B(2) & B(7) regarding certain advances whereby the extent of
amounts recoverable there against is not ascertainable and note no.
B(4) regarding nonprovision of the accrued leave liabilities and the
overall impact thereof if any on the financial statement for year can
not be ascertainable and commented upon by us, 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
b. In case of the Profit and Loss Account of the profit for the year
ended on that date; and
c. In the case of Cash Flow Statement of the cash flows for the year
ended on that date.
ANNEXURE TO THE AUDITORS' REPORT
Re.: ONTRACK SYSTEMS LIMITED
Referred to in paragraph 3 of our Report of even date
i. (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of its fixed
assets.
(b) As informed, the fixed assets have been physically verified by the
management at the year end and no material discrepancies are reported
to have been noticed on such verification.
(c) During the year the company has not disposed off of substantial
part of it's fixed assets. Therefore the provision of the clause (ic)
of paragraph 4 of the aforesaid Order in our opinion is not applicable
to the Company.
ii (a) The inventory has been physically verified by the management
during the year. In our opinion the frequency of verification is
reasonable.
(b) In our opinion and according to the information & explanations
given to us, the procedures of physical verification of inventories
followed by the Management are reasonable and adequate in relation to
the size of the Company and nature of its business.
(c) On the basis of our examination of records of inventory and in our
opinion, the Company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stocks and
the book records were not material in relation to the operation of the
company.
iii. (a) On the basis of our examination of the books of account and
according to the information and explanations given to us, the Company
has during the year accepted interest free unsecured loan from a
Company covered in the Register maintained under Section 301of the
Companies Act' 1956. The maximum amount involved was Rs. 289.00 lacs
and the year end balance was Rs. 289.00 lacs.
(b) In our opinion and according to the information and explanations
given to us, the other terms and conditions of the loans taken by the
company are not prima facie prejudicial to the interest of the company.
(c) On the basis of our examination of the books of account and
according to the information and explanation given to us, the Company
has not granted any loans secured or unsecured to Companies, firms or
other parties covered in the Register maintained under Section 301 of
the Companies' Act, 1956.
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 with regard
to purchase of inventory and fixed assets and for the sale of goods and
services. Further during the course of our audit, we have neither come
across, nor have we been informed of any continuing failure to correct
major weaknesses in internal control system.
v. (a) On the basis of our examination of the books of account and
according to the information and explanations given to us, the Company
has during the year entered into transaction that needs to be entered
into the Register maintained under Section 301 of the Companies Act
1956.
(b) According to the information and explanations given to us, the
transaction made in pursuance of such contract or arrangement have been
made at prices, which are reasonable having regard to the prevailing
market prices as on the date of such transaction.
vi. In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposit from the public
within the meaning of section 58A and 58AA or any other relevant
provisions of the Companies Act, 1956 and the Companies (Acceptance of
Deposits) Rule 1975. To the best of our knowledge and according to the
information and explanations given to us, no order has been passed by
the Company Law Board or National Company Law Tribunal or Reserve Bank
of India or any other Tribunal against the company.
vii. According to the information & explanations given to us, the
Company has no internal audit system commensurate with the size and
nature of its business during the year.
viii. On the basis of information & explanations made available to us,
we are of the opinion that, The Central Government has not prescribed
for the maintenance of any cost records under Section 209(1)(d) of the
Companies Act 1956 for the Company
ix. (a) On the basis of our examination of the books of account and
according to the information & explanations given to us, the Company is
regular in depositing with appropriate authorities undisputed statutory
dues, except Provident & allied fund, Employee state insurance, Income
Tax (T.D.S.), Fringe benefit tax, Service tax and Professional Tax.
According to the information and explanations given to us, the
undisputed amounts payable are Provident and allied Fund of Rs. 10.90
lacs, Employees state insurance of Rs. 11.42 lacs, Income Tax (T.D.S.)
of Rs. 26.68 lacs, Fringe benefit tax of Rs. 15.13 lacs and
Professional Tax of Rs. 6.91 lacs which were outstanding as at 31st
March 2011 for a period of more than six months from the date they
became payable.
(b) According to the information and explanations given to us, there
are no dues of sales tax, customs duty, excise duty, service tax,
wealth tax and cess which have not been deposited on account of any
dispute, except the disputed Income tax demand. The amounts involved
and the forum where the dispute is pending are detailed in the
statement given below:
Sl. Name of the statute Nature of Dues Rs. in lacs Forum where
dispute is
pending
01 Income Tax Assessed demand 8.36 ITAT, Chennai
for A.Y: 2003-04
02 Income Tax Assessed demand 2.95 CIT (A),
for A.Y: 2004-05 Chennai
03 Income Tax Assessed demand 91.60 CIT (A),
for A.Y: 2005-06 Chennai
04 Income Tax Assessed demand 171.45 CIT (A),
for A.Y: 2006-07 Chennai
05 Income Tax Assessed demand 9.28 AO-VI Chennai
for A.Y: 2007-08
06 Income Tax Assessed demand 2.36 AO-VI,Chennai
for A.Y: 2008-09
x. The Company has accumulated losses of Rs. 153.72 lacs and it has
incurred no cash loss during the financial year covered by our report
and also in the immediately preceding financial year.
xi. Based on our audit procedures and according to the information and
explanations given to us, we are of the opinion that the Company has
not defaulted in repayment of dues to financial institution, banks or
debenture holders during the year.
xii. The Company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other similar
securities.
xiii. In our opinion the Company is not a chit fund or a nidhi / mutual
benefit fund / society, therefore the provision of clause (xiii) of
paragraph 4 of the aforesaid Order is not applicable to the Company.
xiv. As per records of the Company and the information & explanations
given to us by the management, the Company is dealing in or trading in
shares, securities, debenture and other investments and in our opinion,
proper records have been maintained of the transactions and contracts,
and timely entries have been made therein, also the shares, securities,
debentures and the other investments have been held by the Company in
its own name.
xv. According to the information & explanations given to us, the
Company has not given any guarantee for loans taken by others, from
banks or financial institutions, the terms & conditions whereof are
prejudicial to the interest of the Company.
xvi. On the basis of our examinations and according to the information
and explanations given to us, the company has during the year not
raised any term loan.
xvii. 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 fund raised during the year on short-term basis have been used
for long-term investment .
xviii.The Company has made preferential allotment of shares during the
year to a party covered in the register maintained U/s. 301 of the
Companies Act'1956. On the basis of record made available and according
to the information & explanations given to us, we are of the opinion
that the price at which the shares have been issued is not prejudicial
to the interest of the company.
xix The Company has not issued any debentures during the year under
audit. Accordingly, the provision of clause (xix) of paragraph 4 of the
aforesaid Order is not applicable to the Company.
xx The Company has not raised any money by way of public issue during
the year. Therefore the provisions of clause (xx) of the paragraph 4 of
the aforesaid Order are not applicable to the Company.
xxi During the course of our examination of the books of accounts
carried out in accordance with Generally Accepted Auditing Practices,
we have neither come across any instance of fraud on or by the Company
nor have we been informed of any such case by the Management.
For GOENKA SHAW & CO.
Chartered Accountants
FR No. 319075E
Sd/-
(CA Saroj Kumar Swain)
Partner
Membership No. 061912
Kolkata, India
30th May, 2011
Mar 31, 2010
1. We have audited the attached Balance Sheet of ONTRACK SYSTEMS
LIMITED as at 31st March 2010, the Profit & Loss Account and also the
Cash Flow Statement for the year ended on that date. 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 the Auditing Standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by Management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (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 227of the Companies Act 1956 and on the basis of such checks
as we considered appropriate and according to the information and
explanations given to us, we enclose in the Annexure a statement on the
matters specified in paragraphs 4&5 of the said Order.
4. Further to our comments in Annexure referred to in paragraphs 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;
(iii) The Balance Sheet , Profit & Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account;
(iv) In our opinion the Balance Sheet, Profit and Loss Account and Cash
Flow Statement dealt with by this report comply with the
Accounting Standards(AS) referred to in sub-section (3C) of section 211
of the Companies Act 1956;
(v) We have no such observations, which have an adverse effect on the
functioning of the company.
(vi) On the basis of written representations received from the
Directors of the company, and taken on record by the Board of
Directors, we report that none of the Directors is disqualified as at
31st MarchÃ2010 from being appointed as a Director of the company in
terms of clause(g) of sub-section (1) of section 274 of the companies
Act,1956.
(vii) In our opinion and to the best of our information and according
to the explanations given to us the said accounts read in conjunction
with Significant accounting policies and Notes to the accounts as
referred to in Schedule Ã24Ã, subject to the attention invited to note
No. B(2),B(3),B(4)&B(5) and the consequent impact thereof if any on the
financial statement for year can not be ascertainable and commented
upon by us, give the information required by the Companies Act 1956 in
the manner so required and give a true and fair view in conformity with
the accounting principles generally accepted in India:
a. In the case of the Balance Sheet of the state of affairs of the
Company as at 31st March 2010
b. In case of the Profit and Loss Account of the profit for the year
ended on that date; and
c. In the case of Cash Flow Statement of the cash flows for the year
ended on that date.
Referred to in paragraph 3 of our Report of even date
1. (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of its fixed
assets.
(b) As informed, the fixed assets have been physically verified by the
management at the year end and no material discrepancies are reported
to have been noticed on such verification.
(c) During the year the company has not disposed off of substantial
part of itÃs fixed assets. Therefore the provision of the clause (ic)
of paragraph 4 of the aforesaid Order in our opinion is not applicable
to the Company.
2. (a) The inventory has been physically verified by the management
during the year. In our opinion the frequency of verification is
reasonable.
(b) In our opinion and according to the information & explanations
given to us, the procedures of physical verification of inventories
followed by the Management are reasonable and adequate in relation to
the size of the Company and nature of its business.
(c) On the basis of our examination of records of inventory and in our
opinion, the Company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stocks and
the book records were not material in relation to the operation of the
company.
3. (a) On the basis of our examination of the books of account and
according to the information and explanations given to us, the Company
has during the year not granted or accepted any loans secured or
unsecured to/from Companies, firms or other parties covered in the
Register maintained under Section 301 of the Companies Actà 1956.
(b) In view of our comment in paragraph iii(a) above, other clauses of
the paragraph 4 of the aforesaid Order are not applicable to the
Company.
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 with regard
to purchase of inventory and fixed assets and for the sale of goods and
services. Further during the course of our audit, we have neither come
across, nor have we been informed of any continuing failure to correct
major weaknesses in internal control system.
5. (a) On the basis of our examination of the books of account and
according to the information and explanations given to us,
the Company has during the year entered into transaction that needs to
be entered into the Register maintained under Section 301 of the
Companies Act 1956.
(b) According to the information and explanations given to us, the
transaction made in pursuance of such contract or arrangement have been
made at prices, which are reasonable having regard to the prevailing
market prices as on the date of such transaction.
6. In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposit from the public
within the meaning of section 58A and 58AA or any other relevant
provisions of the Companies Act, 1956 and the Companies (Acceptance of
Deposits) Rule 1975. To the best of our knowledge and according to the
information and explanations given to us, no order has been passed by
the Company Law Board or National Company Law Tribunal or Reserve Bank
of India or any other Tribunal against the company.
7. According to the information & explanations given to us, the
Company has no internal audit system commensurate with the size and
nature of its business during the year.
8. On the basis of information & explanations made available to us, we
are of the opinion that, The Central Government has not prescribed for
the maintenance of any cost records under Section 209(1)(d) of the
Companies Act 1956 for the Company
9. (a) On the basis of examination of the books of account and
according to the information & explanations given to us, the Company is
regular in depositing with appropriate authorities undisputed statutory
dues, except Provident & allied fund, Employee state insurance, Income
Tax (T.D.S.),Fringe benefit tax, Central sales tax, Service tax and
Professional Tax.
According to the information and explanations given to us, the
undisputed amounts payable are Provident and allied Fund of Rs.45.54
lacs, Employees state insurance of Rs. 9.76 lacs, Income Tax (T.D.S.)
of Rs.136.23lacs, Fringe benefit tax of Rs.10.21 lacs, Central sales
tax of Rs.6.65lacs, Service tax of Rs. 1.29lacs and Professional Tax of
Rs6.18 lacs which were outstanding as at 31st March 2010 for a period
of more than six months from the date they became payable.
(b) According to the information and explanations given to us, there
are no dues of sales tax, customs duty, excise duty, service tax,
wealth tax and cess which have not been deposited on account of any
dispute, except the disputed Income tax demand. The amounts involved
and the forum
where the dispute is pending are detailed in the statement given below:
Sl. Name of the
statue Nature of Dues Rs. in lacs Forum where dispute
is pending
01 Income Tax Assessed demand 8.36 ITAT, Chennai
for A.Y: 2003-04
02 Income Tax Assessed demand 2.95 CIT (A), Chennai
for A.Y: 2004-05
03 Income Tax Assessed demand 91.60 CIT (A), Chennai
for A.Y: 2005-06
04 Income Tax Assessed demand 171.45 CIT (A), Chennai
for A.Y: 2006-07
05 Income Tax Assessed demand 9.28 AO-VI Chennai
for A.Y: 2007-08
06 Income Tax Assessed demand 2.36 AO-VI, Chennai
for A.Y: 2008-09
10. The Company has accumulated losses of Rs.470.24 lacs and it has
incurred no cash loss during the financial year covered by our report.
However the cash loss in the immediately preceding financial year is
Rs. 549.20 lacs.
11. Based on our audit procedures and according to the information and
explanations given to us, we are of the opinion that the Company has
not defaulted in repayment of dues to financial institution, banks or
debenture holders during the year.
12. The Company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other similar
securities.
13. In our opinion the Company is not a chit fund or a nidhi / mutual
benefit fund / society, therefore the provision of clause (xiii) of
paragraph 4 of the aforesaid Order is not applicable to the Company.
14. As per records of the Company and the information & explanations
given to us by the management, the Company is dealing in or trading in
shares, securities, debenture and other investments and in our opinion,
proper records have been maintained of the transactions and contracts,
and timely entries have been made therein, also the shares, securities,
debentures and the other investments have been held by the Company in
its own name.
15. According to the information & explanations given to us, the
Company has not given any guarantee for loans taken by others, from
banks or financial institutions, the terms & conditions whereof are
prejudicial to the interest of the Company.
16. On the basis of our examinations and according to the information
and explanations given to us, the term loan availed by the company were
, prima facie, applied for the purpose for which they were obtained.
17. 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 fund raised during the year on short-term basis have been used
for long-term investment .
18. According to the information & explanations given to us, the
Company has not made any preferential allotment of shares to parties
and companies covered in the register maintained under section 301 of
the Companies Act, 1956. Accordingly, the provision of clause (xviii)
of paragraph 4 of the aforesaid Order is not applicable to the Company.
19. The Company has not issued any debentures during the year under
audit. Accordingly, the provision of clause (xix) of paragraph 4 of the
aforesaid Order is not applicable to the Company.
20. The Company has not raised any money by way of public issue during
the year. Therefore the provisions of clause (xx) of the paragraph 4 of
the aforesaid Order are not applicable to the Company .
21. During the course of our examination of the books of accounts
carried out in accordance with Generally Accepted Auditing Practices,
we have neither come across any instance of fraud on or by the Company
nor have we been informed of any such case by the Management.
For GOENKA SHAW & CO.
Chartered Accountants
FR No. 319075E
Sd/-
Kolkata, India
(CA Saroj Kumar Swain)
29th May, 2010
Partner
Membership No. 061912